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Hello. Good morning, everyone. My name is Gustavo, and it is a pleasure to have you joining us for our first quarter 2026 earnings video conference. As always, Milton will walk you through our performance, and afterwards we will have our traditional Q&A session, in which analysts and investors will be able to interact directly with us. Before handing the floor over to Milton, I would like to share a few instructions to help you make the most of today's event. For those accessing the webcast through our website, there are three audio options available: the entire content in Portuguese, the entire content in English, or the original audio. The first two options offer simultaneous translation. To select your preferred option, simply click on the flag icon located in the upper left corner of your screen. Questions can also be submitted via WhatsApp.

Today's presentation is available for download on the hot site screen and, as always, on our investor relations website. With that, I will now hand over to Milton, and we will reconvene later for the Q&A session. Milton, over to you.

Good morning, everyone. Welcome to another earnings release. We will now discuss the results for the first quarter of 2026. This is a very executive presentation with a strong focus on the numbers in order to leave ample time for our Q&A session at the end. The central point this quarter is that I will place somewhat greater emphasis on the credit quality of our portfolio. This is a topic of interest given tighter macroeconomic conditions, interest rates, and the economy as a whole. Therefore, I believe it is worth taking an additional deep dive into this topic. By doing so, I believe we will be able to share with you much of the management approach that is guiding us here at Itaú Unibanco. I will start with our traditional overview covering key indicators such as results, profitability, loan portfolio, non-interest expenses, and delinquency.

Beginning with results, we delivered a very strong managerial result of BRL 12.3 billion in the first quarter, representing a 10% increase year-over-year. It is important to recall that exceptionally, this quarter did not include the additional dividend distribution we typically make. That distribution took place at the end of last year in the fourth quarter, with BRL 20 billion distributed in dividends. If we were to normalize for this effect, net income would have been BRL 12.7 billion, which would be more comparable to the first quarters of previous years. This is the first adjustment I would like to highlight. Moving on to profitability, we recorded ROE of 24.8% on a consolidated basis and 26.4% in Brazil.

We saw an expansion in profitability adjusted for 11.5% capital, which is the current industry average and the lower bound of our capital appetite. Consolidated ROE reached 25.8% and ROE in Brazil reached 27.6%. These are very strong figures. For comparability purposes, we believe these are the most appropriate metrics to consider. Looking at the loan portfolio, despite a seasonally weaker quarter driven by fourth quarter dynamics, we were able to grow the portfolio by 1.2%. I'll provide more details shortly. We achieved solid year-over-year growth of 9%, excluding FX effects. Turning to non-interest expenses, we saw a 5% decline compared to the fourth quarter and growth of nearly 5% versus the first quarter of 2025.

This is fully aligned with the work we have been carrying out under our efficiency program and the targets that were set. Results are fully consistent with those objectives. When we look at delinquency, you may recall that the first quarter is always more pressured. It's a quarter in which household commitments increase, expenses are higher, and in addition, spending incurred in the fourth quarter is typically settled in the first quarter of the following year. Despite this, short-term delinquency indicators remain very well behaved. NPL 15 to 90 increased by 10 basis points during the quarter and declined by 10 basis points compared to last year. I'll provide further detail by portfolio shortly where this will become more evident. Long-term delinquency remains absolutely stable, which reinforces the resilience and quality of our portfolio. I'll come back to this topic in more detail later.

Turning again to the loan portfolio, we would like to highlight growth in Brazil of 7.8% year-over-year and 0.3% quarter-over-quarter. When excluding FX effects, the portfolio as a whole grew 1.2% in the quarter. I would like to emphasize the quality and the dynamics through which we have been building this portfolio over time. First, we refer to the card's target clients portfolio. Target clients are those that, under our portfolio management framework, we consider resilient across longer credit cycles. More than 90% of new originations today come from these clients. As this dynamic continues, the existing portfolio is now approaching 80% target clients. This clearly reflects portfolio quality that is fully aligned with our strategy.

From this perspective, Uniclass and Personnalité portfolios declined by only 0.5% in a quarter when the overall portfolio contracted by more than 2% and posted growth of 20% year-over-year. This reflects both the natural dynamics of this segment and our ability to cross-sell under the One Itaú client model, which we successfully migrated into a full bank experience. The results are clearly shown here. Moving on to payroll loans, we continue to emphasize private payroll lending, which grew 19% in the quarter and 63% year-over-year. As I've always mentioned, when this product was launched. The overall market was expected to grow, and it has grown meaningfully. At that time, we held approximately 30% market share in the former product, and I stated that our share would likely decline, but within a much larger market.

We were able to grow, expand the market, and be the market leader in private payroll loans after all these changes. We are growing with strong quality, targeting the right clients with appropriate pricing, adequate profitability, and a long-term perspective. In micro, small, and medium-sized enterprises, government-backed programs once again stood out, growing 4% in the quarter and 52% year-over-year. These programs also significantly support credit quality indicators. There is a mechanical effect on delinquency, which I'll explain shortly. In cost of credit, these dynamics are very positive for margins and profitability in this segment as well. Why am I showing average balances across portfolios? Average balances are what truly matter for margin performance, not end-of-period balances. This breakdown is intended to help you understand how this picture connects to margin evolution on the next slide.

Average balances in the individual's portfolio increased 2.2% compared to the fourth quarter. In SMEs, growth was 4.6%; in corporate, 1.6%; and in Latin America, 3.6%. This framework will help explain part of the margin dynamics. There's a lot of information here, so I'll walk through it carefully. We begin with the fourth quarter of 2025, where margin totaled BRL 31.7 billion. The first adjustment we make is the exclusion of BRL 4 billion, corresponding to the return of shareholders' equity invested in the bank. In other words, this represents bank equity invested at interest rates, which we remove to arrive at what we call core margin. This brings margin to BRL 27.7 billion. The first major effect is average volume, which you saw on the previous slide.

This is why the average balance breakdown was important, as it shows how volume contributed approximately BRL 400 million to margin growth this quarter. Next, we have product mix. We grew in products that are more favorable to margins, generating an additional BRL 500 million, reflecting dynamics across multiple portfolios. Next, spreads and liabilities margin were largely flat, with a modest negative impact of BRL 100 million, not particularly relevant in the broader context. Calendar effects, however, were very significant, with fewer business and calendar days affecting assets and liabilities differently, resulting in a meaningful reduction in margin. Therefore, calendar effects were one of the main headwinds to margin this quarter. Finally, Latin America and other effects were largely flat with no material impact.

As a result, core margin would have reached BRL 27.8 billion, representing growth of 0.3%, with the calendar effect being the main drag as core performance remains very positive. Next, we calculated what working capital margin would have been had we not distributed dividends early in the fourth quarter of last year. This adjustment amounts to BRL 4.2 billion. With this normalization, margin would have reached BRL 32.1 billion, which is more comparable to the BRL 31.7 billion reported in fourth quarter 2025. This would represent growth of 1.1% or BRL 400 million considering all these effects. However, due to the early dividend distribution, margin was negatively impacted. Shareholders benefited, so it was positive from a shareholder perspective.

For the company, however, the effect was a BRL 600 million reduction in margin, bringing net interest margin with clients to BRL 31.5 billion, which is the figure I mentioned earlier. As a result, margin declined by BRL 200 million compared to the fourth quarter. I believe this captures the key message. We had two main effects on margin this quarter, the early dividend payment and the calendar effect. Core margin performance remains very strong with portfolio growth, increasing average balances, and a favorable mix. Now translating these figures into margin metrics, as we typically do, on a consolidated basis, margin remains stable. When we look at risk-adjusted margin, which is how we monitor performance for management purposes, we see a modest decline of 10 basis points at the consolidated level.

Adjusting for the BRL 600 million dividend impact working capital effect I mentioned earlier, consolidated risk-adjusted margin would have been flat. In Brazil, this line shows a decline of 20 basis points. Adjusting for the same dividend effect, the decline would be 10 basis points, which is immaterial overall. Let us now move on to market margin. This was a quarter marked by significant volatility, with many developments in both the local and global environments as you have been following. Every month we reset the odometer for trading, positioning, and risk, as well as for the structural component of market margin. The most important message is that in Brazil, we delivered a solid performance this quarter despite all the challenges. Latin America also performed well. Brazil, in fact, performed better than in the previous quarter.

The capital index hedge cost remains a headwind as it has historically due to interest rate differentials. In the first quarter, the negative impact totaled BRL 700 million. Even considering all these effects, we delivered a positive market margin result of BRL 800 million, demonstrating our consistency and ability to deliver results despite more challenging scenarios. Moving on to commissions, fees, and result from insurance, the main highlight is that this quarter clearly reflects seasonality. The fourth quarter is typically much stronger for several of these lines. Card issuance is a good example. We observed declines in the first quarter. In current account for individuals, we chose to disclose this line item to reinforce the clear directional trend. The bank is becoming increasingly less dependent on these fees, redesigning packages and offering more benefits to clients. Our objective is to increase lifetime value and client centricity.

Therefore, the direction is very clear, and you've been observing this over time. When we look at payments and collections, this was indeed a quarter affected by several factors. There are multiple explanations here, seasonality effects, mix, particularly on the collection side, and repricing of funding within the receivables of the acquiring business. It is worth remembering that we've captured all these impacts within this line. Therefore, this reflects the complete payments and collections corporate flow. The most important thing here is the client perspective. We are not managing the business through isolated lines, but rather with a strong focus on being the primary bank for our clients on long-term relationships and on customer lifetime value. As a result, some degree of volatility is in fact expected. A positive highlight was brokerage, which delivered a quarter somewhat stronger than the fourth quarter.

In asset management, this was a quarter without performance fees. As a reminder, under our approach, performance fees are typically recognized in the second and fourth quarters of the year. Therefore, we moved from a fourth quarter with performance fees to a first quarter without this revenue, which explains this effect on asset management results. Finally, the main highlight is insurance, where we had already delivered a very strong previous quarter and were able to sustain this performance with 17% growth year-over-year. As a result, services and insurance revenues increased 5.3% year-over-year. It's evident that a significant portion of these revenue lines is highly correlated with the level of economic activity. Therefore, performance will depend very much on the dynamics ahead, on how economic activity evolves, on capital markets conditions, and on the investment banking environment overall.

The same comment applies to the other lines as well. I will now begin to go deeper into credit quality, starting with some information that I believe is highly relevant. Here, we show NPL performance. In short-term delinquency at the consolidated level, we observed an increase of 10 basis points, as I mentioned earlier, with Latin America remaining essentially flat. While in Brazil, there was an increase of 20 basis points. When we break down Brazil, the dynamics become much clearer. First, in individuals, we observe the seasonal first quarter effect. When we compare it with the historical series, excluding the first quarter short-term NPL from 2023 to 2024, this represents the lowest increase we have seen.

While we are rounding this figure to 30 basis points on the slide, the actual increase was 23 basis points, meaning a smaller increase compared to other first quarters that share the same seasonal effect. Therefore, this is a first quarter that came fully in line with expectations and with very well-behaved short-term delinquency. In SMEs, we see an increase that was already expected. I have been discussing this with you for quite some time, and I'll reinforce it again when we talk about over 90-day delinquency. This is a portfolio that experienced strong growth in guaranteed credit, especially government-backed loans. A relevant portion of this portfolio previously carried grace periods, which are now gradually ending. Today, less than 5% of the portfolio remains under a grace period. As a result, we'll mechanically start to observe delinquency from this client base, but always covered by government guarantees.

Therefore, despite the observed increase, which was fully expected, delinquency levels remain significantly below those seen in prior years, with expected losses and profitability fully in line with our expectations. Moving to long-term delinquency, both at the consolidated level and in Brazil and Latin America, indicators remain well-behaved. In Brazil, individual portfolios were stable during the quarter. In SMEs, we saw an increase of 10 basis points, and we expect that the indicator could still rise by an additional 10 basis points-20 basis points. Running close to 2.1% would be a reasonable level, which is still below where we were just a few quarters ago when this indicator was closer to 2.4%, already reflecting portfolio adjustments under Resolution 4966, which includes securities.

I would like to remind you that these indicators already include securities consistent with the Resolution 4966 framework. No adjustments are being made here. Our expectation is for a mild and expected increase, which is mechanical in nature and does not raise any concern regarding cost of credit. In large corporates, the indicator remains stable. These are data points that we do not typically disclose, but I believe it's worth taking the time to discuss them. As I mentioned earlier, target clients currently represent close to 80% of our outstanding portfolio, and in the origination, they tend to be close to 100%. What I want to show you is how client indebtedness has evolved, excluding mortgage lending. This is because mortgage dynamics are somewhat different. That said, the footnote includes the calculation, including mortgages as well.

In many cases, clients replace a more expensive rent with a mortgage installment. Mortgage lending is collateralized with solid loan-to-value ratios and down payments, so we believe the dynamics are different for this product. Excluding mortgages, the indebtedness of our target clients, starting from a base of 100 in December 2019, reached 105 in January 2026. When we look at the broader market data, including our own clients, this index reached 123 in January 2026. This highlights a very significant difference relative to the client base we have been working with, reflecting responsible credit, a credit cycle perspective, portfolio management, and resilience. This is the client base on which we have built our reference portfolio. The market, in a broad sense, considering all other client segments, experienced a much stronger increase in indebtedness over the same period.

When we analyze our total client base, and here you can clearly see how relevant target clients are for us, the index moves from 100-106. In other words, the difference is not material, and when compared to the market, by definition, the index is the same. This demonstrates the predominance and relevance of target clients in our client base and in the way we operate. This is the first information to show good client quality from an indebtedness perspective. Now, let's move on to the breakdown of delinquency. This is information we have never shared before. I felt it was important to present comparative series across selected products. Today, over 90-day delinquency in our personal loan portfolio stands at 5.1%. This reflects delinquency among our clients in this product.

In the market, delinquency in personal loans stands at 9.3%. More important than the snapshot is the trend. From December 2019 through today, we reduced this delinquency indicator by 21% among our clients, whereas the market increased by 18% over the same period. We observe not only a meaningful difference in delinquency level, but also a clearly opposite trend. In credit cards, the logic is the same. We report 5.1% over 90-day NPLs, which is roughly half of what we observe in the market. Over the period, we reduced delinquency by 8% following the de-risking process in the portfolio that we've discussed extensively, while the market increased delinquency in this segment by 56%. Once again, both the level and the trend are significantly different when we analyze the full picture.

In auto loans, our over 90-day delinquency stands at 3.5% compared to 6.2% in the market. While our indicator increased by 17%, market delinquency increased by 82% over the same period. Finally, in private payroll lending, a portfolio where we've been growing meaningfully, we do not have a comparable long historical series due to changes in the product's dynamics. Even so, we can show that our delinquency level has been running at 4.2% with pricing that is coherent, competitive, and responsible for clients. By comparison, market delinquency in private payroll lending stands at 7.1%. This once again highlights the discipline of our risk management across the bank's balance sheet and how we operate across our individual portfolios. Moving on to SMEs, we see information pointing in the same direction.

The first metric is the share of guaranteed lending across portfolios. From December 2019 to March 2025, our guaranteed portfolio increased from 36%-55%. Looking at the same period only for micro and small enterprises, guaranteed lending increased from 37%-70%. On one hand, we look at SMEs as a whole, including middle-market companies. On the other, we isolate micro and small enterprises. In this latter group, we see guaranteed lending growing from 37%-70% in a client segment that is typically more volatile with higher failure rates. We have materially changed the profile of this portfolio by operating with significantly more collateral. In large corporates, we also have an important message following the same logic of portfolio management, long-term perspective, capital allocation, and risk management. First, the portfolio nearly doubled between December 2019 and March 2026.

We effectively doubled the portfolio size. What about client quality? First, we reduced concentration. The bank's 10 largest clients represented 20% of the portfolio in December 2019, and after doubling the portfolio, they represented 15% as of March 2026. We achieved growth in a much more granular way, avoiding concentration risk. Most importantly, we not only grew, but we grew with high quality. According to our internal investment grade assessment framework, where we monitor, measure, manage, and qualify corporate ratings, we achieved a substantial improvement in mix and quality, reaching nearly 80% of the portfolio in investment-grade credits. Across both individuals and corporate banking, including micro, small, medium, and large companies, what we see is clear evidence of our management discipline.

This reflects our view of an infinite game in which we must continuously build a sustainable and consistent portfolio that generates value, serves our clients well, and does so with much lower volatility than we observe in the market. Agribusiness is also a very important portfolio for us. There has been a great deal of discussion about the more challenging environment for the sector with pressure from commodity prices, foreign exchange, fertilizer costs, farmers operating with tighter margins, higher leverage, and higher interest rates. How have we built our agribusiness portfolio? Out of the total agribusiness portfolio, 31% is allocated to farmers. When we analyze this portfolio, nearly 80% of it is backed by strong collateral structures and robust legal instruments, which provide a high level of security in terms of credit quality and recovery potential.

Our market share in agribusiness is estimated. There is no official market share data for agro lending. Based on the proxies we use, we estimate our market share at approximately 20%. We then applied the same market share estimation to all Chapter 11 cases observed in the market in order to assess our participation in those cases. Despite holding an estimated 20% market share in agribusiness, we account for only about 4% of the total volume under Chapter 11. We highlight this 4% comprises products with strong collateral, and we can negotiate guarantees with clients much more effectively. As a result, our recovery rates and loss given default tend to be significantly lower, given the way these portfolios have been structured. This once again reinforces the reliability and security of our portfolio.

Regarding the portfolio by stage, when we look at total coverage ratios and loan portfolios for stages two and three, we observe only small variations with no significant impact. In corporate, we do see somewhat greater volatility in coverage for stage two and stage three portfolios, and the primary reason for this is mechanical. Every time we remove a client from stage three, typically through write-off, and the restructured portfolio is a good example, which I will show shortly, or when a client with a very high level of provisions exits the balance sheet through write-off, that client usually carries higher coverage. Meanwhile, new clients entering these stages typically do so with lower coverage ratios. This explains why we see some volatility in coverage indicators for stage two and stage three portfolios, which is entirely related to portfolio dynamics.

I would also like to remind you that we operate under an expected loss model. If we identify any sign of deterioration, we proactively build provisions. We do not manage our balance sheet through provisioning decisions. At the core, our models are robust, accurate, and reliable. Whenever there is an event or a forward-looking change in expectations or outlook, we typically recognize provisions accordingly, which reinforces overall portfolio quality. As for the delinquency indicators that I showed you earlier, they also reinforce a message I have been making for quite some time. There has been no change in our write-off criteria. Although Resolution 4966 allows for some flexibility in extending write-off time frames, doing so actually worsens delinquency indicators as it keeps clients classified as over 90 days delinquent for longer than appropriate.

Another consequence, particularly when you consider the incurred loss framework for provisioning, is that you end up with lower provisions initially. This creates a temporary benefit in credit cost, but results in worse delinquency indicators. We did not change our criteria despite the additional flexibility granted by the regulator. Our view is that recovery expectations have not changed. Therefore, we continue to apply write-off timelines based on our best estimate of recoverability, which is the same approach we used prior to the regulatory change coming into effect. Turning to credit cost, which ultimately consolidates all these dynamics, we do observe a nominal increase as previously noted. However, credit portfolio is expanding and therefore nominal credit costs are expected to increase. What truly matters is the annualized credit cost ratio over the portfolio, which has remained remarkably stable over the past several quarters.

This stability reinforces all the points I have been making throughout the previous slides. When looking at the restructured portfolio, as you can observe from what I mentioned earlier, whenever a large client moves to write-off, that client typically carries a very high provisioning balance, which also affects these indicators. This effect is usually visible between the third and fourth quarters. Still, this portfolio continues to decline. Overall, restructured and renegotiated portfolios also declined further and are moving in the right direction. Most importantly, the ratio of renegotiated loans to total loans remains very well behaved. We do not expect significant nominal reductions to happen very quickly. This process unfolds over the cycle, but levels remain fully acceptable and appropriate for the bank's portfolio. Now turning to expenses, I would like to highlight the main points. It is important to remember that the first quarter is always affected by seasonality.

Even so, when we look at expenses in Brazil, we recorded a 5.6% reduction compared to the fourth quarter of last year. On a year-over-year basis, expenses increased by 5.2%. We maintain our commitment to reaching our efficiency targets. If you want a reference, we continue to aim for the midpoint of our guidance, which implies annual expense growth of 3.5%. This is supported by a series of structural initiatives with a long-term perspective. This clearly reinforces what we have seen in previous quarters, a year-over-year downward trend driven by significant and structural changes across the bank. This is the key message here. Our efficiency ratio reached 34.9% in Brazil, once again setting a record at our lowest level for this metric.

If we adjust for the early dividend payment effect I mentioned at the beginning of the presentation, this figure would have been 34.4% in Brazil, representing a very significant improvement. Regardless of the adjustment, the reported figure is 34.9%, and for the first time, we have broken the barrier below 35%. The same trend is observed at the consolidated level. This is the efficiency ratio of a universal bank like Itaú Unibanco operating across all segments and regions. We are the most international bank in Brazil. This clearly demonstrates our discipline in cost management and revenue generation, building business models that deliver adequate profitability and are sustainable over the long term. Turning now to capital, we ended the fourth quarter with a CET1 ratio of 12.3% and AT1 capital of 1.5%.

During the first quarter, we delivered strong results, generating 0.8% in capital. Capital consumption related to dividends, interest on capital, and share buybacks amounted to 0.4%, while risk-weighted assets consumed 0.5%. We can therefore see that our core capital generation is sufficient to fund both capital uses and the growth of risk-weighted assets. We also show the impact of the 4-year phase-in, currently in its 2nd year, related to operational risk and certain credit risk exposures, resulting in capital consumption of 0.3%. I would also like to remind you that there is a phase-in, also in its 2nd year, related to compliance with Resolution 4966. In Itaú's case, there was zero capital impact from this transition.

We did not incur any capital cost from migrating to Resolution 4966 because we already operated with provisions for securities and expected loss provisions across all portfolios. The regulatory change had no accounting impact on the bank's capital. Finally, even after the significant dividend distribution in the fourth quarter, our objective was to start the first quarter with a CT1 ratio of 12%, which is the level we use as our reference for dividend distribution. This is above the board-defined capital appetite floor of 11.5%, and 12% is the level we consider appropriate for dividends. We also reached 1.4% in AT1. We ended the quarter with a very solid capital base despite all the impacts, allowing us to continue growing and paying a meaningful level of dividends with high profitability.

To conclude, I would like to promote our reports. We have made available our 2025 integrated annual report and our ESG report. This is an invitation for you to access these materials. They contain a significant amount of high-quality information that can address many questions directly. The level of detail is much greater than what we can share during earnings calls and Q&A sessions. I encourage you to review these reports. With that, I conclude the presentation of our first quarter 2026 results. As I mentioned at the beginning, this was a solid quarter with very strong profitability. Naturally, the environment requires attention. We must remain highly disciplined in managing our credit portfolio, monitoring conditions on a daily basis.

Most importantly, we have been able to continue expanding the bank, investing and advancing our digital and cultural transformation while maintaining a strong client-centric approach and delivering very solid and robust numbers, all in a sustainable manner. Consistency, lower volatility, and execution discipline, especially capital allocation discipline, continue to be core to the bank's decision-making process. This is why we have been consistently able to deliver strong results. I would like to thank you all once again for your trust and for your time. I will now join Gustavo and Gabriel for our traditional Q&A session. Thank you very much once again, and above all, for your support. See you shortly.

Hi, welcome. We are right back at the studio for the Q&A session. Before we start, we would like to remind you that this is a two-language session, so we will answer the questions in the language that are asked. If you need any support with the translation, our platform has the options in English and Portuguese or original audio. You can submit your questions via WhatsApp. The first question is Thiago Batista from UBS. Floor is yours.

Good morning, Milton, Gabriel, Gustavo. Congratulations on the predictability of your results. Very constant, very predictable. Question is about, well, the focus of Itaú Unibanco, the main banks, is the one that is less exposed with the client, with products. I wanted to hear your initial impressions on the program, Desenrola. Also Rede. Of course, there is the capture of payouts.

What are the next steps at Rede as well?

Welcome once again. Thank you for asking your question. Let me start by Desenrola, the program. Desenrola is building. The Febraban and banks and the ministry worked with the debate since the first date to understand what are the conditions that we would be comfortable to find the best product, the best deadline, the best discount, everything within a reasonability that would make sense for the client, for the system, for the market. Of course, it's a pro-program that is very concentrated in five minimum salaries. That's the range, up until two years with a discount that is predefined and with a guarantee of FGO for the limited 50% stop loss, so to speak. In our case, we are working actively.

Since yesterday, we are operating in the new program. It's evident that you just mentioned. Well proportionately, the public of the market that is eligible for this program in regards to our portfolio is less relevant in the portfolio of the bank, proportionately speaking. Without a shadow of a doubt, we're going to work in the best way possible. We're gonna try to get the best offerings for the eligible clients. In terms of materiality in the results, I wouldn't say that it's material given the size of the credit line and the recovery line of the bank. We're gonna try and service the clients well in this transitional process, given the level of indebtedness, the interest rate, the delays. We think that working alongside with the sector is good to service these clients well. This is the first thing.

Well, about Rede, it's important to make sure that you understand that the integration that we've done in the past was well done. The results are there. You can see. We fitted in the offering. We do not talk about Rede, we talk about receivables and payments. The integrated offering, we service the clients and their needs regardless of the product. The pricing is on the vision client, not the product. In the past, several companies were listed in the sector, everybody would work with a mono product and pricing. That doesn't make sense for Itaú Unibanco for a long time. It's another product, another offering to service well the needs of our clients. In the market share, in fact, we've had the results of the quarter. It's an effect of the mix that is important.

We had a higher volume of wholesale than retail. What guides the market share is the big accounts. The retail has more profitability in the business, but the one that directs the market share 2/3 is the big accounts. When you have big contracts, that moves the needle naturally. The most important news is that we are leaders in the sector for a long time. We are leaders in the market of the wholesale and also the retail markets. That's the main message. Market share, that's not our objective. It's a consequence of our actions. If it's well resolved, if it's well fitted in the journey, and we're servicing the clients well with a competitive value proposition, the share is a consequence.

In the big accounts, we avoid that discussion of renting the market share because you can get it with aggressive pricing below the exchange fee and the flag, and you receive that market share, it's costly to carry it over. We've seen that. In this quarter, specifically in the line of flows of payouts and receivables that we have in the revenues and services line, we had an effect, two main. The first was the mix that I just commented. Second, the structure of hedge that we use, because we do the hedge of the anticipations that are done because most of them are automatic, so we will work the transfer and the liabilities through time, and that generates volatility. It's not a 100% perfect hedge. It's impossible. Any change in the interest rate structure is the main impact in this line.

The part of the result of Rede is still in the margin with the clients. I would say that 97% of the 98% of the result is in the service line. In the next quarter, we are going to do the adjustment that is missing, which is bringing part of the result that is positive in this quarter so that all the result of Rede is in the lines of services and insurance, which would attenuate the numbers that you're seeing. Our strategy is best, offering vision of the client, price of the client, and vision of the payments and receivables. Amongst acquirement, it plays an important role.

Let's go to the second question with Bernardo Guttmann from XP. The floor is yours.

Good morning, Gustavo, Milton, Gabriel. Thank you for the opportunity.

Congratulations on the results. I wanted to understand the trajectory of the ROE of the bank. Itaú delivered 25% of ROE recurrent, very high threshold, even in a seasonably weaker quarter. When you see that profitability, the natural question is: how many levers do you still have to maintain or even expand this ROE through the year? In your opinion, the sustainability will come from margin of the client efficiency, mix of credit, revenues of services, capital. Is there any point that you think that the market is still not capturing well the capacity of Itaú in keeping that ROE structurally above the system? Thank you.

Thank you, Bernardo. Thank you for the question. Thank you for your initial words. Great to see you again.

Well, the issue of the ROE, as we always mention, and I'm gonna answer your question, but I'm gonna do it with a disclaimer. We avoid giving guidance of ROE because there is a lot of variables at the end of the day that affect accountability. Accounting, sorry. We like to talk about value creation, and that depends on the cost of equity, the cost of capital. In our opinion, the cost of capital is 14.5%. That's the best information that we have in our models, and we look instruments, perpetual instruments in the market. We have the modeling that is proprietary. The spread between profitability and cost of equity, in fact, is where we are focusing.

All the incentives of the bank are placed in value creation, so that's a relevant metric for management. That brings discipline, long-term vision, and always focused in the creation of value. In the guidance that we gave at the beginning of the year, there is a profitability above 20%, and we are delivering this ROE recurrently. If you ask me, do I foresee any problems in regards to profitability, if we work with the operations that we have right now? No, we're still gonna deliver a profitability that is important all throughout the next quarters. Of course, there's gonna be some volatility because there is an X amount of variables that compose the ROE of the bank. It's not just Brazil. Latin America, there is all the lines.

Speaking of the guidance, the best answer that I can give you, we are comfortable with the guidance that is there. We reaffirm the guidance. I think that the challenge is looking at the future, and we've seen with the service line, with the insurance, they're very much connected with the activity. That's where we're gonna see the biggest challenge at the end of the year because it depends on the activities of capital markets. It depends of TPV and credit cards. It depends on our capacity to continue to grow with insurance and, you know, it seems that we're gonna be growing the bottom line all years throughout the years. We double the insurance results. There is a dynamic of activities that is gonna be important in the future, the capital markets. We see volumes amongst 30%-40% weaker.

A lot of people saw that in the past. The dynamic in this line is that we're gonna have to observe closer in the next quarters. In the margin with the client, you saw the effects that I highlighted. The, the working days and non-working days, we have the working capital, so the margin core grows. Grows importantly. There is a guidance of portfolio that we are still comfortable with what was published. Cost of credit, which is also an important lever for the profitability, we reaffirm the guidance. Looking at everything else that we just published, we are still comfortable that we're gonna try and deliver the results that are implicit in the guidance.

Of course, the challenges are big, as you've seen, all the points that I've just mentioned, but we are still very disciplined and focused to deliver the results. I think the profitability long term depends on this variability of the cost of equity. If structurally the interest rate will drop in Brazil, assuming that the war ends, that the exchange rate is in the threshold that is current, that inflation subsides, the Central Bank can do a relevant monetary adjustment that will open more activity, will improve the COE. It's not just the interest rate here in Brazil. It's the interest rate, the environment, institutional environment that makes the price and the cost of equity and legal security.

If we can work well with that, it's expected that part of that spread between the COE and the ROE will go to the client, so we can be more competitive and the efficiency agenda is vital, so we can have more conditions to compete and more pricing power, and maintain a part of that efficiency that goes to the client. That's not a conclusive answer, but an answer that is general and we are very comfortable with the profitability. We will deliver the profitability above 20% without giving any guidance with the ROE. Okay, let's go to the third question, Marcelo Mizrahi, BBI.

Hello, everyone. Thank you for the opportunity. Thank you for getting my name right. Question about delinquency.

The macro data that we've seen, the delinquency has been intensifying, and that slide that you just mentioned is great, we can see the difference of how the bank is performing in regards to the market. The bank doesn't run alone. I wanted to understand, looking at the perspectives of the year and the portfolio, you said that you're at ease with the guidance. The dynamic of the beginning of the year, the first quarter, in regards to the dynamic of the guidance, the quality of credit of the market itself, is it better, is it worse than what Itaú expected when you assembled the guidance?

From the standpoint of macro, of delinquency, the issue worries enough so you can be more cautious and have more difficulty getting to the guidance of the growth of credit. How do you see specifically delinquency of the natural persons in the beginning of the year? As Well, we see that the numbers of the bank are doing well, but the growth of the portfolio in the next quarters. Thank you.

Thank you, Marcelo, for the questions. Well, objectively speaking, the conditions from the past to now are worse than the beginning of the year. Objectively speaking, before we talk about the portfolio itself, macroeconomics are worse, specifically because of the geopolitical events. January, February were months that were very much aligned with the guidance and right at the beginning of February. From then on, there is a war in the Middle East, volatility in the price of oil, more uncertainties in regards to inflation, in regards to the price of energy. Transportation, all the issue of fertilizers in agricultural manufacturing chain, deceleration of global growth, which impacts Brazil naturally. There is a series of new factors that didn't exist at the beginning of the year when we did the guidance.

On the other side of the same coin is this, the discipline of doing the provisions tempestively. Of the cases that we've provisioned throughout time, these are cases that we know and we've planned to have done advances and provisions, depending, of course, on situations and new information, new situations throughout the year. Number one. Number two, our portfolio by definition was built with a more resilient public to the cycles that we're seeing right now. Evidently, the interest rates, with restricted interest rates, they generate effects in all segments. As you said, we're not isolated from the world. We have a credit portfolio of BRL 1.5 trillion, BRL 1.3 trillion in Brazil, it's evident that any worsening can have an impact in our portfolios.

Having said that, the portfolio was built in such a way that is so resilient, so well managed from the standpoint of allocation segments, public, sectors, volatility clients, that we understand that even so, with this information, the best information that we have now, the guidance is reaffirmed. Our indications of delays are well behaved. The first quarter, which is a relevant indicator for the natural persons or individuals portfolio, is important. Well, you talked about the opening of the short term. It gives you a good visibility on how we are doing and the performance, so we expect that with the expected loss is fundamental, and the expected loss is impacted by the short delays, delinquencies. In the first quarter, we had a better second quarter of the, of the series. It wasn't better from 2023 to 2024.

23 basis points in what we say a pressured quarter because of the commitments of the family at the beginning of the year. Our expectation is that the long delay, specifically in the individuals, is stable throughout the year. We do not see materiality 10 months, nothing too relevant. In small SMEs, the portfolio is performing very well. The data given the characteristics that I just described, we expect that it can be 210, 190, something reasonable to imagine we're not seeing a worsening that is not the mechanical effect of the government programs and the big companies are event. Here is more difficult for you to foresee. We try to foresee as best as we can because we look at the balance sheets we discuss with the companies. The management of provisions is super tempestuous, but events take place.

Rarely the client leaves from stage one to three. Rarely it occurs, but it occurs. We've seen in this quarter it happened. The most important thing is to be tempestuous in doing the adequate provisions and migrations and having a solid balance so we can face the waves up ahead. Besides the DRE, which is looking at the results, the patrimony accounts, provisions, and the balance is very well robust to face the challenges for the future. The scenario from then to now is worse than at the beginning of the year. We are here with all the radars turned on and operating in the best way possible. Next question, Gustavo Schroden, Citibank. Gustavo?

Good morning, Milton and Gabriel. Thank you for the opportunity.

Congratulations once again on the solid results and the predictability. Wanted to explore the growth of the credit portfolio in two specific products, Milton. The private consignado and payroll loan and SMEs that you're growing. In our reading, there are two things, two points that we would like to think. In the payroll loan, consignado, the private, there is the creation of caps. Last week, we had a specific point about the cost effectiveness. See the issue of appetite in the private payroll loan and in the small, medium, micro companies. The issue of the support to the government programs has, we know that that has helped in the delinquency in that sector. Even so, as you highlighted, we expect a worsening 10, 20 basis points in the portfolio.

Do you foresee sustainability in the government programs another 1, 2 years? That would be my two questions about the two points on the credit portfolio.

Thank you, Gustavo. Great to see you again. Let me start by the order of your questions, the payroll loan. First point that we'd like to highlight, in way back when the product was launched, I had co-talks to investors. I talked in the, in the call itself, I talked to investors of how the bank sees the evolution of the payroll loan as CLT. First, Itaú was a leader, 30% of the market. It was a market of BRL 40 billion. We understood that there would be an expansion of that market.

It would be natural that we would lose share through the cycles, but we would still be more relevant in the co-payroll loan private, not from the standpoint of share, but volume of the portfolio. In fact, that happened. When I look, if you look at the records, we are the leaders of the payroll loan private with a large advantage in regards to the competition, and we assumed the market share today, which is above 20% with a portfolio of approximately BRL 20 billion, a portfolio of BRL 12 billion when the program was launched. We had a growth of BRL 8 billion approximately of portfolio with important productions throughout the period. The strategy since the inception was important for us to get here. First, be able to launch with the launch.

The cost of modernized platforms technology, we had an advantage comparative of starting right at the beginning. It wasn't necessarily in this way for the system as a whole. Of course, that generates a comparative advantage, but that is not the main advantage. Historically, we always evaluated very well. We've had harsh learnings in the past and the company's portfolio as a whole, we had difficult cycles in the retail and wholesale and this logic and risk matrix, which is the risk of the companies with the risk of the private. This combination is very important to define what is the equity play, where we want to work and where our strategy is gonna be built. It's in this strategy that we designed the portfolio from then on. Two important commentaries.

Well, delinquency, I just talked about over 90. It's substantially below what we observed in the market. Two, we have a strategy that is very focused in the clients that have bank accounts in the bank. We know them, we are the main one, we can manage the risk management in a different way. Growth was given there. If you see the average rates practiced, you can see that in the list of the banks, ours is the second to last. Second cheapest rate that is offered to the bank, to the clients. Two issues. First, focusing on the client, which is what we are defending. If this is the best product, I can service the client in the best way possible, and I can have the lowest price, why am I not offering this product beforehand?

That's the first decision that we've had. If I can work with a level of guarantees that is a combination of the individuals and companies, I have to operate with competitive rates because delinquency is gonna be lower and the value creation and return is gonna be very adequate. Lastly, we have to understand the full offering of the client. I don't see this product in an isolated way. I look at this product, and I look at all the offering of credit that client has, all the products, so we can do a pricing and a risk management with the vision of the client. I do not ignore.

Lastly, there is always a risk because if I don't do this with my good clients or the clients that we justify that we need to grow, all of the targeted ones, somebody does it, I'm gonna be subordinate. We look at the total risk exposure, but we look at subordination that is very important. The issue of the cap, which is your question, the impact is irrelevant. Regardless, while being very transparent, we do not think there is adequate caps, to have caps in credit operations. We know that that produces something artificial, and you remove products of the market. This is a product that is more adequate for competitive prices.

Having said that, for the mechanic of the cap that is established in our portfolio, so with the data that we operate with the lowest rates of the market, our rates, average rates are below the average rates practiced by the market. There's gonna be some convergence, and it's gonna be the calculation of one standard deviation. I think that that calibration is gonna be fundamental because the risk, we rather calibrate lower getting the cap as we work with the other products that, you know, remove the other products from the market, the INSS. This is the more competitive credit. I have that issue in regards to cap for our portfolio. In the way that we are growing, we're very comfortable with the current conditions. That's one of the questions. On the payroll loan. The second question was SMEs.

We talk about the government programs. The programs were very well successful. PRONAF, FGI, Procred, we worked once again focusing on the client. If I need to service the client well, I need to get them to access, give them access to more competitive products with the best prices so they can have capacity to prosper in the longer cycle. We are leaders, the availability of those government programs, all the clients in all the programs. This year, last year, there was a return of the FGI because we proposed at the time for BNDES, for the government, a higher utilization of the first laws that were established, we can do a leverage that is even bigger. The government is aware that we have opportunity, we have a preponderant role in this.

Especially Aloizio Mercadante, and others understand this dynamic, and they propose the relevant volumes for the FGI. We applied resources. The thermal sensation is lower, but however, recently with talks with the Ministry of Economy, they understood the difficulty of this program. They had an additional investment, BRL 2 billion within FGI that brings to the market another BRL 25 billion of lines. This is the first of many that can happen throughout the year because of the programs. Government programs, the most efficient were PRONAF and FGI. With the information nowadays, we don't see any stoppage, abrupt one. We are gonna keep sustainability, but at some point, they're gonna have to do a transition of the portfolio, and it depends on the appetite of this government. The plans that are up ahead.

We are gonna have to follow closely and it's difficult to see for the future, but at least for the current year and the next one, these programs are gonna be relevant with the service, with the clients and delinquency. The mechanic delay that you commented, it has that effect of the 10, 20 bips. It doesn't generate that effect with the expected loss because the guarantees are very strong. It doesn't affect the cost of credit.

Well, next question. Renato Meloni, Autonomous Research, the floor is yours.

Good morning. Congratulations on the resilience of the results. The scenario is difficult. I wanted to focus on the individuals portfolio. In additional information, I'm looking at the graph that you're seeing of leverage of individuals.

What is your expectation within the cycle in terms of increased reduction maintenance of this indicator, which is important? I am thinking, given the focus that you are doing with the selected public, at one point do you get to a limitation of growth of these portfolios? If you can also expand on your comment about the SMEs thinking about the cycle. Another one, two years, these programs can sustain a similar level of growth, but when that extends or extinguishes, do you think that the cycle of credit can be at a moment that is more prolific and even leveraging? Can you expand more on the universe of small companies that you are lending money? Thank you.

Thank you, Renato. Good to see you. Thank you for your question.

First, in the credit portfolios of the individuals, we still see the capacity of growth. We've grown two digits. We've managed to get into the clients that we wanted, that we had the opportunity of growth. Always getting into this logic of target clients, long-term view, we are very comfortable with the strength, the capacity of growing in this resilient public, number one. Number two, I think that the migration that we've done of One Itaú brought opportunities that are gigantic. 50 million clients. There we didn't have a full bank relationship with the clients.

We've seen a great deal of this growth that we've observed, Uniclass and mainly Personnalité come from this public that didn't have one product with us, and now over 60% of the base has three products with the bank, which shows that we are starting to operate with the client that are monoline. They didn't have a full bank experience. Now they have a full bank experience. That is a lot of volume of clients and opportunities for us to continue to grow with. We are growing well in the market. As part of our strategy, we are growing in the segments that we are giving focus. We've grown with our products. Now, let's talk about the vision of the payroll loan.

The mix of funding, if you look how much do we have in the savings and the real estate, the structure of funding growing with the prices, imagining that the full market practices the same one, the marginal cost of capture gives more volume of the savings and less allocation in the map. It brings competitiveness in the price. In the same price, our return is higher by definition, and that strengthens obviously the franchise and the relationship with the client. We will naturally continue to operate with the products that we operated. Clean, the payroll loan is an important lever. The real estate as well. Some products that we've been cautious. Vehicles, for example, we've seen volatility. We are servicing the clients, and this is a more volatility segment.

The credit cards, regardless of the de-risking that we've done, we've grown in a relevant way with a target public's transitionality that is very relevant. I see opportunities to be able to grow. I don't see any limitation. There is an additional fact that I'd like to state. At the individuals, we see nominal reductions in the cost with an inflationary pressure that is enormous. Just with the tying with the cost is an extraordinary result with all the pressure that we have with negotiations, the banking inflation, which is higher than the IPCA rate, even though with that, we've worked very strongly. Why am I saying that?

Itaú Digital, which is where we work with the client, where the digital service is preponderant, it starts to work with an efficiency level that is ever more competitive, and that generates options to work with publics that I couldn't serve as well because my efficiency level didn't allow me to assume additional losses. As we evolve in this agenda, I can work with publics that I didn't work before with the same appetite and competitiveness. Opportunity to grow in the private persons is enormous. We still see Opportunities, and I am very happy with all the investments, refreshments, and the strategic vision on individuals. We are working along with the plan, but this is a year that is important for the execution. I am very optimistic about our capacity to deliver and long-term view.

SMEs, which is the second point of your second question, it's very difficult to foresee where these programs end. The program is definitive, so we don't have that discussion of the commitment of resources. FGO depends on the appetite and the conditions of the market. If in one or two years we have a situation where the small and medium are going to need support with the government programs, it doesn't matter. I know that they're going to understand the effectiveness of the program, the cost of elevation of the public resources. It's very difficult to say where and if these programs are going to decelerate. With the information that we have now, they're going to continue to exist in a relevant way because they've been very effective, specifically for the SMEs. Well, in the segment of middle, outside of that, we grow with less dependency on these programs.

The participation in the portfolio is a fraction of SMEs. SMEs, we know that these programs are key for the growth with quality, competitive pricing, adequate deadlines for the needs of these clients and with risk portfolio that is well-defended. The next question, Daniel Vaz, Safra.

Thank you, Milton, Gustavo, Gabriel. Thank you. Congratulations on the resilience of the bank, and thank you for sharing new data on the credit. It's important to see a bit of how you're working with the capital, quality of credit. I wanted to explore two themes that we usually do not mention, which are vehicles and the payroll loan, INSS, and vehicle loans. Vehicles, the hiring of the bank, they dropped 13% year-over-year.

In the market, if you look at the level of BNDES, the disbursement grew 25%. It's very big in terms of financial activity. I wanted you to make me understand better the vehicle loans. Is there any opportunity of attack? How do you wanna position from now on? If the product has some gaps that you don't like, guidance, you know, if you can explore in the call. Second, in the payroll loan, yeah, INSS, we had important changes with this Desenrola 1.0. Well, with the new margin of the payroll loan, at least 35.5, which is 45 with credit cards now to 30 in five years when you're gonna have the phase-in of this new regulation.

The credit card losing importance, and it does that opens more space to play with more or less with this product in this new regulation. Thanks.

Thank you, Daniel. Thank you for the question. It's great to see you. Vehicles, as I commented very quickly in the last question, this is a segment that we work a lot. The bank was a leader in the past with relevant volumes. In the past, we've had the portfolio of BRL 60 billion with nominal values. If you mention the values today, over BRL 100 billion, if we've just did the correction of the revenue in the past. Well, this is a segment that is very volatile. When you see the commitment compromise of the income of the families, we've seen restrictive interest rates, the financing of vehicles naturally becomes more risky.

Second, recovery of the guarantees. There is a new legal framework, but there are still stages to be fulfilled, the legal proceedings. It's not operating in full power under the best conditions thus far. I always say that the vehicle is a real guarantee with wheels, so you need to find the vehicle, and the recovery rate is not so high. The market, secondary, it changed the dynamic of the prices. In the past, what was the strength? The market was practicing high prices. We see a convergence in the prices, and the spreads are very tight.

At the end of the day, our logic for the value creation and capital allocation and risk management, we think that this is a business that is less promising, so to speak, from what we see in other businesses and we see opportunities. Having said that, we wanna service the clients very well. Our client that has a good risk, that wants to do the vehicle finance, we need to be present. We need to service the client with a one-stop shop. I need to offer the client all the products that the bank has. Financing is one of them, of vehicles. Getting the first or second place with a reseller, with a competitive market, assembly lines getting into the used, banks increasing the deadlines with the used vehicles, very strong competition. We rather lose share than lose money.

That's our strategy, in the end, to be very disciplined in the risk allocation, even though that produces the effects that you commented, reduction of share risk. This is something that we're very comfortable because we think that the risk-return relationship is not adequate, so we rather reduce the portfolio. That's the first point. Second point about the INSS payroll loan. That decision was made with Bacen. It's in the best interest of the families to try and get the level of commitment, compromise of the income through time. It's a transition. These are new information 48 hours ago that we received this information, so we need to understand the impact in our portfolio. It's early to say because this is a transition that is long. You do it at the beginning, the reduction of the 45-40.

You bring the five plus five, the 10 to the credit card to the limit, but then you have the reduction of 2 percentage points in a year getting to 30 in five years. That's the end game that you mentioned. Let's try and understand how that can be, and this is an opportunity because we do not operate with the payroll loan credit card. The INSS is important for us. We practically just produce at rate. We do not produce with the others because of the caps, the commissions, the financial balance. If the return on capital was below, then what it should be, we see players aggressive with the conditions. It's more focusing in generation of revenue than return of capital, and we are very disciplined in regards to that.

The caps have removed publics from the market. With the reduction, structurally of the interest rates, it depends on the evolution, the reduction of the caps. We can maybe or not, depending on the decision on the cap, to bring new publics for the market. There is a review of the blockage of benefits, the review of processes. We are working strongly with the clients to facilitate this process. We managed to lead in terms of production the INSS market, through the network of the bank.

Next question, we have Mario Pierry from BofA. The floor is yours.

Good morning. Great. Thank you. Congratulations on the result. We understand that this scenario in Brazil, not just Brazil, but is of uncertainty. It's interesting to say that the bank can see, the thresholds that are stable.

The question is regarding the efficiency level. You showed in Brazil there is an efficiency level of 35%, and you've seen I think that you reduced the number of branches in 15% in the last year. The headcount just dropped 5%. I'm thinking here, in terms of still being able to see improvements in the efficiency level, the bank should do a more, should reduce more people or more employees. Do you see that, or is there still a space to improve efficiency with operational improvements, reviews of contracts, et cetera? Getting your perspective, what is the threshold that you can bring this efficiency level and to have improvements, should you have more focus in the reduction of personnel?

Thank you, Mario. Great to see you again. Thank you for the initial words.

I always do the disclaimer that this efficiency level is really in a consolidated. We need to look at the breakdown between wholesale and retail. Wholesale, wholesale with LATAM working with an efficiency level lower. I would say in the world of wholesale, to simplify, we run benchmark, global benchmark. We are first quartile, first tenth in efficiency level. Without opportunity, we are very disciplined to understand the highlighted by artificial intelligence, how can we advance more. This is a constant agenda. In the retail, it's a game changer, the efficiency level. Every plan, I always say that even though the cost of the bank grows, and let's get the middle point of the guidance this year.

Even though we grow 13.5%, if we look in the inside, the thermal sensation between the several businesses is very different. In the, in the individuals where it's important that we reduce the efficiency level, and we got to 40%. That was an important reduction quarter-over-quarter, 40% of the efficiency level. When I look at individuals, I can observe that that's where we need. Well, I'm talking about, you know, retail as a whole, 40%, and then there is companies and individuals. Individuals is where we need more competitiveness. We see cost in this quarter. There is nominal reductions of costs in individuals, and this is very important news. We still believe, and there is important space to do the assessments.

This goes through a revision of a value proposition, business model, Itaú Digital, more, more focus. Adjustment of footprint, 98% of our transactions are digital, 97%. The flow of visitation to the branch has reduced from the pre-pandemic to now 70%. That's the reduction of the monthly visits to the branches. It's where the client is going that we are analyzing. It's not simply making a decision of reduction of branches. It is how adjusting our model to best service our clients and having a more digital service specifically with these publics where the efficiency level makes all the difference in the service is fundamental, so we can open the options here. This review of the model is being done as we speak.

It's natural that it happens, and this is highlighted by all the technologies and so on. We should see an efficiency level of the retail dropping through time. We expect, obviously, the revenues are different than while there is a cap with the interest rate, with the. This is where we're going. Gabriel has been the leader of this process with all the executive committee, with all the areas dedicated, so we can take that efficiency level to the place that it should be. Of course. The rest is a consequence of the strategy. What is the model if it's full digital, if there is a remote service? How do we service the high income, middle income? Every segment is gonna have its position.

In the last quarter, I brought you a slide that shows the segment that we are reference in efficiency segments where we need to gain operational scalability. We are very excited with the advances, and this is where we're gonna go. With quality, with a digital structure that is ever more powerful, high NPS, the eNPS of the workers and higher thresholds. Absorbing the turnover with good quality and the communication is fundamental so we can go through this bridge, and I'm very optimistic that we're gonna get there very strongly on the other side. Next question. Yuri Fernandes, JPMorgan.

Good morning, everyone. Congratulations on the execution of the strategy. Let's go back to the point of ROE. The question is ROE against growth. We know that there is a growth. There is a choice to keep an ROE that is high.

There is rewards. We've seen that in your lines. The bank has kept that ROE. We talked about the good capital allocation rationality. I wanted to ask you about the balance because when we see the most negative point on the quarter, well, the most negative point is the FII's lines. The FIIs, they seem transitory. You know, checking account, it should be normalized, or even the fee of issuing the credit cards, very pressured because of rewards. If you can comment, Milton, on how we should think about the bank in terms of ROE against the growth. Because to me, 2026 is a year of transition. Different pressures of fees with an ROE that is very high, but at one point, with the cost of service can accelerate the growth.

I don't know if the ROE is gonna decrease eventually and the bank is gonna gain market share or gain market share in other products outside of the opportunities that we're discussing. Generic question, structural, I wanted to hear from you to balance this high profitability against growth.

Thank you, Yuri. Great to see you. Thank you for the question. Our logic here is to grow. That is the dynamic of the bank. My objective is not having a smaller bank with more profitability. The combination of both on the long term is what we seek every day. Think that BRL 1.5 trillion in credit card portfolio, BRL 1.3 trillion in Brazil, we have testing and the capacity of testing and understanding how we're gonna pilot our growth and where the opportunities inlay.

Even in the cluster that we close of risk, we still have a percentage open to test and be careful that we're not making a type two mistake, which is not approving a good credit because we think that from the standpoint of risk, it wouldn't be worth it. We have testing happening as we speak in all the places of the bank. Number two, profitability certainly is very relevant for us, and we haven't seen opportunities of growth that are not being used, are not growing to increase the ROE. Cost of capital is there. You can see it. We operate. Restriction of profitability is not that. What restricts the growth is risk. That's the main factor, specifically for credit. To grow a portfolio is very quick when you open the credit.

You spend two, three years explaining the delays, paying the provisions, and having to decelerate in a publish that you want to decelerate and consuming the capital in an adequate way. That discipline is key, is a strong balance with discipline. It's a balance that wants to grow, but wants to grow within the opportunities that we understand that are sustainable in long cycles. We do not see any restrictions or growth. When we talk about the line of services of business and insurance, I commented, this is a line that what we've seen in activities, specifically the capital markets, there are challenges. Consumption will have its challenges. The TPV of credit cards in the quarter has a seasonability because the fourth quarter is very strong. It pushes for the exchange. The first quarter, there's an adjustment of seasonality.

The indebted families are paying the Black Friday and Christmas, and you have a natural trend of less usage in the first quarter than the fourth quarter. This is important in the credit card. On the other hand, the rewards, we still have the yearly payments. We are reducing them. Today, the rewards program costs more than what we had the results, and this is by design. This is a decision that we made many years. We're still gonna go this. We're gonna reduce clearly what we call the risky revenues that generate an attrition with the client and reduce the lifetime value. Because if I defend these tariffs, on the short term, this transition is soft, but in the long term, I'm gonna lose a client. Doesn't make sense. We don't want to lose a client.

We want to increase the time of relationship and the being the main ones for the client. We open the credit card, the checking account with the individuals to show the direction. I'm now discussing with the regulator the re-signification of 339 tariffs. This is not the discussion. The debate is to find new ways of taking packages for our clients that generate value, that are perceived as value and not cost, doesn't generate attrition. The packages that are being developed for all clients have this logic of taking. We buy in the wholesale, we deliver solutions, streaming, restaurants, a series of other benefits. The advantage programs that we've been working for a long time, you end up rewarding the relationship with the client and the engagement on the long term.

We're very comfortable with this growth and the rewards program that we have. In all the segments, they have a good penetration with relevant results, very well managed, so we can have an adequate balance. Those revenues of yearly tariffs and tariff on the checking account, individuals paying for the Pix in the companies, this is our tariffs that we are doing the transition for a long time. It's a negative force, but it brings an X amount of benefits on the long term, mainly the reciprocity and the relationship with the clients. That's the service line. Insurance, on the other hand, the penetration has grown over the last years. This year is not different.

Whether if it's life insurance, or others integrated offerings for our clients, increasing the penetration, we've seen a lot of opportunities in other publics that are not explored. Insurance is growth above 10%, 15%. Easy looking at the future, we still want to grow the result and the bottom line. Services depend on activity. The capital market's 34% weaker. Of course, they're gonna affect this line. On the other hand, the advantage of being a full bank is that you have another complete portfolio that helps you manage these types of situation. You're not doing well in one line, but you have a better one with the margin with the client, but you have a cost of credit that is very adequate, or you can get levers of cost where you can work with better efficiency.

This is where we're working with, but there are pressures, and we need to deal with it.

Ninth question. Eduardo Rosman from BTG Pactual.

Good morning. I wanted to ask about artificial intelligence. Very difficult from us from the outside to see how tangible, who's gonna be the winners or losers. In thesis, those that are doing a good digital transformation, such as you, should have a big advantage in the implementation of AI. I wanted to ask Milton. Milton, what would you recommend for us, the analysts? What should we ask or observe for the executives and the numbers of the banks throughout time to have a good reading of who is moving ahead?

Great to see you, Rosman. Thank you for the questions. I read your report. Thank you for the points that were done.

First, we didn't agree on this, but I'm gonna use this question for marketing and the official launch. We, in the next weeks, in the next days, we're gonna launch the first acquiring machine, the orange one powered by AI, with an AI integrated system in the machine, a conversation with the tenant. The first one powered by AI with NPS above 90, adoption above 90. This can be a game changer in this world of payments. The inception is integrated AI. It evolves for the conversational. For a series of other points. I tested it myself. I have a great appreciation of Rede because I was a CEO of Redecard in the past. I talked to the machine, I tested it, saw it.

It's impressive how you simplify the experience of the salesman, the tenant, the restaurant, and it facilitates the transaction. It's quicker. I'm very excited about the launch. Briefly, you're going to have news. We're going to do the press release. Thank you for the question. Let me tell you what I think. What you need to get in the end of the day is get the results. On our side, instead of being the race for the biggest number of models under production, this is not translated into concrete relevant structural results. I think that the organization of the bank has been given in terms of these are the levels of the organization, starting with the executive commissioner.

The bank needed the clear definition of what are the layers, the enablers, what are the levels of clients, how do we do this cross? It doesn't matter that one area advances quickly if the other corporate areas do not work with the same speed. We proposed ourselves to do Itaú, the foundation of the intelligence of Itaú in the bank. We assembled the guardrail, internal guardrail, so we can guarantee that we can take the model, in the vision of the client without having hallucinations at the end with these models of AI. Other management to guarantee the adoption and knowledge of the bank was done. More and more, the employees have access to information. We define clearly what are the big projects and what are the most structuring and relevant for the bank.

It's impressive how the applications have brought results. From the standpoint of the customer experience, they asked me about the NPS. Help with the answer. The app has a fundamental role in the digital strategy of the companies. It was born out of a limited scope, so we can do testing and evolve the solution. It's a relevant pillar of the of the companies where we're gonna leverage in a digital way the great part of the basis powered by AI. Specialist in investment, we are launching where we are gonna have access. I know that you don't have a checking account in Itaú. I imagine that you have it at BTG.

I recommend that you open an account in Itaú, and then you test it, and then you're gonna have your DNA fully analyzed, and you have a conversational analysis with the bank. This is game changer for the bank. You're not a transactional, and you have a consultative, hyper-personalized bank. In all the areas, going through finance, IR, analysis, legal, HR, all the areas powered by AI and several processes. What you need to discuss with the banks and understand first is the result. This has to be translated into bigger efficiency, more capacity for the generation of top line, more productivity, naturally, of the teams because you bring solutions to the teams, and it's with, not or. It's a combination of the human with being able to provide more consultiveness with more quality, and it's gonna make a difference.

In the credit models, we've done with a partnership that is relevant, and we have an investment with a company that has created models for LDM, which are the large data models, not the large language models. Here we worked in relevant fronts. Modeling of credit fraud is one of them. CRM is the other. All of that will bring more productivity, more accuracy, more tempestiveness, more efficiency. That will be translated with numbers at the end of the day. If I tell you everything that we are doing and the results are moving along, these are structuring or there are improvements that are less relevant. In the medium to long term, the changes can be transformative. We need to be able to communicate this to the market so you can make it tangible in what we are doing.

I mentioned a series of initiatives, the Pix, with WhatsApp. There are game changers that are relevant being done at the bank, and I am certain that we will be able to show this with time. Rede is a clear case of what we can do with artificial intelligence, changing the experience of payment with our clients.

Now we switch to English as we have Tito Labarta from Goldman Sachs with us. Tito, the floor is yours.

Great. Thanks, Gustavo, Milton, Gabriel. Thank you for the long call and taking my question here. Following up a little bit on Yuri's question on growth, looking at your guidance here, and I know you had some seasonality in the quarter and the payment of the dividend impacting particularly financial margin with clients, and fees. How do you You know, your guidance 5%-9% growth for the year. You're at the low end or a little bit below that on the fees. Insurance I know was a bit more resilient. How, how should we think about the rest of the year and your ability to deliver, say, maybe a bit above the low end of the guidance, particularly with some of the increased concerns on credit quality? Appreciate the charts you gave.

Certainly, you're in a much better position than the system. Just given those concerns, how do you think about your ability to perhaps accelerate growth through the year and maybe have these revenue trends be a little bit above that, the lower end of that guidance? Thank you.

Yeah. Hi, Tito. Good to see you. Thank you for joining us in the call. It's always a pleasure to have you here. Let me give you a little bit more details on the guidance. I think it's still the first quarter, but of course, we do have our forward look to make estimations in how should we end up the year. We're still comfortable with the overall guidance. I think in portfolio growth, we are comfortable, even though we still have challenges ahead. Let's see how it works out in the coming quarters. Financial margin with clients, we think we've been delivering.

It's possible for us to get to where we want due to the level of our portfolio growth, spread. On the liability side as well, investments, we've been performing very well. Recent figures coming from the market, we've been gaining market share. All in all, I think in financial margins, despite the event that we had only in the first quarter, and we had some calendar effects as well, I don't think we should have any issue. Cost of credit, it's always I always knock on wood 3x here just to be sure that we will be able to deliver. With the informations we have today, we are comfortable with the guidance in cost of credit.

The only one that I see more on the lower end, it's on the service and our results with insurance. This one I mentioned now a few times. I think this is more challenge for the year. Okay? On the insurance side, very positive. On the fees in general, the market and the activity has not been as what we expected, especially in the DCM side, which is very relevant for us due to the level of market share we have. We're still dominant in the market, we still have a relevant market share, but it's not related to our performance, but more related to the market performance. This is an over-overall impact. Also, it's important to highlight, we have the performance fees on the asset management.

In a year with much more volatility, as we have been seeing, this is more challenge. As is challenge for, the financial market, with in the treasury side, but we've been able to deliver, although, despite of the volatility we have. In the asset management, perf fee is relevant. Second quarter and fourth quarter, it will depend in our market performance. It will depend on the volatility, it will depend on geopolitics, it will depend on interest rates, so, all the markets where we, take position. I think those are the lines, where we have to keep an eye on. TPV, has to do with, consumption, with the capability of the families to consume, and this will be relevant for the issuer, this will be relevant for the acquiring company.

It will depend on activity at the end of the day. If you ask me if I still confident with the guidance, the answer is yes. If we believe that we can achieve the level of profitability that we expected at the very beginning, yes. If we can achieve the bottom line that we are looking, and of course, the geography may change in lines, but we're still working hard to deliver the profit as we expected. The lines in terms of geography, I think, the profit, the results coming from services and insurance, they will be much more to the lower end than the other ones. This is the one that I think it's in risk. I'm not changing the guidance.

If I have new information in the coming quarters, and we believe it's the time to make an assessment on adjustment in the guidance, as we always do, we'll be transparent and upfront if there's any change needed. We're still comfortable with what we have here.

Great. No, that's very helpful. Thank you, Milton.

Let's go back to Portuguese and Henrique Navarro, Santander. The floor is yours. Navarro, your microphone is not Okay. Okay.

Hi, everyone. Sorry. Thank you for your time and for the opportunity. My question is about delinquency. The market has been very worried about the cycles. Actually, two questions. The first one, from what I can understand, correct me if I'm wrong. From what I understand, you are seeing the peak of delinquency coming maybe in the second and third quarter, we're gonna see the peak of delinquency at Itaú. This number shouldn't be a number that is frightening. Maybe deterioration of another 20, 30 basis points in delinquency. That's the first question. If really we are close to the peak, and that peak might come in the second, third quarter, and it's not a number that will frighten you.

Second question, thank you for the information that you just gave on slide eight, was very useful for us. It's clear that Itaú has an advantage in comparison to the sector. My question is, where does this come from? The explanation can be the products, but even if we get the segmentation and products, it's still in the math of Itaú that you're doing a good service in the management of risk. My question is, where does these numbers come from? The digital and, you know, the question of Rosman, is it AI, data lake, the way that you're managing that data lake? Is it really digital or AI with an advancement in the AI becoming a commodity? Do you foresee a risk of a competitor getting to you in this excellency?

Do you have more to gain with the evolution of AI because there's still a lot of things to be done in terms of improvement and image of that risk adjustment?

Thank you, Henrique. Great to see you. Well, about delinquency, I'm gonna try with all the caveats that things can change. We are in a very dynamic market. I would say that my expectation for the delinquency rates for the next quarter is our stability, are very stable. I'm not even anticipating the peak. I am saying that we are structurally in thresholds of delay over 90 that I am confident and, you know, 10 basis points up or down, stability. So delay over 90 with the private persons, with the information that I have today in regards to stability. Of course, if changes come, if the market is more challenging, we're gonna warn you. We are gonna have stability with the private, with the individuals.

It's five or plus 10 is very stable, given the thresholds very much lower than what the bank worked below in the past. The generation of top line has changed. We cannot imagine that you're gonna work with the same level of cost of credit that you operated in the past where you could extract more value. There were caps, there were other products. There weren't those. Here you have more dependency on the credit than you had in the past, so you need to deal with delays, with lower thresholds to have the profitability level that is adequate, and we see the line adjusted to risk.

Combination of both. We grow the financial margin of Not financial margin of PDD. We cannot deliver the top line and deliver with the cost of credit the return adjusted to the risk that is not adequate. This is the discipline. Where I still think that there's gonna be an increase in a mechanical normalization, which is key, SMEs. The effect on the whole is non-material for the bank. In the line of SME, there can be another 10 or 20 basis points. I wouldn't even say that it's material, but to be precise, the best expectation is that it should run around 210 in the next two quarters. Remembering that in the same mechanical criteria we run, we ran at 240 not so long ago in the same logic.

When we published a delay over 90, we're not even bringing the vision below. SMEs where you still have titles specifically in the middle, here it's a delay that you're gonna have in this portfolio. Why SMEs is gonna work? A great deal of the government programs are not, you know, with the deadlines, and the client has a payment, they may choose not to pay, but since there is a delay for the call of guarantees, which is 90 days for one, 180 for the other, there is a time delay. There is a delay. The provision not necessarily happens because you have a good guarantee, and then you regularize the delay with an honor delay. There is that accounting time mismatch that can produce this effect.

You might have a provision, but it resolves in a short cycle. With the guarantees with the government, you can get this client with the adequate rating, and it avoids you making provisions. Very important because you have guarantees of Treasury, FGO, whatever the guarantee is. I would say that looking up ahead, there is a stability in the delay indicators. Now, going back to the second question, how. We don't have a silver bullet. There is a series of element. First, the strategy that is well-defined, a portfolio management that is well-structured, discussed. Very important to give credit is not giving credit. The best thing that you can do for the client is not giving the credit because they don't have the conditions, they don't have the financial education necessary.

There is an expansion in the credit, in the market with the Fintechs that was very relevant. A client had 1.4 credit cards, now they have six because there is no annual fees. They get online and they can get credit cards as many as they get. You know, when they have problems, they stop transactioning and they avoid to stop paying the bank where they have the salary. Being the main bank makes a difference. We have a relevance that is strong in the segments of middle to high income. We have clients that are target. The definition of a target client not necessarily goes through income. It's not just income that discriminates. We also operate 10 million target clients in Itaú Digital, which is the basis of the pyramid, the massified segment.

We can see the profile of the client, what are the conditions of the client. We have target clients in all segments. We have non-target in all segments. Income is not the sole factor for risk discrimination. A lot of modeling, a lot of testing, a lot of humility because credit makes you humble. Every day you have feedbacks. Creation of value, capital allocation, fundamental, so you can see if the decisions that you're making at the margin are creating value. It's not just. It's the vision to see the corrections that are necessary. A lot of artificial intelligence that is applied, but still it's a lot of hype in that aspect. There are concrete benefits, but it's not so structuring as a whole. We think that it's gonna be more in the future.

There is relevant modules for production with changes, high changes, with the performance of the models changing but still under testing and some under production. The expectation is that there's gonna be a relevant advance. There is no silver bullet. Franchising is important. Being the main one is very important for delinquency as well. Building a resilient portfolio, having the discipline to allocate the right clients for the right segment, and having the discipline of not doing so. This is the important. That relationship of risk-return well-balanced on the long term brings value, removes the volatility from the balance sheet, and increases the value creation and brings consistency on the long term. This is what we believe, and we continue. We made mistakes in the past. We've learned with those. We commit new mistakes. We learn again. There is a lot of learning.

For that to work, all the modernization that we've done on the platform and data architecture was key. We could have a data mesh architecture, centralized data, modernization of platform. That was a game changer because today the data is democratic in a bank. It's tempestuous. Everybody can use it quickly. You can react with the modernization of online platforms and doing the adjustments for management. The human capital, to conclude, I have to recognize having the right people, competent teams, motivated, engaged with quality of management, attitude, and with a long-term view that is with the adequate incentive. It goes through incentives. If you make mistakes with the incentives, you see that in the industry, this is where you lose the result in the long term. Having aligned incentives with the shareholders is fundamental.

Now for the final question of the day, we have Carlos Gomez-Lopez from HSBC. Carlos, please go ahead. Carlos, we cannot hear you. You're on mute.

I was. Sorry for that.

Okay. Brilliant.

Again, thank you very much for the generosity with your time. Two minor questions. The first one is about your tax rate, which is a little bit lower than the guidance that you have given us for the year. Typically, it is higher in the first quarter, so I wonder if there was any particular reason or if you think that you may actually outperform in terms of your effective tax rate. The second one is about the agricultural portfolio. You mentioned you have about a 20% market share. Have any of the support programs from the government, you know, are they adequate to your portfolio? Is that something that you are using, and do you have a view about how that market is starting to evolve? Thank you.

Sure. Well, Carlos, good to see you. Thank you for your question. Coming from the second one, no, there is those programs coming from the government, they are not specific for the agriculture. Of course, if there is any similarity with the clients that are eligible for the program, you might have a coincidence, but they are not designed to the agriculture. This is the answer. I think this is something that should be in government awareness, that if there is something that could be developed for the agriculture market and business, this would be relevant for the market as a whole, but there is no discussions on that.

On the effective in tax, I will ask Gabriel to go there, but we are still comfortable with the guidance, and you will see there is specific effects in the first quarter, but you will see the effective tax rate converging throughout the year. Gabriel, if you want to give more details.

Hi, Carlos. As mentioned, as Milton mentioned, we are very comfortable with the guidance that we have. If you think about the bank in terms of tax rate, effective tax rate, I think there are two main components to that. As you know, the first one and the major impact that we have is interest on capital. If you remember, the interest on capital that we have on this trimester is larger than we had last year on the first quarter, and also larger than we had on the fourth quarter of 2025. The second major impact that we have is the distribution of the results within the bank. The geography among the different companies that we have, financial, non-financials. There are seasonalities around those two specific factors.

If you take a look at what happened in the first quarter, exactly, they lead to a lower effective tax rate, but they tend to normalize during the year and go according to the guidance that we have so far.

Well, with that, we will close the earnings call. Thank you, Milton. Thank you, Gabriel. Thank everyone that took part. We're gonna close our Q&A session and our video conference of 26. I'll give the floor to you, Milton, for the closing arguments.

Thank you, Gustavo. Thank you, Gabriel. It's always an honor to have you here in this meeting, in this results meeting. Well, it's a long term for debate. It's always enriching debate, enriching questions, always important to work with transparency and proximity to the investors. Challenges are there. Everybody has their feet on the ground, as I say. Good results, they do not generate a future accommodation. This is what we discussed. It's an infinite game. We're never satisfied. We're always raising the bar every quarter, and we try to do the best for the client. Resources, agenda, the result will see this evolution on the long term. We are happy with the results. Evidently, these are the challenges. I think that the macro, there is an election year, and today the news is peace. They change a lot.

The important thing is discipline, looking outside. We have good, competent people, competition that is competent, and our work is to evolve every day. Thank you for your time. Thank you for your feedback. Next week, we have the conference in New York. We're gonna be there with the biggest audience of a conference for the participation of CEOs in the history. Another year that we're gonna focus all the events of our conference, and we're gonna have the group of sports. They're gonna be New York in one year. Keynote speakers that are spectacular and then the conference itself. I'm gonna be myself there. I should see a great deal of the local investors and analysts. We're gonna be there to respond to questions. See you next time.

[Interpreted] Hello. Good morning, everyone. My name is Gustavo, and it is a pleasure to have you joining us for our fourth quarter 2025 earnings video conference. As always, Milton will walk you through our performance. And afterwards, we will have our traditional Q&A session in which analysts and investors will be able to interact directly with us. Before handing the floor over to Milton, I would like to share a few instructions to help you make the most of today's event. For those accessing the webcast through our website, there are 3 audio options available, the entire content in Portuguese, the entire content in English or the original audio. [Operator Instructions] Today's presentation is available for download on the hot side screen and as always, on our Investor Relations website. With that, I will now hand over to Milton, and we will reconvene later for the Q&A session. Milton, over to you.

[Interpreted] Good morning. Welcome to another earnings release. Today, we will review the results for the fourth quarter of 2025. I will also discuss our outlook for the coming year and provide guidance for 2026. In addition, I will share an overview of our journey so far, highlighting our progress over recent years and the key achievements in 2025 to provide greater transparency into our agenda at the bank, though not exhaustively. Let me begin by revisiting our history, first, reinforcing the pillars that have guided us and proven essential to our management model. Client centricity remains our top priority and the central focus of the entire organization. Delivering on this commitment has required a comprehensive cultural and digital transformation within the bank over the past years. While this is an ongoing process, the advancements have been highly significant. Our risk management culture is a distinct competitive advantage. We maintain a long-term perspective and the ability to thoroughly assess all risks to which the conglomerate is exposed daily. Risk management is fully integrated across all business areas and is not solely the responsibility of the risk division, which is why I emphasize this pillar as a competitive differentiator. Capital allocation is another key area of focus in our management and daily decision-making models. as well as in our remuneration structures. We maintain strict capital allocation discipline, choosing the right place to allocate capital at the right price and with appropriate returns, always with a client-focused forward-looking perspective, which is fundamental. The modernization of our technology platform and data architecture has been a critical enabler of all our achievements. We have made years of substantial investment and transformational changes in our platforms including the modernization and simplification of our legacy systems, which notably are now scheduled for decommissioning. Therefore, we remain highly optimistic about the potential of this agenda, particularly with the ongoing review of our data architecture. We have developed a much more centralized architecture with a single source of information for the entire bank, democratized data across the organization and a cloud-based data mesh. This evolution has significantly enhanced our capacity to apply artificial intelligence to our business from launching new products and improving client interaction to process optimization and productivity gains. This transformation has been instrumental in achieving these improvements. And last but not least, let's touch on strategic cost management and efficiency. This is not about cost for cost's sake. Efficiency is a core guiding principle across the bank. We have been able to invest significantly in this transformation while delivering strong results and profitability with revenue growth outpacing cost increases over the years as reflected in our efficiency ratio. With all these investments made in technology, platforms and digitalization of the organization, we have entered a critical phase of scalability. Operational scale is now essential, especially for certain business lines, which I will detail shortly. How does this translate into results? Our loan portfolio grew by 40% during this period, a significant increase. During this process, we also carried out a relevant derisking of certain portfolios that did not deliver adequate returns according to our portfolio management framework. which is one of the core disciplines within our risk management culture and capital allocation pillar. This relevant derisking protected us from several million in potential losses and from a deterioration of key delinquency indicators. It also left our portfolio significantly stronger and better positioned with higher quality to support future growth. In terms of numbers, we saw a notable expansion in ROE, rising from 19.3% in 2021 to 23.4%, a substantial increase in the period. Our efficiency ratio improved from 44% to 38.8%, representing a significant reduction as well. During this period, we distributed BRL 105 billion in cash dividends, equating to a payout ratio of 57.9% in the period. In other words, we generated strong value creation and profitability, maintaining discipline in cost and efficiency management, which translated into significant returns for our shareholders. And how do we measure value creation within the bank? Here, we can see a 2021 snapshot. The bank delivered net income of BRL 26.9 billion, generating value based on our models and the cost of capital in line with market methodologies of BRL 9.3 billion. In 2025, we reached consolidated net income of BRL 46.8 billion with value creation of BRL 18.5 billion, twice the value created over the period and double what we delivered in 2021. This represents very strong growth with quality, sustainability and consistency and above all, with a high level of discipline and value creation. This slide contains a lot of information, but my goal is to provide an overview of our 2025 performance. I will now delve into a few highlights, starting with stakeholder satisfaction. The first metric reflects how we are evaluated by our employees across the bank. We achieved an eNPS of 83 points, very close to historical highs, which demonstrates the significant progress we have made internally in terms of workplace environment, culture, entrepreneurship and our ability to attract and retain talent, creating a truly productive environment. It is within this environment that we are naturally able to take care of our clients. In 2025, we achieved an all-time high consolidated NPS with record levels in the middle and high-income segments, 2 segments that are highly relevant to the bank and remain central to our strategy. For our investors, we did not present this information through valuation multiples, share price performance or stock evolution over the period. We always maintain a very long-term perspective. The bank's total shareholder return over the past 5 years has been outstanding, demonstrating our ability to deliver value and earn investor recognition. That said, we chose to highlight this performance through the Extel survey, where we were ranked as leaders across all categories for the second consecutive year. I am very pleased and would like to once again thank our investors for their trust and recognition. Our sense of responsibility and dedication only continues to grow. From a technology standpoint, we achieved a significant reduction in incidents as a result of our modernization agenda. Incidents were reduced by 99%, which is a very relevant achievement given the size and complexity of our architecture, our platforms and our operations across multiple businesses. One theme that I consider central to this modernization is speed. It is our ability to deliver value to our clients with much greater agility and responsiveness. As a result, our delivery speed increased by 2,600%, representing a truly transformational shift. When we analyze scalability, a topic we have discussed extensively, we achieved a 45% reduction in our unit transaction cost, demonstrating that we have indeed been able to carry out this transformation with high quality, depth and very consistent results. In retail banking, both individual and business, we delivered numerous initiatives throughout 2025, making it a highly significant year. I will highlight a few. First, we migrated 15 million clients to the Super App with a primary focus on client experience as evidenced by an NPS of 80 points. From now on, we will have a full banking relationship with these clients. In terms of speed, we increased our delivery pace by 4 to 5x, developing new products, addressing client pain points and achieving high adoption and activation rates. The transaction volumes on these new features are substantial, including Pix on WhatsApp powered by AI, Piggy bank, Cofrinhos, limit transfers and collateralized cards, among others, a robust suite of offerings for our clients. The modernization of our platform enabled us to participate quickly in the new private sector payroll loan program. If you look at the data from inception to now, we have regained leadership in this area. We had already led in the previous private sector payroll loan model and have now returned to leadership in production over this period. We maintained our leadership in portfolio size with significant growth, quality and a long-term perspective. We also saw a notable increase in digital adoption among our clients. Our investments in technology, cultural and digital transformation and best-in-class client service have naturally optimized our footprint. In insurance, a segment where we have long recognized the need to catch up, we ended 2025 with a 130% increase in recurring results, more than doubling our outcomes in the period. Encouragingly, we continue to see strong prospects ahead with insurance now an integral part of our value proposition for both individual and business clients. In the corporate segment, I would like to highlight the BRL 1 trillion in transaction volume reached in acquiring. As a result, we have secured market leadership in credit which we had already achieved, maintained leadership in acquiring with discipline, focus, new technologies and products and in payment and collection flow. This underscores the importance of our client-centric approach in corporate retail banking. We launched Itau Emps, a 100% AI-powered platform with tremendous future potential as part of our value delivery and business model for corporate and retail. In Wholesale Banking, I would also like to highlight a few lines. We are ranked first in fixed income issuance and distribution, a highly competitive market that many of our large and mid-sized clients have increasingly accessed over the past few years. We closed the year with 26% market share and BRL 124 billion in originated transactions. Continuing in wholesale, as discussed extensively at Ita� Day, we created the Infrastructure and Energy segment with specialized focus and structure given the robust investment pipeline. We achieved leadership in Eco Invest Brazil, a very important program and recorded the highest fundraising among banks, already enabling BRL 12 billion in investments. We had yet another year in which we took the lead at BNDES and in the rankings for foreign exchange, derivatives and supplier risk. Once again, we stood out in credit, in structuring transactions in capital markets and in supporting our clients' day-to-day needs. We also achieved leadership for the second consecutive year in something extremely important in research, the Institutional Investor or Extel Brazil for 2 years in a row and in Extel LATAM in which we were the winner for the first time. It's a great source of pride to see the work our teams have been doing, once again covering our publicly listed clients with deep discipline and thoroughness. Turning to Wealth Management Services, WMS, I'd like to highlight 2 areas. First, in the trillion world, we have reached BRL 4.1 trillion in assets under management and administration. This is the volume the bank currently has under management and administration. Regarding the open platform, a topic often discussed, the bank operates by offering clients a highly diversified range of products. We grew 15% in the fourth quarter, reaching BRL 422 billion, which shows that it's possible to grow with quality, with strong curation, with discipline, with security and naturally maintaining a robust system with a very client-centric approach. I believe the numbers speak for themselves. We also saw significant growth in revenue from our retail brokerage business, an area previously identified as a gap with a threefold increase over the period. Now I will address the fourth quarter results, covering profitability, loan portfolio, net interest margin with clients, commissions, fees and results from insurance and conclude with the efficiency ratio. For ease of visualization, let's zoom in on the results. We posted net income of BRL 12.3 billion, a robust result for the fourth quarter, representing growth of 3.7% over the previous quarter and 13.2% year-over-year, maintaining a very strong level of profitability. On a consolidated basis, ROE reached 24.4% and in Brazil, 26.0%. Adjusted for 11.5% capital, our current industry average and capital appetite as defined by the Board, consolidated profitability was 25.4% and in Brazil, 27.3%. This is perhaps the most comparable number for interpreting our performance in the Brazilian operation with growth and expansion across all dimensions. How did we build this? Our loan portfolio grew significantly with 6.3% compared to September 2025 and 6% compared to December 2024. I will talk about the year-end guidance shortly. We reached a loan portfolio of BRL 1,490.8 billion. Excluding the effects of foreign currency variation, quarterly growth would have been 4.5% and annual growth would have been 7.3%. This is because our portfolio is influenced both by the operations of our banking units outside Brazil, which affect balances through currency fluctuations and by portfolios originated in Brazil that also contain foreign currency components Net interest margin with clients also delivered very solid results with 1.5% growth over the previous quarter and 8.6% year-over-year, a strong performance for a bank of our size and profitability. For services and insurance, it was also an excellent quarter with 5.9% growth over the prior quarter and 9.1% year-over-year, totaling BRL 15.6 billion in high-quality solid results. We reached our best ever efficiency ratio levels at 38.9% on a consolidated basis and 36.9% in Brazil. We are seeing improvement across all dimensions with continuous progress in our efficiency ratio, which is also consistent with the initial slide I presented to you. Now focusing on the loan portfolio. There is a lot of information, so I will highlight what I consider most relevant. First, this is a seasonally strong quarter due to year-end purchases, which typically boost the card portfolio, up 8% this quarter. Importantly, and this also explains the margin on the next slide. The transactor portfolio typically tends to grow more this quarter due to a very simple reason, higher purchase volumes, whether paid in full or in installments, resulting in 4.3% growth. The finance portfolio grew 1.6% in the quarter. Both segments posted strong year-over-year growth. In payroll loans, the portfolio grew by 4%. The main highlight was private payroll loans with 27.5% growth in the quarter and 36% year-over-year. This growth has led to us achieving market leadership in private payroll loans in Brazil with high quality, profitability and a very well-executed model supported by an outstanding onboarding experience. The next highlight is mortgage lending, and we recognize the importance of this lever for long-term client relationships. We reached approximately BRL 142 billion in mortgage portfolio, the largest among private banks. We surpassed 50% market share in mortgage origination with over BRL 33 billion originated in 2025, continuing a strong growth trend. Origination grew 9% year-over-year, and the portfolio expanded 12.8% in the period. Moving to SMEs. We also saw strong growth this quarter. Breaking it down, middle market companies grew 12% and small companies grew 6.4%. Government facilities, which allow us to offer clients competitive rates and suitable terms grew 10%. Annual growth rates were also robust for both small companies and government facilities. Let me now move on to margins. As mentioned earlier, given the mix you've seen, we have a meaningful growth component coming from corporate lending. However, in retail, the mix is also an important driver of margins. There was significant growth in the transactor portfolio typical for this quarter as well as in mortgage and private payroll loans, which are secured products that, while very important for long-term profitability and portfolio quality, have only a minor impact on the annualized margin in the short term. In summary, we grew by BRL 13 billion in 2025 versus 2024. In the fourth quarter versus the third, the increase was BRL 500 million or 1.5%. The main driver was volume, supported by strong portfolio growth. The mix I just described has a slight negative impact on margins. Spreads and liabilities margins remained strong, particularly on the liability side. There were also smaller effects from calendar wholesale bank structured operations in Latin America. Overall, it was a solid growth quarter. Moving on to NIM. There was a slight decrease in the quarter from 9% to 8.9% and 6.2% to 6.1% risk adjusted. In Brazil, NIM declined from 9.8% to 9.7% and 6.7% to 6.6% risk adjusted. This is mainly explained by the mix between corporate and retail and within retail, the product mix with more significant growth in certain segments during the quarter. This is the breakdown view as we see it. And this is the annualized margin view I was just discussing with you fully within very appropriate levels. Now regarding NII with the market, I want to highlight that this decline was already anticipated. The guidance itself already implied a slightly lower market margin. We saw very strong performance in Brazil, but it's worth noting that prior quarters were also very strong. Still, performance remains solid. Latin America saw a slightly weaker result due to capital index hedge costs, consistent with what we observed in prior quarters. I believe our annual reporting is very clear. If you look at the difference in performance, it is not in the top line. Brazil performed slightly below 2024, while Latin America was somewhat better. However, in terms of composition, the margin was very similar. The main variance is the capital index hedge costs, which increased due to the interest rate differential in the hedge. The main takeaway is that we are very comfortable with our hedging strategy as it enables strong capital management with high predictability and consistent dividend payouts over time. This approach has reduced volatility in our capital ratio, and we review and discuss this policy every 6 months. Now let's move on to commissions, fees and results from insurance. I will emphasize what I consider most relevant. I talked earlier about payments and collections. We posted a 5% improvement in the quarter with a very strong transacted volume of BRL 301 billion, an impressive figure, reflecting growth of 16.8% in the quarter and 22.8% year-over-year. In Asset Management, we recorded 14.2% growth, making this a particularly strong quarter, also benefiting from performance fees. As previously mentioned, we reached BRL 4.1 trillion in assets under management and administration. I would like to highlight our record net inflows in 2025, totaling BRL 156 billion, an increase of 49%. Once again, this demonstrates our credibility, ability to deliver value, long-term vision and most importantly, the trust we build daily with our clients. In Advisory Services and Brokerage, we had a strong quarter with growth of 17.1%. We remain market share leaders and as previously mentioned, with BRL 124 billion in originated volume. Year-over-year, there was a decline as 2024 was a record year for advisory and brokerage results, especially in corporate debt. Nevertheless, we outperformed our initial expectations for market volumes this year. Insurance, pension plans and premium bonds results grew 1.9% in the quarter and 17% year-over-year. The most important message is that our earned premiums continue to grow 13% year-over-year. Recurring earnings rose by more than 20% this year, following several years of significant growth, resulting in a cumulative increase of 130% from 2021 to date. Now let's take a closer look at asset quality. Starting with short-term delinquencies. There are a few points to note. As anticipated in the previous quarter, we had a specific case within corporate, a well-known and widely reported case that had moved into short-term delinquency. Our expectation was that it would be removed from the balance sheet sold and restructured by year-end, which is exactly what happened. This explains the spike in September and the decline in December. Without this event, the indicator would have remained flat. When looking at total Brazil and Latin America, indicators remain well behaved. In Brazil, 2 effects are noteworthy. First, in individuals, where we reached the lowest delinquency rate in our history, demonstrating that our portfolio management over the years has yielded important results with portfolio growth, value creation and a highly sustainable portfolio. The corporate effect is also evident here. Short-term delinquency peaked at 1% in September and dropped to 0.03% in December as the specific corporate client I mentioned was removed from the balance sheet in the fourth quarter, reinforcing information previously shared. Regarding long-term delinquency, there are no major developments. The message is that delinquencies are very well controlled as well as in Latin America, resulting in solid outcomes. Across portfolios, individual delinquency stands at 3.6%, which is historically stable. For SMEs, there was a slight increase in line with what I had previously anticipated, particularly driven by the rollout of government-backed products with grace periods. We expect these delays to normalize over time as grace periods end. These are well-collateralized portfolios. So while delinquencies occur, they do not significantly impact losses or portfolio results. In terms of long-term delinquency for corporate, we make a caveat because we actually had a sale. Without considering this sale, it would have been an increase of 0.9 percentage points, which indicates a certain stability. It is worth noting that this is not an indicator we like to monitor, especially for large companies. Regarding Stage 2 and Stage 3 exposures, there are no major developments except for a decline in the Stage 3 portfolio, especially in corporates. This is exactly related to the exit of the specific corporate client I referred to earlier. Once the exposure is sold, it exits Stage 3, driving this effect. You can also observe a slight decline in coverage as this was a corporate client with a high level of provisions, consistent with its risk profile. This credit leaves the portfolio with a higher coverage level than the remaining balance, which explains the slight decline in coverage. I would say these are the only 2 highlights, and ultimately, they both refer to the same case. Turning now to credit costs. We have recorded BRL 9.4 billion in credit costs, representing 2.6% of the portfolio, an absolutely stable ratio if you look at the historical series. On a year-over-year basis, there was a nominal increase, which is expected given the significant portfolio growth during the period. This is why we always prefer to look at the credit cost to portfolio ratio, which is at a very healthy 2.6%. When looking at the restructured portfolio, the key highlight is that the specific case I mentioned earlier was classified as restructured, as you can see here. This nominal decline is primarily explained by that event, which is also why the percentage of the total portfolio has declined. This is the main takeaway for this section. Now turning to expenses. The first specific point is that while costs typically tend to be higher in this quarter, they remained very disciplined with just 0.5% growth in Brazil, which demonstrates the direction and trend. This will be evident in forward-looking guidance. For the year, expenses grew 7.6% in Brazil and 7.5% overall, which is perfectly in line with the midpoint of our guidance, demonstrating our discipline and predictability. Much of this year-over-year cost increase stems from our capacity to absorb relevant investments made as well as higher volumes combined with lower unit costs. However, this is an operation that is generating more business and higher volumes with our clients, which results in variable costs. Naturally, the bank's profitability also impacts costs due to compensation models. We always see an effect in this regard, which is healthy given the level of profitability and results the bank has been delivering. Now regarding the efficiency ratio, it is worthwhile to look back at the historical series starting from 2019, both consolidated and in Brazil. There has been a substantial reduction over the period, reaching 36.9% in Brazil, the lowest in the series. This demonstrates our commitment to client-centric care, strategic investments, results generation, increased productivity, organizational efficiency and a strong focus on operational scale. This remains a central topic for us. I would like to share some new information with you and as we classify it on a base 100, given the sensitivity of the data, we have broken down our business into different views. As I often state, Itau Unibanco is a diversified business portfolio. It is a very large wholesale bank and a very large retail bank. It is a major player in the region and the most international bank in Brazil. We have significant regional operations with 18% of our assets and 8% of our results coming from outside Brazil. This highlights the diversification of our portfolio, which is concentrated in investment-grade countries in South America. On this slide, we have outlined what we consider benchmark segments, whether in wholesale, retail or those areas where we believe we have already achieved a global standard of efficiency. Naturally, opportunities remain, and we are constantly monitoring them, especially in this new era of artificial intelligence and emerging technologies where there is always room to optimize further However, if you look at this 100 base chart from 2024 to the present, you will see the business and segments that have successfully maintained their efficiency ratios. For Latin America, the curve is heavily influenced by foreign exchange effects. So I will set this aside for a moment, although it naturally impacts the consolidated figures. On a consolidated basis, using a base 100 view, we can see our efficiency ratio moving from 100% to 98%. The key is that our most significant progress in efficiency is occurring within the scalable segments, specifically retail, both for individuals and SMEs, where technology, value proposition, scalability and productivity are fundamental. Long term, this is what will differentiate our ability to better serve our clients and expand to new client groups that given our current cost structure and efficiency ratio, we would otherwise have less capacity to absorb credit losses from. As you can see, I am already sharing an insight for 2026. We started from a base of 100 in 2024 and reached 94 in 2026. Our ambition is to continue improving this trend. Therefore, much of the investment and the transformation carried out in previous years is what allows us to accelerate scalability moving forward. It is a robust digital offering, a powerful platform and an optimization of the business and service models and a strong value proposition. We are very optimistic, not only with the evolution of these elements, but also with the prospects. Regarding capital, at the end of the day, all the results and discipline I've mentioned translate into strong capital performance. In the first block, we have the pro forma for December 2024, where we achieved a CET1 ratio of 12.3%. Net income generated 3.3% in the period. There was 0.8% capital consumption from risk-weighted assets. Regarding dividends and interest on equity, there was 2.5% capital consumption. We also had a positive 0.2% capital variance from new AT1 issuances, primarily in the domestic market. These factors led us to reach a CET1 ratio of 12.3% and AT1 of 1.5% as of December 2025. It is important to note that in the first quarter of 2026, we already have some regulatory events that are consuming part of this capital surplus. This was all factored into our planning when we decided to proceed with the early distribution of additional dividends, which we typically pay in March, but executed at the end of 2025. Regarding interest on own capital and dividends, we distributed BRL 9.7 billion in paid and provisioned IOC and BRL 24 billion in additional dividends and interest on own capital, resulting in a total payout of BRL 33.7 billion in 2025. Representing a payout ratio of 72%. This is a strong distribution, which is only possible due to high quality and robust capital generation. Our focus is to maximize the profitability of the business, but when we determine that there is excess capital beyond our expected opportunities for deployment and returns, our objective is to distribute it to shareholders. Now I will present the accountability regarding the guidance. I won't go into detail line by line, but visually, we came very close to the midpoint in almost all guidance lines throughout the year. The loan portfolio grew by 6%, while financial margin with clients increased by 12.1%. Our financial margin with the market reached BRL 3.3 billion. Credit cost was BRL 36.6 billion, and commissions and fees and results from insurance operations grew 6.3%. Noninterest expenses increased 7.5%, in line with our budget, and the effective tax rate was 29.7%. This demonstrates not only our predictability, but also our control over key levers. Looking ahead to 2026, and we will have more time to discuss this during our Q&A session, I would like to add a very important comment. As previously said, we expected to make some reclassifications across line items in our management reporting model as presented in the MD&A. We conducted a review to ensure that the way we disclose our results is an accurate reflection of how we manage the bank. As a result, there were some delayed adjustments that we wanted to implement, and we waited until the end to make those changes. There is no right or wrong here. This simply represents the most accurate depiction of what we do and how we manage the organization. You will see that at the end of the day, the bottom line remains unchanged with recurring managerial net income of BRL 46.8 billion in 2025. In other words, there are no changes to the total result. The variations are purely between line items. And of course, the Investor Relations team remains fully available to walk you through the details and provide further clarification. I will try to explain this in a simplified way. What we refer to here as the main reclassifications account for roughly 90% of the adjusted amounts. Let me give you a practical example. Historically, card network fees related to issuing and acquiring were split between noninterest expenses and a deduction from banking product revenues. We are now reclassifying all card-related expenses, both issuing and acquiring from noninterest expenses to commissions and fees. As a result, you can see a positive impact on expenses while this helps explain part of the negative effect observed on commissions and fees. That is one example. Another example is the discount of receivables financial margin. As we have mentioned in previous earnings calls, part of [ Rede's ] results was previously allocated in commissions and part in financial margin with clients. Within financial margin with clients, there were 2 components: discount of receivables financial margin and the cost of funding of automatic discount of receivables flex, both were previously classified under financial margin with clients. We are now reclassifying everything related to Rede to the commissions, fees and results from insurance line. This also helps explain part of what you are seeing here, namely an increased NII with clients as the flex cost of funding, which was previously recorded in that line is now reflected as a reduction within commissions, fees and results from insurance. A third example involves discounts on debts of up to 90 days overdue. These were previously recorded in NII with clients. We believe it is more appropriate to reclassify them into cost of credit as they are effectively credit discounts, and we explicitly disclose discounts granted within the cost of credit line. This helps explain part of the positive impact of BRL 2.8 billion in financial margin with clients, which is offset by a negative impact of BRL 1.5 billion in cost of credit. With this reclassification, total cost of credit would move from BRL 36.6 billion to BRL 38.1 billion. The key point is that going forward, we will refer exclusively to these reclassified results. Another adjustment relates to Avenue over which we now have control. Avenue is therefore, consolidated into our P&L lines as shown in this column. This has a positive impact on NII with clients, no impact on cost of credit and affects other P&L lines where it previously did not as Avenue was accounted for using the equity method through 2025 and will be fully consolidated from 2026 onward. The central message here is that our guidance looking forward already incorporates all these reclassifications, which we believe is the most appropriate way to present our numbers, our results and how we manage the bank. All future comparisons will be made against 2025 figures adjusted for these reclassifications. Turning to the macroeconomic scenario. This slide reflects the assumptions we've used. We recognize that the environment is highly dynamic, but these are the inputs applied in our projections and guidance analysis for 2026. We assume GDP growth of 1.9%, a year-end Selic rate of 12.75% with an expected rate cut starting in March, inflation measured by IPCA converging toward 4%, unemployment remaining low, but increasing slightly from 5.4% to 5.7% and the exchange rate moving from BRL 5.47 to BRL 5.50. Again, these are the assumptions underlying our planning and guidance for 2026. With that, I will conclude by walking you through the 2026 guidance. First, total credit portfolio growth is expected to range between 5.5% and 9.5%. We highlight that growth in Brazil is expected to be higher between 6.5% and 10.5% as Latin America weighs on consolidated growth. All other lines are presented on a consolidated basis. We expect net interest income with clients to grow between 5% and 9% and market NII between BRL 2.5 billion and BRL 5.5 billion. Cost of credit is expected to range between BRL 38.5 billion and BRL 43.5 billion. Commissions, fees and insurance are expected to grow between 5% and 9%. Regarding noninterest expenses, it is worth recalling that growth in the fourth quarter of 2025 was just 0.5% quarter-over-quarter. you can see that there is also a meaningful convergence in 2026 with expected growth between 1.5% and 5.5% with the midpoint below projected inflation, bearing in mind that banking inflation typically runs above IPCA. This clearly demonstrates our ability to capture the benefits of everything that has been implemented over the past few years. We expect the effective tax rate to range between 29.5% and 32.5%. This is our current view for 2026. Naturally, as the year progresses and more information becomes available, we will update and adjust if needed. But this reflects the best information available at this time. With that, I'll conclude. This was a slightly longer presentation than usual as we covered our historical journey, the full year performance, quarterly results and concluded with a clearer view of our 2026 guidance. For me, this closes a year of very solid high-quality results. Beyond the headline numbers, it is critical to look at the quality of the balance sheet. Across all lines, we have very adequate provisions, disciplined capital allocation, meaningful value creation over the period and ROE of 27.3% in Brazil. I believe this clearly reflects all the effort behind this journey, combined with an efficiency agenda that is advancing at a very strong pace. This is evident in everything I have just shared with you, including our guidance and also in the positive outlook we see looking ahead. Of course, this is a year where we expect some volatility. However, our risk management culture, a very healthy portfolio operating at historically low cost of credit levels and a highly provisioned balance sheet allow us to capture opportunities as they arise, whether to grow more aggressively or if needed, to manage the portfolio more defensively. In summary, I believe we delivered an outstanding year. Everyone here is very proud of the work accomplished yet fully aware of the challenges ahead. Past results do not guarantee future performance. Therefore, we remain humble, disciplined and focused, but above all, passionate and energetic about our work at the bank. That concludes my remarks. I will now join Gustavo in the studio for our traditional Q&A session. Once again, thank you not only for your time, but for the trust you have placed in the bank over the years, whether as clients, investors or employees. Thank you very much.

[Interpreted] We're back to our studio with Milton and Gabriel for the Q&A. Now before we start, we would like to let you know that we are going to answer the questions in the language that they are asked. In English and Portuguese. [Operator Instructions] Let's go to the first question from Thiago Batista, UBS.

[Interpreted] Congratulations on the result. Once again, a strong result that Ita� is delivering. I'm going to get 2 topics in one question. One is profitability of the bank and the other capital. A few years ago, we couldn't imagine that the ROI was 24%, 25%. Our doubt is, is this level recurrent? Can we imagine that this ROI is going to remain at this threshold all throughout the years and now the leverage of the bank? A few years ago, maybe 10%, the target was 13.5% Tier 1, which is not different from the 11.5%, 12% of core capital. But since then, we've seen a few issues. Overhead is over. You do the hedge of the capital abroad. So the capacity of capital is reduced. Can you keep this ROI of 24%, 25%? And can we imagine a reduction or an increase of leverage over time to keep this ROI at 24%, 25%?

[Interpreted] Thiago, pleasure to see you once again. Thank you for the question. We are very happy with the deliverables and the optimistic with the future. Now about profitability. Maybe the best information, as you know, we don't give guidance of ROI in the long term. But the guidance of this year, we have profitability and thresholds very close to what we observed in '25. If you've seen the midpoint of the guidance, we should grow close to what was the growth of '25 against '24 and delivering a bottom line that is very solid with a profitability that is very strong. I don't foresee today any reason why we shouldn't have a vision of the ROI in this threshold that is implicit in the guidance. Of course, the year and the events are dynamic. For us, the most important thing is always the spread over the cost of capital. And we should get into a cycle of reduction of interest rates. Let's see how the premium of risk for the COE for Brazil is behaving all throughout the year. But as we have a reduction of interest rates all throughout time, the spread over is kept, not necessarily at the level of ROI, but we have a long ways ahead to see about the leverage of the bank. The point is interesting. You are right. The overhead brought some volatility to the capital index. But we still have some volatility in the portfolios with the foreign currency. That's how we implemented the policy of the hedge of the index that is working very well, and there is a cost of opportunity, of course. But also we have a predictability that is very important for the prospective management of the bank or for the distribution of dividends. What happens? When we define the appetite at 11.5%, it was 12% the appetite. We reduced it to 11.5%. That was approved by the Board. But we at the Board for the distribution of dividends, we work with a buffer of 50 basis points. That 0.5% is what gives us security, tranquility so we can grow with strength, seize the opportunities that appear. So we don't run the risk of invading the appetite and doing a contingency recomposition of the capital index and losing opportunities thereafter. So having a strong balance, well capitalized, we think it's a comparative advantage. And the scenarios change and can change quickly. We've seen that in the pandemic. So to have a solid capital base is important. Our biggest restriction now to do a review of leverage, we discussed with a lot of frequency are the rating agencies. What we do not want is to work with the more leverage and losing a rating, which is important. Even though today, we have capture -- foreign capture that is lower than the past, having an international rating that is relevant is what brings opportunities for the cost of capture so we can be very competitive. That's the restriction that is active. We're always debating this. Looking at the different scenarios of shocking the balance, and this is a year that can have more volatility due to the scenario of the elections. uncertainties that are up ahead. It shouldn't be this year that we're going to do this discussion of reviewing the leverage, but this is a theme that is present in our debates. We always have talks with the agencies to try and understand how can that impact our ratings. This is a constant theme in our agenda. I don't think that this debate will advance in 2026. But depending on the perspectives, we can eventually do a review of the level of leverage, certainly, this is a discussion that we're going to take to the Board at the opportune moment.

[Interpreted] Now we'll give the floor to Bernardo Guttmann, XP. The floor is yours.

[Interpreted] Congratulations on the results. It's impressive, the level of profitability that the bank is delivering. ROI, 27% in Brazil. I'm going to explore those levers, levers in the future, trying to zoom on that level of efficiency. Looking at the guidance of expenses not correlated to interest rates. It seems that there are low expenses considering that 2026, there is negative items that are temporary with the adjustments in the infrastructure. So the correct reading is that '26 will capture a relevant change in the cost base, allowing the bank to get into '27 with a structure that is more clean, more efficient, creating, therefore, a driver for operational leverage up ahead, that's a question. Thank you.

[Interpreted] Pleasure to see you again. Thank you for your initial words. The answer is yes and yes. Yes, we are capturing and gathering the fruits of our labor of the previous years, a lot of investment in technology, a lot of focus of increase in productivity, digitalization of the platforms of the bank. The experience of the clients, reviewing the business models, the model of service, a way of servicing the client in an ever more digital way. That slide that I just showed you separated what was the segments that were the reference in reference and those that we can scale. And that's where we get most of the efficiencies that we will capture over the next years. We finished with a projection of 94% at the end of '26. There is a certain assumption for the guidance for the year. But looking ahead, we are certain that this is a path. Efficiency all throughout the game, operational efficiency, but it's not brute force operational efficiency. An adjustment of infrastructure reduction without any strategy, no. It's a deep review of everything that we are investing all throughout the years. most important than that, all this reduction and adjustment running below the IPCA rate. It's banking inflation because there is an increase in payroll, real, there is other expenses is higher than the IPCA. But all that growth that you see projected 3.5% for the midpoint of the guidance for '26, there's also important volumes for investment. We are investing long term. We are still investing in our business. We are still investing in our platforms. Of course, prioritizing the most relevant. Looking at the long term, focusing in value creation. This capacity of generating top line, capacity of absorbing the investments, doing a deep transformation of the organization. And now a period of deliverables that is consistent allows us to open ourselves to more investments and expanding those investments. We did investments in several businesses, and we will continue with a long-term view without doing -- without selling out the future. We want to grow sustainably. We want to seek more productivity, more efficiency, more operational scalability. Gabriel is here. He is leading this front in the bank. This is not a front from the finance BU. He is the leader, but this is a multidisciplinary front. All businesses are involved. everyone with their own challenges, ones with the threshold that are more efficient than others, but I'm very optimistic that we got into a journey that is very deep of adjustments and scalability.

[Interpreted] Our next question, Renato, Autonomous.

[Interpreted] Congratulations on the results. I wanted to expand on the previous questions on the ROI. I think it's natural that now we get into a moment of reduction of capital -- cost of capital in Brazil, ROI drops. And as you said, the generation of value is important. So I wanted to understand more on the long term. What are the levers that you foresee for the expansion of this generation of value? Are we at a reasonable level? You've discussed the efficiency, but I remember a comment in the past that as you implement this efficiency, part of this is given to the clients. So maybe other ideas that can generate more value. And if you allow me, just a clarification of the guidance here that if we look at the growth of the financial margin and the growth of the portfolio, that implies into a reduction in the line. But I imagine that here, you also have the effect of the anticipation of the dividends. So if you can comment very quickly on the evolution of the line sensitivity to the interest rates and how that will go throughout the year.

[Interpreted] Thank you, Renato. Great points. Thank you for being in our call. I think that the levers are throughout the business, they're spread out throughout. The capacity of growing the portfolio with quality, the management of this portfolio has been done for many years. The discipline of capital allocation. This is the name of the game. Growing, generating operations below the cost of capital will always be dilutive. We will destroy value in the long term. This is a discipline that generates profitability that is necessary through the cycle, always with this long-term view. All the part of the efficiency and cost is very important. But as you know, deep down is a binomial cost and expenses -- cost of revenue, sorry. So we've deepened the -- very consistently with our portfolios. We're doing the deep dive into being the main engager with the customers. This is the main threshold in our history. We are growing 2 digits in some portfolios. So there is a series of levers. Of course, cost is one, but always with this logic of efficiency, looking at our capacity of generating top line of growth and working with the cost of productivity. So we can have offerings that are more lean, more digital, better experiences for our clients. and simplifying the value proposition and simplifying the bank, of course, with all this transformation. A part of this technological modernization, we are talking about the decommissioning of legacy systems in a few years. This is going to be a big difference once we operate in a more variable cost basis in a more simplified internally way and speed of delivery in technology. I showed 2,000% of growth. Now today, we can develop a product and bringing a solution for the market 5x faster. So the capacity of throughput of delivering value changed with a very strong threshold. And we will continue to follow up on the opportunities, cost of equity every month, we're looking at the internal methodology, the market methodology, cost of capital, the buy side, sell side. And so we have our COPI meeting monthly. So we define what is the COPI of the bank, and this affects the capacity of pricing. And as you said, I don't believe in a static world that you do the world -- the work of efficiency reduces, but the revenue is always the same. In the end scale so you can generate more value, more portfolio and you can have the returns through the cross-sell and the reduction of the relationship. But a part of this efficiency has to go to the price. This is what's going to transform ourselves into a platform that is ever more competitive. We're very competitive from the cost of funding perspective, and we're going to be more competitive in the unit cost. Our unit cost has reduced 45% in this period, and we see space for reductions. Volumes grow, cost -- unit cost is dropping. This is the name of the game. Now on the margin, I wanted to do a reinforcement. Let me give you some numbers. If we consider the delta dividend that is paid, '25 against '24 and the anticipation that was done all throughout the next month in December of last year, this generates for ourselves about BRL 1.5 billion less margin through '26. So if the question is, well, Milton, I have the portfolio growing with the midpoint and 7.5% and the margin of clients is growing 7%. What is the reason of the margin growing a bit below? If we do this adjustment, the margin would be growing 8.1% in the year. So the margin comparable normalized which is what we are going to observe really throughout the year, but the comparable margin for understanding the dynamic of the generation of value of the bank is comparing 8.1% with the portfolio that is going to grow 7.5%. These are comparable basis. Certainly, this effect allows us to explain a potential adjustment. That is not so relevant, but we have adjustments in the NIN in the consolidated and also in the net cost of credit NIN. So this is important, and it's 110 basis points. When we look at the effect in the financial margin with the client in the year, which is not little, and it shows that the core, the organic growth is coming at an adequate rhythm with an adequate risk, adequate mix and generating value for the threshold for the shareholder.

[Interpreted] Next question, Yuri Fernandes, JPMorgan.

[Interpreted] Congratulations on your results. NPS quality of credit lines accelerating short-term deliverables that are good for the middle to long term. So I wanted to focus on the SME. The -- how are these deliverables in the small and medium-sized companies should change the profitability of the bank. When we look at the volume, I think it was a very strong quarter. Rede grow above 20%, which is 2x the industry. We also see the portfolio growing 9%. Looking at [ BACEN ], it's about 3%. So we have a share in the portfolio. Of course, it's not comparable. We don't have all the expanded portfolio, but we see that in payments and volume of credit, Itau didn't even start. It's being implemented. So it should bear fruit. The question is, given that the SMEs and investors, the previous ones, they had ROIs above 30%, 35%, very profitable segment. How does this impact -- going back to the question of my peers, how does it impact the ROE? We should have SME gaining more traction. We should see the ROE of retail growing more or maybe there is a -- no, no, maybe there is a question of price, competition because it seems that this could be a lever of profitability for you.

[Interpreted] Thank you, Yuri. Great to see you. Thank you for your time, and thank you for the initial words. Now the SME segment for us, as we publish it, we have micro, small and medium. So we mix what we call the BU PJ, which is the companies and the middle market, which is managed by Itau BBA. It's a sum of both businesses that are here. When we add the business model and the profitability, then we break down the BU PJ within the retail and the middle market and the structure of the wholesale, but in the -- we block them together. We had an extraordinary result in the companies, whether if it's middle market or the retail companies, and these are very -- this is a work that has been done for many years, a reorganization review, deep one of the strategy. Moreover, the portfolio management. I think that we managed to seize the opportunities, and we knew how to grow with the clients always in the long-term view and more so the discipline of capital allocation. We see a market that is very erratic in the pricing in that segment. We always try to do an analysis of how much would have been our return if we had been operating in a few operations that are very relevant in some of these segments. And these are returns in operations with funding without funding below our cost of capital, considering our model, which is very efficient. So here is discipline, discipline of management of being the main one for the client, having that overview of flow, so that integration of Rede with the bank was fundamental. So we could, in fact, having an integrated vision of the flow. If we see the level of acquirers in the market, it's just a fraction of the flow of payments and receivables in the system as a whole. So the share of flow is more important than the market share of acquirers. And how do we deliver an integrated value proposition for the clients. Being the main one is the name of the game. So we've grown. We've grown with quality. Now we operate in a level of profitability that is very high in this segment. And what I want to say is that we have the expectation of incrementing the bottom line. And this is what we expect for '26 and not an expansion of profitability in the segment given the level of profitability that we already have today, which is above the threshold that you commented a little bit before. This is for the BU companies and also the middle market. We've done strategic reviews that are constant. We've done another one this year in the companies and the individuals. And we also have a solid plan and are very optimistic for the future for the delivery of value and execution of these plans. And this has a role that is ever more protagonist in the strategy of the BU companies. So we've tested the new technology very carefully learning with the clients, powered by AI, but the advances are incredible. The amount of products that we have in the platform, it's more a full bank focused on the needs of the companies, smaller ones, the digital needs, it doesn't -- it's no use taking all the products. You need to understand the pain of your client that you need to solve. And how do you interact in a more efficient way. So the platform has a more relevant role within the strategy so we can deliver better the base of clients that is within the bank that is -- well, and besides the clients that we've seized for the bank and in a more efficient way, in a more digital way with a better experience. So this is the path of the platform this is work and the platform has a relevant work in this sense. So I don't see an expansion in the return in the retail. I think that we've done a catch-up that is very important since the third quarter of 2022 that I told you. I was very uncomfortable with the level of profitability, and we've seen a cycle of expenses and PDD that is more strong. Looking up ahead, we've done an important catch-up of 10 percentage points in the profitability of the retail in a sustainable way. So there is no business performing well or a business performing below the cost of capital. All the businesses are creating value and operating above the cost of capital and with good perspectives looking ahead. It's a balance of the portfolio, therefore. I don't see necessarily an expansion of ROI because of this, but I see an increase that is consistent of the franchise of the results of these segments.

We're going to switch to English as we have Tito Labarta from Goldman Sachs.

Congratulations on the strong results, very consistent over the years. Milton, my question is on the competitive environment. I mean, if you look over the last 10 years, competitive environment has evolved quite a bit in Brazil, I think still evolving. We've seen a lot of your incumbent peers having to adapt their business models, a lot of fintechs that have become very strong today. And you've been able to adapt very well, right? I mean, just looking at your profitability, as you just said, right, every business is operating above the cost of capital. So in that context, so what worries you? Is it -- it could be from incumbent peers adapting a lot of them more coming after the high-income segments where you're very strong in. Is it the fintechs? Is there any segments that you sort of maybe worry about more than others? I mean you talked about you're already a leader in private payroll. It's a new segment. So what kind of worries you about this new competitive environment? And what are you maybe also most excited about? Where do you see the opportunities from here to continue to be able to deliver these results? And where could the risk be?

Thank you, Tito. Good to see you. Thank you for your compliments. We are very proud, and thank you for coming to our call. I will tell you, first of all, that we have a huge enormous respect for all our competitors. But as you know, we are a huge portfolio of businesses. So we have in the wholesale many business where we compete with the incumbent banks, but also compete with the new I would say, competition. So depending on what segment you are looking at, the competition and change a lot. So our capability to understand client needs, to understand our competitors, to be humble, to look outside all the time and understand that we might have people doing better things that we are, and we can do better, and we have to leapfrog and go for it has been able to transform the organization in the past years. So I don't see in any segment today, any difficulty of competing even though we know the fierce competition is coming from all around the places. So again, huge respect. I think we have enormous competition in Brazil, good competition. Everybody is doing their homework, everybody trying to get -- to do better what they already do. And we have to do better and fast. So I think this is what we've been doing in the past years. So I see a few levers that take us to this place. First of all, human capital. We do believe that we have a very, very good people inside the organization, people that has passion for what they do. We have a very strong culture that put us in a competitive advantage in our view. We have this capability of capital allocation that is very, very important, this discipline of looking always for the long term, the capability of do investments all around. So as we're not looking for the next quarter, we are looking for the next 10 years. We do huge investments throughout all our businesses and all the modernization we've done in our platform, the data architecture, the way we approach clients today, all the AI power that we've been releasing in our businesses, not only internally, but also externally, has been putting us in a very, I would say, competitive spot. So this is how we look today. I think in the individuals, just to give you an example, we've gone through a huge strategy revision this year of 2025. We are in the execution mode. We did a relevant change in the structure in the retail operation as a whole. Also, the SMEs has been going through relevant change in looking forward. What brought us here not necessarily will take us for the next years. So it's this capability of looking ahead all the time and putting the bar very high to get to great achievement. So I think what takes my -- what worries me everything. So I am paranoid here with competition, with the macro, with the level of service we deliver to our clients. This is what drives us. And I think we have the capability. And again, human capital, good talent, great culture and great capability of execution, I think, are levers that can take us further. We have to keep an eye on the macro. Of course, due to the size of the bank, the macro makes price. Of course, we have to take a look at risk. And I think we have a very, very strong culture, risk culture. So everybody from first line to third line are 100% focused on managing risk. We have a unique, I would say, very great risk area with very good great and risk people helping all the businesses, looking productive and prospective and what are the levers, what are the risks and how we make decisions on a daily basis based on that. So I think this is a little bit of what we've been doing here, and this is where we have been putting all our effort in the organization.

[Interpreted] Going back to Portuguese with Gustavo Schroden. The floor is yours.

[Interpreted] Congratulations on the results, very solid, strong results. A follow-up on the question of Tito more specifically, I remember that 2 segments specifically are massified. And recently, INSS, which is social security in Brazil. And Milton commented that the cost of service that is lower would be ideal to be able to accept the level of delinquency that is higher in the massified and in the INSS social security compensating the lower interest rates after the changes in the cap. We see the efficiency level that is very low, 36% in Brazil. All the effort that the bank has done of adjustments in the infrastructure. So Milton, I wanted to be more specific in those 2 segments. How is the appetite? Is there appetite? Is there profitability? I wanted to hear from you specifically on those 2 segments.

[Interpreted] Sure. First and foremost, we tend to simplify when we talk about the massified. And the name that I've used and it's in the presentation is segments that are more scalable of medium to high income where the operational scalability makes a difference. That is important. This is a focus, delivering a value proposition that is more competitive for our clients. With that, we can create a capacity to improve and advance in our efficiency levels. We work with a series of clients in all the segments, which is low or high income. And these are clients that are resilient through the cycle. So not necessarily is that the client has a lower income that they're not resilient. No. You just see the ones that are retired with the social security INSS, connecting with your question, it's a customer that has lower income, but it's very resilient on the long cycle. And this is for the entirety of the portfolio. So our capacity, true. Look at the data, look at the client, understanding their capacity, facing the obligations in the long cycle, it's regardless of the income sometimes. Inevitably, when you are more competitive from the efficiency level, your capacity of absorption of losses increases and the review of appetite is constant. So every time that we do an operation with the client, we look at the cost, whether it's marginal cost or absolute cost in the segment, the more efficient you are, the higher will be the capacity of absorption of losses. The more inefficient you are, the less space you have to absorb losses and generate a result and remunerate the capital that is allocated in that activity. So the direction that we've gone is operational scalability, maximum efficiency, digital, full so we can service those clients better. It's servicing better, the client better. And here, there is a theme of you having a full digital offer for the client, but you need to have a full bank to be able to service that client in the best way possible. And I think that we have today a portfolio that is incredible, the migration that we've done of the Ita�, 50 million clients. It's not that we took 50 million clients and we improved the experience of the app for the current clients. We migrated 50 million clients that didn't have any experience and not a relationship that was full bank by Ita�, and we migrated them to a new platform. And we improved a lot the platform of the clients that already used the Super App. So it's a best of both worlds. We improved a lot what we brought because we brought functionalities of the mono apps that were more advanced for the Super App. And we improved the experience of the existing clients, and we migrated 50 million clients. And these clients are distributed in several segments. We have clients that are migrated that are target clients of Personnalite, Uniclass, Ita� branches, and we've managed to convert them importantly, increasing engagement. And it's a full digital service. Remember that right when we published the results last year, we did a talk with investors. They ask me about Consignado CLT. Well, you have a branch structure going to be competitive well. We don't do subsidies or cross costs. If my channel of hiring is digital, my cost is digital. And I am as efficient as any player in the industry. So this is the way that we've grown in the payroll loan, Consignado and a cost of service that is very low. So it's 100% digital channel. So we don't do cross cost between segments and the entry path of the client. The INSS Social Security, 2 important issues. First, in this cycle, we had the highest volumes of hiring in the market. But the market decreased a lot, and it didn't decrease because of the cap. The main effect recently of the INSS has to do with the blocking of the benefits and all the work that the Ministry and the President of the INSS is doing because of the fraud, because of all the problems that they found, they created mechanisms so that the client reconfirms and will get the benefit once again. So that made the volume of payments of benefits decrease of the payroll loans as well. Given the volumes that were produced recently, we've released this volume of hiring much more focused in the internal channel. We've done an important exit in the external channel because the cap of interest rate makes price and the commissions for the corresponding banks doesn't make sense. So the return on those operations are below the cost of capital. So therefore, we privileged 75% of our subcontracting is done with the banking channels, which if it's digital or physical. So with 2 points, with the reduction of the interest rates that we should see up ahead, this will open for the space of new publics in the INSS, we can penetrate in pubs that were left outside, and it's a lot of money because of the cap that were left outside. And the second effect, which is the capacity of reconfirming the benefits and going back to a certain normality, this will make the volume of demand also increase.

[Interpreted] Next question, Mario Pierry, Bank of America.

[Interpreted] Congratulations on the result, not only on this quarter, but also throughout the next 5 years since you assumed the bank, took over the bank. So one of the big advantages of the bank is all that modernization that you've discussed of the platform, investments in technology. I think it's very interesting, your slide showing the cost of technology is growing 18% over the last 12 months. It represents 20% of your expenses. So how should we think, Milton, from now on? How much more investment is necessary? How do you think in investments in technology now and looking to the future, the percentage of revenue? And the investments that you need to do, they need to come for improving processes, more investments for improving the efficiency or also investments that help you growing. How do you see this mix of investments, the value? And a question that wasn't done in the call is if you can just do -- well, when you talk about the growth of the portfolio that you expect for the '26, if you can specify for us per segment, what you are expecting of growth?

[Interpreted] Thank you, Mario. Always great to see you. Thank you for your initial words. We're very flattered with your words. Now let me tell you, the investment of the bank is something that we always discuss deeply to ensure, one, that we are investing in the right place with the adequate return. And three, also the capacity of absorption of the investments on the long term because if they're accretive and they generate value, they should be positive throughout the year and our capacity to project. So we always have our back testing, and we always look at the investments that were done in the previous cycles, and we see in the investment office investment. So we see the returns of premises are okay. We always check what changed, why the result is coming worse or better. We always look at the 2 sides of the same coin, and we always recalibrate in our sensitivity for the decision-making process. This is a central point. In technology, we continue to do investments in the same threshold. There isn't a reduction in investment in technology. On the contrary, it's a mechanical natural growth. We've done an adjustment today. A great deal of our cost is connected to our talents to our human capital. This has changed throughout the years. Today, the cost of headcount is higher than it was in the past. And if you look at our mix throughout the years, it changed a lot. A few years ago, we had 7% of our employees were in technology, now we have over 20% today. That shows how the mix is adjusting throughout the time, investing more in platform, more into communities, more in technology, more in the experience of the client and naturally, the mix is adjusting. So that's number one. Number two, and here, I have to focus on one point. The capacity of absorption of investment is important because of the discipline in activation. We are very careful when we activate an investment in the bank, which is an intangible that is amortized throughout time. So we are always careful with a funnel of activation, we would like to say that we will activate half of what I could at the limit activate through the accounting rules. And why that? Because we have the discipline of letting a lot pass through OpEx because we don't want to sell the future and sell out the future. And this is an account that once you hire, the math comes in the long term. And we only activate projects that have benefits effectively. If it's a regulatory change, operational risk or a change in the platform that doesn't bring clear benefits, we're not going to activate it because of the discipline of mismatching the benefits that, that platform of the investment is going to have with the results that we expect. So they walk in parallel. Secondly, the deadline of activation. We do not activate more than 5 years because we have difficulty in looking at the lifetime of a platform, a system longer than 5 years. Every time that you increase the activation deadline, you are hiring a problem for the future, knowing that the lifespan of the platform is less than 10 years. So you have a new cycle of reinvestment in the platform and didn't finish paying the investment of the previous platform. So you pile up. This is the higher cost that is given through time. So we really pay attention to that. And the investment is not just in technology. So we look at the investment in business expansion, the expansion of sales force expansion or creation of new business models or new products. So we are always at all times looking at that. And the rhythm of investment is always in the same threshold. We are looking at the investment in regards to the revenues to see what we are investing. We see how we can project that activation and amortization out throughout the years, how is that behaving with the company. So all of that management is done in an important way. Your second comment, and it all depends on the opportunities. It's very difficult to tell you now if we're going to invest more here or there, but I'm going to tell you that the investment in the maintenance of platform has been reduced and maintenance has been reduced because of the modernization that we've done in the platform. A great deal of the investments is to develop new products, new features for our clients because when you have a high volume of capacity of investment tax and then you use half for regulatory issues for maintenance of the platform, you end up having very little to invest in new businesses. So what we've done is improving the quality of the investment and increasing the investment for new businesses that will generate benefits in the long term that will improve the NPS and the relationships with our clients. So the mix is important. where we are investing. And about the portfolio, which is your question about the growth in 2026. I would like to say that this is very well distributed through the segments. The segment that we always are a bit uncertain is the big companies because it depends on the dynamics of the capital markets. So we need to see how the capital markets will evolve in 2026. There was an important volume in '25, BRL 700 million, but it's a platform that is important for us to deliver value for our clients given our participation in the market today. This is the cog in the wheel that is always in doubt because it might be more or less depending on the capital markets, how they will absorb the demands of the big companies. In the other portfolios, we've had a growth that is very consistent of SMEs. We've seen consistent growth in the middle market. We've seen consistent in the individuals, very well distributed in the business line. So I would like to say that there isn't a big concentration. All of them are growing in a very adequate rhythm for 2026, but always in that logic of target long term, portfolio vision, resilience and above all, the right price, generating value for the bank and the shareholders.

Switching back to English as we have Jorge Kuri with us from Morgan Stanley.

Congrats on the great numbers, 27% return on equity, quite impressive. I wanted to ask about -- and just bear with me for a second because this may be a long question given they need to provide the backdrop. But I wanted to ask about your 2026 credit growth guidance, which is somewhat underwhelming. And I guess let me explain why. This time last year, when you provided the guidance for 2025, the macro backdrop was more challenging. You expected Selic rate to rise from 12.25% to 15.75%, which is obviously negative for credit demand and supply. Unemployment was expected to increase to 6%. I believe that was on your guidance. And nonetheless, you guided to credit growth of 4.5% to 8.5%, and you ultimately delivered right around the midpoint of that range. So fast forward to today and the macro outlook you're assuming for this year appears to be more constructive. You expect policy rates to fall from 15% to 12.7%, which should improve affordability and support credit demand. Unemployment is expected to remain below the level that you assumed last year. And the economy is still growing at a nice 2% clip. Despite this better macro backdrop, your credit growth guidance is only marginally higher than last year's guidance. You're at 5.5% to 9.5%, 1 percentage points higher than both the low and the high end of the range. Milton, you talked about significant improvements in how you run your consumer and SME platforms that were executed during 2025, which one would expect would allow you to grow faster, especially given that consumer and SME is a really big part of your loan book. Payroll loans, which is also a really important product, were notably bad in 2025, growing only 1% for all of the reasons you mentioned. Now with falling rates, this is a product that is highly sensitive to rates. You're now pushing aggressively on the seller debt. So it just feels that, that could be significantly higher. So Again, why the relatively conservative guidance? Is it competition intensifying? Is it making it harder for you to defend share? Are you losing share? Are you really cautious about the political cycle and you're going to be sort of a pause until October? What other things are being driving that? Any color would be really helpful.

Thank you, Jorge. Good to see you. And I understand perfectly where you're coming from your question. So let me try to be clear to give you a better answer, not so long, but I will try to be very straight in my view. I think I hope you're right, and I hope we find our room an opportunity to have a better results and better growth in 2026. But when we do our planning, we have to look forward and see if -- what are the uncertainties. The macro area has this view, but we know this is an election year in Brazil. Election brings volatility. So when the macro tries to give us the figures, they understand that everything is the same. So you don't see there an input of volatility in that macro perspective. And this is what we will be facing in Brazil. So how will the investor react in the election process? What will be the economic plans of the candidates? What will happen with the indebtness of Brazil in the long term? What will happen with the FX if it brings more volatility. If the inflation goes up for any reason due to the FX and also due to the food price will the Central Bank be able to cut rates and to get you to 12.75% by the year-end. If we need to stay longer with rates, it's not what we believe what this will impact our portfolio for wholesale, what this will impact the portfolio for SMEs. How will the activity that we are seeing a downturn in activity, even though the GDP will grow 1.9% in our projection, how expansionist will be this GDP. What is the quality of this growth? Is this going to be more on the fiscal stimulus or will be more productivity? What are the level of investments that we are seeing in Brazil? I'm not saying about portfolio investment, infrastructure investment, long-term investments, many companies waiting to make decisions understanding what will happen in the election year. So I wouldn't say it's a defensive guidance, but it's a realistic guidance due to the level of uncertainty we see in 2026. I hope you are right. I hope everything goes smooth. But the good thing of that is our capability to react and to come back and say, look, we made a mistake or we have new information, and we believe we can do better, we will do it. If you look for last year guidance, which we had BRL 44.8 billion implied in our bottom line, if you could do that for the midpoint of all the metrics, we were able to deliver BRL 2 billion more throughout the year. And we changed the guidance in the coming quarters. We did that for financial margin with clients. We did that for financial margin with the market. We did that for the income tax. So we made the adjustments. So if there is an opportunity, don't be so focused on the guidance. We'll be able to come back and say we are doing better. So in the first quarter, we have the first quarter results and prospectively speaking, what we are seeing in Brazil. So our capability to react is very fast either way. And if things go south for any reason, we're going to react fast as well in a defensive mode. And I think our portfolio, we don't have any capital restriction. We don't have any liquidity restriction. We don't have any NPL restriction. We don't have any profitability restriction. So we're going to be agile. We're going to react if necessary. So look more in our capability to deliver in the long term and how we able -- how we've been able to react in cycles going in a different direction. So this is the most important thing, the capabilities that we have to react, the execution capabilities that we have inside the organization and the capability to look prospectively. Imagine if we decide to grow twice the portfolio as we are seeing today and if things go wrong and if the macro changes, if the election for some reason, the market doesn't react well and if the inflation goes up and they need to keep the rate at a higher level, the portfolio is there. So I cannot be providing a huge growth and then looking back and say, I think we should have done in a different path. So this is the discipline that we have, always looking for the long term. If there is an opportunity, if we can deliver more, we will do it. And don't forget that the rates, also the reduction of rates have impact in our balance sheet in one side, but have benefits in the other side. So you always make that point how sensitive we are for the CDI in Brazil, and we always come back and show a slide showing that we are less sensitive that market believes. I don't think you believe that anymore. You've been seeing us through the cycle, but we have hedges in our portfolio. And this is the way we're going to be facing 2026, realistic, kind of cautious looking ahead, what's going to come in terms of the election scenario. And if there is an opportunity to speed up, we're going to speed up. If there's an opportunity to deliver more, we will deliver more.

[Interpreted] Going back to Portuguese. Marcelo Mizrahi with Bradesco.

[Interpreted] Congratulations on the results. Excellent results. The guidance is very transparent. Now my question has to do wanted to understand with the scenario of uncertainty about the delinquency. So I wanted you to bring your vision on the delinquency of individuals and the companies, different dynamics, of course. As you said, capital markets have been -- has impacted the liquidity of the companies, and we have the programs of the government, how do you see the impact of the potential reduction of the programs in this year? And the bank has grown strongly recently in the SMEs. This is a point. And in the individuals, we also have the reform, the reduction of the tax, also the liquidity that the payroll has, brought to the -- that the bank has dropped the individuals, the payroll loan for individuals is strong. So I wanted to get a diagnostic on what do you think about the delinquency for '26. I understand that we can have different years between the first quarter, second quarter, but any sense that you can share with us will be very useful.

[Interpreted] Marcelo, thank you for your initial words. About delinquency, I would like to say that we don't see any material changes in the indicators of delinquency for 2026. But the first quarter is more cyclically seasonally, there is an increase in delinquency because of all the commitments for the beginning of the year that ends up pulling up the delinquency at the beginning. That cycle, we do not expect a very relevant change from what we've observed in previous cycles. We have a month. We are practically in February already. So we see a behaved cycle. We see a few portfolios, specifically indicators of industry that we see the delays that are more pressured. And we see the delays that are more pressured, whether if it's in the individuals or the SMEs, the short delays or controls in all the portfolios, there is no deviation. What we have in the SMEs, and we've discussed that, is what I call the normalization of the effect of the governmental programs. So there is the period of payment now and that pressures the delays on the short term, but now the cost of credit as the portfolios are well insured and the cost of credit is well behaved. So I would say no concern with the scenario for '26. Evidently, the scenario is dynamic. If the interest rates, they don't do the adjustments that we expect the pressure on the companies and the individuals will be higher, so you can expect a higher delinquency we see a good quality for the generation of employment. There's a decrease of the employment. There's an increase of investment in labor-intensive sectors. So the liquidity that you commented on the assumption of the taxes, it brings more -- the inflation of services is very resilient because of this. The commitment of the compromise of income is very high even though the salaries are growing in Brazil, the compromise of salaries is a big issue and the delays that have been published in the market short term or there has been reasonable increases in several products and portfolio and our portfolios have performed differently from the data. So when you exclude our delinquency and all the products, we have a behavior that is very different. Now it's important to reinforce that a part of this increase in the long term has to do with the change in the 446 and a lot of institutions have increased the criteria for the write-offs, which pressures the delay because it takes longer to clean in the portfolio, but it alleviates the cost of credit in an important way. We decided in the bank to work with the best expectation for recovery, even though with the flexibility that the 496 gives to the bank to adjust the write-off for longer deadlines, we maintain the same deadline since the first day. So there isn't any change in any portfolio, any delays in the write-off because you have the number and then you are not doing the provision for expected loss. You start to do the provision for the incurred loss because you decrease the capacity of the model of anticipating the real capacity of reacquiring the credit. So the best proxy for this is to go back 3 quarters in the past and looking at the level of NPL creation that we have and comparing that with the write-offs that are here, and this is a direct correlation to one. When you look at the breakdown of correlation, 70% of what it was, 60% of what it was of the creation 3 quarters down the line, there is a change of policy of write-off and the increasing of the line, benefiting on the short term, but the math is there. It's higher. So these are controlled indicators, the portfolio of the companies, the provisioning is very adequate. We always look at the review name by name, but events happen, especially in big companies. Events that were captured by the model, sometimes in events that sometimes because of something that we don't control, frauds, for example, we've seen in the past. We always have to look at the attend with a lot of attention because the wholesale is less statistics and more event and we don't foresee anything. And if we see any case, we provision adequately and we have a balance with the level of provision that is very adequate. Looking at the strength of our provisions and the coverage of all the segments, it's something very important. Something important is that we're not going to stop doing the provision for delivering the result in a quarter. The provision is a decision is management of the portfolio of the balance, and we're always going to do the provision in the future. If the ROI drops, then we explain. But the provision is in front of the profitability always. So we're never going to leave the wholesale or retail sub provision to deliver a better result.

We are switching back to English again, and we have Carlos Gomez-Lopez from HSBC with us. Good to see you, Carlos.

Among the many good numbers you have sent to us. Perhaps one that impress me the most is the 50% market share in real estate financing among the private banks. Where do you see that market going? And why do you think you have such a presence there that the other banks are not replicating? And then the other question, you're a big consumer of software and IT services. We have seen a big reaction in the market to AIs going into this space and that has affected stocks. As a consumer of these services, have you seen a change in pricing when you're discussing with the providers in the last few months?

Thank you, Carlos. Good to see you. Thank you for your compliments. First of all, on the real estate side, mortgage business, I would say we have the biggest saving account deposits in Brazil after Caixa Economica Federal. So, looking to the private sector, we have the biggest saving account figures will allow us to be more competitive on the mortgage side as well. So this is one. Second, everybody has put in the market 100% of our saving accounts with the obligation that we have to provide the 65% plus the demand deposits that we have to live in the Central Bank. And this year, there is this change. They are releasing 5% more of the demand deposits that we live in the Central Bank, which provide us more liquidity. I think our capability to serve our clients in a very competitive way due to this liquidity structure or funding structure that we have has been able to put us in a different spot in terms of providing credit. So if you took any company in Brazil, any bank and you compare the rate we offer to our clients, and if we have the same rate offering to a client, I can tell you that the level of return that we have is different from the market because we need less funding from the treasury than other competitors that have more portfolio that they have in terms of saving accounts. So that's structurally very relevant. Of course, the products that we have, the experience journey that we have with our clients is not only price oriented. I think we've been able to invest a lot in the real estate, the mortgage journey with our clients and also this long-term view, knowing that the real estate, the mortgage, it's a very important product when we look to stickiness. Looking to our clients in the long term. So I think this is the capabilities that we have, and we've been able to deploy relevant amount of mortgage in the market for that reason. We have the biggest portfolio as well, always taking Caixa Economica Federal on the side and Banco do Brasil, they don't have a saving account for mortgage. They do that for agriculture. So it's a different business. So I think this is, I would say, the main reason. Talking about our relationship with the tech providers, I think we're going to be seeing a lot of volatility in the market. Many people saying there is -- it's not a bubble. When you look to the technology itself, the capability of scaling that throughout the globe, a lot of investments going into that, and this has been very accretive for the GDP growth, especially in the U.S. But the question is, who will be the champions in the long term? Because as any other industry, you won't have many champions. You have a few, but everybody is doing massive investments. So the concern that the market has more on the equity side has to do, am I investing in the champion? Who will be here in 5 years more, who won't be here in 5 years more. And as the prices has gone up very, very strongly recently, we'll be seeing a lot of volatility in the industry. As a client, we've been able to do very good negotiations with all the providers. We have relationship with many of them before all this AI phenomenon that we are seeing. So that means that those providers, they look to us and try to do -- to be very competitive due to the level of scale that we have, the capabilities that we have to buy in relevant amount. But of course, if you go to the GPR and all the processors that we have to use, then we have to pay market price and it's expensive for everybody, not only for us. So what we try to do is to do big negotiations, long-term negotiations. This is the same for cloud. We have long-term contracts with our providers and more the contracts, good long-term relationship with them, trying to understand it out through the cycle, what needs we have, how should we measure and negotiate the contract in the long term. So we are not seeing a huge amount of increasing price. I think the prices has been, of course, due to the level of price that we see today, be competitive, and it's not putting us additional pressure in our costs.

[Interpreted] Now the last question, Daniel Vaz, Safra.

[Interpreted] I just wanted to do a follow-up on the previous question. On the government lines, we've seen, it's very interesting, the delinquency and the increase in the delays. But it's very -- it's not clear in our perception if the FGI can support this production and rollout for 2026. So if you can comment, if you see that we need for the size of the production of the fund, would you need a recapitalization of the funds of the -- this year? And mine is about AI, and it's very clear the effect for the cost efficiency. But in business, there is a certain difficulty in making it tangible the potential of growth for the revenues. The bank has always done a lot of benchmarking globally. It's good. And I wanted to hear from you. Do you foresee a clear opportunity in businesses and the potential of revenues coming from Gen AI and all those technologies?

[Interpreted] Thank you for taking part in our meeting. The FGI, if we look at the program as a whole, I think that there is a better allocation of the governmental programs with better results than ours. This is for the Pronampe lines for the FGI. The BNDES has an important role. It's the manager of the program. So the allocation of public money, the returns are really impressive because we can get to companies, smaller ones, companies that would have more difficulty in capturing resources under those conditions, especially in the deadlines that we can offer. So I'm enthusiast of the program because it's a great application of the public resources with great results. If we do a retrospect in the last years, the amount of credit that was released in the market, how many clients were benefited, how many people financed the increase in jobs and investments that were done, productivity, the program is a winner. What happened is at the end of '24, the last quarter of '24, we understood that the level of leverage of those sureties guarantees that were done in the FGI were low. So we could bring to the market additional resources, which were -- they call it pocket change, but we Itau took that proposition to BNDES. We had a conversation with them, and we had an opportunity of returning to the system an important level of resources without getting new resources in the FGI fund. And the BNDES did the analysis they agreed, and we could with that bringing -- we brought BRL 100 billion more for resources for the system. So in the last quarter of '24, if you see the production of the market, you will see that we applied an important volume of resources of FGI throughout '25, the market as a whole, also not all, but some banks applied some resources in the FGI. Now for '26, the budget is a certain maintenance of what was the organic of the last years, but without that change. change that return, which is BRL 100 billion. So the phenomenon, the sensation of having less resources because of that because the leverage that was done with the top-up generated additional resources. We've discussed with the Ministry and the government of economy to give visibility for the allocation of public resources. I don't think that we have a better program than this. There are discussions that are happening. I don't know if we are going to have an appetite for an additional, but I would like to say, maybe yes, maybe no. Pronampe, no, this is a more definitive organic program. So we're going to see a growth that is normal of Pronampe. And FTI will depend on this decision that the government has to take of resource allocation. And as you said, we would need an additional for the fund so we can produce a volume that is similar to what was produced over the last 15 months. So we are depending on this decision that is very important. Second point about AI. This is an agenda that is here to stay. We want to be on the vanguard of this movement. It's a great modernization and the review of data architecture, having done that has placed it in a differentiated threshold so we can advance in the new era. We believe that when we talk about AI without in the background, having all the knowledge that we have in several journeys, several products and several businesses, you cannot train your models beyond the commoditized models. It's a very junior experience from the standpoint of training. So our capacity of training and doing this at scale and getting great results, training our models with our way of doing things without the experience that we have embarked. So this organization of the database of the tokens in the big models, and we are using that in an architecture that is making the data democratic and enriching the basis makes us find incredible opportunities in all the dimensions of efficiency, modeling, experience, customer experience, process, internal processes and productivity. So we've seen advances that are relevant. And from the standpoint of the overview of the client, the APs platform that I just commented is powered by AI, 100%. So the benefit comes because I can engage clients with an efficiency level that is higher. So that will bring me opportunity to have more risk appetite because I can accept more losses. This is a value generation for the bank, and I can be more competitive due to the other offerings of the bank -- of the market. And that allows me to gain market -- gain efficiency and gain more clients. So this increases my principality with the client without needing to scale the sales force because the cost of service of these new B2C more specialist models, it stems from -- through people, through -- goes through a cost of service that you cannot offer for all clients. These models are very scalable. So I can service the client in an investment world in a very simple way, and I can increase the level of engagement with the bank, generating top line, reducing churn, improving the relationship with the client. on the long term. So we see the PIX through WhatsApp is transactional. A very efficient, cheap platform. This increases the principality of the client because the transaction with you and now they're using other products, other businesses and then you are the main bank. So every solution comes from a different angle, but we also believe in the capacity of generation of top line, not only in the generation of bottom line as you generate more. As you are more efficient to service your clients.

[Interpreted] Thank you, Daniel. Thank you, Milton, and thank you, everyone, that took part of our conference call. We finish our Q&A session and our fourth quarter of '25. I will give the floor to Milton to close the session.

Thank you, Gustavo. Thank you, Gabriel. Thank you, everyone. for being here for your questions. I finished the initial presentation of the slides talking about discipline, focus and humility. So I would like to always bring these issues. I think that there is an additional element, which is being serious. And we know the importance of building business models that are sustainable, and we can get the interest of the system and of the client in front of -- well, before the interest of the bank. Even though we see in the market a phenomenon that doesn't happen in that way. It's sometimes the interest of the company in front of the interest of the system. And we need to be leaders by example, therefore. We need to do the right thing, do the sustainable thing because there is no way -- no right way of doing the wrong thing. So this is what we believe. So there is no responsibility that is higher than of any institution of looking at their processes or their clients in the system and thinking about what are the impacts that we're going to generate. I think that this is the primary responsibility of any financial institution, and we cannot subcontract that. It's not default of the regulator. It's no one's fault. Our responsibility is that, and we have the capacity installed the technical teams that can understand and evaluate the data. And we don't need an auditor or a regulator to tell us if it's right or wrong. So, this is what we see. I am very excited. Even though this is a more challenging year because of the uncertainties and the election, I am very excited with the moment of the bank, and we close a cycle of deliverables that are robust with consistency and quality and the results. And looking to the future, I think that we have everything to deliver a solid year of quality. Of course, we have all the execution that is done throughout the year. But I am certain that if the conditions are there, we will deliver with a lot of quality and a lot of wisdom without selling out the future, but without anticipating the future as well. So this is the discipline of capital allocation and creation of value. that agenda of efficiency is very important. So we can go through another cycle, which are the next years that are up ahead. So I would like to thank you for your participation and your support, your trust that you deposit in the institution and tell you that everyone is here ready to work with a lot of focus, with a lot of strength and in a work environment that is incredible with the transformation that we've gone through the years that has produced incredible results, and we are very optimistic of what we can do for the future. Thank you very much, and we will see you shortly. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[Interpreted] Hello. Good morning, everyone. My name is Gustavo, and it is a pleasure to have you joining us for our Third Quarter of 2025 Earnings Video Conference. As always, Milton will walk you through our performance. [Operator Instructions] Before handing over to Milton, I would like to share a few instructions to help you make the most of today's event. For those accessing this video conference via our website, there are three audio options available on your screen. The entire content in Portuguese, the entire content in English or the original audio. The first two options offer simultaneous translation to select your preferred option, simply click on the flag icon in the upper left corner of your screen. Questions can also be submitted via WhatsApp to the number displayed on your screen. Today's presentation is available for download on the hot site and as always, on our Investor Relations website. With that, I'll now hand over to Milton, and I'll see you again shortly for the Q&A session. Milton, over to you.

[Interpreted] Good morning, everyone. Welcome. It is a pleasure to be here with you once again to present our third quarter 2025 results. Thank you, Gustavo. In a moment, I will join Gustavo and Gabriel for our Q&A session. The objective of this presentation, as always, is to share with you an executive and objective overview so that we have quality time for discussion afterwards. I believe it is important to have a Q&A session with adequate time and depth. Let's move on to the numbers. I will begin with the main highlights. I will cover results, ROE, capital, services and insurance, the loan portfolio and long-term delinquency. The first highlight is that we closed the quarter with very strong net income BRL 11.9 billion, representing growth of 3.2% compared to the second quarter of 2025 and 11.3% compared to the third quarter of 2024. Therefore, we continue to expand our bottom line. Just as important as the bottom line is profitability. On a consolidated basis, our ROE reached 23.3%, and in Brazil, ROE was 24.2%. So we posted a profitability expansion compared to the previous quarter. But what I always like to emphasize, and we include this in the footnotes for you is the capital adjustment. As you saw on the first slide, in terms of capital, we closed the quarter at 13.5% of CET1. Adjusting the capital for our Board's approved risk appetite or to the CET1 level we have seen in the market, we are running at 25.4% ROE on a consolidated basis and in Brazil at 26.7% for the period. This is a very strong profitability level, reaching almost 27% of ROE in Brazil. How did we achieve this result? First, capital showed significant expansion in the quarter with growth of 40 basis points. Compared to September 2024, we saw a slight decrease, but it is important to remember that we had a relevant additional dividend distribution this year. Moving on to services and insurance. This was a very solid and strong quarter for this line, which grew by 4.0% in the quarter and 7.1% year-over-year. Regarding the loan portfolio, we closed the quarter at BRL 1.4 trillion, a growth of 0.9% compared to June and a 6.4% growth year-over-year. Excluding the FX impact, the portfolio grew by 1.7% in the quarter and 7.5% year-over-year. Another highlight is delinquency. We have been able to grow the loan portfolio with high-quality credit and with very well controlled delinquency levels. Here, I am highlighting long-term delinquency, but you will see that the portfolio remains very well behaved in any credit indicators such as cost of credit, stages, coverage, short- and long-term delinquency. I would like to highlight the growth in our loan book. Let me start by focusing on the individual segment. We grew by 1.0% quarter-over-quarter and 6.5% year-over-year. And in this table, we present a breakdown of the segment. I would like to highlight mortgage loans, which grew by 2.0% in the quarter and 15.2% year-over-year. In the first nine months of this year, we originated BRL 24 billion in mortgage loans, a 24% year-over-year increase. Our market share among private banks is 47% in this product, which is highly relevant for client relationships and for our long-term vision. Structurally, we have a higher savings balance among private banks, which also allows us to deliver long-term value to our clients. Regarding the quality of the individuals portfolio growth, focusing first on credit cards, we grew by 4.3% in the quarter. The consolidated growth was 0.8%, but when we look at the mid- and high-income segments, we posted a significant growth of nearly 24% year-over-year. In personal loans, we posted a 1.4% growth, but it is important to break down this line. It is composed of consumer credit, which grew by 3.1% in the quarter and 9.6% year-over-year, revolving credit, which grew by 5% in the quarter and 15% year-over-year and refinancing credit, which is a portfolio we aim to reduce, which declined by 3.4% in the quarter and 12.4% year-over-year. This shows that beyond simply looking at aggregate performance, it is important to analyze the breakdown within each line we disclose. In payroll loans, the highlight is the strong growth in private sector, up by 9.5% in the quarter and also up by 9.5% year-over-year. The public sector portfolio posted a slight decrease, and for INSS beneficiaries, which are the retirees, the main effect comes from the interest rate cap implemented some time ago. We are currently facing our highest funding costs, which has led us to reduce origination in some channels, especially through banking correspondents. Today, most of our production is already being done through our own channels, and we have stopped operating in some segments due to low spreads and low returns. Moving to the SMEs loan portfolio. It was up by 1.1% in the quarter and 7.5% year-over-year. In Brazil, the portfolio grew by 1.2% in the quarter and 7.8% year-over-year, and the total portfolio grew by 6.4% year-over-year. Here, we present the breakdown, excluding the FX impact. For SMEs, growth would have been 8% year-over-year. For large companies, nearly 10%; and in Latin America, 4.5%. The total portfolio grew by 6.4% year-over-year and would have grown by 7.5% excluding the FX impact. The highlight in SMEs is the government programs, which posted a growth of 10.9% in the quarter, a very solid result. When we look at the year-over-year performance, growth was over 110%. I would like to emphasize that this is a portfolio that is growing significantly, but with high quality. We have been originating through these lines with shorter grace periods of under 12 months. While we have seen the market originating with longer grace periods closer to 24 months. Therefore, there is a difference in approach. But again, each organization or each bank has its own strategy. I'm only highlighting how we have been doing business. Moving on to margins. I will focus first on NII with clients. I would like to draw your attention to the fact that considering the effect of working capital, the NII grew by 0.5% in the quarter or BRL 200 million. Average volume, product mix and spreads had very minor effects. Additionally, there was a calendar effect. We know that this quarter had more calendar and working days with five additional working days and one extra calendar day, which impacts liabilities and assets differently in the way we disclose the managerial results. In the Latin America and others line, we consider wholesale bank structured operations and this is where we always expect some volatility. I would like to highlight that the previous quarter was very strong in terms of margin. We had already mentioned that it was an exceptional quarter, so it is natural that we see a smaller effect of these structured operations when comparing quarter-over-quarter. It is important to emphasize that in the year-over-year comparison, which is perhaps the best indicator to analyze our ability to generate NII with clients, we posted robust growth of 13.4%. Moving on to NIM. First, on a consolidated basis, we see a slight decrease. Nothing to be concerned about. NIM is very much in line with what we posted in the first quarter of 2025. As I mentioned, the previous quarter was exceptional. The risk-adjusted NIM also performed this way. The risk-adjusted NIM was still higher than in the first quarter, but slightly lower than in the second quarter with a minor variation. For the annualized average margin in Brazil, this effect is even clearer. We posted significant NIM growth in Brazil 9.5%, 9.3%, 9.8% and 10% in 2Q '25, which was when I emphasized that it had been an exceptional quarter. Now we have returned to a very high level of 9.8%, exactly the same NIM as in the first quarter of 2025. The risk-adjusted NIM reached 6.7%, which is even better than the NIM posted in the first quarter of 2025, but showing a slight decrease quarter-over-quarter. This demonstrates the strength and quality of our NII with clients. Now regarding NII with the market, although the numbers may appear very stable, we know this is the hardest line to estimate in our budget exercise given the inherent volatility behind these figures. What did we highlight at the beginning of the year. First, we provided guidance indicating that NII with the market would be between BRL 1 billion and BRL 3 billion for the year. The main effect, as I mentioned previously, is that the capital index hedge costs would increase throughout the quarters. This was the only number we could be more certain about when we disclose the 2025 guidance. And it is evident when we look at the accumulated results. We delivered BRL 3.5 billion in market NII for the first nine months of 2024, and the capital index hedge cost was of BRL 900 million in the first nine months of 2025. Market NII was BRL 2.7 billion, down from BRL 3.5 billion, but the main effect was the cost for hedging the capital index, which doubled in the period. So in fact, we have performed very well. Our NII with the market is very strong, very stable with a high alpha generation and a very accurate transfer price that avoids transfers between NII with clients and with the market. Our disclosures have been very transparent. And in respect with that, I will mention an update in our 2025 guidance. The only line that we will adjust is NII with the market for obvious reasons, it is a mechanical adjustment, a small one, I will address this at the end of this presentation. Moving on to commissions, fees and results from insurance. I would like to make a few highlights. The first one is in the payments and collections revenues, which grew by 3.7% in the quarter and 8.0% compared to the third quarter of 2024. For the 9-month period, growth was 6.1%. What is the main highlight. We no longer refer to Rede as a separate acquiring business or company as Rede is fully integrated into our operations. Nevertheless, we believe it is important to highlight the total transaction volume, which reached BRL 258 billion, an important increase of 6.6% in the quarter. This demonstrates our ability to integrate businesses and focus on client profitability. The total transaction volume grew by 12.8% year-over-year. Another highlight is the revenue from advisory services and brokerage, which posted a significant growth of 33.7% in the quarter, but a decline when comparing the accumulated results for the 9-month period. I remind you that last year was by far our best year in DCM, so there is a market volume effect. Our market share demonstrates that we continue to present a very solid performance. We are leaders in fixed income origination and distribution with a 25% market share. In other words, 1/4 of the market passes through the bank, and we have originated BRL 91 billion over the 9-month period. Another very relevant highlight is what we have been able to achieve year after year in our insurance business, we posted sound growth of 5.7% quarter-over-quarter and 17.8% year-over-year. Results for the first 9 months were up by 17.1%. This growth is well distributed between earned premiums, which were up by 14% and the recurring result up by 17.3%. This performance has been very important for the bank's value creation for expanding profitability and for generating value across all our business channels. I am deeply pleased and satisfied with the evolution of our insurance business. Now regarding asset quality, I will be objective in my remarks because as you will see in the credit indicators, the level of stability in our portfolio is truly impressive. Short-term delinquency is very well controlled. I will focus on these figures when discussing large corporate performance in the next slide. Actually, to make it easier for you, let me zoom in on this information. In Brazil for short-term delinquency, you can see that the 15 to 90 days NPL for individuals remained absolutely stable as did it for the SMEs portfolio. There was an increase in this indicator for large corporates, but this is a specific case of a client that has been in stage 3 for many quarters with more than adequate provisions. And we felt that it was time to let it move into delinquency and follow the regular flow. That is why I always say, I do not like to track this indicator for large corporates. It has no correlation to either the cost of credit or the balance sheet effects. You will see that it has no impact on stage coverage, on migration between stages nor on the cost of credit. So it is only a representation of a client that was already properly provisioned in Stage 3 and moved into delinquency, there is no cause for concern here. Again, this is a specific client. For long-term delinquency, which does not have this impact, you will note that there is great stability in the NPL indicators for Brazil, for Latin America and considering all regions. When we break down the Brazilian operation by individuals, SMEs and large corporate, we also see great stability. We have been able to grow with high quality within our strategy, maintaining a portfolio with a truly impressive level of provision and high quality. We have followed the asset quality indicators released for each industry. And when we compare our performance for each product against the industry figures, we note that we have performed much better than the market in terms of delinquency. In fact, in several products, we have seen significant increases in long-term delinquency, while NPL in our portfolio remains very stable. We do not usually disclose our delinquency rate breakdown by product, but I can assure you that in addition to being at a much lower level than has been reported by industry, we continue to operate with great stability, while we have seen delinquency accelerate in the industry especially the long-term delinquency. Once again, I emphasize our long-term vision, our capital allocation at the right price and our daily and active risk management, and I believe the results speak for themselves. Moving on to the stages. I will go straight to the portfolio and coverage in Stage 2, where you will note the remarkable stability. Any volatility, given the size of our portfolio does not generate or produce any material impact. Therefore, everything is within expectations with no points of concern and the same applies to Stage 3. If you look at both the portfolio in Stage 3 and the coverage in stage 3, you will also see only very marginal variations. It is clear that this flow is dynamic because we do not migrate exposures to stages based solely on delinquency. Delinquency is one variable. As I showed you, when we disclosed the implementation of Resolution 4966, if you add up the nonperforming portfolios overdue by more than 90 days and compare it to the portfolios in the stages, the numbers are quite different because we look at prospective risk. In this way, migrations due to asset quality deterioration are adjusted well before the client actually becomes delinquent. This is the case for large corporates, for example, as I mentioned earlier, regarding this specific client that has been in Stage 3 for many quarters with a performing loan. So I believe that this proactive and forward-looking dynamic is very important when managing our balance sheet. Our performance reflects this. Now I will briefly address 2 topics, the renegotiated portfolio and the cost of credit. I will first comment on the renegotiated portfolio. If you look at the credit-only portfolio, it continues to decline in what we call the renegotiated portfolio. We break down what refers to the restructured portfolio and what refers to the renegotiated portfolio. But the most important thing is that the ratio of the renegotiated portfolio over the loan book continues to fall. In other words, the nominal value is declining even though the loan book is growing. I believe that at some point, we will reach an inflection, and we may even see the nominal values rise. That's why it's important to analyze the ratio to compare nominal values over the portfolio that has been growing over all these quarters. On the right-hand side, we present the figures considering 4966 resolution, which considers credit and securities. The story is the same. The amounts are higher because in this view, we include securities, but we also see nominal declines over the period. And the ratio also shows a very healthy performance, even better than in the credit only view. This shows the high quality and strength of our portfolio. The cost of credit has been flat. We have been delivering a very consistent cost of credit. And in relative terms, we also have a very solid result. When we look at the figures for the nine months despite the increase from BRL 25.9 billion to BRL 27.2 billion, the ratio fell from 2.7% to 2.6%. Even though we see industry indicators deteriorating, our portfolios have been performing very well. I believe that risk management is our competitive advantage, and it's something we strongly believe in. Changing gears to OpEx. We posted an increase in non-interest expenses in Brazil of 4.5% in the quarter. Remember that this is a quarter that historically is pressured by the union agreement and wage raises. We also have a volume effect with the operation performing very well. So this is what we call good cholesterol, especially when we talk about volumes. The first nine months year-over-year growth in Brazil was 8.5% and 8.9% on a consolidated basis, including Latin America. All of this is absolutely in line with our expectations, which is the most important thing. It was what we expected with the significant investments being made in the operation with a strong focus on top line generation. And all of this is ultimately reflected in the efficiency ratio. It is not just about cost for the sake of cost. At the beginning of next year, I will share with you a very transparent view on costs for the future. But the most important thing is to look at the trend. We closed the efficiency ratio for this 9-month period at 36.9% in Brazil and a 38.8% on a consolidated basis. I remind you, this is the lowest ratio in the industry when compared to Universal Bank's peers. In the calculation of this ratio, we include all the bank's expenses and do not leave any negative effects out of the indicators so that the number is very consistent and transparent for the market. So I believe this is a very relevant performance. If we look at the figures from 2019 to 2025, the path has been very healthy for the bank's operational leverage and efficiency. Next, let's talk about capital. First, just to clarify, we started the quarter at CET1 of 13.1%. As we can see, profit generation in the quarter was very strong with a positive contribution to capital of 80 basis points. As I mentioned, we are running with a profitability level of nearly 27% in Brazil. Interest on capital provision and IOC maximization results in a payout slightly above 30% and leads to a capital consumption of about 40 basis points. This is already included in the ratio. Next, we see risk-weighted assets consumes 20 basis points. And finally, we have other prudential and equity adjustments that are practically flat. All in all, CET1 moved from 13.1% to 13.5% in the quarter. We had AT1 to the CET1, and we reached a Tier 1 capital ratio of 14.8% in September 2025. It's interesting to note that we no longer have any perpetual instruments issued in foreign currency. In other words, 100% of our AT1 instruments are issued in Brazilian reals at a much more competitive cost. So this liability management we carried out was very important for the bank's capital management. Finally, as I have already mentioned, the only line to be updated in the 2025 guidance is market NII. It is a minor adjustment. We originally expected between BRL 1 billion and BRL 3 billion for this line, and that was our best expectation. It is great that we performed better than we expected. And given that we only have a couple of months account for, we are updating our market NII expectation and narrowing the range. Thus, our best expectation for market NII is between BRL 3 billion and BRL 3.5 billion. So this table consolidates 2025 guidance, except for the market NII, every other line has been reaffirmed, which demonstrates our ability to consistently predict results for the year and share them with you at the beginning of the year. Of course, volatility is expected throughout the year. In the loan book, we have the FX impact. So this is always something difficult to project. But the fact is that we have very solid discipline and transparency and a high degree of predictability, I believe the most important thing is to have predictive capacity to be able to forecast and manage with a long-term vision. With that, I will conclude my presentation. I would like to thank you once again for your participation. Now I will join Gustavo and Gabriel for the Q&A session. This was another solid and consistent quarter with very high profitability and strong results. Most importantly, behind these numbers, is all the transformation the bank has been undergoing for many years. We are at a very advanced stage, both in digital and cultural transformation and above all, as a universal organization. I believe the strength of Itau Unibanco is being this universal bank, striving to be a leader in every segment in which we operate, and we have managed to be leaders in several of them, as I always say, we have a very balanced portfolio with solid and consistent results in both wholesale and retail businesses, which have been decisive for value creation. And most importantly, we are a 100% client-centric organization. All of our NPS and quality indicators have advanced materially. At the end of the day, the result is a consequence of a solid, strong franchise with our client-centric and long-term vision. We do not make decisions to maximize in the short term nor do we grow the portfolio at the wrong price. We must maintain strong discipline in capital allocation and returns. And naturally, the results come in the long run. That is what I wanted to share with you. I will now join the others for the Q&A session. See you shortly.

[Interpreted] Thank you for the presentation, Milton. Now we have also Gabriel with us to start the Q&A. Well, let's remind you, this is a two-language session. We're going to answer the questions in the language that they are asked. Should you need any support with the translation, please, choose your audio -- preferred audio, English or Portuguese. Where you can submit the questions via WhatsApp. With that, let's go to the first question. Bernardo Guttmann from XP.

[Interpreted] Congratulations on the results. We're getting close to the end of the year. The bank should get into that phase of the discussing -- discussion of the scenario for 2026 and the scenario macro is mixed. The activity is firm, but with the high interest rates and the credit market that is more selective. I wanted to understand how that context affects your strategic decisions for the bank for next year, specifically in the growth of portfolio, efficiency and capital allocation. Itau gets at a turning point of the cycle with discipline and profitability but maybe now the challenge is to balance, to grow in an efficient way and calibrated way in an environment that still demands caution. How would you do this balance today?

[Interpreted] Thank you, Bernardo. Thank you for your participation in our call. Let me start by saying by having a strong discipline of not anticipating the guidance for 2026 because we are building the numbers in an advanced phase, I would say, but there are still some stages that we need to do. Directionally speaking, we have found opportunities to grow. I think that regardless of the scenario, the scenario, as you said, it has its challenges. The challenges are more because of the uncertainty, because -- and not so much the uncertainty. We -- it's difficult to have absolute conviction in an uncertain scenario. So a few elements that are important. First, opportunities. They exist. We will continue to strengthen our franchises in all the segments that we want to grow with quality in a long-term vision with the portfolio management. Our capacity of reaction today, it's much larger than it was before. So we're going to get into 2026. I can guarantee that with a balance that is extremely robust, very well provisioned and with strength and capacity, a solid capital base and with an inertia that is very favorable, that really helps. So our capacity to react regardless of the scenario, whether if it's an adverse scenario or a scenario that is more positive is enormous. This is important. This is key because evidently in the past, with a legacy system, you made a few credit decisions and risks, and that took some time to get into production, given the times of implementation. With all the modernization of the bank, the decisions are daily and the implementation is immediate. So every decision for -- is done in the day. We don't have to wait 24 hours for a decision, a reaction. The guidance will be based on the best information available at the moment that I present the guidance for you. And evidently, the guidance is not written in stone. We need to give a great predictability for the market. We could be very predictable through the market and showing a lot of consistency in the guidance with the discipline of execution that I judge very well. And the guidance is the best information of the guidance at the time of the publication. And depending with the year and with more challenges, the reactions can be different than what was planned. And we will let you know as soon as the information is available. And we've discussed this with the Itau Day. We are rethinking the businesses up ahead. Businesses with a maturity level, with great maturity, but it's the strength of the all that gives us a lot of strength to quality -- to grow with quality and capital discipline, bringing good returns to the shareholders.

[Interpreted] Now we go to the second question that comes from Renato Meloni from Autonomous.

[Interpreted] Congratulations on the results. And I would like to talk about the segment of these small companies, specifically in the line government. So I wanted to understand, how do you see the trajectory? Can you grow at the same level, or are you going to see some limitations whether if it's government risk? And how do you see the trajectory of the NPLs as these are expiring?

[Interpreted] Very good, Renato. Thank you for the opportunity. Thank you for being with us. Thank you for the report. All of us spent many, many hours reading our reports last night. So we are very firm in the wholesale companies, in the retail. So we have an important rhythm of growth with the governmental programs. We've grown with a lot of quality, good capital allocation and management choosing the right client and the right way of growing within a value proposition that is unified. So we could assume a role of leadership that is important since the inception of these programs. And we've learned to manage these programs in an intelligent way. It's important. Of course, it depends on the program. And we've heard a lot about the perennity of the program. It has a role that is very important, specifically in those clients of small size, and we have the budget discussions, is it going to exist in the way that it was. Well, there was the exchanges as we call it in the market. We seized the first loss because we had more space to leverage and then returned about BRL 100 billion to the market. So it's a process that is very important. And now it will depend a lot from the standpoint of the government with the allocation of resources and the lines, these are the most efficient allocation, and it generates leverage. And the multiplicator on the first loss is a high level -- expected level of clients in this program. So our operation, we need to have a capacity of growing with the segment, always delivering the same product for the client, and it's a governmental product. We are going to see -- we're going to provide services for the client, the government and also the cross-sell, the flow generating a good profitability level over the last years. We discussed this, and we see space for growth, looking up ahead, growing once again without letting go of the discipline of the capital allocation, the value creation and also doing this at the right time and the right price. We still see good opportunities in the retail. And what I bring that is relevant, our relevance, our gen AI 100% powered platform, and we've gone through a process that is important. By the evolution of this platform, we need to have a preponderant role in our strategy. So we saw that this is an avenue of growth. We also were an important process of evolution of the platform, low earnings, improving having an impeccable experience. We are reaching a good maturity level in this platform. It has a new role in the strategy of the retail. So we can service the clients 100% digital in a very efficacious -- efficiently with mature models that has evolved with these clients. It will have a role that is preponderant in the retail from now on, and we're going to talk about the evolutions all throughout the next quarters.

[Interpreted] Now we go to the third question. We have Gustavo Schroden from Citi.

[Interpreted] Congratulations on the results and the consistency, it's impressive. I wanted to hear from you about the client margin. Let's just call it an accommodation vis-a-vis the dynamic that has happened. We had some effects of spreads that contributed negatively. There is also the issue of Latin America. I wanted to understand if -- that's the level of mean with the -- that it's reasonable with the client that we're going to work from now on? Or do you think that there is an issue that is specific for the third quarter to interrupt that trajectory of growth and maybe reaching stability. I wanted to understand the margin expanded so much. We've discussed a few points last year. Someone to understand is there anything else more that we should get in terms of expansion, or do we get to a level that is more stable with the client?

[Interpreted] Well, great to see you, Gustavo. And I'm going to give you two results -- two answers. First is in regards to the mean of this quarter. It's important to highlight a few issues. In the last quarter, you remember that we discussed that we have a strong NIM, very good expansion. The NIM itself has also a balance that is very important when we look at the effect of the second quarter to the third quarter, from the first to the second. So this big jump, so to speak, it has some explanations when we look at the third quarter. The first is that in the past quarter, there was an increase -- important increase in the financing in the world of credit cards, and that generates a seasonality that is more of a conflict of a calendar than anything else. There was the effect that was favorable towards NIM and the NII of the last quarter. So there is a second aspect given the level of profitability that we have today and the level of margin that we've reached, we have the expansion level. We realized that a few operations are more apparent. The volatility is more perceived. So in the last quarter, we anticipated a few results of the wholesale structured operations that would have happened in the third and fourth quarter, and that happened to -- that broaden into this threshold. There was an acceleration of the previous NIM that would have been softer if it happened this quarter. So there is a caps issue as well. The caps are important, specifically in two portfolios, the INSS portfolio and the [indiscernible], the check. And given -- and the credit card, also the interest rate is higher. The liabilities are higher. This generates an effect in the caps operation. So you pressure the margin when that happened. And there is a fourth effect, and this is the last one, which is the Flex one. Flex is the way that we anticipate in a way, and we discussed that in the margins with the client, there is the results of [ RAV, ] the Rede and the Flex. The result of [ MDR. ] And the anticipation without the cost of funding will be with the revenue with services. In the past there is a certain logic because we separated this way, but these operations were so relevant right at the beginning of the year, I'm going to bring you a few reviews of how we demonstrate to you in the MD&A, the managerial, the results, we're going to do a few changes. I'm going to be giving you a few very transparently how are the changes, and how is that compared with the year of 2025, adjusted, so you don't lose the comparability base. The Flex with the increase of the cost of funding. And with the increase of the penetration -- cost of penetration of the product, they generated a negative effect in the margin for this quarter. And this is a structural that is worth; first, how do I see this? We need to see the annual base. This is the best way of looking at the NII and the NIM evolution of the bank. We did a review upwards with a margin with clients at the beginning of the year, then we changed the guidance. Now our best expectation is to work close to the center of the guidance until the end of the year. So that means an expansion in the fourth quarter, so we can work close to the center of the guidance. That means that from the center of the guidance, I'm discussing a 12.5% growth, maybe a little less. It really depends on the performance on the fourth quarter. Still early to discuss, but it's something that we can expect. You can imagine that we are growing with the portfolios that are growing and the thresholds that we are growing, expanding our margin and over 12% simplifying year-on-year. You can have a good idea of the strength of the growth of the margin and looking at the relatives, the NIM, which is the simple point of your question, we imagine a certain stability from now on. We did an expansion that is important. And the NIM growth, the NIM that I really like to follow up is the adjusted NIM to the risk. Generating NIM is not difficult, depending on the quality that you grow with, product that your grow and the mix that you grow. But a great deal of this growth you return with PDD. So that's why we have a good expansion throughout this quarter. The adjustment of the quarter was 10 basis points in Brazil. The last quarter was outside of the curve. We have a natural trend now, and we should work with this level of margin, specifically adjusted to the risk looking up ahead. So this is a structural of the bank and working to expand the NII as we grow the bank, the portfolios, the businesses and with a balanced portfolio. And with a drop in the interest rates, we always bring that slide that we show that our sensitivity to the CDI is much less than some analysts think. So in the end, we have a structural drop of the interest rates, our capacity of balancing and growing in the other lines that balance from the interest rate rebalances the game. So we have the expansion in next year without one interest, anticipate the guidance, we're going to see the NII all throughout the year, expanding but for a NIM that is more stable with the volatility within what is reasonable. So it's not a straight line. There is some volatility expected, but within a threshold that is expected with what we've observed.

[Interpreted] Now the question of Marcelo Mizrahi from Bradesco BBI.

[Interpreted] Congratulations on the results, very solid. I guess the question goes along the way of capital. An organic generation of capital very positive in the quarter with an equity 13.5%. So the question of last year, the threshold that the bank was after the profit sharing was 12.3%. When we look at the perspective of growth from now on, and we have the other challenges, I wanted you to discuss, and you always discussed that threshold of 11.5% and 12%, which would be the level that you're feeling comfortable, keeping that threshold. How it would be this threshold now that will the NIM of the bank that we will keep after the dividend distribution payout.

[Interpreted] So thank you, Marcelo. Thank you for the opportunity. Thank you for the initial words. Now the central point of the capital is to reinforce a few points for you. First, our policy for the profit sharing, the payout didn't change. So we are faithful to our policy. Of course, there is some subjectivity because there's a lot of analysis that we do before the decision-making process of how much dividend will be distributed. Of course, we only reinforcing. We work with the risk appetite at the threshold at the level of the Board with the appetite of not working with less than 11.5% with CET1. This is what is define at the Board of the bank. We, from the Board, we work with the buffer of half a percent. So we will go to 12% because we never want to work close to the minimum because in those situations, you are at risk of losing good opportunities of growing, investing, making decisions that at that time can consume capital in a more accelerated way, regardless of the capacity that is very strong of the bank of generating capital. So if you look and we discussed in the presentation, in this quarter, we got 0.8 of CET1 before the provision of the repurchasing of shares and the profit sharing. So what do I see up ahead? Our objective is not retaining the excess of capital, but I -- we don't have an objective of dividends. We have an objective of capital allocation. With the discipline of allocation, the expectation of creation of value and making decisions on the long term, always strengthening and always growing the organization. So we are looking at the future. We are seeing what is budget, our capacity of growth, the credit risk, the market risk, the operational risk and reminding you that at the beginning of this year, we have the phase-in of operational risk, Basel III and credit risk in a few operations that are structured in the wholesale world. So we got the first quarter paying 45 bps of capital because of regulatory issues, changes. There's another three years, the phase-in is 2028. There's three installments without interest rates of paying these effects. And of course, we take that into consideration for the plan. So we look at the capacity of growth, capacity of capital allocation in a profitable way, the capacity of absorbing the regulatory effects, whether -- whatever they are. And within this projection, we do the capital that is exceeding and then we will take a proposal for the Board of Directors and the Board of Directors will deliberate on the distribution of the dividends. But as I told you, this is not a dividend that is extraordinary. It's a dividend that is additional as this has been our recurring policy over the last years, and we don't see any reason to do any changes in that policy in the way that it's designed today. And new effect, the market will be informed through the communication protocols, and we follow down the line, the Brazilian CCPM protocol, so we are compliant with the publication on the dividends and comments that we are compliant with all the marketing publishing norms.

[Interpreted] Next question, Eduardo Rosman.

[Interpreted] In the Investor Day, you discussed that you want to improve the efficiency of the bank. Well, in a material way, the whole -- the retail, you're going to forego a few revenues to grow more. So I wanted to know the opinion of Milton, do you think that this movement is a defense or attack movement?

[Interpreted] Hi, Rosman. Great to see you. Thank you for the wonderful words. I read your report. Thank you for the quality and depth of the report that you just published yesterday. Let me tell you. At the beginning of the year, I discussed this at the presentation, and I wouldn't bring you a clear vision of how our efficiency level is composed because we tend to oversimplify the vision of cost of DNDJ of the bank, of the expenses that do not stem from interest rates. So we simplify when we try to do comparisons with other players that are more specific in specific segments. So first, the bank is a portfolio of businesses that is very relevant. So every one with the level of maturity at a different industry level, some with strong investments, other with an efficiency agenda that is deeper and so on. So it's important to understand the whole. So because of a number, we do not make precipitous conclusions. But our responsibility is to demonstrate this to you. In the way that we publish, we break down the retail wholesale bank. You can see in the MD&A, that vision for the best breakdown is there, but we need to be more precise showing you the strategic way up ahead. Gabriel has been the leader of an important work of efficiency in the bank. And efficiency is something that we need to do every day. It's not a responsibility neither of the area of Gabriel in an isolated way or the commitment of a specific area. No, everybody in their own circumstances, everybody in the bank has to look every day and seek the efficiency level, the evolution that we've had throughout the time shows our discipline with the generation of top line and the control of costs, so that this will be evolving, and we have a better leverage. In in the [ massified, ] it seems that is more attack than defense because it's not high income, but in the high income, you have an efficiency level that is higher than what we observed in the bank as a whole. But in an operation that has a cost of service that is different because the cost of serving the mid- to high range clients is different than the platform that is 100% digital. The model of service can evolve, we understand that. So it's the remote, the on-site, Andre was discussing at Itau Day, a bit about evolution. And we want to get most of the clients remotely maybe over the next few years, and we're going to continue to do this with a lot of emphasis. So Itau Day was the idea of telling you what are the refreshers, how we are reviewing strategically the businesses looking ahead in the natural persons and the companies. So I can tell you that we are in the execution model. We started the execution of these projects that are very important for the future of the bank. And I am certain that this will generate a lot of value. Not only because of the capacity of growing our portfolios, but we will go through our leverage that is more efficient for the segments where the cost of service is determined for the sustainability of the business model. So we see the basis of the pyramid in the segments that are more massified. But if we don't work with an efficiency level that is very low, to do this, we cannot do this in the brute force. You need to do this with a lot of intelligence. You need to have their armamentarium, the technological platform structure so you can service your clients with a lot of efficiency in these segments. Consequence naturally is to go to an operational leverage with the cost of service that is much lower. Therefore, you need to be more competitive, specifically in the capacity of absorbing the cost of credit. When you have a high efficiency level, efficiency index, your margin post cost is very low to absorb their losses in a segment that tends to be more volatile. Evidently, we will renounce a few segments when we do these decisions and specifically those that are not resilient in cycles that are more acute, but still there is a high -- a big important opportunity. Itau branches, as we call it, [indiscernible] had an evolution in the results that is very important. And we've managed to converge this vision of top line and cost to have an operation that is more efficient. And if throughout the time, we need to self disrupt a few things that we've done thus far and forego some revenue to accelerate the evolution of cost but increasing the lifetime value of the clients committedly and serving the clients with the right value proposition, we will do so. And this is the execution model that I mentioned. So at the beginning of the year, I will be able to give you some more color on that.

[Interpreted] Next question, we have Daniel Vaz from Safra Bank.

[Interpreted] So a follow-up on the question of massified and the capital and dividends. The year, if we consider the generation of capital in the fourth quarter and the adjustments that are based in January 1st of operational risk [ 4.99, ] it should be close to the 13.5 threshold of now Tier 1. We're going to the end of the year, and there are a few companies listed -- that are listed on the taxation of dividends, there is the discussions of the shareholder of anticipating the payout. So you can do a timing -- anticipating the timing and the excess capital can be serviced better. Given your excellence in the profitability and consequently, the generation of the capital of the bank, it's the only thing that will generate a debate. So how do you think about this issue? Could it be -- make sense to anticipate the statement for the Brazilian IRS effort and to seize this opportunity.

[Interpreted] Well, thank you, Daniel. And thank you for the comments. Great to see you. In fact, you discussed the point that we know, and we've been following this discussion of the legislative taxation changes, the payout changes or issues being discussed, we are following very closely. And of course, we have a fiduciary profile that we see the changes in regulatory context changes. We will see the evolution should we have any relevant new facts, certainly, we will do our analysis, we will make our decisions, and we will inform the market as soon as the decision is made by the Board of Directors of the bank. Let's follow this closely. The policy of dividends still there -- is still here. We will fulfill our fiduciary duties. And if there is any changes in the natural course of what we are used to doing because of any new facts, we will take it to the Board, and we will deliberate and once it's celebrated, we will communicate to the market. We will follow very closely the regulatory evolution of the legislative changes.

[Interpreted] Now the next question Yuri Fernandes, JPMorgan.

[Interpreted] Congratulations on the results. I want to ask you about the growth of retail and getting into the Investor Day, seem you discussed there that you expected that the retail portfolio can double over the next 5 years. And we see a growth that is timid 1% quarter-on-quarter, but it's timid growth that has a lot of nuances. If we look at -- in the class, personal credit cards are growing well, some segments of consumer finance that are growing well and some lines such as INSS kind of weaker. So Milton, when should we see an acceleration in the portfolio of retail. I know it's not immediate. There is the issue of doubling, but we're not going to see the portfolio that get into what is implied. So if you can comment on growth for retail, that would be great.

[Interpreted] Great to see you once again. Thank you for the question. We still are firm. Our purpose and ambition in retail and individuals and the companies, well, I told you that is an aspiration, it's not a guidance. It's an aspiration that is present. The ambition of growing, we have a lot of opportunities for growth, specifically for the more resilient publics where we have the growth in quality. That's why we opened the numbers of Uniclass and Personnalite Digital so you can have a vision of how we grew strongly in the high income. The derisking in the portfolios that are less resilient, a great deal of it was concluded and now what we have is more of a dynamic that is natural of making choices. Where do we grow and where do we reduce? This is of the nature of credit itself. You are choosing credit, you are choosing where you're going to grow with quality and which segment do you see more concerns or signs of warning that you can reduce. In the aggregate, there are still opportunities for growth in the retail, both individuals and companies. We will translate that into numbers once we bring to the guidance and you all could be up ahead. We are very excited with the acquisition. It's evident that there is a scenario of more uncertainties next year. We're never going to get the ambition aspiration before a good risk management and capital allocation. So we have a tradition of good navigation, sailing through turbulent waters if they come up. And our portfolio has never been so resilient to face all the challenges. So once the opportunities are clear, and we understand that they are, we're going to grow with quality in these segments. There are lot of spaces to be occupied, there are lot of spaces to be occupied. All the migration of One Itau brings relationships that are closer to the clients that before, we only had a superficial relationship. All that dynamic shows the size of the opportunity. So I am optimistic really, I followed very closely the evolution of the individuals and the companies in retail. I'm very excited about the future. I think that here, we have results that are important and that will be harvested in all dimensions in time. But I'd rather deliver than overpromise. I am optimistic. There is a risk of execution. There are circumstances, there is a macro scenario. let's follow how we evolve with the interest rates, inflation, unemployment rates, everything influences the decision-making process for risk. An important information. So if everything is constant, probably we would have worked with the cost of credit that was lower than the cost of credit that we're going to close the year. Throughout the year, and it's natural with our model, you see the indicators of [ PB and LGB ] of your clients, but you have a forward looking for the macro scenario. This is part of our models for credit concession. And we are recalibrating these models through the year. So it brings more provisioning in regards to what is imagined over the beginning of the year. And we reinforced specific cases where we thought that it would make sense. So we were never so well provisioned, delivering possibly the center of the guidance, our best expectation with the cost of credit. So we will deliver indicators of credit with a lot of quality, reinforcing the provisions as the models are -- as a forward-looking specifically for the macro is adjusted, and we're going to turn the year ready to occupy the space that we need to occupy. So it's exciting what's up ahead. And again, it's a race, it's not a 100-meter dash, it's a marathon. So don't wait for a figure of 15.8% if you've done the math for 2030. This is not what we're discussing, but the trend is very positive.

[Interpreted] Now the next question, Eduardo Nishio, Genial.

[Interpreted] Congratulations on the results. I have a follow-up of Rosman in regards to efficiency in the massified. The mass that after the neobanks, it became a segment that is very challenging. So I wanted to understand what motivated Itau to get into this segment in a more aggressive way now in the tech mode. Was it the younger target audience? What do you see that is different now from a few years back that saying no to that segment was more obvious? And now also continuing, the efficiency. As you said, you have the smallest level of the banks. Can you improve that level? You're getting into a journey of cost cutting, so to speak. Can you get to a level of 30%, how long it would take? And how does that discuss -- how can you work with the massified journey that is challenging?

[Interpreted] Thank you for the initial words. Great to see you once again. Look, I'm going to try and rephrase your question because I think it needs context. We never renounced effectively a segment of low income. We always found mechanisms to service these clients in different formats from what we see today. In the past, how do we service this products through the partnerships with the retailers. We've grown because here, there is a value proposition that is adequate with a cost of service that is adequate and a risk that is palatable to be assumed and sustainable throughout time. We have a volume that is relevant of clients that are considered massified, specifically when you recalibrate the incomes within our portfolio, it's millions and millions of clients that are serviced by the bank, but could be better serviced, whether from the standpoint of experience in the digital channels with the super app or credit. So we service these clients. We have a relationship with these clients. When we stratify by income, I always say that there are clients that are massified that are target for the bank because they are stable, they are resilient in cycles. There are several profiles of our personas and its public that are very resilient, and these are clients that we really focus. The retirees, for example, of INSS, have lower incomes, but it's a very stable product or public for the long term. Our INSS portfolio is one of the biggest one in the market. This is one example. And it shows that there was a process of digitalization that was relevant of the clients through the years. And the new technology allows to service these clients in a different way with things that we couldn't do in the past now. And now the scalability is not given by the volume and the capacity of processing of the mainframes, is given more by having a high-tech technology that has a cost of service that is very low. So if that evolves and many of these clients were digitalized, there is a way of servicing these clients differently in a more sustainable way because if I advance in the efficiency level and I improve it, my space for absorbing the losses of credit is increasing. So I can service clients that are not target because the targets are very well. Even the targets I can increase my exposure and then on target with time given the cost of service they're going to be target. So these are clients that can be a relationship of the bank, and I have a universe of being serviced larger as I can service better with a better experience, more fluid and a cost of service that is much lower, the clients that are massified, the lower income public. So this is our vision. And to do so, you need to advance. You need to have the digital transformation since we invested a long time with the platformization of the bank, creation of technological modules, the super app that is an embryo of it all. Now we have the way of servicing these clients in a very efficient way with leverage -- operational leverage that is different. And your firepower, your capacity of competing in price changes. When we see the client in a digital channel with a product that is 100% digitalized, I bring the cost of everything ready for this specific. I am competitive, and I service the clients through the financing companies. And I think that we can have a more full bank relationship with these banks than mono product. And now I have a full bank to deliver, but in a different way, totally digital, cost of service much lower and much more scalable in the long term. And this is our vision of the segment. There is a job to be done. We're going to increase our efficiency level of retail. Of course, the efficiency level of the bank depends on the capacity of growth of top line that binomial of revenue and cost we still see good opportunities in a direction there's still space for us to evolve. But most importantly than looking at the whole is looking at the parts. There are segments where we are benchmark -- global benchmark for the efficiency level. For the payroll loans, it's already -- we have an efficiency level that is first year. Are we saying that this is -- no, this is not enough. This is not it. We're going to advance more in other segments than we are going to advance in the whole. The relative of the specifics are going to be much higher than the whole because of the contributions of all the segments.

For the next question, we are going to switch to English as we have Carlos Gomez-Lopez from HSBC.

Thank you, as always, for the consistency in the results. You make our work very easy. I have a question about taxes. So we have a situation in which because of the high IOC, many of the banks are reporting very low effective tax rates. Actually, Itau is the honorable exception. On top of that, we're going to have the accelerated amortization of the deferred tax assets starting next year. Are you concerned that at some point, there could be a public policy reaction and try to increase even more the taxation that the banks have in order to increase the cash revenues that they can get from the banking sector?

Thank you, Carlos. Good to see you. I will start with -- thank you for the compliments. Thank you. We take that very seriously. Well, I'll first start talking about your second aspect of your question, which is if we expect to have any change or any increase in taxations for the banks. No, we don't. Of course, there is an important discussion today if there is some asymmetries, fiscal asymmetries between banks and companies that do exactly the same thing. So if there is any change, for payment institutions, we have hedge. If there is for financial companies, nonbanking financial companies, we have our vehicles. So on a marginal basis, we might see if there is any change in regulation, but not in a very consolidated basis due to the level of taxes that we pay today. So we don't expect any major change. We might see smaller changes, but in aggregated view, we won't see a relevant impact in our corporate tax rate. We don't expect that for two reasons. First of all, it's the segment in Brazil that mostly have the most relevant corporate tax. And when we compare ourselves to any other economy around the globe, you will see that Brazil, it's different from the other ones, and we have 45% of corporate taxes, and it's very relevant. The government knows that. And I heard the Minister of Finance saying more than once that he knows that the level of taxation of the industry is very high. So I don't expect major changes. But talking about the tax, the effective rate, let me -- jump in, Gabriel, if you can talk a little bit about our figures, I think it would be nice to share.

Carlos, thank you for your question. As Milton mentioned, the effective tax rate that we had at the beginning of the year, and we mentioned that was around 31.5%, and we mentioned that it would converge to the guidance that we have for the year. That's the expectation that you have. As you mentioned, the major effect towards the marginal rate that we have in Brazil of 45% to the effective tax rate that we see, it's the interest on capital and also some geographies of how the result is among all the different companies that we have. Those are the two major effects. But at the end of the day, we are going through the guidance that we had before, and we are converging to that.

[Interpreted] Next question, we have Antonio Ruette from Bank of America.

[Interpreted] Congratulations on the predictability. I wanted to explore a theme that we've discussed with the acquiring business. It was very important because of the pressure of the NIM. So what I want to ask you is we see the volumes growing in double digits. It certainly is above any player indicating market share that is increasing sequentially for some time. So what I wanted to understand is what are the main drivers? Where are you growing? What are the segments? And how -- more important, how can you earn this market share in acquiring? Do you have an influence of [ ITAUX ]? Or is it too soon to tell?

[Interpreted] Antonio, great to see you. You discussed a point that is very relevant, consistency. The predictability for us has a big value in the way that we see the future, we project our results, and we try to control the levers. Discussing acquiring business. I mean the result of this was an integration that was very well done in our company business. We closed the capital of Rede in 2012. 13 years later, it's longer than the integration, we can see the results of an operation that is very integrated in the bank. There is a specific segment? No. We've grown in the wholesale and the retail, we see share in both. What is the strategy? The strategy is the bundle to be able to service the client in the best way possible, not with a vision product, but with a flow, payment and receivable and Rede is part of the value proposition. And for us to stop seeing Rede as an independent business or a specific product where the price has to be done isolatedly. Now regardless of this comment, we are very disciplined to look at the vision of the client and to take care of not renting market share. As you know, I was the CEO of Rede 2013, '14, '15, and we know that a great deal of the invoicing that really moves the point of the share is concentrated in the big client. So it's not difficult to be more aggressive in the pricing, pricing below your minimum price of exchange. And then you have a marginal cost that is negative and then renting market share, that's not sustainable because in the first renewal of the contract, you're going to have to review the price and the market share goes away. Market share, we're very disciplined in price allocation of risk. It's not a business. Well, it depends on the segment. You have risk of chargeback higher, lower. We evaluate the business models. Certainly, we take part on the chains that are sustainable. So we have a strong discipline. All the PL we're selling, it is important for the management of our business. And we've managed with a value proposition and quality of service, speed of service, speed of SLA that we have with the clients -- we service a great deal of the clients in these. We have quicker credit card machines, higher approval rates. And when we look at the ecosystem of credit cards, we understand the flow of receivables of the client with a lot of speed, so we can do a value proposition that transcends the machine. So it's a set of things. It's a relationship manager that has training to discuss any issue, including Rede with property in the past that was restricted to specialists with as time goes by, everybody can talk about this. And this gives you scalability and capacity of servicing your client better and the journey and the experience has an important role. We see important evolutions in the NPS because it's not an issue just of being competitive. The prices are variable. But what the tenant needs is selling, selling quickly, selling with quality. When there is a problem receiving the credit card machine at the speed that they need to not lose invoicing, half an hour without invoicing is much more costly than an increment in the rate. So they are willing to pay for the right price if they understand that they have the adequate level of service, and this is the work that the legal team has worked with the Rede. The [ Ms ] has an integrated tap and phone with a solution for the smaller but it doesn't really move the needle in terms of invoicing. Regardless of the high engagement of their clients with the product and the high volume of invoicing, it's still very relevant and it's not relevant for the invoicing or market share. But certainly, it will be an important lever for the repositioning of the company's BU that platform that is completely integrated.

[Interpreted] And now the last question, Henrique Navarro, Santander.

[Interpreted] Congratulations on the results. [ 23% of ROE ] is brilliant. My question is about the soft guidance for 2030. We've discussed this, very strong numbers, and to deliver Itau should start now next year. So my question is, how is your mind for the year '26? You mentioned that Itau will deliver something 7%, 8% of growth of portfolio. Do you see a possibility of that growth of portfolio being double considering a credit cycle that is better? How is your mind for 2026?

[Interpreted] Henrique, thank you for the initial words. We're very, very happy with the profitability level. Given the capital base of the bank, this has an important effect. We are very happy. We closed with the ROI in Brazil and this is very comparable that we see in the industry as a whole. So we are very excited. But once again, we have all the challenges up ahead. A lot of humility, foot on the ground, the past result is not a guarantee of the future. And these cannot generate a future accommodation. So this is our motto in the bank. About 2026, I'm going to do a few remarks that are important. And our responsibility is to communicate this better. I'm not transferring this responsibility to anybody. It's mine above all. So what we discussed in Itau Day is more aspirational than soft guidance. It's important to do this, to record this because every conversation that we're going to have, everybody is going to look at doubling the portfolio in 2030. So every time that you do a strategic review of the business, regardless of the business, you have an ambition. You set the bar and you say, if everything goes perfectly as I would love to and the price to perfection happens, I'm going to get to this. Can we do it? The levers exist, yes. But it depends on a plethora of circumstances, the capacity of execution of plan, value proposition change, everything has to be perfect. So that's the first point, the first statement. The second statement is telling you the following. We're still not going to anticipate the growth in portfolio, but specifically in a year such as 2026 with uncertainties, I can guarantee that we're not going to show you a portfolio that is growing 15%, which is the double of what we should grow. This is important to register exactly. We need to see the breakdown of the segments, and these can change. Imagine a year such as 2026 with a lot of uncertainty, election, you can have more volatility. The Central Bank can start the cycle of adjustments of monetary policy, but it depends on circumstances that are outside of the Central Bank. It depends on the fiscal -- on the expansion of expenditure, of the perception of risk of Brazil, the cost of capital at the end of the day of Brazil. So there are an X amount of variables depending on the external scenario, many variables that are very difficult. I'm not even saying that it's going to be scenario A or B. I'm just going to say that the uncertainty for '26 is higher than it was the uncertainty for '25. It's a normal point for every country that goes through an election process such as the next one. So that means do not wait for the guidance of a growth of 15%, do not do the math of the CAGR of 15.8% to get the [ 50% ]. One, I can tell you is that the strategy is fitting in. Two, we are very trusting in our capacity for generation of value. In the retail, the plan is on track, no route deviations. Next year is an inflection point. We're going to get the low-hanging fruit, buy everything that we've seen, but it's us in our circumstances. We're going to do this with safety, baby steps. So this is a long-term plan. If we get to the future, and we do not double the portfolio because the circumstances didn't allow us, we're not going to suffer. Of course, we would love to do that, but we're going to guide the ship with the information that we have and the momentum for management is solid, and we're not going to forgo on very relevant issues such as risk management, capital allocation. We're not going to -- we're going to use these instruments, which are paramount for the way that we pilot the bank. But directionally, it will evolve. The results are starting to be perceived, and I can see that we're going to have -- I'm certain that we're going to share a nice story with you. And I'm generating an expectation, do not expect 15% of the growth of portfolio. Otherwise, you're going to get frustrated. We're never going to overpromise and we're never going to bring numbers that are beyond our capacity, no. The central point, I go back to my answer of the first question. If there is an opportunity of next year, showing that it's a benign scenario where is risk on, then we will accelerate with speed because our capacity of reaction, capital balance, liquidity business models and the team highly balanced our capacity of turning the key is instantaneous. We do not take more than 24 hours to make a decision and implement them in the bank. This is very important. And this will make a difference more and more from now on.

[Interpreted] Thank you, Navarro, and thank you to all of you that took part of our earnings. Well, we finish the Q&A and our conference call of the third quarter of 2025. Thank you very much. Thank you, Milton. Thank you, Gabriel. And I'll give the floor to Milton to close the session.

[Interpreted] Thank you. I would like to thank you for your presence. Thank you to my friend, Gabriel, CFO of the bank; Gustavo, the IR Director. It's a privilege to have you with me in this discussion with the market. And to tell you that we are very satisfied with the evolution and maybe going back to the original point. At the beginning of the call, I will tell you at the end of my presentation that the numbers at the end of the day, they are a consequence of a work that is done with a lot of dedication, a lot of energy, with a lot of capacity and a deep knowledge of our operations of business with a lot of will to continue to grow and evolve, but above all, with a lot of humility. So we are certain that the results are solid, that the return is strong, but we are aware of the challenges up ahead. And in no way I want you to have a feeling that we are getting complacent. In the bank, we always every day want to do the best thing. And we want to ensure the clients and have the obsession by the client, getting into this era of the hyper personalization that is perfect to make decisions that were important in the past and that are being very assertive in the result in regards to the results that are being delivered. Our capacity of competing in every niche, in every market, in every segment was never so strong, and we are very excited with the opportunities in the future. Foot on the ground, capital allocation, creation of value efficiency, the execution model that is constant and above all, a long-term view. We will never let the future go, taking short-term decisions so that the results of the next quarter are a bit better than the expectation, no. We think that corrections need to be structural. We do not want -- the action doesn't -- the action -- the shares go up with the consistency and quality. So thank you very much for your role, the investors, analysts that bring feedback, that talk to us every day and that ask difficult questions. You have the provocations and that makes us improve. We don't know everything, it's in our culture. So thank you once again, and I hope that we have the next quarter. See you next time. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]