BBD

Good morning everyone, thank you so much for joining us again. We are here once again to speak about our earnings results, especially for the second quarter of 2026. We are talking to you straight from our studios at Cidade de Deus. Now it's 10:31 A.M., August 6th. We are here live and alive and kicking. If I even say this, probably the young generation doesn't even know what it is. We are here broadcasting live from Cidade de Deus. I'm here to present our results. As you've seen from yesterday's publication, we reached BRL 7.1 billion net income in the second quarter and 16.2% growth year-on-year, 3.5% quarter-over-quarter, with ROAE of 16.2%, higher than what the market expected, because the market expected that we would reach 16% ROAE in the last quarter of this year. Here I bring a summary of our presentation.

I'm not going to elaborate on any of those topics. Loan portfolio is growing with more guarantees with a very good risk-adjusted return. In the past two months, our IR department has been talking to investors, they are asking us about what is happening to the macro landscape and the credit landscape. I will talk about our standing vis-à-vis revenue, also we will talk about our accelerated transformation project. I'll talk to you about cause and effect. This is what I always do. What is behind this result, and why are we growing our loan portfolio? We posted growth of 11.6% year-over-year, even more than quarter-over-quarter. The portfolio reached BRL 1.137 billion, and even KEGA, we posted 11.7% growth. Why is that? Well, that's explained because we have high penetration commercial traction.

We have a very good and well-equipped commercial team with a lot of intelligence behind it. Also we have digital channels. I'll talk about the FGO. We were the first bank to provide a very seamless FGO experience, this is happening throughout the organization, I'll go through all of that through my comments. The cause is commercial traction in all business segments, in all business lines, no exception. This culminates in the growth of our loan portfolio. Further on, I'll talk about the other items or end line items in our revenue. SMEs posted 16.1% year-over-year, despite the baseline of the same period of last year. This is a big highlight. Large corporates grew 12.7% year-over-year, I'll elaborate on large companies further on. Individuals, 8.4% growth year-over-year.

That means that we are growing in different lines and in all aspects that we wanted to grow. We are also growing in customers with good ratings, with good credit modeling, and adequate policies in every segment we operate. I'd like you to remember one number, because SME grew 5.1% quarter-over-quarter. This portfolio year-on-year grew BRL 37 billion. Let's bear that number in mind, because we will talk about it later on. I have some other figures for you here, because they are in tune with what I said before. Where do we want to grow? Okay, earmarked credit, mostly FGO, FGI, mortgage, including the Plano Empresário. We grew 21.4% when compared to 12.7% in the market. When I look at non-earmarked, we grew slightly lower than the financial system.

We have the other unsecured lines that we don't have a lot of risk appetite. We grew more in corporate because we have more secure lines when it comes to corporate. We are well tractioned in the payroll-deductible loan, we are also very comfortable in direct credit to consumer. See here, corporate, we grew 14.7% versus 7.9%, which was the market growth. We are growing in the lines that we want to grow, we are focusing our teams and our digital channels to these particular lines. Let's zoom in to our expanded loan portfolio. All of them have risk-adjusted return periodically assessed by myself included. Last week we looked at two other portfolios. We are constantly looking at that and we make fine-tuning and make adjustments. We are not saying that we will look at this or that.

We are leaders in some areas, the main focus is to look at risk-adjusted return. Here I'm referring to the wholesale bank with this level of growth. Where did we grow in the wholesale banking? We will talk about the agribusiness area, we were leaders in fixed income origination, also securities, part of our securities go to OPD portfolio, which is origination for distribution. We'll distribute something to the market, we go into the secondary market because you optimize capital or you optimize profits. That's why I say that wholesale portfolio has its ups and downs. It can go up, it goes down. Here we grew in the rural area or agribusiness with M&A opportunities in very specific lines.

I would say that there are two operations that we did, one in agribusiness, which was an M&A with an AAA client, another client with very good ratings, with extreme liquidity. In these two transactions alone, we were able to post BRL 6 billion in the wholesale bank. We grew a lot in the plano empresarial or entrepreneurial plan. We grew in different segments in the wholesale bank and also SME. This is a line that is posting considerable growth. We will also focus on the individual segment. Where else? We are the largest funders of aviation leasing. We have 64% market share. Everything that was done in this first quarter in terms of aircraft that were financed to companies and also wealth management is right here, 64%.

We are leaders when it comes to aircraft leasing, particularly among those clients that have a very well-positioned and collateralized risk management. I go back to wholesale and SME. I'm talking about individuals plus SMEs in the expanded loan portfolio. This is the level of growth we posted. Here we are talking about origination. Origination, the average monthly origination in these lines for wholesale and SME, the average origination quarter-on-quarter was mostly in FGI and FGO and also mortgage and also on the business side. In the other products where the risk appetite is lower, there was a decline in average origination by 7.7%. We move on to help you understand all of our tactic and strategic moves. Let's look at the mix of our loan portfolio, FGI and FGO origination.

There is a lot of competition in this area by all incumbent banks. We were number one in market share with 21.6% market share. The same thing goes for the entire year of 2025. In the quarter, our origination was up 52.7% in the second quarter when compared to the first quarter of 2026. Now let's take a look at retail and SME, the last available data by the Central Bank for those clients that earn up to BRL 2 million a year. This is something we said since the Unsettled Plan, we saw new growth superseding 70% of market share, and our FGI/FGO portfolio grew 64.5% year-over-year. This is an extremely secure portfolio by both fronts. There are five lines of FGI and FGO, and we operating all of them.

Now, later on I'll talk about the effects of NPL over 90 and cost of risk. Credit card, you notice that the bulk of the growth is in high income with lower appetite in smaller income. We are being very cautious here, we might bear in mind that we still have clients that have lower income, they pay on time, they are payroll clients, they are clients from our partnerships. These lower incomes, they're losing share in the portfolio in the past 30 months, they're still there. Now if we look at credit card delinquencies, this delay comes from old cohorts. About 80% comes from cohorts from 2019, and most of the time are clients that have their payroll with us, and they were in dire straits, or they lost their jobs, or they faced some difficulties.

This doesn't apply to newer cohorts. There is something else here because this is a relationship product. We want and we are choosing the right clients with the right ratings, with a very assertive credit policy. Every time we look at credit card, we are looking at cost of risk and provisions, eight times more than what we used to do in the past. Now let's go down to the next line, vehicles. We recorded growth of 26.8% year-over-year. We were leaders in one or other quadrants of vehicles, heavy vehicles, light vehicles, and semi-new or used vehicles. We were not leaders in new heavy vehicles because the risk-adjusted return here is lower.

Last year I told you that we will start operating in the vehicle segments because we saw some opportunities in some segments and we thought that we could post growth. We completely changed our operating circuit. We changed the platform. We added machine learning, AI behind pricing, risk modeling, credit policy, and also pricing for clients and dealers. With that, customer experience changed completely. We delivered different experiences for dealers and clients. With that, we were able to increase our share. When I talk about semi-new vehicles or used vehicles, I'm not talking about 20-year-old vehicles or heavy vehicles. I'm talking about vehicles that are five to six years old, depending on the ratings of our clients. We gain share where we have higher risk-adjusted return. If you look at the motorcycle market, our appetite is more moderate.

There are other banks that operate in that line segment. This also means that when we grow this portfolio, on average, we say that we get 1% provision, cost of risk according to the 4966. The client that is delinquent, there is always someone that is paying late. Right at start, we have 12% on top of the balance of that client in terms of cost of risk. That's why I like to explain that dynamics, because it's easier for you to understand what it means by over 90 and cost of risk. Payroll loan was up by 9.3%. If you were curious enough to look at the full year of 2025, you would see that in some quarters we were growing at the pace of 5%. That means that we expanded our growth. Where did we grow the most? Well, private.

Year-over-year, we grew 88% in public. We continue to grow public payroll loan. We are the largest private bank when it comes to public payroll loan and private payroll loan. We are just behind two banks that are government banks. Delinquency on payroll loans, I think it's important to say, because this shows what we are doing in terms of portfolio management. Risk-adjusted return and risk control, in fact. When we look at payroll loan in general, the delinquency of the market is 3.3%, and ours is 2.5%. When we only look at the private segment, and this has made the news and the headlines, the market without Bradesco has an over 90 delinquency of 8.9%, whereas ours is 4.7%. Now moving on, I'll talk about agribusiness. It grew almost 25% year-over-year. Look where it's stretching.

In the wholesale bank, I mentioned one M&A event with a large client, and this is where wholesale bank increases with guarantees, secured AA and AAA clients. We do believe in Brazilian agribusiness. We understand that this involves a cycle that is a bit more difficult for one reason or another, but there are many good clients there. Therefore, we chose to continue to operate in this market with good ratings. If you look at the agribusiness individuals portfolio, if we look at June and then you compare it to December 2025, there is a decline of 0.6%. Then there is another example, our over 90 NPL.

This segment, the market without Bradesco in March, it went from 7.3% to 7.6%, and Bradesco went from 5% to 4.6%, meaning that our delinquency is well under control without the John Deere bank that has higher delinquency, which also affects our NPL, 15 to 90. Our market share in Brazilian agribusiness is about 12%. This is just an estimate. Our share in court reorganization is 3.5%, and we monitor this very closely. This percentage is much lower when compared to the market. This is good to show you how we manage our portfolio. We manage in terms of risk-adjusted returns and with a lot of portfolio control, choosing, being very selective in terms of our clients. Here, I comment on secured lines. This is a production chart that refers to the expanded loan portfolio for individuals and SMEs.

Looking at the chart, origination, FGI and FGO, and mortgage for individuals and also corporate gained traction in the last quarter. There is also payroll loan here. This also contemplates payroll loan. It is not just clean credit. The spreads, well, first of all, the absolute number goes down because this is fine-tuning of risk, I would say. New modeling, risk appetite. The spreads in the other lines, they were up 11% when compared to the third quarter of 2025. Now, looking at the right side of the chart, we have the guarantee claim periods from government programs like FGI and FGO. They take 180 days or 185 days to receive payment. We are within the stop loss because there are rules that apply here. At FGO, you have 100% coverage and still correct it for inflation.

Our stop loss is foreseen for each one. It depends on where our risk appetite is. There are two phenomenon here. The first has to do with the cost of risk, because according to 4,966, while you wait for the payment period, for the guaranteed payment period for companies, which had maturities in grace period. After the grace period, maybe they couldn't pay, they were delayed in their payments, then we call in provisions. It is different than when compared to a clean credit. We get provisions until the guarantee claim period, and then we just return with the provision amount. There is a second aspect here that puts pressure on overnight with maturities and grace periods. Our production peak of FGI and FGO. Last year when we became leaders, the period was between March and October of last year.

Now, we see maturity peaks in the grace period, even though we are close to 50% of this entire scenario. We moved to the loan quality indicators, like overnight was up 10 basis points, so it is flat for us. Individuals, 10 basis points as well. SMEs, government lines, FGI and FGO, it happened in the previous quarter and this quarter alone. It puts pressure on overnight NPL until the curve stops growing. It takes some time, and then we will get normal after the guarantee is paid. We are not worried about that. Wholesale is 0.2%. I move to the loan portfolio by stages. There is a footnote here that talks about NPL 15 to 90 with 30 basis points of variation. This mostly comes from the John Deere bank that had some variations in the third quarter.

This level of delinquency was up significantly. We know that all of the equipment has a chip and there is a recovery time, an updating time for some clients. The equipment is sitting there, it is still operating, then all you have to do is update their payments. Look at stage 3. We had 10 basis points as a variation that came from a specific client from the wholesale bank because the bulk of the provision came from last quarter, and we did a little bit this quarter. It was duly provisioned, but part of it was derivative and securities, and this client restructured himself in the market with bondholder. It is a very well-known client, but we do not comment on the specific cases. That was that specific case that generated this.

Stage 2 that has a 0.6 variation was basically justified by FGI and FGO with 0.2 approximately, slightly above that. The John Deere Bank as well, that put pressure on this KPI that is transferred to stage 2. The remaining is diluted in the portfolio, even though our delinquency levels are lower when compared to the market. Now looking at the restructured portfolio that was decreasing with time, then we said that we are reaching a balance here. This variation you see, comes from that client again that went to stage 3. That is obviously here in the restructured portfolio. If it weren't for that one, even with the Desenrola Brasil program, we would have let that go. It's covered today, totally covered today. It's absolutely within what we anticipate in terms of expected loss.

Desenrola Brasil, we did this much into June, this is open for everyone to see. What was the impact of this overnight? Cost of risk and result, that is almost zero. It's null. 0.00 something else, but almost nothing. This was enforced into July, it was extended to August. At the end of the third quarter, we will go back and talk about it again. Our secured portfolio, it's up to 61%, I mean, 69% secured loans in individuals. This is cause and effect. This is a work of diligent portfolio management. We are working more commonly with secured lines and in the composition of the mix that increases secured lines.

What is the other effect of the growth of our loan portfolio? It's the growth of total revenue that reached BRL 37.6 billion, up 10.3% year-on-year. Total net interest income, almost BRL 20.9 billion.

Fee and commission income, BRL 10.5. I will comment on that later on. Also the insurance group that has been shown great resilience every quarter with good returns at this level of growth of 8.3%. Here for the second quarter of 2024 to second quarter of 2026, our CAGR, this is the average growth, is 12.5%. The effect of the loan portfolio, which has more guarantees, generates this. I also read some comments of some investors about our client NIIs and the market NII. I would like to highlight the market NII. There was BRL 700 million in this quarter, growth by almost 21.7%, thanks to the competent work of our treasury team, working very well in trading, ALM and energy desk, client desk and so on. People wrote that top was the market NII that grew 22%.

When I look at the client NII, almost 14% growth year-on-year. If you look at the figures, this market NII year-on-year was BRL 350

BRL million approximately, it's increased by twofold. Well, it grew a lot. When we look at the client NII, I look at this, it went from BRL 17.8 billion to BRL 20.2 billion, BRL 2.5 billion of absolute growth. The client NII is not only from the loan portfolio. The liability grew relevantly, it drove this total growth of the client NII. The cost of risk grew, it was flat in proportion at 3.5% with all those points I mentioned of FGO, FGI, John Deere. The client NII net of provision at 4.5%, reflecting obviously the cost of risk over here. The growth is not significant. If you look at our loan portfolio at the end of 2023, you will see that we grew in 30 months, 30%.

When you grow, you call more provision, the cost of risk goes up, in addition to everything I've mentioned. Going on to the new topic, which is a consequence of also the traction in the commercial side and client penetration. We grew 1.7% in fee and commission income. We believe that we are within the guidance. I would like to highlight the resilience over here. Consortium and also asset management, both growing at 10%. Custodian brokerage service is 26.4%, I highlight the highest result that we've had with our agro brokerage and agro market. They are both combined, they are working in synergy with only one broker with the services for individuals, supporting wealth, and also for institutional clients with their respective teams. When you open the whole earnings release of the fee and commission income, you will see the following.

You will have nine lines, strictly speaking, we have a diversification of revenues with this grade, which is at least 15. I'm not talking only about the credit card of separating the annuity. What I'm saying is that we have other lines that are also coming with equivalents and affect this. We do believe in our capacity to grow. Over here in capital markets, we have been growing well. It decreases year-over-year because we had a very good second quarter last year and all the adjustments we did in the investment bank, we reached here, we ranked first in local origination, first in M&A. The evaluation was negative due to natural reasons, because you have a higher baseline in that second quarter.

In our different lines, what we've been doing is BRL 1 billion more in revenue in 12 months when compared to 2023, we've been doing that with resilience. Forward. Other revenue lines that we have. We have insurance, pension plans, and savings bonds. Another robust quarter with growth by 28.3% in net income, reaching BRL 2.9 billion. We are growing based on a baseline which is high, reaching these levels that you can see here. When we look at the results of the insurance operations, we see that the total income had an increase of 8.3% year-on-year, 14% in the semester, in the half. In the quarter, the operating result, the industrial result, as they call, grows more than the financial one, and in the first half, the same.

The traction is good, and let me give you an example that in the press conference, Nate mentioned this topic, and I emphasized it. In the new platform that we have for autos, for vehicles, what happened? We sell with a totally different experience for the clients during sale, and then clients can either choose if they want the insurance for vehicles or not. What happened is that we did the whole production that we did in these two lines through Bradesco Financiamentos in our network in 2025. We grew almost by 100% in the production of these two types of insurance. The ROAE, the quarterly ROAE, almost 22.8%, and the technical provisions, almost 10%, BRL 467 billion provisions in the largest insurance group in Latin America. Operating expenses, year-on-year growth by 3.4%. We continue reviewing our footprints and investing in our transformation.

We haven't stopped doing anything here. It's gain in efficiency. If you look at the full earnings release, you will find lines just like installations with negative variation, and obviously, that does influence our efficiency ratio. Obviously, a growth of 3.4% is below inflation. Capital, and I will be available for you to ask me about the increase that was approved by the board. We went from this common equity from 0.9%, and we are at 12.2%. This difference of Bradsaúde in the next period, this is our expectation. That can come to 13.6% and 15.1% in Tier 1 capital. These have a lot of deliverables done in our transformation, and I'd like to call your attention to Bradesco Principal that we will have almost 800,000 clients, and we have delivered that. Bradesco Prime has almost 4.3 million clients.

Bradesco fully digital, 36 million clients in the middle of the year. We're going over 40 million clients. I will mention that later on. We are delivering a lot of new things for our clients, individuals, and corporate, with the issuance of NFE, gaining in productivity, delivering more and more intensive use of AI in our organization and of other technologies, too. I will talk about that later on. Well, we have two screens to end and summarize all of this. We have a consistent net income growth step by step. We continue with that with a lot of resilience and obviously, with great belief in everything that we've been doing. Look at this, the operating result, which is in the full earnings release. We're growing over 14% in the operating results, with revenues growing double digits.

We are a conglomerate, this revenue diversification we have, not only in the banking activity but in the payments and in the subsidiaries like consortium and in the insurance group. We do have a very huge diversification, which gives us resilience. The transformation plan is very clear, and it's generating greater competitiveness across business lines, both in terms of efficiency and expenses and revenues. Portfolio is growing safely with more guarantees and a good risk-adjusted return. This is our bible here. I also mentioned this, we ranked first in fixed income M&As during this period, vehicle financing, and in government debt, lines FGI, FGO, in consortiums and the insurance group, the largest in Latin America. That's not the end objective. Our objective is an optimum point of the risk-adjusted return, obviously with scale absolute revenue, to take decisions in our positions safely.

We have strengthened our balance sheets to unleash the value of Bradsaúde. We're continually focused so that the tangible capital of our organization is greater and greater. That's the objective. All of that with pragmatism. We were awarded many prizes. If you would like to know more about that, have a look at it. I would like to conclude with this platform that we launched here in the bank called Meu Bradesco, and it has an important meaning. Why is it called Meu Bradesco, My Bradesco? I'm talking about hyper-personalization. It's yours. It belongs to our clients. You come first. He is Meu Bradesco. They are already hyper-personalized, but it will grow more and more. This hyper-personalization with all the innovation that we've been working on with AI, with the new experiences for clients.

Our BIA celebrates 10 years now with a birthday cake with Renato and his team and everyone who works with BIA, and everyone has a birthday cake for BIA, pioneer here in Brazil. Today, BIA is BIA GenAI and serves all our clients. She's available to 100% of clients with access. With this level of accuracy, we had 74 million interactions, and it is transactional and also conversational. You can do your Pix through BIA and other transactions, too. As you will see throughout this semester, other new experiences, more technological, but never less humane. This is our topic. This is the connection behind our manager, and that is connecting the digital channels with our clients and also connecting the strength in sales with our clients. We will see the launching of our market throughout the day-to-day in social networks and in other media. Okay?

With Meu Bradesco, My Bradesco. Thank you so much for your patience. I know I took longer to explain, but now we're going to the Q&A. I'm here live with my friends, André Carvalho, IR, and Cassiano Scarpelli, CFO and CTO, to answer the questions that you have here. Thank you so much. Thanks for participating.

Thank you, Marcelo and Cassiano. Good morning to you all. I would like to remind you that Ney Dias, the CEO of Bradesco Seguros, and Carlos Marinelli from Bradsaúde. They are also joining us remotely. If you want to send your questions, your questions can be submitted in Portuguese or English. Just use the email [email protected] or WhatsApp 1174438238, or just point your camera to the QR code on the screen. André, if you allow me. Sometimes we forget to say a few things. I would just like to go back for one sec if you give me that chance. I would just like to go back to our presentation because I talk about the SME portfolio. I just want to mention one small thing. When we talk about SMEs, I think this slide. Keep that number in mind, BRL 37 billion. 10 seconds. Here.

I said that our FGI and FGO grew 64.5%. You know how much that grew from BRL 37 billion? BRL 31 billion came from year-on-year. What about the rest, the other BRL 6 billion? Well, it came mostly from leasing, direct credit to consumer. We finance aircraft, jets, and big boats on the wealth management side, and the Plano Empresário. This is where our portfolio is. SME growth. It grew mostly based on secured lines, secured credit. I just remember that when I said that. I do apologize for that interruption. I just didn't want to leave that information behind. First question from Mario Pierry with Bank of America. Mario, you have the floor. Good morning. Good morning. Congrats on your results. Thank you for taking my question. Noronha, I would like to focus on that capital slide.

You show that your common equity tier 1 is 11%. You still have 140 basis points to recognize from the Bradesco transaction. I just want to understand why there is this delay in terms of acknowledging that 140, and what else is missing for you to be able to recognize that. With that, you will reach 12.7% tier 1. You just announced BRL 10 billion of capital increase, and this will take another 90 basis points of capital. You will get to 13.6%. I think you've heard some investors being very skeptical about that. Why do you need to have so much capital now? I think the best thing would be for investors to hear straight from you why, in your opinion, you think that the bank would need such a high level of common equity at this point. Well, Mario, thank you so much for joining us.

It's a pleasure to talk to you. Thank you for the question and the opportunity to talk to investors and all of you analysts about this topic. First of all, let me expand this view. We do believe that strong capital is always very healthy for a banking organization. We should look at a benchmark because when we talked to the board, we talked about that with the board. Trabuco even drew our attention to that point. We look at JPMorgan. JPMorgan has about 15% of common equity if I am not mistaken. Having a strong common equity is a positive thing. We were questioned about that. We had a very strict capital discipline because when we provide more collateralized credit, you can allocate your capital better. I mean, the risk-adjusted return.

We already recognized part of the capital from Bradesco. That difference has to do with the process. P&L delivery because there is a timing. That was something very recent. We are just waiting for the green light from the regulators. The other issue related to capital increase, that was a decision from shareholders, controlling shareholders that are very capitalized. They look at the bank, they looked at our organization as a whole with returns above the cost of capital. You have that cash invested at the ongoing interest rate. They saw an opportunity not only to buy shares because they believed that this could strengthen the franchise. This is just a testimony of confidence in the company. They trust the company, they trust the administration, everything else the management is doing throughout its transformation plan.

That's why we decided to anchor at least BRL 8 billion out of the BRL 10 billion. Having common equity above 13, it's not a sin. With all due respect to other organizations that follow different policies. We certainly have to look at your current moment. We are going through a very strong transformation phase. We see the possibility of giving bigger steps in this delivery process. Maybe in the future, things might be different, but right now, this is what gives us resilience, and it shows that the controlling shareholders really trust this management and this company. Thank you for your question. I think Cassiano has something to it. We've been talking a lot to the market, we are talking about tangible capital. I think we have to bear in mind the concept of tangible capital.

These BRL 10 billion, they are straightly related to tangible capital also opens other possibilities. It's a much more robust bank. We can work better with our own working capital, tangible capital. This gives us more comfort to work with other macroeconomic scenarios, we can also leverage our business. Therefore, we bring additional comfort to the bank with this trust from controlling shareholders because they were up to come up with up to BRL 8 billion. You can only do that in the financial world, we can do that through capital raised. We decided to anticipate IOC so that shareholders could strike a financial balance close to what is being suggested in terms of capital raised. We are comfortable with this level of common equity because we can control our tangible capital versus DTA and versus the consumption of that.

Therefore, I think that this is what embodies this capital increase. Your question is important, and Cassiano highlighted, I mentioned that during my presentation. Tangible capital, we look at it with a magnifying lens. We look at that all the time. We monitor it constantly. We look at tax credits. We also discuss that with our board members. What the executive board asks the board says that the reason why we released that before the result instead of releasing it today is for a very simple reason. On the 29th, we had a board meeting, as you know, the ordinary meeting when we took that subject for approval because we have to disclose it to the market, because on the 31st, we also had the payment of another IOC.

There are some shareholders that have been with us for a long time, individuals, companies, family holding organizations, we also have institutional investors. Many of them, they talk to us all the time. They approach our IR, they also invest in other portfolios. If we had paid and if we had disclosed it today or released it today, they could have been telling us that, "If I am a long-term investor, probably I would have to come up with some money to help increase capital." We were concerned about these shareholders. Thank you, Marcelo. Thank you, Mario. We have a stronger P&L, better outlook in our revenue with better tangible capital. Next question from Navarro with Santander Bank. Thank you. Thank you all. Thank you for the chance of asking questions. My question, in fact, it's a request.

I want to hear Noronha and Bradesco to tell me more about your experience, because maybe you can help me shed a light on what could happen to the credit landscape this year and next year. There is an ongoing debate saying that this challenging credit scenario is not a cyclical one, but rather structural, meaning that it will remain challenging until the end of 2026 and also into 2027. In the case of Bradesco, naturally, we know that the bank has a more segmented profile. Individuals' income is slightly lower. How do you see Bradesco in this current scenario that structurally could be even more challenging? Meaning, as analysts, should we start thinking about slightly higher cost of risk?

Getting into 2027, should we think about a lower growth of the portfolio, or maybe I'll start thinking about reducing it lower, and this would decrease my possibility of doing cross-selling, and the portfolio would decrease. The fee income of banking services will be down as well. Help me understand what we should expect going forward, or whether we should start making adjustments for the numbers for 2027. Navarro, thank you for joining us. It's always a pleasure to talk to you. I will mention a few factors. I think that the average market or household income commitment is such, and with the ongoing interest rates, yesterday there was a drop in the Selic rate from 14.25% to 14%.

By looking at the inflation indicators, if you look at IPC numbers, I can say to you that the landscape is a lot more challenging when you look at the Brazilian credit scenario. If the EBITDA of companies is lower, it is therefore pressured by this interest rate, because if the duration was short, the effect could have been different. This is a fact, this is a reality. If you allow me, I would say to you that when you look at SMEs at Bradesco, the way you look at it's not the correct way to look at it. That's why I opened all the numbers. Our SME growth year-over-year was BRL 37 billion. BRL 31 billion out of that came from FGO and FGI within that stop loss. The level of loss is minimal. That's one thing.

Where does the rest come from? The Plano Empresário that we do middle market corporate and companies with good developers. The level of formality is different. I'll say to you that our appetite for lower income clients is much lower when compared to the past. When you look at the portfolio mix, let me give you one piece of information. The clean individual personal loan portfolio in all segments back in 2023, it accounted for slightly above 15% of our individual's loan portfolio. Today, it accounts for approximately 12%. How come 12%? First of all, we have personal loans. Even in the private segment, the rating is totally different, the structure is different. It's not for all. This is just one example I'm giving you. The mix is totally different.

The FGI, FGO total portfolio is close to BRL 80 billion, with a very robust growth, we are well-tractioned, it's a very resilient portfolio. What happens when you look at NPL over 90 and cost of risk? Cost of risk increases when you are growing with FGO and FGI due to that guarantee claim period. As I said, it goes from 120-185 days. You call for provisions of that client that went through the grace period and our peak of production that went from March of last year-October of last year, we were number one in origination. We have maturities there, this puts pressure on the cost of risk. What else could put pressure on the cost of risk? Rural or agribusiness through consolidation of the John Deere Bank.

If I grow the portfolio, which is the third variable, I also put pressure in the cost of risk at a certain measure. I look at top line and risk-adjusted return. I put the return that is due to that credit showing traction. A lot of people asked me, first time I came here, said, "If you lose clients, you won't be able to have any traction." We are showing a lot of traction with payroll loans, SMEs. Our SME is collateralized, is secured. We are not granting credit in that intermediary line. We are well collateralized, much more than in the past. The corporate portfolio was up by BRL 70 billion from the wholesale bank as well with secured lines, good ratings, the BRL 37 billion, as I said, from SMEs.

I see that we will continue to grow, moving towards the guidance because our wholesale portfolio fluctuates because most of what we do in terms of securities goes to origination for distribution. We distribute in the secondary market. There are moments that we are up and moments where we are down, we grow in other lines. As I said, we also finance aircraft, our portfolio was up by BRL 1.5 billion in this period. There was a large corporate client in from other segments from the wholesale bank. I'll tell you now that the market has its own risk. We also look at another indicator that was NPL overnighting for private payroll loan without Bradesco, 8.9% versus 4.5% since we started doing that in a moderate way until we had all of the Dataprev model well in place.

Because we have to do that fine-tuning. We are very careful in terms of managing our portfolio. It's obvious that when we grow the portfolio, when this thing about FGO and FGI and the agribusiness line and John Deere consolidation will bring cost of risk to a slightly higher level. We are operating with no additional stresses, in my view, for the year 2026. Thank you.

Thank you, Henrique. If you want to think forwards, look at our guidance. We work from the center of the guidance upwards. Next question from Thiago Batista, UBS.

Hello, everyone. Good morning, Cassiano and Andre. My question is about return. The ROAE achieved is 16%. You can discuss the cost of capital in Brazil. It's around 15%, 16%. We can say that Bradesco or your management delivered ROAE that was good. In the future, the next steps, could we believe that the ROAE continues to grow step by step? Where do you see the levers for this additional growth? Just to follow up in terms of capital. After the capitalization, Bradesco will pay more

Only that? Will it be capitalized, more recurrent? What will be the policy of distribution after this capitalization?

Let me start by the end. Thank you, Thiago, for your participation and for being here with us, and an opportunity to talk to you. In relation to the capitalization, we will pay the most we can, yes, of IOE. This had to do with our controller decision. At this moment, we don't have any other plan that is on the desk, on the table. For the future, we have to look at the dynamics looking forward. In relation to the ROE, our cost of capital is below 15% today. I would say that after yesterday, it's coming close to 14.5% with the new Selic rate. Yes, I do see an ROE that continues to grow. Obviously, when we capitalize, there's a greater challenge in relation to the ROE, because you increase capital, you have to have greater returns.

We do believe that we are continuing in our step by step, growing every quarter. Thiago, this is our horizon, a horizon with this deep belief. It's not a belief, it's not just faith, it's having your feet on the ground with a plan, with the transformation we've been doing, gaining in productivity, as you've seen with our KPIs, with the portfolio management, and with a very engaged team nationwide with over 70,000 employees in our organization. Thank you, Thiago.

Thank you, Thiago. Next question from Gustavo Schroden from Citibank.

Good morning. Thank you, Andre, Noronha, Cassiano. Congratulations for the ROAE and the cost of capital coming back. I would like to talk about NII. Noronha mentioned that at the beginning, that this is strong with clients, the market NII, let's say, has been surprising even for us. I would like to better understand how we can think of this market NII from now onwards. There was a change in the perspective of interest rates. What is the hedge policy of the bank in relation to portfolios and what goes to the market NII? If you could give us a little bit of help of how to think about the NII from now onwards, that would be great. Thank you.

Gustavo, it's great to see you once again. Thanks for joining us. I'm going to ask Cassiano to start answering, and then I'm going to add any comments.

Good morning, Gustavo. The market NII was surprising. I think it's important to say. Noronha was very clear. It was very important work from the treasury area and from all the desks. The commercial traction of the bank helps also a part of the desk, which is the commercial desk, the client one, which is perennial, and this has also brought good results. I think that's an important KPI. The energy desk is within this concept as a whole. Another important point is the consistent work we've been doing also. We don't have a hedge policy that is defined, and we've talked about that for some time. We do obviously the work in our daily work, seeking opportunities to capture the best possible result if there is some kind of uncoupling in the bank. This is an important result.

We had many important cases of having a specific LM policy, which is a slower cycle of what we expected in relation to a drop in the interest rate. The commercial and the client side, which has a traction in the wholesale and all the operations for the key accounts and also metal energy. These are structuring things that in the long term leaves us at a more comfortable position in market NII. We also achieved the soft guidance. I think it's important to say that. We believe that it will be slightly ahead, surpassing a little bit the soft guidance. I think you should look at this horizon as the 1.5, 1.9. There's still some opportunities. We are very satisfied and comfortable with the LM and also the commercial traction in terms of energy.

The trading, the exploratory one, specific one, is smaller in our ecosystem in the results of treasury.

I would like to add the following. We have a good risk management. We have teams, not only one team. We have very competent teams that are working very well, and this is the best answer I have. With great business traction and helping and supporting our clients and all the transactions Cassiano mentioned of the wholesale bank, of middle market, all that has generated great businesses for us. Today we can think that that soft guidance was left behind because we have larger figures coming close to BRL 2 billion. I think that's kind of reasonable. That's my horizon. Considering the team we have and everything we've been doing. Thank you.

Meaning the result is here to stay. It might be up from now on. Next question from Safra. Good morning, Andre, Cassiano. Congrats on your results and congrats on your initiatives in a direction of capital management. I would like to revisit NIM and cost of risk when it comes to risk-adjusted return that you call RAR, when you think about your exposure, your guarantees. If you isolate these two variables, NIM and cost of risk, I think you have liability margins going down due to the average Selic rate. Since your exposure, in addition to guarantees, I don't see any increment of NIM, but I see further stability. There is another driver that could put pressure upwards, has to do with the worsening of the stages.

We look at what Noronha said, 20 basis points coming from John Deere and other companies that have some guarantee claims, and 10 basis points from stage 3 on the wholesale side. I would like to understand, also related to cost of risk, if you think that that 3.5 level could be increased because of the macro risk. Not necessarily means that you're taking more risk, but the macro scenario is a bit more challenging. My first take is that maybe NIM should be lower and that there will be more pressure, and with cost of risk will be the opposite. How can you help me think about this equation? Well, first, Daniel, thank you so much for joining us. It's always a pleasure to talk to you. But again, I will ask my colleagues to add something after my answer. A lower Selic is positive. It's positive for us.

Our liability growth was significant, and it's being translated into cash management and more relationships. In turn, in the past two years, I think we only had one particular moment when the funding cost reached that level. The all-time low of our funding cost, and this helped our NII. When I look at the cost of risk, you're right. The market is worsening, and I showed some market indicators like private payroll loan, and we have half of NPL over 90. There are other people operating at higher risk. Less so incumbent banks when compared to other banks. That's my feeling. We have other effects of higher pressure that are linked to this structural aspect, and I talked about agribusiness. FGI and FGO. For me, this is a phenomenon, but it's only a timely one.

We are growing and this continues to happen, but we will see this curve come down, and so after some time it will be flat. Therefore, I'm very confident in our NII. I am very confident with our NIM and in this whole picture, because, Daniel, I will repeat what I said before. It's not just one line, because when we look at the financial revenue, we are looking at client NII, market NII, and client NII. It's not only asset, but also liabilities. When we look at fee and commissions income that maybe had a relative lower growth, we are believing in this higher growth. There are many lines because, as I said, if you look at the entire release, there are nine lines. But when you break it down, there are at least 15 lines, and they are quite diversified.

In addition to the insurance group, we have the payment companies, meaning that there are many growth levers, especially with cross-selling. My colleagues talk about cross-selling, and this is something that is becoming a reality. There is one piece of data that I talked to journalists earlier on. In this new experience of different instruments, they were not a lever for us until we drew up a very good diagnosis of the market, and we totally changed our platform because we had two platforms, one for dealers and one for our clients. Now, we integrated everything. We had efficiency gains. We had commercial improvements. We increased UX dealer experience as well with pricing control to ensure RAR. We also gained competitiveness in the market. We embarked in this UX. Also, we included the possibility of hiring auto insurance. It's very simple. It's a great experience.

We are increasing penetration in this life. When I look at our network of individuals, what we distribute through these segments in the first quarter vis-a-vis the entire last year, we grew about 100% because we delivered what we did last year with a possibility of cross-selling when we deliver good experience and connections. I have good expectations in different fronts regardless of the macro environment and the fact that it is much more restricted. Please feel free to add your comments. Marcelo, you talked about the fact that transformation is giving us more resilience and the cost of liability is down in the second quarter, funding was up by 19% quarter-on-quarter. I mean, vis-a-vis 2025. We are having more net money. We are seeing the results stemming from this new value proposition, larger margin with lower cost of funding.

We said at the beginning of the year that NIM would be flat at 9% this year. We delivered 9.1 first quarter and second quarter. It should be close to that range throughout the year. This will be very good for NIM. Next question from Yuri Fernandes with JPMorgan. Thank you. Good morning. Good morning, Noronha, Cassiano, and Andre. I'd like to congratulate the board for this very bold decision, and rightly so, because in the mid- to long-range, tangible capital is a good path forward. I just have a very quick follow-up about FGI and FGO. I know you have the guaranteed claim. Stage 2 was impacted by that, and there is a time difference until you collect. I mean, do we see provisioning on stage 3? Is there a carryover into stage 3?

The other question is on current account, there is another competitor being very vocal in cutting tariffs or fees in checking account. There was a 3% drop year-over-year, but this competitor of yours is cutting it to almost 20. Do you see any pressure to accelerate the cut of this fee line, or it's just a fine-tuning like you've been doing? I just want to see what you are doing in this regard. It will help us understand your strategy. Yuri, it's always a pleasure to talk to you again. You've been provoking us for quite some time about that topic. You even wrote that in your report. You also influence the controlling shareholders and colleagues of ours that are in the board of the bank, and we discuss all that. You and some other colleagues mention capital in your analysis.

I read what you wrote, and I know that you wrote something about that, and it is correct. I have always told you that that was a very positive contribution and provocation. I will ask my colleagues to help me with that answer. FGI and FGO, it may spill over to stage 3. That is a possibility, but you recover that. Sometimes you think, well, I will not collect for some time, but no, because we get paid every month. If that 120-day period is over, then you have the maturity of someone else's period because the grace period of that other person is over. There is a flow. It is in and out. There is a dynamic of different stages, of in and out. Wholesale bank, I mean, this is public. The dynamic was securities and a piece of derivatives, and you brought that straight to stage 3.

That could affect, yes. We are within the guarantee period and very comfortable in terms of what we are doing. André Duarte and his team and portfolio management team, they are looking at that constantly. They do stop-loss scenarios, stress scenarios. We are very confident in terms of what we are delivering. In terms of current account fees, that is a fact, and we talked about that. The trend is not to grow, but much to the contrary. There is another aspect which is Bradesco Expresso. It has been posting continuous growth. Eventually, you may see a more significant growth, as we did with the number of account holders. There is also seasonality of account fee periods, but I do not think that this line can support fee growth. I think that fees will still come from consortium, from asset management, from investment bank.

The brokerage firm was really important to us, quite strong. Credit cards that did not grow as much. If you look at a comparison line, we have a lot of companies. We in Banco do Brasil, we have Elo, Cielo, we have Elo. In the case of Elo, it went through a regulation, and it lost some revenue lines. Even then, the results are quite resilient. We lose a little bit on the fee side, but this will go back to normal. We will see the recovery of these lines over time. We have a lot of ways to recover in some of the lines. Yuri, thank you again. I think you said it all. There is a mechanism coming from Bradesco Expresso.

Current account is also linked to new value propositions for services, not necessarily the traditional banking fees that have been good for us, and this will smooth out the drop in the curve. Our commercial strength is mostly focused on digital retail. That mostly comes from Expresso. Thank you, Yuri. Next question, Pedro Leduc from Itaú BBA.

Thank you, Andre. Good morning, everyone. Noronha Cassiano. The question involves the corporate loan portfolio and also securities and DCM. Companies grew 7%, and TVM almost nine securities. The origination is strong. Noronha also put the ranking. We didn't see a correspondence in the line of revenues with financial advisory services. The portfolio grows, but you don't see the revenue in the fee, and also LLP was lower in the corporate area. RWA was pulled by the expansion of corporate, but I didn't see a counterpart, and the LLP was a surprise due to the origination. I thought it would be higher. Could you please help us better understand these moving pieces, Noronha, and what we can think about for the second semester?

Thank you for joining us. It's great to talk to you. Thank you for your question. LLP was not so lower, BRL 400 million, because we still had slight adjustments in a major case I mentioned. Wholesale banks, you might have a specific case that could stress at a specific moment. There is no zero risk. We did the provision immediately. We are very precise in relation to that when we see that things are not going adequately, a negotiation that is very well known in the market. The growth of the wholesale bank was, I go back, in securities, and it was in also sureties and guarantees in the Plano Empresário. We were second in the market with this growth of the Plano Empresário. In one or other specific line, for example, we financed more than one M&A with good guarantees, and I mentioned another operation.

I avoid talking about the industry, otherwise it's too specific. It's a net guarantee in terms of provision. We have a good coverage level. In relation to DCM, we have fees because the second quarter last year was very strong in operations. That's why there is this slightly lower variation. The bulk of securities is PD. You will see, Leduc, that they will vary, they will fluctuate unless we have a demand to replace that. We will see this in the secondary market. There was an exit from the secondary market. If I'm not mistaken, we once again reached the bottom of the spreads with more assets in the market, and they balanced, and we reached the bottom, and people labeled some assets. That's the chance of getting greater margin. You don't commit so much capital.

In our business model, which is no different from other banks that practice that, our REM and the segment that did that in OPD, they only check the results of that at the end to stimulate that, we are going to do this movement in the portfolio. We were leaders in origination, but that's not what we want at the end

Of the day. We want the risk-adjusted return. In relation to investment bank or any segment in the wholesale bank, you cannot operate with the RAR that is specified there. I'm going to go from securities to FINAME operations for heavy vehicles. If there is a client that has a strong relationship with us, we don't look just at that type of operation. Why is that? Because you have specific fees, so the RAR could be lower. If you have a client with a high RAR, we look at the combination of that because it's a client that gives me payroll, they have cash with me, they've got a great relationship, especially in the private. We look at the whole relationship. That's logical.

I say, "Okay, I'll do this kind of operation with this client," because it removes the RAR from the client, but it compensates the bank adequately.

Thank you, Pedro.

It's great to talk to you.

Next question from Eduardo Rosman from BTG. Rosman?

Good morning, everyone. Thanks for the opportunity. I'd like to go back to the directed credit that you have been focusing a lot on, we've seen other banks also, and also fintechs focusing on the earmarked credits. I would like to better understand the sustainability, not only of the size of the programs, because it was impacting the fiscal part and inflation, and the cost of capital could go down. What should be the return to operate in these plans throughout time? Should we expect some kind of pressure on return from now on due to the increase in interest of the participants?

Thanks, Rosman. Once again, it's great to meet you here. Thanks for the question. Let me say the following. The bank has, from the very beginning, participated in practically all the lines. We're present in all the five lines of FGI and FGO in a very competitive way. It is natural that it will hit the primary. That's why the resources are finite. This is a huge opportunity, and it has to do with two points or even three points. First of all, it's a long-term line, so it's sustainable with excellent guarantee. RAR, the risk-adjusted return of this operation is very high here. If you talk to other players, they're going to say the same thing. If it is within a stop loss, obviously very well managed. In the long term, so it is sustainable for some time, and you generate cross-selling.

You increase the possibility of RAR even more. Third, for the client, for the company, the level of the fees and the period of time is very interesting. You expand the relationship. For us, this is extremely relevant. What about production? It could be in the short term, yes, but the permanence is in the long term also because then you have lines until five years with one-year grace period, we play this game very aware. We were the greatest in origination last year and this semester too. What about the pressure on return? It will not generate, but we will also create, as a consequence, a relationship with a client that is quite resilient in terms of payment, because it's only the minority that is past due. I don't see any kind of pressure in terms of new players.

I think we're extremely competitive, we are showing the ability of penetration and the FGO contracting, which is extremely good for clients, and also FGI. We do have space in some lines to operate, but obviously, if there is no contribution from now on, it will dry the capacity of the fund to guarantee that in the market in the long term. For 2026, I don't believe we might have a pressure at the end of the year, but no deviations from this capacity of production. A comment, I think Cassiano from Banco do Brasil also did. It is one of the best lines promoted by the federal government because it does actually go toward the companies until a specific size, both in FGI and FGO. This is my opinion. In terms of programs, of social programs, I think these lines are really the best.

Thank you, Rosman, for your question. Great to see you.

Thank you, Rosman. Next question from Matheus Guimarães from XP. Matheus?

Good morning, Andre, Noronha, Cassiano. Congratulations for the results, and thanks for the opportunity to ask a question. I'd like to talk about the private payroll-deductible loan. You reported very relevant growth, both sequential and year-on-year. The product has gone through some changes. It's even controversial for some competitors. It is more difficult for some. For others, they continue to operate with it. I'd like you to share with us your vision in relation to the product considering these new changes and what we can think about this line's growth from now on.

André, you start. I will add some comments. Thanks for your participation. It is great to talk to you. André will start answering. We will add on some comments.

Matheus, this is a product that is getting to be more mature. It was launched in March 2025. In July last year, Dataprev were making great observations. The risk was lower in that front. We started defining the filters so that in October we could accelerate the origination, always keeping the discipline and the RAR. The focus on RAR is very attractive for us. We showed you that the delinquency scenario is stable, 4.7% in June. The market is 8.9% and growing. It is a very risky product that caters to lower income people and has a high risk here. With the right filters, we were able to define the public, the audience, and to lend. This origination increased a lot, and it has been keeping stable through time.

We received additional guarantees recently with FGTS. They have some restrictions in terms of use, some limitations, which place a low additional value as a guarantee. For us, this doesn't impact so much in terms of origination. Obviously, the more guarantees the better. It is a small impact in terms of origination. I would like to add the following. We were very careful to delay a stronger entrance until we were very sure about Dataprev. When we felt sure about it, we did effectively start to operate. We have to approve the credit for the individual and for the corporate side. It is important. What André mentioned and I mentioned beforehand around the delinquency, the over 90 NPL, without Bradesco, and how we're doing. We do have capacity for origination. In this market specifically, having 14% share in the total of payroll loans.

In the private, we only have 7%. The opportunity we have is of growth. It is not of loss, it is of growth. We believe that we will continue to grow.

Cassiano?

Yes, according to the filters, André mentioned that well, it's a product, if you look at it from A to Z, it's very good. As you increase the tail of the government's program, the greater risk for appetite, we have to be careful with our corporate clients in-house, this is the cluster we focus on and everything leading to that. I think there is a good road, but with caution.

Thank you, Matheus.

Thank you, Matheus. Next question comes from Carlos Gomez-Lopez from HSBC. Carlos, the floor is yours.

Thank you so much, André, team. Congratulations on the results, congratulations on the capital increase. I had my traditional question on insurance. Your guidance for insurance is still 6%-8%. Your result this first half of the year has been very strong, 14%. Should we expect a normalization in the second half of the year? If I can add one more thing, you mentioned that you want to increase your tangible equity. Which tangible equity metric are you looking at? Is it tangible equity to assets or tangible equity to loans? What level would you like to have? In my numbers, you have 5.9% tangible equity to assets. You used to have 6.5%, 7%. What level would you like to achieve? Thank you.

Thank you, Carlos. Good to see you again.

I think we can start with him, and then, Ney.

Ney. Ney, would you like to answer the first question?

Sure. First of all, good morning, everyone. Our expectation is to come to the end of the second half, pretty much in line with the guidance. I'm not saying it's going to be a deceleration, but our 2025 base was quite high in the second half, which is business as usual for insurance companies. We had a better performance vis-à-vis the guidance for the second half, but our expectation here, as I said, with a higher base in the second half, we hope to deliver something very close to the midpoint or slightly above the guidance for the year.

Thank you, Ney. Well, Carlos, the intangible capital. We don't have any specific metric of where we want to go, but the more our own capital, the more capital we have, the better, and intangible capital is important.

The assumption is to have very robust capital to face the growth of the bank and to face macroeconomic ups and downs, and also when it comes to a balance and the reduction of our tax credit. This is the main foundation behind the intangible capital and the growth that leads to capital increase. We don't have a target, but the more capital we have, be it Tier 1 or whatever could be put at the disposal of results, which is the case of this capital increase, is what will strengthen us for the next cycle and the reduction of DTA. The main point here is Profit, net income. We want to reduce that gap of tax credit, increasing tangible capital. It's always good to see you, Carlos. Thank you. Next question from Renato Meloni with Autonomous.

Good morning, and congrats on another impressive ROE.

I would like to revisit the dynamics in the second half. You said that you're expecting to reach a guidance from the middle to the high level, which would imply in the acceleration of your risk-adjusted NII, like 2% in the second quarter. At the same time, you said that your portfolio growth should converge towards the guidance, but it's running way above it with NII net provisions of 9.1, which is flat, and there are some issues related to provisioning. I would just like to reconcile all of these aspects that are probably putting some pressure on your risk-adjusted margin.

Meloni, it's a pleasure to talk to you again, and thank you for joining us. Andre, I think you can start.

Thank you. Thank you, Renato and Marcelo.

Our step-by-step commitment of increasing net income every quarter implies that by the end of 2026, our net income that is implicit in the guidance from the midpoint to the top, and that's what I said, that is from mid to upwards, aligned with step-by-step commitment of profitability increase. Our guidance consists of five lines, and we are very confident that we will deliver all five lines within the intervals of the guidance. Every line in its proper place. We just said that insurance should be from the center upwards. Services close to the top. Expenses closer to the floor of the guidance. NII net of provisions would be slightly below the center of the guidance. This reconciliation is not done line by line, but it has to be thought in terms of net income.

Meloni, I think we are delivering strong traction, not only in the NII, which also carries with it liability NII, market NII, but we will look at these revenue lines from fee and commissions income growing within the guidance. The same thing goes for the insurance line, and expenses are under control, as mentioned by Taciano. This leads to better results. Everything is within plan, step by step, without doing anything crazy and just delivering everything that we promised in our plan. Thank you.

Thank you. The next question comes from Tito Labarta from Goldman Sachs. Tito, please.

Great. Thank you, Andre. Hi, Noronha, Taciano. Thank you for the call and taking my question. Just a follow-up on the loan growth, I guess two specific lines. On the corporate side, rural loans jumped 20% in the quarter. I know you show in slide five there that your market share is much lower, and your NPLs have actually improved over the last year, but larger peers that have much larger exposure are suffering quite a bit in that segment. Just to understand why you feel comfortable growing there. Also, on the individual side, vehicles, you're also showing you're gaining your fair share, but that's also a segment where some of your peers are pulling back a little bit. We've seen some asset quality issues over the last year there as well. Just to understand why you're feeling comfortable to grow in those two lines. Thank you.

Tito, good to see you again. Thank you. Thanks for coming. Let me see. First of all, in corporate, in wholesale bank, we did some deals that were very important, especially for M&A in rural credit with triple A clients, double A. I mentioned two operations. BRL 6 billion heading the amount. One of them with good guarantees with a triple A client that naturally did an important acquisition to complement their business. It was complemented in a period of a valley. If they have more leverage in agribusiness, they sell, they remove the leverage, and they continue with their business on one side. On the other side, a lot of liquidity in the guarantee. We work looking at the quality of the clients. If you look at our whole release, throughout these quarters, we have deconcentrating the portfolios of the bank.

There was a deviation, a slight deviation in the last quarter, which was above, very ad hoc in terms of risk appetite. If you get the 10 top ones, it continues to drop. We are deconcentrating the portfolio, looking for good ratings and good guarantees in the wholesale bank, too.

In agribusiness, there are very good clients in areas and sectors that are very well known by us. That's why we feel comfortable because these are specific approvals. In terms of vehicles, that's what we mentioned last year. I mentioned this, I think it was in the third quarter release. We would start to grow in vehicles. That's another lever for us in time within the risk-adjusted return. I'm going to divide that into four quadrants. Light, new vehicles, light used vehicles, heavy vehicles and motorcycles. Motorcycles, our risk appetite is low. We participate by choosing ratings. In heavy vehicles, we are the leaders, and it depends a lot on the type of line and also on the risk-adjusted return, because here the NII is lower because it's important to have an RAR adjusted to the client.

In terms of light and new vehicles, the risk-adjusted return is lower. We are not the leaders in the market. We do participate in it. We have good agreements, especially looking at our account holder clients. They have a better relationship with us. With the semi-new vehicles, because if you're talking about a vehicle that is five, six years old or one that is 20 years old, we don't operate at that. Here we made a very deep diagnosis of the market. We analyzed the risk, and we work with the modeling the whole time. We analyzed how the market was operating, specifically two players were doing very good work with their clients. We changed our platform, giving a new experience to clients, to dealers.

We had machine learning behind that for the modeling of pricing, and also with AI and GenAI, risk and credit modeling, and also policies. The policies define if you're going to accept a higher or lower risk depending on the time period of a vehicle, which is also a guarantee for us. We saw an opportunity of having an NII. We saw that the opportunity as an indicator could be smaller than that of the FGI and FGO, but it is healthy. We saw an opportunity for growth at specific markets, at specific ratings. We're not present in the markets as a whole, the whole market. We are very confident in relation to what we've been doing, Tito. I don't know if my colleagues would like to add anything to it, but thank you so much for your question. It's great to see you.

Also in the insurance cross-selling. Andre remembered that very well. I also mentioned about the cross-sell. The cross-selling we've been doing, and this example is the best one actually, because it is embedded in the client's experience. What happened was we produced in the loan insurance and the vehicle, the same thing that we produced this semester as we produced last year for these channels, for these kind of clients. That's something else that brings profitability and growth for us in this market. Thank you so much for your participation. Once again, it's great to see you.

Thank you, Tito. We end the Q&A sessions. Those questions that were not answered will be answered by the IR team by email. Before giving the floor to Marcelo, I would like to remind you that the material for the release is available on the IR website, and we are available to answer any questions you might have.

Thank you, André. Thank you, Cassiano. I would like to thank you, especially those of you who had the patience of listening to us and all of these explanations. I would like to thank our colleagues from the sell side for their questions, for your participation, and all our investors who are listening to us, our employees who are also following the earnings release. I would like to say that we are very confident on what we have been delivering on everything we have been doing, including in the insurance group. Here we are together with Ney and Marinelli. As André said at the beginning, Marinelli released results recently, and I would like to emphasize something that he said of high level of return at Bradesco, great synergy in the distribution of SME in Bradesco. I also talked about vehicle insurance.

Ney reminded us in the press conference, I continue confident in all the subsidiaries and affiliates and everything that we've been doing. What I want to say is, I just convey a feeling I have. We are very transparent, not judging anything. On February the 20th, if I'm not mistaken, our market cap was of BRL 240 billion. With Bradesco, net equity at BRL 14 billion. The remaining part of the bank, because this is a conglomerate, that's why I'm talking about so many revenue lines in different ways. Most part of the insurance group, which is the largest in Latin America within these BRL 200 billion remaining, these payment companies here and the other participations that we have within our organization here that have a value of BRL 200 billion.

The market is worse. We have the war problem. If we do a calculation, right? This comes from where I'm from, this expression.

If we make a math calculation, we unleash the value of Bradesco that has been showing resilience, and the results and equivalence of hospitals that were mentioned. It's a great business. It has shown growing results, and it will be like this from now on. When we look at that, we listed the capital of this company, unleashed a value of BRL 42 billion, and we have a market cap approximately BRL 182 billion, just to make our thinking easier. All the rest is worth BRL 140 billion, the remaining part. That was BRL 200, it's BRL 140. The market dropped. There's no illusion when we list a company and it is below the bank, it could be from another industry. You're still being traded by the same multiples, but I think the discount is good.

I have great confidence in everything that we've been delivering and in the future of our organization. That's just a provocation for all of you. Thank you once again. Thank you all our colleagues who joined us. See you next time. We're always available to talk to any one of you and to every one of you. Thank you.

[Interpreted] Good morning, everyone. I am Marcelo Noronha. I'm here live from Cidade de Deus, the headquarter of Bradesco for this earnings release presentation related to the fourth quarter of 2025. And why not saying of the full year of 2025 today is February 6 and my watch shows 10:31 a.m. I'll start with presentation saying that all of this material has been released last night after the market closing and I think you had access to it. And I start with our recurring net income, BRL 6.5 billion growing 20.6% year-on-year, and BRL 24.7 billion for the full year 26.1% growth and however, with an ROAE of 15.2% exceeding our cost of capital for the first time in this quarter. And that's why we say that we will continue to grow our ROAE for the coming quarters and years to come. Here, I have all of the operating highlights. I'm not going to go over each one of them because I will show -- I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that in fact was published February 7, 2024, so less than 2 years ago, it will the 2 years as of tomorrow. So that's when we released the plan. And I would just like to remind you of what we did back then. So we started with a diagnosis at Banco Bradesco the Brazilian market, and also, we drew up a worldwide benchmark with all of the relevant aspects like technology. Out of the diagnosis, we drew up a plan knowing all of our strengths. The plan -- the bank has several strengths, and the organization as a whole for that matter. Back then, we said that we have 70 million clients. We also said that we were leaders in SMEs. SMEs understood as a segment defined by the Central Bank because every bank has its own format. These are companies that grows up to BRL 300 million a year. We also said that there was high penetration in the high income segment. And certainly, we have the largest insurance group in Latin America, in addition to having a stake in many other companies. And we also said that we will work on our strength to create a new position with the clear goal to increase competitiveness in the short and long run. But it's important to remember that we put a deadline of up to 5 years. It wouldn't happen overnight. And it hasn't even been 2 years. When we presented the plan, we came up with this [ mandala ] with all the main topics, the 10 main items that were carefully looked at with more than 200 new initiatives. I will go over some of them, I will not talk about all of them or all of that, otherwise, we will be here for 2 hours, and you will be really tired. But our IR team and the transformation office, everybody is available to give you further clarification, especially those that want to talk to investors, to discuss some particular area of this [ mandala ] -- and if you have additional questions, we are certainly at your disposal. So I'll briefly cover some of the most important highlights and then I'll go back to the core numbers, and we wrap up the presentation. So then after the presentation we have the Q&A. Well starting with digital retail. We haven't been bringing a lot of elements for you, but after this period at year-end, we came up with 19 million clients fully digital. They are fully assisted through the digital channel with our BIA GenAI with the level of resolution, which is very high. So BIA is retaining 90% of all calls that comes through digital retail, but it's also important to look at the engagement level. Our efficiency in this client life cycle that allow us to -- I mean, I'm not going to get into the details of every topic. But I would like to draw your attention to this item here down below. The direct cost to serve to all of these clients in the digital platform that was reduced by 40x. This is an important number. And what we envision for 2026 vis-a-vis our digital retail. First, we go from 19 million to approximately 40 million clients between account holders and non-account holders. And certainly our objective, not only for 2026, but going forward is to reduce the cost of -- cost to serve and to continue growing our customer base. The second topic is affluent clients, and we are talking about principal and prime segments. We promoted an upgrade to more than 3.1 million clients with a new value proposition. And at the same time, we introduced a new position in this segment of clients. Prime ended the year of 2.3 million clients. We trained 3,500 managers, we focus on that training. But notice the level of accuracy for BIA team. It's accuracy was 93% at BIA customers, and then i go to Principal. You may recall that we launched principal in November 2024, with 3 offices, one in Faria Lima, another one in Campinas and the other one in Leblon in Rio. And then we started the expansion process. In fact, I invited sell-side and buy-side clients to look at our management model rather than just the business model. So we are just going through this phase in other segments. So we launched a new segment in November of '24. By the end of last year, we had 62 offices and 36 municipalities approximately 320,000 clients in this segment with this current level of NPS, so a new value proposition. And this created this new differential. And what do we expect to see next year out of these 2 affluent segment. I mean, new upgrade with more than 1.5 million clients reaching 4,700,000 clients. And as for principle, we will open almost 50 additional offices in Sao Paulo, reaching 70 municipalities, and we will have almost 800,000 clients by the end of the year. But you might recall our target because it's not something that we change overnight because this is gradually build. So we will expand our share of wallet, and this is what you see down below when it comes to the affluent segment. And next comes SMEs. As I said at the beginning, we were market leaders. We had approximately 14.3% market share in SMEs of almost BRL 300 million a year. But notice what happen here. We've built a much more robust segment with a new digital model with a new value proposition. So mostly digital and remote service and also companies and business segment. This is a segment where we introduced 150 new branches during 2024, and we changed the segmentation of the business segment. The configuration of the management model for managers, we delivered a new Internet Banking an new app for companies and look at what happened to our NPS. These are numbers that were not disclosed before. We went from 56 to 74 points. So I'd like to say that nothing happens by divine order, it happens because we work hard in the backdrop and we execute based on the plan. But I will draw your attention to say that we have more than 5,000 managers in this segment. And we are present in 2,100 service points, and this adds value to clients. Regardless of having this level of evaluation in metrics with a robust capacity to serve clients because they can't do self-service and at the same time, have a very good experience. But we can still serve these clients in the physical channels. But I would like to draw your attention to something that I said at the beginning. We had 14.3% share. We are leaders in this market, but what happened up to September 2025. We gained market share. We reached 16.6% market share, and we continue on the right track in terms of this segment. Our purpose, not only for 2026, but for a more distant future is to increase our penetration in these segments. And we believe in this was stated in the diagnosis that in this segment of up to 300,000 a year of SMEs, it's a segment that tends to increase its share in the financial system in the next coming years up to BRL 300 million a year. And I mean, payments and cash. I'm not going to get into many details, but Bradesco Global Solutions with global cash, and obviously, our goal is to increase the share of wallet and customer centricity through time. I mean credit we introduced a credit view. Of course, I will talk about cause and effect, because as I said, things don't happen by divine chance. We introduced the credit BU at the beginning of our plan, and we thinned this business unit. We introduced a portfolio management area. They are working on different client segments. And they are also operating in the life portfolio, be it in Wholesale and Retail bank, Customer Finance, et cetera. So within this business unit, we also introduced a new pricing area to serve all segments and businesses, all the verticals I mentioned to you before, and all of them to generate more risk-adjusted return, and this is a very important part of our strategy. But when we put this together I told Andre that we wouldn't get any lack of resources. There will be enough resources. So to that end, we hired 250 professionals and we gave them full technology support to enhance the models for all customer segments, also to manage the portfolios. And looking at the time line of credits and loans that are not only decided on prediction models, but mostly decided by human judgment, and then support all of it, and the consequence is -- that this SME growth level is still the same that we have with payroll loans. And if we hadn't put this together in the way it is, certainly, we wouldn't be growing SMEs the way we've been growing today and the way we grew in 2025. And what do we expect in terms of our objectives. This unit together with the clients segment. We want more competitiveness in some lines and segments, but growth with quality and moreover, a very strict risk adjusted returns. We have also many other initiatives. Maybe there is one that will take longer to deliver. But our clear objective is not only to have back office and front office. But moreover, having an end-to-end experience that we really boost our productivity. I mean, model culture, in addition to the area led by Silvana, which is people -- they are contributing with up-skilling, re-skilling. And despite everything we are doing including new variable compensation KPIs, et cetera, we conducted a new survey new engagement survey, 84% engagement when compared to 74% postpaid in the survey of 2024. And that's why we are focused on keeping a very engaged team and fully committed to everything we want to do with the capacity to change as well and adjust. People are crucial, competent teams and teams that can certainly deliver and change as we go so that we can deliver more competitive goals in the short and long run. So organizational structure was the first thing I showed during the plan. So we reduced layers. We reduced the span of control -- I mean we increased the span of control. And -- we brought C-levels and Directors to different areas. I talked about the credit area more recently, but we also promoted inorganic growth. I'm not going to get into the details, but in the Insurance company as well with the hospitals. And what do we expect out of this organizational structure. To gain more efficiency and agility, when it comes to decision making. Technology. This is a chapter that I've been talking about all the time for investments in AI. For us our culture is AI first. AI first and AI is not just GenAI, but it's machine learning for our mathematical models, but also multi-agents who have been working with a number of initiatives on the slide, I spoke about BIA client with that level of retention using GenAI. But we have the BIA Core, BIA Tech and BIA Client so on and so forth. So what happened in these 2-year period. We gained productivity. We reduced lead time and the consequences was this that I mentioned before. With a base of 100 of delivery of apps for clients internally for review processes, and gaining productivity of a regulatory points we ended 2025 with 300. We grew our capacity by 3x over -- less than 2 years. That's when we started this whole move. We invested and we've invested in cybersecurity. We have -- we improved our second and third lines of defense for cyber, and we expect greater productivity gain. More and more intensive GenAI use, but more competitiveness, and innovation and time to market. And I'd like to mention some other things here because I'm going to get to the numbers in a minute and we'll speak about guidance eventually. But we invested last year, invested heavily in technology. Investment in technology grew in 2025 compared to 2024 by 22%. And if you look at our guidance, which I will refer to in a minute of those about 8% of growth approximately, about 3% or slightly over 3% come from the investments that we will continue to make. We will not give up on investing. I see technology is a big driver of our productivity and our ability to deliver a lot more to tech clients with hyper personalization, which we have been doing, and during the Q&A, we can speak more about that. Synergies and Innovations. We had a number of actions with Cielo. Tap-on-phone, D+0 receivables discount all invented in our corporate app. In Bradesco Financiamentos, we also gained investment with new hiring, not just efficiency in the unit cost, but commercial efficiency of Bradesco Financiamentos. And what are the next steps, we expect -- well, with the next step to increase our share of wallet, increase growth, productivity and innovation with different verticals that we have in our organization. And now speaking again about profitability to give you more numbers. I mentioned that before, and feel free because our team is ready to talk with you and explain this in much more detail. If we look at the net income. I always tell my team, this should be the last slide and not in the first because again, we speak here about the cost and effect and this is the effect. Effect of what? Effect of a plan that is been executed and that is showing how our capacity revealing and improving, the strengths that we talked about, but strengths that were driven by actions of the plan and we have a growing number. 8 quarters delivering always a little bit more and step by step, we don't change these strategic plan overnight. You correct of course. You correct the tactics, but there is a strategic continuity, with execution discipline. And this is -- it called also discipline, we are showing this with our the team in the transformation office. Moving to total revenues. We are growing in all revenues. NII, we see here, the growth in NII and fee and commission income. When we remove the Cielo tender offer, the growth is 5.5%. Insurance investment plans of 16.1%, another robust quarter and growth expectation. But why is all the revenue growing? Again comes into the effect. It's not by divining profit. It's by increased penetration, credit trading traction in NII, a reduction of liabilities cost better liability management and so on and so forth. With all the initiatives adopted. Looking at our loan portfolio almost BRL 1.1 billion in December 2025, and the previous quarter, we were at BRL 9.6 billion and now BRL 11 billion. The highlight goes to micro-small medium-sized companies growing 21.3%, and that's why we're gaining share. And by looking at all of the portfolios, we are growing in all of them. Again, why are we growing? We are growing because we have a client base. We've grown because we have high penetration in all client segments, and in the verticals that we work with, and so when this supported, because we have an engaged team. A team that was supported by client management systems, GenAI, a better offering for clients. In a nutshell, it is a set of measure that we improved over this period. And looking at the portfolio, and the loan quality indicators they are all flat over 90-day NPLs totally easy. Over 15 days, if we look on the slide, it's absolutely flat, we structured our portfolio with the BRL 10.5 billion in 2025. BRL 20.5 billion reduction of problematic assets. Look at our stages. Stage 3 dropping quarter-after-quarter. Stage 1 increasing quarter-after-quarter with the evolution of the secured portfolio. So we are totally at ease with our loan portfolio and with our ability to continue to originate even more and particularly with some levers. Net interest income 14.9% increased and the client NII up 17.4%. Again, this is we see 17.4% to growth, in here, this hits the bottom line, BRL 4.8 billion to BRL 10.3 billion, growing 22.6%. Cost of risk, absolutely under control and quite and market NII delivering our expectation -- expectation of our treasury. Fee and commission income grew at the proportion that I mentioned before, but please note I should highlight 3 card income 14.4% increase in high income 25%. Construction management. There is a lot of traction, growing 17.3%. When we look at loan operations, we have a lot of traction as well. Why is it not growing? Because part of it has been deferred because of the Resolution 4,966. But look at what happened with capital markets. 29.2% increase full year '25 compared to full year '24. This was not divine providence again, this is investment. We changed the structure with Bruno's team and the whole team, we created the agribusiness segment. We changed our investment banking structure to broaden Bradesco's team and capture a lot more in DCM, M&A and other line items such as project finance. The result is this level of growth. We have a DCM share, that we had in 2022. So we grew, we're doing well in the rankings, and we continue to grow. But there are 2 offenders here that do not help these levers, which are checking account and collection, which normally in this market pull the results down. But overall, we are delivering and we're delivering well. Operating expenses, 8.5% increase. I told you and I will repeat it. Investments in technology. We grew 22% of technology investments in 2025 compared to 2024. And we will continue to invest in technology. But if we break our expenses down into personnel and administrative, where we grew 5% in line with the average IPCA. POR is one of defect on expenses with our profit sharing patent, this would be 2.5%. We continue to reduce our footprint -- if we look at the complete period. 2,800 points, and if we exclude EloPar and Cielo as we have been doing in past quarters, growth of operating expenses would be 7.2%. But in the Q&A, if you want you can ask and we can debate administrative expenses, but overall growth was negative. We have personal expenses with this variable that I mentioned, the profit sharing program and investments in technology, in transformation. For example the whole implementation of the 59 Principal office almost 50 more will be added next year, so we continue to invest in reviewing our footprint and focusing on the necessary investments in each one of the departments to help us grow. Our Insurance growth, another strength of our organization. ROE 24.3%, but in the full [indiscernible] 22%, spoke about this already. We are growing in all lines with a lot of balance. Client base growing. I was checking this with Ivan earlier today. The result of insurance operations exceeding the guidance of 16.1% and growth in operating results, and not necessarily in financial results, with technical provisions of 446% (sic) [ BRL 446 billion ] growing more than 10% year-on-year. Moving to the end of my presentation. When we'll look at this capital discipline. We have year-on-year growth, if we look at December 2024 compared to December 2025 in Tier 1, 12.4% to 13.2% and the quarter there is a slight reduction of 20 basis points in common equity in Tier 1, but if we look at common equity we also posted growth year-on-year up 0.7 percentage points and this is something that I mentioned with all of you with the sell-side, with the buy-side. I spoke about this that we have this under control. And lastly on guidance. Well we delivered at the top of the guidance impacting all items in expanded loan portfolio we were growing 9.6% in September and we ended up with 11% good, because of our traction and the ability to execute. We start 2026 with even more traction. Insurance operations 16.1% beyond the guidance and we have the guidance for 2026 listed here. I am here and I'm ready to discuss this with you and now I will sit down with my colleagues Andre Carvalho IR Officer and Cassiano for us to start our Q&A. But I would end my speech saying that we have heard comments since last night, when we released the results, post the results, some positive comments regarding the 2025 numbers. I didn't hear anyone saying bad things, negative things, but the expectations were much higher for our 2026 guidance. Our share between December 31, 2024, and today is Feb, 6 had increased 106%. Appreciated a 106% -- so it is only natural, its part of the game of sell-side, buy-side to have price adjustments. Not 29%, it's 27.5%, of the middle of the guidance, it's up to you, but we will not loose sight of our horizon because the shares have to be adjusted by 5%, no problems. Can you imagine today with the level of conviction that we have, with the level of the delivery that we have, I am super confident in our organization. I'm happy. I had the meeting yesterday with our leadership team with the level of engagement we have in our company. So Andre over to you. Thank you very much for joining us in this call.

[Interpreted] Good morning, everyone. Thank you, Marcelo and Cassiano. I would like to let you know that Ivan Gontijo, CEO of our Insurance company is joining us remotely. To start the Q&A session, I would like to present 3 alternative for questions. [Operator Instructions] The first question comes from Pedro Leduc from Itau BBA.

[Interpreted] Good morning, everyone. Thank you for the presentation and congratulations on this wonderful year in your trajectory. My question is related to how you see the underlying business trends? So we could look at the NII guidance, less LLP. I mean I think you're going to grow low 2-digits, slightly above the portfolio. I just want to understand what's behind it when we think about NII in isolation or LLP, I think these 2 things have to talk to one another, but to understand what is part of it, so that I will have a good idea of your views about mix, spread, credit quality as you know, the year is just beginning.

[Interpreted] Okay. Pedro I will start, Cassiano will start as well. It's good to see you again, Pedro. Our NII remains focused on our standard. We changed our mix for 2025. Secured products remains our main lever. Obviously, the quality of our credit BU allows us to work in any credit line secured and unsecured we're very, very comfortable with the quality of our portfolio and the way we are operating it. The average rate should be maintained until the end of the year. And our LLP should grow in line with our operational. These are the main drivers of our NII, and we will maintain it with a very high degree of engagement.

[Interpreted] Okay. I have a few things to add. It's important to say and highlight what you just said. Portfolio mix, spread level, always focusing on risk adjusted return. This is the goal, and I also talked about pricing. The pricing area comes to reinstate that point. I mean we have some very important levers that go through different segments like payroll loans in all of its lines I'm talking about public and INSS and private. We have approximately slightly above 14% market share. But I would like to remind you that we have the lowest market share on the private side. So we have a lot of opportunities, and we already saw this level of growth. And I would just like to add that we are I mean, we are placing our hiring offering. It's 24/7. And this is hyper customized with microseconds, that go and come and already respond, give us a response about the risk of the borrower, the company and pricing, which is adjusted to risk, it's risk-adjusted pricing. Therefore, I'm saying that we will grow in payroll loans. We see a lot of traction coming from the clients. INSS has its own challenges, market challenges. It's not all ours, but in previous quarters, year-over-year, we were growing 5%. And now in this past quarter, we grew 6.8%. But this is payroll loan, SME, we are still growing, and we will continue to grow in lines with secure lines backed by receivables, be it direct receivables or some lien, et cetera. So we will grow with auto for companies and individuals. We are very optimistic in terms of future growth with the credit quality that it's absolutely under control. I do not see any deviations. We are not concerned with that, because certainly, you know that we did our homework, when it comes to portfolio management and our modelings team. And then you also mentioned an important aspect. You talked about NII growing slightly above the portfolio. Well, this has to do with the mix. We are a wholesale bank, we can fluctuate as it happened this quarter on the positive side, but it could also fluctuate on the negative side because we do the turnover of the portfolio.

[Interpreted] And the next question is from Mario Pierry with Bank of America.

[Interpreted] Congratulations on your results. We understand that a lot has been done in the first 2 years, but you still have a lot more to do going forward. But what you have already demonstrated is that you are on the right track. Right. I have 2 questions. You had an additional expense of BRL 700 million. You spent that to restructure and the structure that is suggested for 2026. And this is almost twice as much in terms of provisions you posted last year. So could you please highlight where these restructuring will focus more, whether it has to do with the number of branches? And we understand that we are getting a lot of questions from our clients. Your guidance says that you will grow expenses by 8% at the top you said it's 3% relates to investments and technology. This also means that the rest of the bank will grow or is growing 5%, in line with inflation. And just like you said, you already reduced -- 2,800 points in the past 2 years. So how come expenses are not growing below inflation? That's why the consensus, I was hoping for a number close to BRL 20 million rather than BRL 27.5 million. We thought that the bank's core expense should be growing below inflation?

[Interpreted] Well, thank you for your questions. If you look at our admin expenses, and if you look at some of the lines in our full publication, you will see, okay, third-party services, maintenance, conservation, lease, all of these lines were down and transportation, transportation of currency. So what are the detractors here? I'm just summarizing, there are some that are very positive. But technology, I mean, it grew 22%. And when we look at it, it will continue to grow. We will continue to invest, to increase our competitiveness. Second, I mean, profit sharing, we increased profit, and we paid out more. And the third detractor. I'm not going to refer to small lines. We had some changes on the advertising side. But we found 3 good opportunities at the end of the year, and we decided to invest like when we launched Principal. And that's when we did the coverage at the airports. It's out of what we expect us to do at that time. And thirdly, there are other expenses that also go through some lawsuits, we have a very good provision coverage. We've been working a lot based on this root causes. And when you work in that root cause, you do not expand the incoming, but that is coming down with time. So I believe that these lines will be below 27%, 28%. And this is what you look at when you look at expenses or other expenses in addition to expenses with technology. And talking about investments in restructuring, I would tell you that, first of all, we continue to review the footprint. We were doing less than -- less than what we would do in 2025. And so we will do more than what we did last year. But we will open, as I said before, about 50 offices earmarked for Principal. But we are also refurbishing some physical stores with private, meaning that we continue to invest in this transformation, making footprint adjustments also increasing our capacity to invest more and reduce cost to serve, in Retail and Digital. So our cost is 40x lower.

[Interpreted] Well, thank you for your question. There is one more thing I would like to add in addition to the 3% you mentioned in terms of technology investment. 5% is only related to human resources. Well, that's important to remember, in addition to profit shares. You will see that our expenses are very much under control. There is one more thing because you said that was twice as what it was last year. If you look at 2024, it's very close to the number that we posted in 2024. Maybe the difference is about BRL 100 million. 40% higher on average or greater than average. There is another point related to efficiency. Our efficiency ratio was down by 2.2%, from 2.2% to 50%. So our ambition is to reach 40% by 2028, meaning that the trend is downwards in 2026, and this drop will be even more accentuated in '27 '28, when the top line grows a lots, it's just natural that some OpEx to see growth with OpEx. And our top line growth will be almost 10% in 2026. Also, as you increase transactional, certainly the variable cost I mean it's different even with scale.

Next question is from Gustavo Schroden with Citi.

[Interpreted] Congratulations on resuming ROAE starting from 10% to 12% now over 15%. I would like to think a little about the investment cycle, more specifically and linking with operating efficiency and efficiency ratio. Marcelo you're very clearly showing, and I heard an interview you gave, when you said that you won't stop in investing, but the focus is to maintain competitiveness. And is that you're thinking about the future of the bank in a sustained fashion. So I'd like to understand, what part of the cycle would you say the bank is in? Particularly in terms of technology investments or investments in new product or segments? And should we start thinking -- should we start thinking about the benefits coming from operating leverage operating efficiency, and reducing efficiency ratio, thinking that in 2026 revenue should continue to support the step-by-step ROAE improvement, so that in '27, we'll start seeing the benefits of operating efficiencies?

[Interpreted] Gustavo, I would say that we are in the middle of the cycle. We are not at the end of the cycle. If you look at our plan, we spoke about stretching this until 2028. And along that period, some things are quick wins. You capture the benefits in the short term. Other things we invest in and you're going to reap the fruits later. We'll continue to invest in the whole renovation of the bank. Look at some U.S banks and Asian banks and what they have been seeing in September, I was in Asia I had an opportunity to talk with CEOs of other Asian organizations and to speak with peers of that region, and everyone is investing again in AI first, we see opportunities to improve efficiency and to gain competitiveness in our relationship with our clients. I will not stop investing. We want to improve our infrastructure, our architecture constantly in terms of technology. So efficiency doesn't come only because we're going to invest less -- and I'm going to give you my opinion. In the opinion of all world banks. I don't see anyone stopping investing in technology. Technology will require growing constant investing over time. That's my opinion. But we're going to gaining in other lines. For example, loss expense and areas, where we are going to have a reduction not only in 2026. So we have to have efficiency gains, and we will have these efficiency gains -- but this will be driven to the top line. Gustavo, you can ask me, if I don't deliver the top line, but I want to deliver the top line. Increased penetration continue to grow and delivering ROAEs even better than what we currently have. My colleague yesterday said an airplane will never fly backwards. We are not going to fly backwards. It was 15.2% in this quarter, and we expect it to increase, if we can deliver more and more, which was the case of the loan book in the past quarter, we will do it.

Next question from Daniel Vaz with Safra.

[Interpreted] Congratulations on the results and the delivery, since the beginning of the strategic plan. I think it's -- we can see how dedicated the management is in readapting the bank and improving the whole quality of the portfolio while still growing. My question is focused on Cielo. Cielo is a strategic asset of yours. You're talking about integrating Cielo, particularly in SMEs, integrating Cielo even more. It's already partially integrated. But in terms of TPV, Cielo had a big difference compared to the network. So perhaps we're thinking about those big accounts, not SMEs. This is an important difference in trajectory. So I'd like to hear from you what is the strategy for the large accounts? Perhaps there's a loss of profitability and you don't want to change that? And in SMEs, you advanced a lot also in terms of governmental programs, and that's an important liquidity for the system. But the Cielo part in terms of strategy, the strategy is not so clear to me in 2026, '27. I'd like to understand what is the integration stage we're at.

[Interpreted] Well, thank you, Daniel, for the questions. #1, regarding Cielo. Cielo has also been undergoing a process of transformation, which is rather significant. Over there, we created separate teams for the 2 partners. Today, we have a connection at different sites with the Wholesale and the Corporate Retail segments. And we worked with them in a plan and so that we'll be a lot more connected in a verticalized way. Talking about cash and talking about affiliation, more than having a segregated company, where I would originate something and they would work with it. No, they have to improve logistics. They did. They had to deliver tap-on-phone. They did, deliver. They had to deliver a whole new pricing system for D-0, they did. They needed to deliver a connection to our app. We delivered it together. So all of that is done. But you're correct. I think that there were 2 or 3 cases, I don't remember, 2 or 3 of large accounts. And the similar team went to the limit and took it to the limit and decided to give up the TPV, which was important rather than losing profitability. So we see an ability to grow and grow a lot because we are very accelerated and tractioned in SMEs, and we reduced the attrition with our distribution channels. And this is an army of more than 5,000 managers in addition to all of the digital offering that we have. So we are going to move forward. You can rest be assured of that. But we are not going to throw away money with margins that are effectively very reduced. Regarding SMEs, our SMEs, we are growing not only in government clients, our expectation is to continue to grow. With a very similar number that we had in 2025. Indeed, we haven't got that final number, okay, Daniel, the final number regarding government or total government programs. But we have an estimate. And the estimate is that we had 26% or 25% to 26% market share. We were the bank that operated the most government clients last year. We have an initial estimate, our own estimate, not market estimate, but let's wait for official data, but that's kind of that level. We have good traction, but we can only do all that because of the kind of structuring we have in the SME segment and also because of our technology deliveries, our ability to hire through our digital channels, the whole modeling of the Credit BU portfolio management. So we are not granting credit just because we have a government guarantee. We have a lot of criteria, and it's always about RAR, risk-adjusted return. We have a program to price each one of these government programs. So, we have a lot of traction. We ended the year with high traction, and we believe that we will continue to deliver good results and Marcelo?

[Interpreted] This is one of the important pillars of technology this year. We created our app for business with a totally different technology embedded to it. And this is a very important reinforcement for this. Yes, we're migrating 500,000 clients to this new experience that Cassiano just mentioned. So that's another important information. We are increasing our competitiveness with Cielo being integrated.

Next question from Yuri Fernandes with JPMorgan.

[Interpreted] I mean, your long-term view -- your long-term view, I mean, I know sometimes it's not easy to invest in the future, but you are delivering improvements gradually. So congratulations for it. I mean my question is about capital. I mean CET1 is very close to 11%. I think this quarter was 11.2%. But for 2026, there might be some challenges. There are some prudential adjustments going forward, 49.66% operating risk. So can you please elaborate a little bit about the capital outlook, whether CET1 should remain at 11%? Or maybe possibly it will be slightly lower and you would just gradually increase it. And in addition to that prudential adjustment, my other question has to do with your portfolio growth. I mean, you posted a very positive growth message. And like you said, the bank is well tractioned. But this 9.5% growth in the portfolio with retained profit, the retained profits in the middle of the guidance also might imply some capital consumption. So going back to my question, will it remain at 11% or it will go slightly above? So if you can tell me something else about CET1, I would appreciate it.

[Interpreted] Thank you. You were constantly provoking us about this topic, and I really enjoy your provocation. So thank you again for joining us today. I would like Andre to start answering your question, and then I will follow through.

[Interpreted] Thank you, Yuri. In terms of CET1 of around 11%, that's what we expect to have throughout 2026. We are here talking about loan book growing at 9.5%, and we look at full CET1 of 9.2% in the first quarter, going up vis-a-vis what it was in 2025. So interest on equity that was BRL 14.5 billion last year, it will go up this year for above BRL 15 million. Our capital absorbs that portfolio growth increase in interest on equity. And here, we also have DTA, like you said. So CET1, it's around 11%. In the first quarter of the year, we know that we have the regulatory measures, operating risk, the Resolution 4,966 issue. So everything has been computed whenever when we mentioned CET of around 11% for this year. There might be some fluctuations, but it will be around the 11% number, but our baseline is 11%. But there might be some fluctuation for the reasons already explained by Andre, but it will be around 11%, and this is important.

[Interpreted] Yuri, I would just -- I'm not going to repeat what they said because this is what we expect to see. But 2 years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years, meaning that we are constantly monitoring that. And we also evaluate all of the opportunities as you put it yourself. Therefore, we are constantly looking at that. And back then, we said that we would have enough capital. But look at our allocation in our loan portfolios. Turnover of the wholesale bank therefore, everything we are doing is very well planned and coordinated. So I can even go further. I think we can surprise you more than anything else just in terms of our CET or common equity. And of course, net income will grow and our return as well. Obviously, [ 14.67 ] is a challenge more for some banks than others. But it is for the period of 10 years, but there is an intersection here, which is '26, '27 and '28 are the heaviest years. But after that, when the horizon may change. Therefore, we are very confident about everything we are doing and in terms of the capital that we are allocating. Well, thank you for your provocations.

Next question from [indiscernible] with Santander Bank.

[Interpreted] I would just like to revisit the payroll loan. I think you said something about it, but if you could elaborate a bit more about your appetite and expectations for payroll loans and more specifically private payroll loans? And I know that on the public side, you gained some important and relevant market share.

[Interpreted] Well, we are very, very well positioned to grow. Gain market, of course, that depends on the competition, but I think we are well positioned to gain market share. Well, we gain market share on the public side, INSS that involves a lot of market discussions and things related to the management of INSS, when it comes to payroll loans. But we are also very well positioned with INSS. But on the private side, we tend to increase our share. And as I said, we deploy models that are highly competitive 24/7. We are growing. We've seen that in the past quarter of 2025, the last quarter of last year, and we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share.

[Interpreted] Next question from Renato Meloni with Autonomous.

[Interpreted] I'd like to second my colleagues and congratulate you on the deliveries, since the plan was announced. I think that the results show the whole work that was done. Over the year, you showed a lot of ROE expansion. But when we look at the guidance at the midrange, ROE similar to that of Q4. So I'd like to understand, do you expect 2026 as to be a year of accommodation of settling or the uncertainty regarding the elections made you be more conservative in the guidance? Now moving to 2027. If we have this scenario of accommodation, I think that in 2027, we bring ROEs to more reasonable levels. What would be the levers in revenue to increase profitability?

[Interpreted] Renato, thank you for the question. I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step because we'll continue to invest to increase competitiveness. I don't want to be repetitive, but this is our mantra. We focus on this all the time. Regarding the ROE, again, it's kind of an internal joke. Yesterday, we were laughing about this. An aircraft will not fly backwards. So there's no chance that we'll do less than 15%, 20%. Actually, Andre, you might witness and Cassiano as well, I said a year ago, I'm more optimistic. I'm more pointing to the upper range of the guidance than focusing on the lower band of the guidance. Of course, this year, I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of our net income to BRL 30 billion, BRL 31 billion. And the role of IR is to correct the course. You don't have a 30%, 40% leap year-on-year because we continue to invest in our transformation. Remember that. I see a higher and growing ROE. Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections that is only natural. But I am optimistic regarding what we are doing and our ability to compete in terms of the expectation of our economists we'll have the GDP growth and unemployment rate very balanced. So we have a lot of opportunity for growth. With the interest rate cuts, they happen a little faster. This will help some companies regarding their costs, if they are a little bit more leveraged. So of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE. And if we can deliver superior absolute results, just like the loan book that grew 11% when in September, it was growing 9.6%, we will do it. We're not wasting time. We're not wasting space or losing space. And please remember what I explained here, Renato. We are well aligned, increasing penetration. I spoke about Principal segment, SMEs, Corporates doing well, the Insurance company. I mean, they are delivering a lot. And there are several verticals. Earlier today in the press conference, Ivan spoke about the continuity of growth in pension plans, active distribution there. So I see 2026 with optimism. I think that there is some a structural issue in Brazil. In terms of the fiscal aspect and the public debt. But if we're able to look at the public debt regardless of the presidential candidate, if we improve that for 2027, '28, we'll improve the market expectations. And he asked about the levers to increase profitability.

[Interpreted] Renato, I can say that it's almost everything, credit. We're growing it with the right drivers. But we are not operating in the higher risk segments for credit card, mid-income and high income. In lower income, our risk appetite is lower. Credit is a big driver. Liability management, the liability management we've been doing and the growth that we've been posting and we've posted a lot of growth. Fee and commission income, the main levers and the detractor. So that's another line. The insurance group again. And in the other areas, payments, our consortium business at full speed, the ability for auto loans in our own channels and external channels and so on and so forth. So I see a lot of opportunity because our organization is diversified. We have different revenue sources at different moments. And this year, we will review the channels, and this will increase cross-selling a lot. We spoke about Bradesco Expresso, distributing a lot more consortium, operations, insurance, payroll deductible loans, but also Bradesco Financiamentos selling more insurance. So we have a number of opportunities for cross-selling. Our business app that we'll have Cielo will soon have insurance, dental insurance. So it's all part of operating leverage for us.

[Interpreted] Next question from Thiago Batista with UBS.

[Interpreted] My question has to do with what you just mentioned, good performance of the insurance group. In recent years, the share of the insurance group was about 20%. It got to almost 50% in 2023, and it was dropping. But in recent quarters, it became relevant again. I think that in consolidated income, a much higher percentage came from the insurance group. This is due to an ROE of 18% post to that. But in the sister banks too a bit under pressure. So 2 topics, 1 is the relevance, when I think about the midterm in 5 years' time, how much of the results should come from the insurance group? And #2, is the power of the organization hurting the consumption of DTAs of the bank. In 2026, will DTAs start dropping or not?

[Interpreted] Thank you, Thiago. Well, the insurance group is not getting in the way in terms of consumption of DTAs, and that is important to mention. What we have been saying in terms of DTAs is that this is a year when we will try to neutralize the nominal portion. We'll see a reduction of DTAs in 2027, '28. And this is part of our plan stretching until 2028, as Marcelo mentioned. And that is super important. And I think that we've had the best allocation possible in managing the cost of capital, and it has to do with the tax credit. What was the second part of the question? Well, a comment to make periodically, the insurance group also pays dividends to the controlling shareholder. So we declare it and repay it. So you see the insurance group is a strength to us and not the other way around. It is diversified. It is the biggest insurance group in Latin America. We have a huge traction in the bank's channels to distribute insurance, but we also have external distribution of insurance, reaching out to other clients, which were not necessarily reached out by our internal channels. But we don't hope that the insurance group will do less. We want them to do more. We have an expectation of growing even more. This is what we are seeing. The bank is investing a lot. We're investing in technology, 22% in 2025 over 2024. The bank is investing in technology. And sometimes, we capture the value considering BF consortium and so on and so forth. So what I see is, over time, we should have 2/3 from the bank, 1/3 from the Insurance group. But if this means that the Insurance group will grow a lot more and have a bigger share, I'm happy. I want to deliver more. And this is our expectation. We are very pleased with the results there and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit.

[Interpreted] Next question from Matheus Guimaraes with XP.

[Interpreted] Congrats on the results. I would like to revisit the SME topic. I think Andre talked about market share, and that was a relevant information. And historically, this has been the bank's strength in SMEs. But we've seen some competitors, even new bank talking about SME. Of course, the concept of SME varies in terms of the size of the company. But what would we expect for 2026 in that portfolio? Because given that this is a very relevant portfolio for you in terms of growth and even in terms of growth going forward.

[Interpreted] Matheus, thank you for your question. We are very pleased with our position. In reinstating our position, I must say that I've been working directly with Jose. Jose is the VP in charge of that area, but I've been working with all of my colleagues, [ Alexandre Pinheiro ], Mario [indiscernible] Marcelo, the entire corporate team or company team and also wholesale bank with Bruno, et cetera, and the middle market team. First of all, we always look at what places the Central Bank in terms of assets, companies up to BRL 300 million a year because this allow us to draw a comparison. Competition in this area is very fierce. We always knew that. But our distribution strength is very important. We delivered a lot in digital channels. We hire government progress through digital channels. The journey is very efficient. And we continue to invest. If there is a place to put money, it is precisely in SME, micro and small and midsized companies. The levers continue to be government lines, but also, we provide funding to company vehicles and other investments that have even sounder guarantees, prepayments to suppliers, all of that, it's part of our journey. But then when you look at the digital need with the new Internet app, I mean, a new app when we are migrating over 500,000 clients. The retention rate has been enormous and great growth opportunity and the commercial team in the back office is supported by GenAI and new tools. We just deployed Salesforce back in 2024 for the company segment. And now we are expanding that with the entire business segment and the previous platform we had so we can manage this whole set of things much better with more than 5,000 managers in 21 points of sales. I am very, very pleased with the results. So look at the level of market share we have and see all that we were able to deliver in terms of our loan portfolio. And that was not by chance, but rather because we implemented in new tools, new segmentation, new tools to our clients, new experiences and certainly with business unit models and products that are much more suitable. With SMEs, Matheus, not only we reduce the risk, but we increase penetration, and this is what we have to do. AI is here to help us. There are things that are a lot of -- involve a lot of machine learning and other things involve Gen AI. So there are things that we do to manage our portfolio, some predictive default models and engagement to grow, this means the client life cycle of a client totally connected to our analytics via CRM, which has also been revisited. Therefore, we are sticking to our position. I mean, going from 16.6% to 17% or 16.4% that's not what changes the game. We have to continue to grow and at the same time, reaching our fair share of everything that is important to us. And I'm very much aware of our potential and the growth that we can post for either corporate and individuals.

[Interpreted] Next question from Carlos Gomez-Lopez. Now I'll turn into English.

Congratulations on your second year of -- under the new management. I had 2 very brief questions. The first one is about the absence of cockroaches, as you call them, bad corporate cases. We haven't had any this quarter? In your guidance for the next year, do you expect corporate defaults to stay where they are? Or do you incorporate some deterioration? And the second is, could you comment on what tax rate you expect for next year?

Carlos, the answer is no for the first question.

[Interpreted] But Andre, you can just start answering on the tax rate, and then I can add if necessary.

[Interpreted] Okay. The tax rate that we are working is between 16% and 21% and 18.5% or 19% to calculate fixed net income. And why is it that the tax rate was 20% in 2025, and it dropped a little bit. First of all, because we anticipate higher payment of interest on equity, like I said, BRL 14.5 billion in 2025. So I'm saying between BRL 15 billion and BRL 16 billion in 2026. Certainly, this is a number that certainly depends on interest on equity to be announced by the government. It's not a fixed number. This is just the best estimate, but we anticipate growth in IOE, so that we can take more advantage of the embedded benefit. And secondly, is what Marcelo said, part of our investments bring about competitive gains. And like consortium. We've been highlighting that almost every quarter, we could also talk about auto financing that had posted a good performance in the past 3 months. We have several examples, even with BBI. All of the companies are posting very strong performance, and this helps reduce the rate -- tax rate. That doesn't mean that this is operating weakness. But on the contrary, this is very well distributed. And this year, in particular, the tax rate will drop a bit. I mean, depending on the company, the rate is different. The insurance business has a lower tax rate. I think this is the answer. And we have no concerns when it comes to the wholesale bank. So thank you, Carlos.

Next question comes from Tito Labarta from Goldman Sachs.

You may have just answered it, but just wanted to make sure, right, because on the -- if we do ROE on a pretax basis, it's actually been a little bit more stable throughout the year, right? And I think on the guidance, our tax rate will be a little bit lower. Just because of the tax benefits you have, I think as your profitability generation improves, I would expect that tax rate to go up. And I think you mentioned the insurance tax rate is a bit lower. But just to understand, in terms of the underlying sort of earnings potential of the business, do you think that keeps improving? Or do you think this tax rate sort of remains low because of the tax benefits that you do have? Just to kind of think about excluding the tax rate, the ROE of the business and how you see that continuing to evolve?

[Interpreted] Tito. Regarding the operational results of the group, the operational results of the group before taxes grew 27% in 2025, very strong. Secondly, looking at 2026, the answer is no. Yes, we will post strong operational result growth. And it's not about a weaker operational and a lower tax rate. It is all well distributed with Insurance, very strong consortium, very strong Bradesco Financiamentos, very strong. It's a very big group with several companies. When we consolidate it all, we see a small reduction of the income tax rate. Let me stress this Tito. We spoke about this in the other question. The insurance group has a smaller tax rate. If you go to other affiliates as well, for example, in payments, it's the same thing. We consolidate it all. And sometimes in one channel, for example, the complete connection of Bradesco Financiamentos with this one single channel for checking account holders or non-checking account holders. So I have -- it's a different situation sometimes. It's not the case of the tax rate, but there are other companies that have different tax rates, which is the case of Cielo. You see there is a mix of tax rate. And you should not forget that sometimes in the end of a period, there are some fiscal aspects, a certain law here and there. For example, insurance group benefited from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it, nothing different, as Andre mentioned.

[Interpreted] Next question from Eduardo Nishio with Genial. Still no sound. Let's move on and the question comes from Andrew Geraghty from Morgan Stanley.

Congratulations on the great results. I know you have discussed at some length credit growth and some expectations for payroll loans, secured loans. I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5% to 10.5%, kind of where you're expecting better growth, maybe where you're expecting some weaker growth and where there could be some upside by segment, if possible?

[Interpreted] Well, actually, as Marcelo mentioned, we start 2026 stronger than we started 2025. We had a positive surprise in credit in Q4 2025. So we start the year already with a lot of traction. So we see a continuity of that movement. So what do we see in terms of trends? Very strong SMEs followed by individuals and then wholesale, wholesale competing with the capital market funding. As Marcelo mentioned, sometimes very high tickets making a difference. In Q4, positive difference for us. That doesn't happen all the time. But I think that the expectation, the prospects for the segments would be this, SMEs, individuals, wholesale, we have traction across all fronts, and we are ready to capture all opportunities. Right, but Andrew, there are some different situations, when we speak about the affluent segment. In Principal, we have relationship products such as investments, the credit card with a value proposition that is unique for these clients, totally different experiences for these clients. The same goes for Prime, which is different than the relationship for INSS retirees. For that audience, we offer deductible loans. And when we get to Prime and Principal, mortgages. So we have these mixes of products that sustain in these segments. And this is just to mention a few major. And in terms of companies, legal entities, we have a huge mix of products growing in small and medium-sized enterprises in different lines, by the way, increasing our penetration there. And with the wholesale bank, we are recycling the portfolio, and what we call OBD book origination for distribution, which is the case when the capital market spread was very crushed, we can compromise risk-adjusted return. So we don't work looking at that. So it is better to distribute than effectively keeping it in our books. And we have a set of fees, which are also important for us, in different lines of business. And there's also cash management. It is a super important platform for small and medium-sized enterprises as well as for the wholesale, we have a new technology platform, which over the year will bring us important improvements. That is another key point to improve profitability.

[Interpreted] Let's see if Nishio is back. We still cannot hear you. Not yet. Maybe if you remove your headset, maybe it will be better. We cannot hear. We're receiving a question about mass income. Okay. Tell me a little bit about the mass income portfolio?

[Interpreted] So if you need any more information, I can add. Okay. Mass income is probably one of the major transformations of our banking cycle, since the beginning of our track record, our history. I think we are bringing some good news. I think Marcelo mentioned it quite well. 90 million clients are already fully digital in the mass retail with a totally different value proposition. But again, it's much easier to operate, not only they use BIA GenAI, but there is a specialist that can help with a customized sale, which changes the paradigm of having an individual physically present in a branch. The second relevant aspect is the engagement, our capacity to serve that client with Gen AI tools and integration tools that are very important to boost sales. And I think this has been a major evolution. We anticipate BRL 45 million. So throughout the year, we will be fully digital. This will be our mass retail bank. This is a very important aspect. And today, February 6, we already have 25 million digital clients because every week, the numbers are growing with zero resistance, zero friction with clients. And this has been a very pleasing experience, very good experience. And behind all that, all of that is supported by a very good technological platform for individuals, and this will encompass all the individuals. And I think we've been telling you about that in the past quarters, and this will certainly grow or help us decrease cost to serve, which has been significantly reduced, and this has an important correlation to our footprint adjustment.

[Interpreted] Well, [ Nishio ], thank you very much for joining us. I know you had a that problem with the sound. But thank you. We are always available to talk to you and also to welcome you here at the bank. And the same thing goes for our IR team. I think Cassiano gave you a good backdrop. Well, you saw more than BRL 40 million at the end of '26, starting with BRL 19 million, but engagement is increasing and improving. And certainly, we are able to reduce direct cost to serve by 40 fold. We are very committed to what we are doing. And there are still people that look at the physical space in the physical world, and we are testing different models all the time with our Bradesco Expresso, so that we can address these topics. And this is a challenge. In fact, I said that I went to Asia last September. And I heard comments from some banks, they have the same challenges we have when it comes to footprint adjustments, cost to serve and consumer. Therefore, an issue, we are sticking to our plan, and we will bring this year, and in particular, in the second half, more information about this digital retail. And thank you. Thank you, Nishio. And with that, we conclude the Q&A session. Questions that couldn't be answered right now will be answered by our IR team. And before I turn the floor to Marcelo to his final comments, I must say that this presentation and the full material of this release is available in our IR website.

[Interpreted] Well, thank you, Andre. Thank you, Cassiano. -- and I extend this thanks to all of our team, who helped us in this video conference. And thank you, our audience, for your interest and for the time that you spent with us. Its what I said -- I mean, this is the summary of our transformation, 8 quarters in a row, delivering good numbers with the focus that I said, without losing sight of the plan that we set up for ourselves step by step, but delivering improved ROE and improved absolute net income with a very engaged team with clients and with the Bradesco team. So thank you once again. And our team is entirely available to give you more details, not only about this earnings presentation, but also about our transformation program. Thank you all very much, and thank you for joining us.

Good morning, everyone. I am Marcelo speaking, straight from Bradesco's headquarters to present some details on the results for the third quarter of 2025. I think you've had the opportunity to read the results that were published last night. I think you had the opportunity to read it and just see a few things related to our results. So I'll start by saying that our recurring net income was BRL 6.2 billion this quarter. That means that it was up 2.3% year-on-year or was up 0.1 percentage points, posting 14.7%. So we had a very sound consistent results considering everything that we've been saying to you in the past 7 quarters. This was after our transformation plan. So basically, here, we are talking about profitability. So profitability maintains gradual growth and secure growth with operating consistency. All you have to do is look at all the lines. Revenues continue to grow in almost all lines NII and NII net of provisions, fee and commissions income, the insurance group and other related companies and the highlight goes to client NII. Delinquency rates remain under control. The restructured portfolio comes down, as you will see further on. And our secured portfolio rose quarter-on-quarter, reaching almost 60%. Operating expenses are in line with expectations and very much contained. Expenses are under control, and I will elaborate further on that topic. And we also anticipated our footprint adjustment and the numbers are higher than expected. And once again, we were able to deliver a sound performance of the insurance group with ROAE over 21%. This slide brings a bit more details. Our total revenue was BRL 30 billion, up by 13.1% year-on-year. Total net interest income almost nice -- I mean, almost 4% growth, fee income, almost 7% growth, and the insurance group grew 13% year-on-year. That shows continuous growth. So what do we attribute this growth to? I mean penetration in the customer base, I will revisit this slide further on because if we didn't have any penetration in our base for individuals and corporate with consistent improvement of customer experience in all business segments, we wouldn't be able to post constant growth in all of these revenue lines as you could see from this slide. And now moving on to our loan portfolio. Remember it was BRL 1.34 billion, again, consistent growth, 9.6% year-on-year. Now here without going into a lot of details, but further on, we will give you more specific details. So growth, both in individuals and corporate are more related to secured lines. You will also notice that the highlight is with micro and SMEs, so almost 25% growth year-on-year, and this is a very well managed portfolio with a lot of collateral because this is what will allow us to grow consistently over time. So next slide zooms into some specific credit lines because these are growth levers. So what can we tell you about this? I mean very sound commercial traction in all lines. If we didn't have a good customer base and penetration in that base, we wouldn't be able to grow this much. And the other element is the credit modeling in the business units that we created including portfolio management, which you can see in the down -- the bottom part of the slide with a lot of machine learning, improved models. We hired more than 200 people to our credit BU. We did upscaling. And what we are noticing is that there is a constant evolution in all segments, not only individuals and SMEs but also the retail bank -- I mean the wholesale bank with all of the balances that this requires. And now I would also like to highlight a few points. I mean, Bradesco's payroll loan ended the quarter with almost BRL 102 billion. Our share is approximately 14.2%. Among private banks, we are the largest one. We lost in this commercial disputes to public banks but our public portfolio 15.4% share. Social Security, first of all, was 15.4%, public, 14.3%; and private 7.5%. We were very conservative in terms of granting private loans. But then further on, we can elaborate on this. But we put together a more restrictive credit policy at the very beginning because we didn't want to run into many risks. So our policy is to work with the companies that we used to work in the past, and for the employees of these companies that were at least employed by the companies for a year. So in the first case, the level of delinquency for lack of payment was 12%. So this number is coming down. Operationally speaking, the market is oiling the wheel. So on average, I'm not referring to any specific organization. But on average, the delinquency level in this particular portfolio for these new cohorts, is around 11%. And ours, it's 3%. So we didn't grow. I mean that portfolio decreased on the private side year-on-year. And then year-to-date, as well. But then when we look at the third quarter, the Central Bank just released the numbers for this portfolio for September. And then I think you can look at that. So we are resuming growth on the private side, our policy is now a bit more open, but we are also growing on the public side. INSS with all of the changes that were done in the first half of the year went from a market production of BRL 7.5 billion to BRL 3.5 billion. And shortly, what is happening here since this was the largest portfolio among private banks, our monthly settlement is higher. If you look at the Central Bank numbers, you see that there was a drop in the INSS portfolio, and now we will start growing again, meaning that we accelerated public portfolio and the expectation is to grow next quarter and to grow next year consistently in all these lines. So security, public and private and look at our share. So we don't have anything to lose. We always have to gain more. So this is the outlook. And credit cards, if you look at the numbers, we grew substantially in the high income line. In terms of real estate, our share is about 20%. There are 3 or 4 banks whose market share is slightly higher. But in the last quarter, I mean this entire year, in general, we preserved margins. Now we see opportunities with also some modifications to accelerate real estate again. And rural portfolio, the portfolio of the bank loan grew 25% very collateralized or secured. SMEs, we are growing consistently quarter-on-quarter and year-on-year, almost 25% year-on-year and when we released the plan we anticipate that we would struggle to remain in that leadership position. I'm talking about companies that have revenue or banks that have revenues up to BRL 200 million a year, and we gained share with SMEs as well. This is just to say that we will continue to grow. We will continue to grow our loan portfolio. And as a reminder, last year, we had a write-off of the restructured portfolio of almost BRL 10 billion and large corporate growth. And large corporate, we didn't have that growth. And if everything were to remain stable, if there were no write-offs and if large corporate portfolio had not declined, our loan portfolio would have grown even more. So we are well positioned. We have the desired clients. We have demand, and we will continue to grow and we expect to gain market share in payroll loans. We will continue to grow real estate, SMEs because we gained market share. So we are -- we have a very good commercial traction and as a consequence our total NII grew almost 17% and the total NII net of provision grew 14.4% year-on-year. But when we look at client NII, we grew 19%. But when we talk about client NII net of provisions when you are balancing that portfolio with cost of risk, we grew 18% reaching almost BRL 10 billion. And the expectation is continue to grow. Now speaking about expenses with LLP and we just had a press conference with journalists and they asked about this. BRL 500 million of variation on the cost of credit quarter-on-quarter. There are 2 cases that justify this. First, there is a one-off case in our wholesale bank because we made provisions I mean, obviously, I cannot give out names. But if you look at the full publication and look at the provision phase, you will see that we have cost of credit for mass retail and wholesale. But when you look at wholesale banking, it's about BRL 200 million every quarter or BRL 300 million. So they're certainly regular and this one goes from BRL 200 to BRL 500 approximately. So it was a one-off case. However, we could also grant credit in the middle which is also part of the wholesale banking. But once you offer certain facilities, you also have to call provisions beforehand. So this is natural seasonality. But if we were to exclude that and also what was added to the John Deere Bank, this would be perfect. So the coverage level that we did for them put us on a -- still in a very comfortable position. This was a one-off case. And so we decided to make the necessary provisions and just move on because we want to continue to grow. And given that, that is flat, the average cost is 3.2% rather than 3.3%. Therefore, no worries here because our portfolio is very good. This slide, after long conversations with Cassiano, he's already here. And Andre likes to say, okay, this slide or this screen only comes with good news. I see a lot of good news here. But I would also like to comment on a particular issue because I got a question about it. If you look at this numbers down below, it goes from -- it goes down from 7.9% to 7.7% and Stage 1 growth and that is the portfolio with better quality. And this takes us to the restructured portfolio. There is a drop of almost BRL 10 billion year-on-year, which is quite significant because if you go back to the early months of 2024 above BRL 12 billion. And even the loan portfolio improved. Look at what happened, the number is dropping in terms of our total portfolio. And another positive number is the level of secured portfolio. Almost 60% was the number that we reached. Therefore, we are doing a lot of things to come up with this kind of performance. Delinquency is flat. There is a footnote here that says that -- I mean, over 90, there is a slight deviation, and this was also related to the John Deere Bank. But I don't see any issue here because they have other ways to finance their equipment in agribusiness companies. And this affects because we consolidate all the numbers. But if you look at the portfolio, it's absolutely under control, and this will certainly help us make things go forward and generate more revenue. Now fee and commission income, if we do not have commercial traction, if we cannot deliver a better experience to our customers and good and adequate relationship, we could never post a good fee income that grew almost 7% and the highlight comes from credit cards, almost 14%. And consortium management, we grew 22.1% year-on-year. But this product comes from customers at different levels, I mean, mostly corporate customers. Our rates are about 15% of the Selic rate. So it's very attractive. Asset management. I mean with these levels of growth, [indiscernible] is a highlight. It reached BRL 1 trillion of assets under management. And if you look on the right side, I will draw your attention to loan operations. I mean we are still traction. And I'll draw your attention to our investment banking. Investment banking shows a drop of 29.9% because the baseline of the previous quarter was a growth of 75%. Therefore, if we look at year-to-date this year, it is growing 24.1%. And this is not de buying work because this involves growth in new teams, engaged teams. Certainly, also this involves pipeline generation coming from all different segments of the banks like wholesale, middle market in addition to custody and brokerage services, which also posted growth year-on-year. Now operating expenses. Before coming to that, I would like to mention an adjustment to our footprint. We are moving even beyond what was anticipated for our footprint. This year, it was [ 1,269 points ]. And a year ago, in 12 months, 1,600 points. That means that we move forward, which is quite positive. And we are doing that, thanks to the talent of our team with a lot of intelligence backing it up, and this will be an ongoing trend. And when we talk about the guidance then for 2026, we will tell you what is our expectation for next year. Expenses are growing 9.6%. But also look that somebody asked me about that. Personnel expenses and admin expenses grew 5.5% year-on-year. If we were to eliminate the effect of variable -- higher variable compensation, our growth will be 2.5%. Our expenses are absolutely under control, and I would like to draw your attention to one item. Without EloPar and Cielo, it would be 8.5% rather than 9.6%. But let me give you some additional information. And this is also posted in our full publication. I think you can find that on Page 21, that's when we talk about operating expenses. But so looking at operating expenses, this is where we consolidate everything. Admin expenses year-to-date and year-on-year posted negative growth, meaning that there was a decrease. But if you had the chance -- have the chance to look every single line, you will see that some expenses grow and some other decrease like transportation decreases. But there is a line that refers to technology. That technology line, if it didn't have any quarterly variation, we would decrease admin expenses in the quarter. But also this quarter, absolute growth was BRL 140 million. I would like to draw your attention to one particular figure. So when we look at our balance sheet, we consolidate all of the associated companies. So when I take [ Elo and Alelo ], the growth of admin expenses is higher than 20%. So here, it goes up BRL 140 million. I can tell you that a good part of that comes from these 2 companies because they affect us due to the equivalent. So expenses here are pretty much under control. Now personnel expenses. Cielo had no impact in the quarter when it comes to admin expenses. But then when I move to personnel expenses, Cielo posted growth of about 7% -- slightly over 7% in terms of personnel expenses. But if I am to exclude variable compensation and I look at fixed compensation, which appears in the first line of operating expenses, you will also notice that personnel expenses would fall to a number probably below 3% if we were not doing that equivalent with Cielo. Therefore, you have to take a snapshot and just think that we have consolidations that were also posted in the numbers. So I can certainly say to you that our expenses are very much under control. Certainly, there was a higher impact in this result. This is, in our view, a positive expense. And there is another factor here because you have to adjust all your provisions when you have the collective bargaining agreement, which was higher than 100%. So it's very hard to index these personnel expenses. So we see expenses absolutely under control going forward, right? So now the insurance group, as I had mentioned in the first slide, the net income is consistent. We continue to bring very good profitability when we look at year-to-date at 11.4% year-on-year, 6.5% growth with an ROE above 21%, as I mentioned with you. And I attract your attention to the operating results that guarantee the consistence of the insurance group's earnings with the total earnings growing at this level, year-on-year 13% operating results, 10.2%; financial 18.3%. So that's very consistent growth for the insurance group. And this is also not divine intervention. All of the customer segments and pretty much all lines have been growing, delivering positive variations year-on-year, but not only here in our customer segment, but also in all distribution channels that the insurance group has for the brokers, digital channels and I pointed at that now in our press conference. And the technical provisions reached a level of BRL 435 billion with growth of 10.5%. Now moving towards the end of the presentation. Our capital, even with the growth of the loan portfolio Common equity grows 30 bps to 11.4% and CET1 grows 0.4 percentage points, as you could see. Now our guidance, I talk a little bit about this literally. If you look at that, we should move in the year when we closed the quarter to fall within the guidance, but at the higher interval in all items, including expenses. So considering everything that I told you about. So look, the loan portfolio, for example, from 4% to 8%, we're growing at 9.6%. So if you go there to our earnings presentation of the fourth quarter of '24, you see that we grew the portfolio quite well, BRL 981 billion. If you look at the portfolio, that's BRL 1.034 billion today and you put BRL 16 billion of growth, the baseline takes us to BRL 7.1 billion. So I'd say that we will grow between 7% and 8%, a little bit more maybe but with consistent growth in here. Also NII net of provisions in the upper levels of the interval and so on for each one of the items. All of them laying or falling in the higher end of our guidance. So we'll deliver the guidance at the end of this quarter. Now quick overview of our transformation process. We will have a more detailed view when we close the year. But we have been evolving very well in all of the aspects of individuals in each one of the segments. Bradesco Principal closed September with 41 offices and expanding still growing, and I'll talk more about that. I talked about the footprint exceeding expectations. We launched global solutions and enable the platform to 100% of wholesale clients for our cash management. We have more than 11,000 people working with enterprise agility in our organization and also advancing quite quickly. And with everything we've been doing in IT and the intensive use of GenAI, our productivity in terms of development grew this year 109%. Looking forward, for the next quarter into the next year as well. What we have here, I'll point 4 topics without getting into the details of each one of the items of our Mandala. But first, Principal. We should close the year with 300,000 clients, approximately 62 offices in almost 40 cities in Brazil. And Prime has been evolving from its value proposition. We will already have 3 million customers, maybe slightly more than that. We have more than 14 million customers that are fully digital who no longer use physical point of service. They're also being supported by our Bradesco Expresso which grew and has more than 39,000 bank correspondents throughout Brazil in every city of Brazil and more than 5,600 municipalities in Brazil. In SMEs, we saw traction that we have. Last quarter, I talked about the new app. We've expanded the app for small and micro companies. They can hire loans from Pronampe e Procredit directly on the app. It's a new very streamlined experience. And obviously, all of our segmentation process has been proving effective with growing penetration in this segment. And I would also like to point here at the bottom about our culture. So Bradesco or IM Bradesco. Last year, we showed that we had the survey with 74% of participants with high engagement levels. This year, we had 84% of all of our employees being engaged and answering a survey showing the evolution that we have in this aspect as well as all the other initiatives that we have in all of these different areas. Two pieces of information to conclude my presentation and to move on to the Q&A. I've been talking a lot about Gen AI. And now I said, well, I'm not going to talk about this anymore. I keep talking about this in all firms that I go to and here on the earnings presentation. So let's get BIA to talk to you. And I had a surprise when they brought me the video because they had an avatar that is the last time you're going to see this, okay? Next quarter, I will bring a new one that will be a lot nicer than the one that's going to talk to you right now. It's about a minute long. It's a very brief video. So let's have a look at it, and I'll come back for the conclusion. So please.

Digital transformation through enterprise agility and the massive leverage of Gen AI is generating impressive results. Look at this. I can highlight 4 fronts of progress to you. First is the increase in productivity, hyperpersonalization, risk management and customer engagement and journey. We've already reached a productivity increase of 109% this year, and we built a new income model with a drastic reduction of 95% in the time to create an expressive increase in accuracy. At the same time, we increased security with sophisticated biometrics, and we offer hyper-personalized experience. And customer service has full engagement with 90% retention rate on BIA's chat and innovations such as fixed by voice. Here, Bradesco Gen AI goes beyond technology. It is a part of our transformation at the service of our customers and our business. So that's it. Thank you very much. Now it's back to you on the studio real life Marcelo.

That's a tough one, right? The next one will not be this avatar. We're going to have another one. So I'll head to my conclusions here, restating what I said at the beginning of the presentation about our commitment to increase profitability. We are getting close to the return on cost of equity. But step by step, as we said since the beginning of our plan, revenues is the main driver of profitability, increased expenses under control, credit portfolio with a balanced growth, always prioritizing risk-adjusted return. Risk appetite that I said at the end of last year remains moderate. But the delinquency rates, portfolios, vintages are completely under control. So we have a lot of traction in the brand bank, change the bank, and we're confident that we will have a good quarter at the end of this year, and we will also have good quarters next year, 2026. So now I invite you for the Q&A with my colleagues, Cassiano Scarpelli, CFO; and our colleague, Andre Carvalho, IR Director. So Andre, over to you. Thank you.

Thank you, Marcelo, Cassiano. It's a pleasure to be here with you. Good morning, everyone. I'd like to remind you that our CEO of the insurance group, Ivan Gontijo is participating remotely. [Operator Instructions] First question Daniel Vaz. Daniel, please go ahead.

Thank you, Andre. Good morning, Noronha, Cassiano, everyone so I'd like to talk a little bit about cost and this overview of the footprint that you accelerated a lot over the last 2 years -- so closing a lot more service points that were expected, both in 2024 and '25. I think you accelerated even beyond those targets. So my doubt is about 2026.. hould we expect the same pace of closing? Or is the trend going to change focus to reap operating efficiency to move towards that goal of 40%, down from 48% when you were announcing the strategic plan? And then a second question still on costs. You mentioned Elo and Alelo growing 20% year-on-year, even more so in costs. So we can imagine that this is the level that will be maintained going forward. Is there any one-off situation that would cause you to accelerate cost in these 2 companies?

So I'll start with your second question. Thank you, Daniel. What I have to say is they do not grow in personnel expenses. So it was on the other way around. I only mentioned that to say we have different dynamics. But they have been growing in terms of volume, revenue, earnings, and they have been investing. So naturally, when you increase customer base, you also increase cost of processing and this type of cost, it's natural to see an increase. The expectation is that it will grow indefinitely at a level of 20%. I don't see that. But they are doing well. They're balanced. They're bringing returns. But when you show the transformation plan, what I mentioned was that we have a plan to reach that level of efficiency that's very important, and we're pursuing that and having a very strong control of expenses with a fine-tuned execution and a lot of discipline, Daniel. But now if I tell you that I have an opportunity to spend BRL 1 billion to make BRL 2 billion, we will not flinch. We'll not hesitate to move forward and make adjustments because life is dynamic. So the opportunities came up, and that's how we do it. That's not what we expect. We expect to have very well-controlled expenses. But once you consolidate, you may look and see, but shouldn't it be going down or you may see a deviation here and there. But as for the footprint, we talk about 1.6 if we review in the last 12 months, the expectation going forward, if you look at 12 months, would be to a smaller adjustment, Daniel. We're closing this number according to our transformation plan, but it should be below 1,000. That's the expectation for the next year

So just to add to what Marcelo said, once we anticipated the footprint adjustment. Of course, we have more provisions for labor, and that shows up in our OpEx line. When we actually reduce the footprint adjustment, we should see a slowdown of the labor provisions, and that should be clear from now on. I would also like to add to Daniel, we can't have to remember investments that's there for the depreciation, strong investments we've been making naturally in technology for the bank overall as a whole and depreciation on the side. So there's a little bit of that. In theory, they are offenders, but actually, they are what boosts the new level of efficiency at the bank. Of course, also competitiveness, right, Cassiano, what we're saying, and we have a more conservative guidance at the end of last year, but we will make it a point to make any investments required in terms of competitiveness. So thank you, Daniel.

Moving on to the next question. Pedro Leduc Itau BBA.

The first, I think you've already answered actually in this high level of labor provisions that we see this year is like building inventory that may be normalized next year. So I think this is already clear. That was a big offender of the results. But the other question would be in the credit quality. We see a slight increase in over 90 NPL for individuals. So I'd like to get some explanation about this a little bit, maybe the John Deere side, if that's been done or if there's more to come on provisions and also SME NPL, that's quite curious. It's been going down. So congratulations, but I would also like to understand this a little bit more, maybe the relevance of government lines going up. If you can give us an order of magnitude, if it's 10%, 20%, 30% of the SME portfolios, how is the performance of these government lines as they come out of the grace period and if there's any major concentration that we should look at. And at the end, what I'm trying to understand is if this increase in the cost of risk that we saw in this quarter is a trend going forward or not?

Thank you, Pedro. Good questions. So thank you. It's a pleasure to see you. So first, so individuals, delinquency, it was driven by John Deere. So we don't see any other issues. Our portfolio is very safe and good vintages, and you will see a good quarter on the fourth quarter in this aspect. Now for the wholesale bank, that's the case that we had. So going back actually to John Deere that you asked. Look, the capillarity is a lot greater and have smaller or larger funding depending on the size of the deal and the agribusiness side. So it's natural. It's not breaking with any history of what we've seen, and there's recovery that comes over time. That's what we saw there. So that affected a little bit because of the consolidation, but it doesn't keep us up at night, and it doesn't discourage us. With the John Deere business and our growth in agribusiness, both in the wholesale bank and directly at the retail companies and individuals as well. We are excited with this industry. Of course, we're very cautious. We've been working with collateral always here in this type of line. We do not have any deviation in our portfolio for rural credit. About the wholesale bank now, that provision that I mentioned, there's irregularity there in a specific case, one-off that was a little bit outside of the market rationale because the market is there. So we decided to provision for that with a good coverage ratio now. I don't see any other issues here. So I see the cost of risk being very well balanced. If you were to remove that case of the wholesale bank and the deviation that we had from John Deere, it would have been flat, Leduc, it would be flat. So the order of magnitude for you about this case, I can't give you the specific number, but it's around BRL 200 million more or less, BRL 200 million that we had. So we are very comfortable with our portfolio. As for SMEs, why did it go down? Obviously, we have numerator denominator here that we are warming up well, but we're growing well with collateral. So we chose modalities in FGI/FGO. Remember that I said we had a share of around 18%. We were #2 last year. At the closing, I said that at the beginning of this year. And I said that this year, we would be a leader and with more than 20% market share, and that was what led us to grow with quality because the models take into consideration those intervals so that there may be occasionally a break with those thresholds that are accepted by FGI/FGO. So we are doing very well, delivering very good quality, creating a huge culture of cost of risk in our company segments and our business of the companies of up to BRL 50 million a year in revenue. So the portfolio is under control with no hiccups. Of course, wholesale bank, there may be here and there something different. But it is worth noting or remembering what I said in the presentation, is corporate. That's the middle segment that starts at BRL 50 million and goes geographically. It's a larger extension up to BRL 1 billion. And there, depending on the expected loss or the modality we operate, you have a little bit more provision upfront because of the expected loss. It doesn't mean that delinquency didn't see the movement of Stage 3. No, because it's there on Stage 1, it's good, but you have that expected loss for that type of target you're working on. But always with that risk-adjusted returns, and that goes for everything for SMEs, for the wholesale bank for vehicles and everything for all of them.

Next question from Mario Pierry with Bank of America. The floor is yours.

Congrats on the results. I have 2 questions as well. My first question, is mainly a provocation. You're saying that credit cohorts are performing well. NPL is under control. But at the same time, we are expecting a decrease in credit. I would just like to understand why you were so cautious about credit because if you anticipate that things are performing well, why are you making that move? The second question has to do with your market margin and the increase in the Selic rate. How do you expect NII performing once you expect Selic rates to go down?

I would like -- I'll ask Cassiano to start answering your question, and then I will talk about that acceleration.

Good morning, Okay. Market NII, we did some very important work. I think it's the first time we acknowledge this year an important work done from our treasury and the balance. I think we still maintain that BRL 1 billion of soft margin. And I think we refer to that in previous occasions. So we do acknowledge that work, and we understand that this will be globalized until the end of the year, making up that a total of BRL 1 billion. Well, certainly, with a lower rate next year, we should see an improvement. And so right now, we are looking at the budget, and we may bring you some news next year. But certainly, this is a good possibility of an improvement in the market NII for next year. Well, thank you, Mario, for your question and your provocation.

[Interpreted] We should have a positive outlook in 2026. But starting in the second quarter, I mean, going forward after the second quarter of 2026 in terms of ALM, but as Cassiano said, the other lines are performing well. To your point about deceleration, I would say that it has changed. If you look at the Central Bank's relief, I think it was released yesterday and we were looking at it, I talked about the private payroll loan. Private payroll loans, there was a drop year-to-date. We also experienced a decrease year-over-year. Now we are -- it's beginning to go out and we -- it's picking up. And we will just follow the market growth. So that doesn't mean that we are decelerating in the country. And in the other portfolios, public and INSS. INSS portfolio is still dropping, but it's picking up again. And the public portfolio, traction is good. We are growing. We will gain market share -- the other one, we are doing well with SMEs. We are not decelerating, but of course, that you have to deliver the right line to the right clients. The same thing the market dynamics, I mean, I'm referring to Central Bank data. I'm not releasing any privileged information. But if you look at orders, in a year, we would grow slightly below market growth. But in the quarter, we surpassed the market growth. So that means that we have a good risk appetite. I may even be, let's say -- let's say I am bringing credit with a little bit more risk. But the important thing is NII net of provision. So you have risk-adjusted return that is adequate perfect. Therefore, I can tell you that we will be fighting for this market, and we will continue to grow. I am not pessimistic. We are cautious because we don't want to venture into like lines that have higher risk, no we don't want to do. So I want good clients, with good rating, control expected losses in segments that eventually may bring this slightly lower margin, but at the end, it gives us sustainable assets. That's why we have a sound portfolio. I mean the restructured portfolio is good. So your provocation -- to your provocation, my answer is yes. We are cautious, but we are stepping on the accelerator, whatever we see opportunities for penetration. I mean we grew 25%. I mean we grew more than the financial system. So our appetite remains sound. If we did not have, I mean, any drop in the large corporate portfolio, we would have grown more than 10% year-on-year.

[Interpreted] Next question comes from Thiago Batista with UBS.

[Interpreted] I have 2 questions. My first question, going back to the strategic plan. I mean, you released that in 2024, that has been almost 1.5 years ago. And back then, you talked about 3 or 4 KPIs. One was something about 2 and 2.5 efficiency over 200 bps. And then you talked about cost of equity. So some time has passed. But can you tell me that considering your initial diagnostics, how do you see the market? More challenging, less challenging cost of capital, cost of equity, are you going to deliver numbers very close to what was anticipated? I mean cost of capital and ROE, I think you addressed that efficiency maybe you didn't get there yet. So what is more challenging and what is more comfortable related to your strategic plan. When you talked about real estate, looking at Bradesco today, the bank has about BRL 112 billion in mortgage, BRL 120 billion of savings and LCI. So do you see any possibility of issuing more LCI after the transition? So how do you see this change in funding of real estate mortgage?

[Interpreted] I will start with your second question about mortgage loan. I mean our portfolio has over BRL 140 billion once you also add the corporate side. But the change was positive. It's an opportunity because it makes sense. It makes sense to reduce the savings, the reserve requirement of the savings account. We had preserved margin, as I mentioned during my presentation. That's why we stepped on the brakes a little bit. But on the other hand, we have the demand capacity to resume growth, and we will resume growth. This will be more noticeable by the end of the year because we have enough capacity to grow more. I also think this is positive for the system because there are 4 incumbent banks that have higher protagonist, but when we look at the regulation, it comes with some complexities. I know that you're familiar with it. But starting in 2027, what we have to look at in terms of the release of the reserve requirement in this new regulation is that there might be a decoupling in the long run because you remove that 15% of free resource. So in that vote, they say that every year, this will be reviewed. So certainly, there might be some degree of flexibility that will allow us to make adjustments. Otherwise, there will be no appetite or maybe the incentives will be -- will go in the opposite direction. We have an appetite to do it. And this makes more loyal customers because they are more profitable, of course, we have a lot to do. The higher interest rates also challenges mortgage loans. So that's the first thing. Second thing, I think that here in terms of challenges and then I want Cassiano and Andre to add to my comments. First of all, you said, are we -- we are getting there, right, in terms of cost of capital. That was a challenge. And when we presented the plan on February 8, 2024, we were talking about 13% to 13.5% cost of capital. I think if I'm not mistaken, that was the number, meaning we would have gone beyond that. That was a challenge. But it's -- we are getting very close to it, so it will come. I'm not promising anything, but it is right ahead of us. This is the first thing. The second thing, growing customer base. We cleaned up inactive savings account holders because it makes more sense to include nonactive customers, and we don't want to bring nonperforming clients. Therefore, we are working and paying attention to that. We are looking at the profile of clients, clients that are more digital and so on. So there are challenges. And but this applies to the entire country when it comes to the massive clients, which are struggling to make ends meet. But our growth level at Bradesco principal, I didn't even refer to NPS to you. But probably in our next earnings release presentation, we will talk about the growth of the individuals portfolio and bring some more information. We are seeing a lot of good things happening with our principal segment, [ Prime ], SMEs, wholesale banking, I think obviously, there is also structural growth because the GDP is not growing and unemployment is low. So this interest rate level squeezes small and midsized companies, and that's why we try to be -- to operate on secured lines. Maybe going forward, we will see more opportunities to deliver some KPIs that we will certainly bring it to you when the right time comes. Sorry Thiago, I think I called you [ Eugene ].

[Interpreted] Thiago, I would add 2 things. One thing that probably looked like ancillary, but we have the engagement of our team. I am Bradesco. This is part of our culture. Marcelo showed that 84% of our people answered the survey. And this is important because they are very much engaged in the bank's transformation. This at first seem challenging, but I think this was one of our positive surprises. Obviously, the macro environment was based on that strategic plan. That was a totally different plan. We didn't have high interest rates. The GDP was growing, the cost of capital was good. But despite all of that, we continue to invest. And an important part of that, that we have to mention in addition to people is technology. We invested in technology, reskilling, the different tribes, the concept of restructuring our infrastructure, the upskilling of the team as a whole and the intensive use of Gen AI that led to greater productivity together with other like footprint in this new growth levels. Of course, this also involves higher efficiency, 800 bps. We would get closer to 50, 52. So the plan -- it's a 4-year plan. We are heading towards the year 2. So there are lots of challenges, but we are on the right track. And in our next earnings release, we will talk more about the share. We are growing in the areas where we trust we can increase penetration. SME is a clear example. And you might recall that I said that we wouldn't let go of our leadership position, and we are doing so. And we are delivering better results on and on. But we have a challenge to increase efficiency, as Cassiano said. And capital requirement is something that is a constant here because year-end of 2026, there will be new requirements related to operating risk and other elements. I think the number is 30 additional bps for required capital. So capital need is something that is very peculiar to our industry.

[Interpreted] Next question Yuri Fernandes JPMorgan.

[Interpreted] Thank you Andre. Thank you, Andre. Thiago always asks good questions.

[Interpreted] We will call you Thiago.

[Interpreted] No, you call me Thiago UBS.

[Interpreted] You should have a sign. We saw a sign that you were on the line, and then I got confused I apologize. Thiago again.

[Interpreted] I would like to talk about client NII. It's one of the good surprises of the year, improvement in funding or something in spread, we've been seeing your line very well with this 9% that you presented now. So I'd like to take your view of NIM. So do you believe this 9% NIM is going to go up? Or is it more going to remain stable? If it's going to improve, what do you think will make your NIM improve? That's the second question, inspired by Thiago. I know it's hard to talk about medium- to long-term ROE, but I think that the market believes that Bradesco will start generating returns above cost of equity. And we see there's some expectation that this is going to improve, as Cassiano said, this is a reality in the quarter, we understand, as you said, that there have been corporate cases that played kind of against it, but ROE only improved 10 bps quarter-on-quarter, and that's kind of timid. But when we look at the detail, the insurance companies who brought most of the improvement. The bank's ROE goes down quarter-on-quarter. So again, going back to Thiago's question, what could we expect in terms of the agility of this ROE improvement? It's clear that it will continue to grow, but I'd like to understand from you, if you can, if you're comfortable bringing more medium or very long-term numbers to understand how you see the improvement in profitability for the coming quarters.

[Interpreted] Andre, you can begin and I'll conclude.

[Interpreted] So I'll start with the ROE question. Actually, what we see this year is that the revenues have been surprising every quarter with the commercial traction, proximity to customers. And that has been allowing us not only to maintain the decision of the beginning of the year of preserving investments, but also to accelerate the footprint adjustment and strengthen the balance sheet. We saw in the third quarter, the increase not only on LLP, but also the labor provisions with a clear effort to strengthen the balance sheet on one-off measures. And we were able to do that because the revenues were coming in very strongly. So here, we delivered the step-by-step the improvement in profitability in the quarter, but we decided to advance and we are having a very accelerated transformation plan. So I think that gives us more confident on the medium and long term that we'll be able to go further in this process. So the idea here for ROE improvement, we've been saying today, it basically depends on revenue basically. And from now on, it's going to be the efficiency ratio that's going to be our focus, a combination of revenue moving now and expenses still very much under control that leads the efficiency ratio to drop 10 percentage points in the next 3 years, '26, '27 and '28. So I think that's the main ROE driver that's still not priced, but it's one of the very important aspects for us to highlight in this discussion. Now on NIM, our NIM got to 9% now in September. We were promising this 9% for December. So we were able to deliver slightly early. And we are still expecting 9% in December, some stability in the fourth quarter. That's the base scenario. And we have some variables that help us going forward in this NIM. For example, the cost of funding, the funding margin are still improving a little bit, not only due to the -- not so much due to the quick wins we saw in '25, but to cash management measures of funding and things that start to mature with time. Marcelo pointed at Global Solutions. We have other measures here in cash that help -- other measures that help NIM. For example, the restructured portfolio going down. Once we reduce the restructured portfolio, in particular, the problem assets in our loan portfolio, we increased the share that yield interest, and that also improves our NIM. And as Marcelo said, whenever we have the opportunity with a good RER, we will go after it. We will accelerate, and that ends up helping us in our profitability, and then it would be net NIM.

[Interpreted] Yuri, I'll be bold here. I think Andre gave you a good overview about this spread. So I'll dare in telling you is that NII is tractioned. NIM for this quarter, I have no expectation of variations. Well, now next year, depending on our mix, we are still discussing in the light of the plan and the budget and how tractioned we are, we may even surprise you. I would not rule it out. I'm not making any promises, but I would not rule it out. And when you talk about the ROE in the medium to the long term, of course, here, we're seeking to deliver ROE and the cost of equity and then take another step. But when we had the diagnosis, what did we see? Brazil, depending on its positioning, we are an organization just like others, other conglomerates here with about 80,000 employees, capillarity with a specific model of a universal bank, there are others with a different business model. So here in Brazil, we have a market that offers long-term ROE between 15% to 20%, depending on your position. And we see that in the long-term horizon, depending on the position of each organization. It's not only, Bradesco, but the market. And I think that we have such a large market that there's plenty of room for you to have a set of organizations as we always had in Brazil, dividing a share in different customer and business segments. Thank you Yuri for your questions.

[Interpreted] Next question from Henrique Navarro, Santander.

[Interpreted] Congratulation on the earnings. 2 questions. The first about the corporate specific cases. We know that due to the secrecy and the protection, we cannot comment. But if you can give us some color within whatever is possible, this BRL 354 million, is it 1, 2, 3 specific cases? The largest one we imagine. How much does it represent of this whole? And was it 100% provisioned? The idea is to understand what would have been a clean balance sheet, so to speak, even though losing is part of the credit business, but what would have been a clean balance sheet? And also to understand if there's anything remaining in terms of provisioning for those specific corporate cases for the fourth quarter? That's my first question. The second, on the guidance, you're running above the top of the guidance in many items, very good. But why not review it now in the third quarter? Because that would give us some light to have a better idea of the number for '25 and imagine what we'll see in '26, especially in insurance that you're running well above the top of the guidance.

[Interpreted] Thank you, Navarro. It's a pleasure to see you. About that specific case that we have in corporate, we provisioned significantly. We have no expectation of additional provisioning for this case going forward for the next quarter, that's the answer I have to you. And that case is what gets a bigger deviation in our situation. There are smaller cases, specific cases as well as the growth of the corporate portfolio that, as I said, the middle market in here. So we do not expect to have any other provisions for that. And in terms of the guidance review, since we're seeing that we will fall within the guidance, the guidance is an interval. We see ourselves in the upper band of the guidance, but pretty much for all of those items. I mentioned loan portfolio between 7% and 8%, maybe slightly closer to 7%, but all of the others within the upper band of the upper range of the guidance. That's why we decided not to review it because we will soon start to talk about the guidance for 2026. I don't know if you want to add.

[Interpreted] No, that's exactly it. That's perfect.

[Interpreted] Next question, Gustavo Schroden from Citi.

[Interpreted] Congratulations for the results since the presentation of the strategic plan. I have 2 questions. And the first question is related to capital and tax credit. Maybe the question should be addressed to Cassiano. I mean there was an evolution of 11.4%. There is also the issue of profits. But looking at the explanatory notes, I think that it seemed to me that there were some changes in the tax credits. I would just like to understand if part of this capital improvement comes from the reversal of deferred or DTA of deferred tax credit. And what is the bank's policy in terms of these assets, whether you have a plan to accelerate this going forward? The second question for Marcelo. It's been a while since we talked about Cielo -- and Marcelo talked about expenses of Elopar and Cielo. I remember that when you were presenting the strategic plan, Cielo and especially SMEs also, that was a very important part of the plan. So could you give us an update about Cielo's strategic plan, particularly after the capital reorganization, I mean, restructuring. So can you tell us something about Cielo's strategic position?

[Interpreted] Nice to see you. Well, you're very familiar with our policy and as part of our assumption to make better allocation of capital in our company. So this is a relevant aspect related to this change in the additional capital, also including tax losses that you saw in that explanatory note. Even though our tax credit increased, there was an improvement in some lines. We reduced the tax losses and the tax credit from LLP had a traditional increase. So this mix of things is what led to this positive effect in the capital numbers as a whole. Certainly, we are working towards further reductions. We are very -- we know that there should be differences in the tax credit because of everything we are doing. And I think this is part of the virtuous cycle going forward. In this particular case of this quarter, it has to do with this change between tax credit from LLP, DTAs, and this should have a lower effect once you draw an average. That's why we had a specific difference.

[Interpreted] Adding to the answer, I would like to say that our common equity that was 18.4% come December, I think it should be around the same level. So by the end of next year, should be closer to 11%, which is where we would like to keep this optimization process at.

[Interpreted] So Gustavo, speaking about Cielo, well, we will refer to the balance next quarter, as I said before, about individuals and share. But there is a whole set of initiatives in Cielo to gain competitiveness. And we've been working with specific teams in both banks and together with Banco do Brasil, both on the wholesale side and SMEs, meaning that we have teams working together with the Cielo teams. There are several initiatives that contemplates customer experience in the bank's channel. There was a significant improvement in logistics when it comes to delivering equipment and also adding new solutions to companies. We've also noticed the expansion of newcomers, which is much more fluid now. And this has to do with our commercial teams and Cielo's teams. I will give you more information about it later on in other events, there is a time line because this week, I was just reading or revisiting our time line because there is a plan that we monitor very frequently. We look at our growth rates. And we will also tell you about other initiatives of the bank next time we meet. But we continue to work on our transformation plan. And now we are very much connected more so than in other occasions. We are working together. And not only that, we are delivering renewed experience to customers with a higher competitive experience, everything integrated in the SME app.

[Interpreted] Next question from Bernardo Guttmann with XP.

[Interpreted] Congrats on the bank's results. My question is about private payroll loan and your appetite. You said that you were very conservative on the onset of private NII, but now you're resuming growth and delinquency or NPL is way below the market. So what allowed you to do that? Can we say that the bank already has a scalable risk model for this new type of payroll loan, now private?

[Interpreted] The answer is yes. Our process is working like clockwork. So we have good risk appetite, mainly due to the approval. So you go to a more open market and everything has to be in place because you approve credit for companies and for employees at that company. So you should be certain that everything will be approved. And the appetite has increased. We changed policies. We are now increasing the pace. As I said before, we were declining year-to-date and year-on-year. Now the numbers are increasing. And certainly, this quarter, there will be an acceleration, particularly in terms of private payroll loans. And this is a great opportunity for those who are so important in this market, but we will accelerate both INSS and public portfolios. So in terms of payroll loan, we will show good growth going forward. And it is yet to be seen what will -- what impact this will have in the budget. But everything we're doing, we are doing with modeling and intelligence. And this is crucial if we want to succeed in this business, but we were not very certain in terms of the processes in the past. There are some deliveries like data privy. There are some deliveries that were postponed and some others will only be delivered in 2026. But that's not a problem because this doesn't change our appetite. On the contrary, things will be better going forward. But we see major growth opportunities we will grow, and we will gain share. I'm talking about everything, not only I'm talking about INSS, public and private portfolios.

[Interpreted] Next question from Renato Meloni, Autonomous.

[Interpreted] I have 2 questions. First, about the individuals mass retail, you've been growing a lot in the high income as a right strategy for this year. But I'd like to understand whether growing again and gaining relevance in the mass retail will be a relevant part of the strategy looking for the coming years. And what indicators are you expecting to be comfortable again to take risk and grow on that segment? And the second question, just a follow-up about what you said about SMEs. I'd like to understand if you see any limit being reached in the lines that were authorized with government and whether you think you could continue to grow at the same pace that you presented in the last quarters.

[Interpreted] So about the individuals mass retail, we have more than 14 million customers that are mostly or almost fully digital. And what are the challenges here? It is to have a very well adjusted models because the cost of risk here is a lot higher, Renato. We know that. And we are investing, testing and making things happen. But we've been working with this level of engagement in the customers' life cycle, doing that NBO, the next best offer in the different segments. That goes to high income. It's valid for both high income and this more digital segment as well. And we have been testing the channels with different alternatives and different value propositions within our physical world as well because you have clusters that would be a lot more connected to the segment due to the level of profitability they have to offer, but they still have the need for physical in-person service. And we've been testing all of that with our Bradesco Expresso. So when you talk about a country with the size of Brazil, it's not trivial to think that everyone will adhere to fully digital. We have a lot of social levels and different profiles, different personas in this group of people. And we've been working with all of them to be able to have the best cost to serve and the ability to continue growing with this public. But now with the proper adequate safety because here, it's smaller income levels and there's a certain degree of frailty that's natural, so to be able to provide certain lines of credit. But we've been learning again a few lessons that we knew in the past and that we brought to a model with a lot more intelligence behind it. So everything about machine learning, Gen AI, all of that to support what is managed and what is not management that is mostly digital is being used here with a lot of talent by our teams. So we will continue to evolve. And at the right time, we will bring more elements about the mass retail segment. For SMEs, there may be a limitation of lines that will be determined for next year. I think we've been having a good year. I said that in another question that we had, both with FGI and FGO, we are tractioned. We are doing well, but there may be more limitations of the lines. But this is -- we have to wait naturally for each one of these programs to be convinced. I can only answer -- I mean, I cannot tell you if it will be or won't be yet. Thank you, Renato, for your questions.

The next question comes from Carlos Gomez-Lopez from HSBC.

Hello, Andre. So I had like everybody else 2 questions. The first one is about funding that we haven't talked about. And in particular, we saw a big decline in demand deposits and saving deposits. Is that, in your opinion, related to the reduction in footprint? And what do you think your current market share is in those 2 lines in demand deposits and in saving deposits? And second, on insurance, again, you continue to deliver very, very good results. And I'm going to ask once more about the sustainability of the results, specifically in health insurance, where your earnings are now twice the level that you had last year.

[interpreted] Thank you, Carlos. Andre you can start on subject of deposits right.

[interpreted] So I'll start talking about the deposits we've been acting here very significantly this year to optimize the customers' resources. And one of the measures was to reduce our LCR that was in the past at around 190%. We brought it down to 150%. The minimum regulatory requirement is 100%. So we still have a lot of room to move, but we let go of expensive resources, especially in wholesale. And that does lead to a reduction of funding, but that was a decision -- a strategic decision we made to continue to reduce our cost of funding to improve the funding margin and to optimize the customers' resources. Looking forward, I believe we have these cash management initiatives that translate into 2 important platforms. One, for financial solutions for SMEs and another for wholesale companies that we call Global Solutions. And both of them are measures that can greatly improve the payment experience. They can also improve our performance in funding and become a structuring favorable measure for our funding margin that starts to have an impact in 2026, and this impact will probably increase in the following years. So funding starting next year, counting on the cash management measures to help us.

[Interpreted] I would just like to add a little bit, if I may, Carlos, thank you for your question, about the footprint, whether it has a relation with maybe the impact on demand deposits and savings, we believe it does not because most of customers are mostly digital. 14 million are already working remotely, and we see that we continue to work and look at principality both on demand deposits and savings, there was no drop in terms of the footprint reduction, quite the opposite. We see more opportunities working on the NBO for those customers to bring the best offer for the low-, medium- and high-income customers. So somehow, the footprint has this relationship to bring a reduction in those points that you mentioned Carlos.

[Interpreted] And there's another question about insurance, right? Ivan is with us, I believe, is online. Ivan, do you want to answer that part of the question that he asked about the sustainability of those results of the insurance group.

[Interpreted] Thank you Marcelo. So in terms of the sustainability of the results of the insurance group, we see looking retrospectively, we will find in the last 3 quarters consistently and in a linear way, we see growth not only in our operations, but also in our results. So there's no oscillation, no variation even up or down. And that makes us comfortable to look prospectively also under a very positive light. On the last quarter, we had growth in health of 9%. In this last quarter, we also saw growth in life insurance close to 10%. And the pension plans with all of its challenges also grow, especially VGBL and portability of VGBL as well as the products that we created, adding the risk or the premium, and that has been making a lot of difference for our growth. Now in the business line and real estate and equipment, we grew close to 15%. And that makes us confident as well to look forward and say that we should continue or maintain the same level of growth, reaching the top of the guidance that we committed to at the beginning of the year. Now in terms of the health insurance, the underwriting discipline, checking the improvement of the clients, we increased about 75,000 net lives this quarter. And in October, we already see the same growth level and the same base that we've been addressing in the recent periods. Regional products developed specifically for the region from the health company also gives us comfort in terms of the growth, considering that our product is a product that all Brazilians want to have, both for themselves and their families. The growth was mostly in operational lines. And obviously, the posture, the stance adopted to fight abuse or fraud makes us confident for this claims ratio that the Bradesco Saúde and the health care insurance group has reached this quarter. These are my comments. Thank you, Carlos, for your question.

[Interpreted] Thank you, Ivan. And that's well noted. Bradesco Saúde, it's a premium insurance.

[Interpreted] Next question from Nishio with Genial.

[Interpreted] My question is about the credit cycle, more focus on SMEs and individuals. I would like to hear your comments on these 2 lines. We saw very good performance of SME, both in terms of NPL and growth, like one helps the other. That's the effect. So the question is whether you still see room for further improvement of SME delinquency. And also looking on the individual segment, looking at your peers, despite the improvement, your NPL is still higher when compared to your peers. But the question is whether you see room for improvement? And at what phase of this cleaning up you find yourselves and whether you think you're already going towards -- heading towards growth. I mean the cycle of '21 impacted both SMEs and individuals. So did you clean up the portfolio? Are you ready to grow more? Or you still feel that there is more room for improved delinquency further?

[Interpreted] Thank you, Nishio. So first of all, over night, it was 4.1% in September. The base scenario is 4.1% in December. Slight deviations, I mean, about these numbers is natural, but the basic scenario shows stability of our NPL in aggregate terms. SME, Marcelo, is insisting on that point. First of all, we were very cautious to concentrate our business in the secured portfolio, discount of receivables, rural credit with guarantees or collateral. So the new cohorts are showing good performance. And this is what is bringing NPL down. It could fall a little bit more, but the base scenario is for a certain stability given the economic stability that we anticipate going forward. So I think this is an important aspect. When it comes to restructured portfolio, as Marcelo indicated, in 12 months, the troublesome part of it was down by almost BRL 12 billion. And that was an important cleanup, but it's still possible to proceed with the derisking of our credit group.

[Interpreted] Nishio, thank you for your questions. I would just like to add to what Andre said. I still see SME as a line that will post a decrease in NPL. Everything is under control. But if I look at individuals, if I look at a further horizon going towards 2026, it depends on the mix that you have. I said that in the year, the market grew more than in vehicles. But in the quarter, we grew more than the market. But if you draw the mix, you may even have a higher NPL. But eventually, I'm not saying it's there. But if you change the mix, like the auto, and you grow more than payroll loan, for instance, right? So then in this case, you could strike a balance in 2026. But always, return will be adjusted to risk. It will be a risk-adjusted return. So I don't see any problems with delinquency or NPL, but I see some decline with the SME portfolio still this quarter.

[Interpreted] Next question comes from Tito Labarta from Goldman Sachs.

My question, you talked a little bit about our growth and you're growing in some segments where you feel more comfort, particularly more the secured lines and the other segments you're not growing, but you may increase your risk appetite going forward. Marcelo, if we go back after you became CEO, part of your strategic plan was to potentially increase market share in loans from the 14% to maybe 15% to 19%. Since then, your market share is still relatively stable. Just thinking -- how important do you think it will be to increase your market share in order to keep improving profitability? Or should the focus be more maybe focused on the segments that are more profitable where your overall market share maybe matters less? Just how should we think about your ability to gain market share from here and how important that will be for you to improve your profitability going forward?

[Interpreted] [ Marcelo ], you start and then I'll follow.

[Interpreted] When we announced that mission of increasing market share by 14% in that range of 15% to 19%, that was February last year. That involved a 5-year plan, right? And in these 5 years, we have to take into account the economic landscape. Back then, interest rates were down. And what came next was an increase in the Selic rate to 15%. And now we are seeing the deceleration of the Brazilian economy as a consequence of this monetary squeeze. So considering the economic landscape now is appropriate to keep your risk appetite under control. I mean the financial situation of companies and families will improve with time. So naturally, the risk appetite of banks and companies will get better. And then if that happens, we can look for better market share. At the time, we are very cautious. But as Marcelo was saying, our approach is very segmented. When we see that there is opportunity to gain market share, we will certainly go after it. I mean, high RER because what we want is to increase our share. So in all the lines that we see opportunities, we will certainly grow market share. I mean, short time is not the main goal. The main goal is to increase profitability consistently.

[Interpreted] I would just like to add something else, Tito. Thank you for your question. Looking ahead, our mission remains the one of gaining share in that interval that I showed you in the plan, right. But what do I see in a shorter period of time? We had good growth. If we didn't have -- as I said during my presentation, if we didn't have an issue in the large corporate portfolio, we would have come down over 10% year-on-year, but where do we have more traction? I mean, payroll loan of individuals. It accounts for approximately 15% of our total portfolio, and we will gain share right there. Mortgage loan, you may have one or another bank that will get a little bit market share, but we will also gain share here in mortgage loans. I mean, on both sides. I mean corporate side, individuals, also keeping a significant amount of that because I think we have close to 20% of share. Now auto, we see opportunities there, too. Obviously, if you look at the whole picture, there are some different areas. And you have new vehicles. When you look at individuals, you have people with more appetite than we have to go after these clients. And the same thing goes for corporate. But looking at rural clients with some -- we do have good relationships and a good appetite to do the same thing with individuals and entities. On corporate side, there are different categories. These lines of FGI and FGO, we performed well so far this year. We still see that we have enough room to gain more share. I can even say that we are gaining share with SMEs as I was showing you during my presentation. So there is room for us to grow in SMEs this working capital on the business side as well, rural the same heavy and passenger vehicles, the same thing. So all of these lines are priority lines, and they are a good focus for us. The idea is that at the end of 2028, we will be in that interval that we presented when we introduced our transformation plan. But we're doing everything with the right choices, adequate risk appetite, portfolio management and growing in areas that can be traction and penetrated most of it through digital and the physical world. And we will just go forward because the idea is to gain more share with risk-adjusted return. Again, I insist on that point. I was saying that we were growing above market in the quarter, but always with risk-adjusted returns.

[Interpreted] We now conclude the Q&A session. The questions that could not be answered at this time, our IR team will then answer your questions after the presentation. And before I turn the floor over to Marcelo for his final remarks, I would like to say that this presentation is available in the entire material related to this earnings release presentation is available in our IR website.

[Interpreted] First of all, I would like to thank you very much, Andre, Cassiano and all my colleagues that are always here with us in our studio. I would like to thank the entire team of Bradesco, all of our employees and the ones that are constantly engaged every day, looking at customer engagement, looking at everything that happens in the bank, including the insurance company, consortia, the consumer finance area of the bank. And most of all, I'd like to thank you, sell-side analysts. You are always interested in participating in this event. So we have an IR team very much engaged and ready to talk to you about the results and the outlook and the buy side guys as well, clients that are with us at this time as well. So again, thank you very much. And I reinstate the trust we have in everything we're doing. I do apologize again for that avatar because we were asking [ Ferbia ] to do something and then they put my avatar. But I promise that next time, I won't have that avatar again. But let's move on. We are certain that next quarter, we will certainly deliver great numbers. Thank you all, and have a very nice week. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]