Financial Data and Key Metrics Changes - Lending has grown 4.4% since year-end to £388 billion, consistent with an annual growth rate of over 4% over the past six years [3][6] - Income increased to $12.1 billion, a 12.5% rise compared to the first nine months of the previous year [5][6] - Costs rose by 2.5% to €5.9 billion, resulting in an operating profit of €5.8 billion and an attributable profit of €4.1 billion [5][6] - Return on tangible equity was reported at 19.5% [5][6] - Earnings per share grew by 32.4% year-on-year, and TNAV per share increased by 14.6% to 3.62p [7] Business Line Data and Key Metrics Changes - Mortgage lending increased by over £5 billion for the first nine months, with new offers for first-time buyers and family-backed mortgages [3][4] - Unsecured lending grew by £2.9 billion or 17.3%, aided by the integration of recently acquired Sainsbury's customers [3][4] - Commercial and institutional lending grew by €7.9 billion or 5.5%, particularly in infrastructure and sustainable finance [4][5] - Non-interest income rose due to higher fees from payments, cards, and strong performance in currencies and capital markets [5][10] Market Data and Key Metrics Changes - Deposits grew by 0.8% to $435 billion, reflecting a balance between volume and value in a competitive market [4][5] - Retail banking deposit balances decreased by £800 million, while private banking balances fell by £700 million due to shifts into investments [13][14] - Commercial institutional deposits saw a slight increase of £400 million [13] Company Strategy and Development Direction - The company is focused on disciplined growth, simplification, and effective balance sheet management [2][19] - A new share buyback of $750 million was announced, with 50% already executed [6] - The company aims to support customers while investing in business growth and delivering attractive returns to shareholders [6][19] Management's Comments on Operating Environment and Future Outlook - Management noted that despite inflation above the Bank of England's target, the economy is growing with low unemployment and high levels of savings [2] - Full-year income guidance was revised to around €16.3 billion, with expected returns greater than 18% [6][11] - The company remains confident in its ability to manage costs and maintain a healthy cost profile moving forward [41][42] Other Important Information - The CET1 ratio at the end of Q3 was 14.2%, with strong capital generation allowing for continued investment and shareholder returns [6][17] - The company expects to complete the buyback by the full-year results [6] Q&A Session Summary Question: Deposit momentum and non-interest income drivers - Management indicated that deposits are up around £3.5 billion year-to-date, with different trends across business lines [25][30] - Non-interest income showed strong momentum, particularly in cards, payments, and capital markets [30] Question: Cost growth expectations - Management reiterated cost guidance for the year, emphasizing ongoing simplification efforts and cost management [40][41] Question: Capital and CRD impact - Limited CRD4 impact was noted for Q3, with expectations for more material impacts in Q4 [44][45] Question: Loan growth sustainability - Management expressed confidence in maintaining strong loan growth, particularly in commercial and institutional sectors [72][73] Question: Future return expectations - Management will provide updated return targets in February, with ongoing discussions about capital requirements and growth [90][96]

Financial Data and Key Metrics Changes - Lending has grown 4.4% since the year-end to £388 billion, consistent with an annual growth rate of over 4% over the past six years [3][5] - Income increased to £12.1 billion, representing a 12.5% rise compared to the first nine months of the previous year [4][5] - Operating profit reached £5.8 billion, with attributable profit at £4.1 billion, and return on tangible equity was reported at 19.5% [5][6] - Earnings per share grew by 32.4% year-on-year, and TNAV per share increased by 14.6% to 362 pence [6] Business Line Data and Key Metrics Changes - Mortgage lending increased by over £5 billion for the first nine months, supported by new offers for first-time buyers and family-backed mortgages [3] - Unsecured lending grew by £2.9 billion, or 17.3%, with successful integration of recently acquired Sainsbury's customers [3] - Commercial and institutional lending grew by £7.9 billion, or 5.5%, particularly in infrastructure, social housing, and sustainable finance [3][4] - Deposits increased by 0.8% to £435 billion, reflecting a balance between volume and value in a competitive market [4][11] Market Data and Key Metrics Changes - The bank attracted an additional 70,000 new customers in the quarter, indicating strong customer activity [3] - Assets under management and administration grew by 14.5% to £56 billion, contributing to non-interest income growth [4] Company Strategy and Development Direction - The company is focused on disciplined growth, bank-wide simplification, and effective balance sheet and risk management [2] - A new share buyback of £750 million was announced, with 50% already executed [5] - The company aims to support customers while investing in the business and delivering attractive returns to shareholders [5][15] Management's Comments on Operating Environment and Future Outlook - Management noted that despite inflation being above the Bank of England's target, the economy is growing with low unemployment and wage growth exceeding inflation [2] - The company expects one further base rate cut this year, with rates projected to reach 3.75% by year-end [10] - Full-year income guidance has been revised to around £16.3 billion, with returns expected to exceed 18% [5][10] Other Important Information - The cost-income ratio improved by five percentage points to 47.8%, with operating expenses up 2.5% to £5.9 billion [5][12] - The CET1 ratio at the end of the third quarter was 14.2%, up 60 basis points from the previous quarter [13][14] Q&A Session Summary Question: Deposit momentum and non-interest income drivers - Management indicated that deposits are up around £3.5 billion year-to-date, with different trends across business lines. Retail fixed-term outflows were noted, but current account balances are up [17][18] - Non-interest income showed strong momentum, particularly in cards, payments, and capital markets, with a focus on maintaining this growth [20] Question: Cost growth expectations and capital management - Management reiterated cost guidance for the year, emphasizing ongoing simplification efforts and the potential for cost control despite inflationary pressures [23][24] - Capital management remains a priority, with expectations for CRD4 impacts in Q4 and a focus on maintaining a CET1 ratio above 13% [28][30] Question: Loan growth sustainability and income drivers - Management expressed confidence in maintaining loan growth above market levels, with a strong track record across all business lines [48][55] - Future income growth is expected to continue, supported by strong customer demand and effective capital deployment [37][41] Question: Non-interest income and market performance - The strong performance in NatWest markets is attributed to strategic integration and robust customer demand, with expectations for continued performance despite market volatility [44][46] Question: Liquidity management and deposit outflows - Management acknowledged a rotation in liquidity from cash to government bonds, with a focus on maintaining a balanced portfolio [79][82]

Financial Data and Key Metrics Changes - Third quarter GAAP net income was $21.5 million, with EPS of $0.73, including non-core items [9] - Non-GAAP core net income was $21.2 million, with EPS of $0.72, indicating consistent profitability [9] - Core ROAA was 1.06%, and core efficiency ratio improved to 60.45% [9][10] - Total loans held for investment decreased by $26.6 million, a 1.7% annualized decline [10] - Total deposits increased by $87.2 million, primarily due to a net increase in interest-bearing deposits [11] Business Line Data and Key Metrics Changes - New loan production was $452 million, while paydowns totaled $479 million, indicating a net decline in loans [10] - Residential one-to-four family and construction & development loans increased by $47.6 million and $38.6 million, respectively [10] - Non-interest income for the third quarter was $11.7 million, with expectations for growth despite potential fluctuations [18] Market Data and Key Metrics Changes - Non-interest-bearing deposits represented 21.0% of total deposits, up from 20.3% at the end of Q1 [11] - Texas-based loans remained flat at approximately 40% of the overall portfolio [10] - The cost of total deposits increased slightly, while total loan yields increased by five basis points [14] Company Strategy and Development Direction - The company is focused on effective expense control and operational excellence, with a commitment to generating operating leverage [4][8] - Two M&A initiatives are underway, with expectations to realize economic benefits from the Oakwood transaction by Q1 2026 and Progressive Bank by Q4 2026 [6][8] - The correspondent banking unit is expected to generate over $17 million in revenue this year, contributing approximately $5 million to net income [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving steady profitability and tangible book value increases in 2026 [8] - The company anticipates a normalization of loan growth in Q4, supported by early successes in the current quarter [26][28] - Management noted that customer sentiment is cautiously optimistic due to falling interest rates [49] Other Important Information - The quarterly common stock dividend was increased by one penny, marking the ninth consecutive year of dividend increases [10][20] - Non-performing loans decreased from 0.82% to 0.67% of loans held for investment, indicating improved credit quality [18] Q&A Session Summary Question: Expectations around core margin for the fourth quarter - Management expects a slight increase in margin due to deposit momentum and normalization of loan growth [24] Question: Evidence of loan growth rebound in Q4 - Early successes in loan originations suggest a return to low to mid-single-digit loan growth [26][28] Question: Non-interest income growth expectations - Non-interest income may grow year-over-year but could be flat quarter-over-quarter due to potential government shutdown impacts [35][36] Question: Future M&A plans and share repurchase opportunities - The company is focused on executing current acquisitions and organic growth, with potential for share repurchases if capital levels allow [38][41] Question: Pricing for new loans as interest rates fall - The company will adjust pricing for risk as interest rates decline, maintaining competitiveness [48] Question: Updates on Progressive Bank acquisition - Positive trends in profitability and shareholder support for the acquisition were noted, with expectations to close in early January [71]

Core Thesis - SoFi Technologies, Inc. is experiencing strong growth and is expected to exceed its 2026 guidance, with projected EPS of $0.75 and revenue surpassing analyst expectations [5] Financial Performance - SoFi reported its first GAAP profitable quarter in Q4 2023, with EPS guidance for 2026 set between $0.55 and $0.80, driven by growth in Lending, Tech Platform, and Financial Services [2] - Lending has shown significant growth, with a 27% increase in Q1 and a 32% increase in Q2 2025, supported by a favorable macro environment and a recent capital raise [2] - Financial Services, propelled by the LPB launched in Q3 2024, achieved 101% and 106% growth in Q1 and Q2 2025, respectively, with contribution margins reaching 52% in Q2 [3] Segment Performance - The Tech Platform segment has underperformed, growing around 15% in Q2, which is below the 25% target, prompting leadership changes to enhance execution [4] - Contribution margins in the loan platform business are lower, but high-margin revenue from Financial Services offsets this, maintaining overall profitability above expectations [2][3] Strategic Outlook - The company’s strong balance sheet and reinvestment capacity position it for further acceleration, making it a compelling investment opportunity [5] - SoFi's stock price has appreciated approximately 111% since previous bullish coverage, reflecting strong revenue growth and expanding membership [6]

Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding and non-interest income remaining stable [6][12] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% annualized, amounting to $179 million for the quarter [5][7] - The average portfolio yield, including fees and accretion, rose to 6.14% [7] - Operating non-interest expenses were $32.6 million, aligning with prior quarter results [15] Market Data and Key Metrics Changes - Non-brokered deposit growth was strong, with an increase of $283 million, representing over 24% annualized growth [10] - The loan-to-deposit ratio decreased to 84%, providing flexibility for balance sheet management [8] - The overall liquidity position at quarter end was approximately 21% [10] Company Strategy and Development Direction - The company is focused on organic growth, enhancing client relationships, and expanding its market presence in the Southeast [8][19] - There is a commitment to maintaining a strong operational efficiency ratio, which improved to 64% from 66% in the previous quarter [15] - The company aims to continue leveraging its balance sheet and grow revenue, EPS, and book value while managing expenses prudently [19] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, projecting continued growth in revenue and operating leverage [17][18] - The company anticipates a fourth-quarter margin in the range of 3.3% to 3.35% [13] - There is confidence in the ability to maintain positive operating leverage and achieve revenue growth in 2026 [38] Other Important Information - The company was named to Fortune's list of best workplaces, highlighting its strong internal culture [19] - The capital ratios improved significantly due to subordinated debt issuance, with the total consolidated risk-based capital ratio rising to 13.3% [16] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hires have been evenly spread across regions, with positive momentum in Alabama, particularly in Birmingham and Auburn [22][23] Question: Margin guidance for Q4 - Management indicated that cash on the balance sheet will be deployed to fund loan production, with no significant change in asset size expected [26][27] Question: Technology initiatives and expense impact - Management discussed ongoing tech initiatives aimed at increasing efficiency without significantly raising expenses, focusing on enhancing client experience [28][29] Question: Future of positive operating leverage - Management expressed confidence in maintaining positive operating leverage into 2026, with a focus on balanced growth and expense management [36][38] Question: Deposit beta expectations - Management aims for a deposit beta of around 40% for future rate cuts, with current rates being managed effectively [48][50] Question: Fee growth outlook - Management expects fee growth to continue, driven by improvements in mortgage and treasury management services [52][53] Question: M&A strategy - Management clarified that while organic growth remains the primary focus, they are open to evaluating strategic M&A opportunities that align with their goals [78][80]

Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding [6][11] - Non-performing assets remained low at 22 basis points, indicating strong credit quality [5][14] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% or $179 million for the quarter [5][8] - Non-brokered deposit growth was $283 million, representing over 24% annualized growth [11] - Operating non-interest income, adjusted for the sale of insurance operations, was $8.4 million, slightly lower than the previous quarter [15] Market Data and Key Metrics Changes - The average portfolio yield, including fees and accretion, rose to 6.14% [8] - The loan-to-deposit ratio decreased to 84%, providing flexibility for balance sheet management [9] Company Strategy and Development Direction - The company aims to deepen its market presence and continue organic growth, targeting high single-digit growth rates [19] - Investments in technology and treasury management are expected to enhance operational efficiency and client experience [10][27] - The company was recognized on Fortune's list of best workplaces, highlighting its strong internal culture [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the operating environment, projecting continued revenue and EPS growth while maintaining prudent expense management [20] - The company anticipates a net interest margin of 3.3% to 3.35% for Q4 and expects margin expansion of 5 to 7 basis points per quarter in 2026 [13][61] Other Important Information - The allowance for credit losses is now at 0.93% of total loans, reflecting robust asset quality [14] - The total consolidated risk-based capital ratio improved to 13.3%, indicating a strong capital position [17] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hiring has been evenly spread across regions, with positive momentum in Alabama, particularly in cities like Birmingham and Auburn [23][24] Question: Margin guidance for Q4 and balance sheet size - The company plans to deploy cash on hand to fund loan production, expecting no significant change in balance sheet size [26] Question: Impact of tech initiatives on productivity and expenses - New technology initiatives are expected to enhance efficiency without significantly increasing expenses, allowing for reinvestment [27][30] Question: Future of positive operating leverage - Management is confident in maintaining positive operating leverage through revenue growth outpacing expense increases [34][36] Question: Fee growth outlook and insurance impact - The company anticipates continued fee growth, particularly from mortgage and treasury management services, despite the removal of insurance operations from the revenue line [45][46] Question: Plans for remaining brokered deposits - The company aims to reduce brokered deposits further, with a goal of eliminating them entirely in the future [64] Question: M&A strategy - The focus remains on organic growth, but management is open to evaluating strategic M&A opportunities that enhance the company's capabilities [66][68]

Core Insights - SRK Fund I, LP achieved a return of 46.94% in the first half of 2025, significantly outperforming the S&P 500 and Russell 2000, which returned 6.20% and -1.78% respectively [2][3] - Since its inception on May 1, 2018, the fund has appreciated 1200.66%, compared to 162.30% for the S&P 500 and 55.46% for the Russell 2000 [2][3] - The fund manager emphasizes the importance of long-term performance evaluation rather than short-term results [4] Portfolio Updates - **Innovative Solutions & Support (ISSC)**: Contributed significantly to the fund's performance with a 104% revenue increase and Ebitda margins reaching 35%. The company is expanding through strategic acquisitions and has increased its manufacturing capacity [6][7] - **ImmuCell Corporation (ICCC)**: Reported record first-quarter results with gross margins expanding to 42%. The company is targeting further growth and has received investigational use authorization for its product Re-Tain, which is pending FDA approval [8][9][10] - **Soléance (SLSN)**: Experienced a 53% revenue growth in the first half of the year despite lower margins due to onboarding costs. The company resolved litigation issues and uplisted to Nasdaq, which positively impacted its stock price [11] - **Sanuwave Health, Inc. (SNWV)**: Achieved 51% revenue growth without a national sales presence. The company has now established a national sales force and is pursuing debt refinancing options [12][13] Closing Thoughts - The strong returns in the first half of the year are viewed as a recovery from the previous year's poor performance. The fund has increased its cash reserves to capitalize on future investment opportunities [14]

Financial Data and Key Metrics Changes - The net interest margin expanded by 11 basis points to 3.28% [5][10] - Customer fees, excluding net credit valuation adjustment, grew by $10 million [5] - Adjusted expenses declined by $1 million, leading to an improved efficiency ratio of 59.6% [5] - Diluted earnings per share was $1.48, down from $1.63 in the prior period [7] - The provision for credit loss was recorded at $49 million, with net charge-offs of $56 million, or 37 basis points of loans on an annualized basis [6][17] Business Line Data and Key Metrics Changes - Net interest income increased by $52 million, or 8%, compared to the third quarter of 2024 [9] - Customer-related non-interest income was $163 million, slightly down from $164 million in the prior period [11] - Adjusted customer-related non-interest income, excluding net CVA, was $174 million, representing a 6% increase versus the second quarter [11] - Average loans increased by 2.1% annualized over the previous quarter [13] - Average deposit balances were relatively flat, with a notable 11.5% reduction in average brokered deposits [13][14] Market Data and Key Metrics Changes - Average non-interest-bearing deposits grew by approximately $192 million, or 0.8% compared to the prior quarter [14] - Total borrowings declined by $1.8 billion during the quarter [15] - Non-performing assets remained low at 0.54% of loans and other real estate owned [16] Company Strategy and Development Direction - The company aims to continue producing positive operating leverage as revenue growth outpaces non-interest expense growth [19] - There is a focus on enhancing capital markets offerings, including real estate capital markets and investment banking advisory fees [11] - The company is open to M&A opportunities but prioritizes smaller deals that enhance market density [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the credit issues faced are isolated incidents and emphasized a strong credit history [24][96] - The outlook for net interest income is moderately increasing, supported by continued growth in loans and deposits [9][10] - Management expects to maintain a stable risk appetite despite recent credit challenges [96] Other Important Information - The common equity tier one ratio was reported at 11.3%, indicating a strong capital position [18] - The company has seen a 17% growth in tangible book value per share compared to the prior year [18] Q&A Session Summary Question: Can you talk about the isolated incident related to the charge-offs? - Management confirmed that the incident is isolated and has conducted a thorough review of the portfolio, finding no similar issues [22][23] Question: What is the outlook for net interest income? - The guidance includes expectations for fixed-rate asset repricing and loan growth, with a potential yield pickup of 2-3 basis points [31][32] Question: How has loan demand changed recently? - Loan spreads have improved slightly, and while there was some runoff in CNI, production has been up in most months this year [78][81] Question: What is the company's approach to M&A? - The company is open to smaller deals that enhance market presence but is not under pressure to pursue acquisitions [58][59] Question: How does the company view the NDFI portfolio? - Management believes that concerns regarding the NDFI portfolio are somewhat overblown, highlighting the safety of certain categories like capital call lines [106]

Financial Data and Key Metrics Changes - The third quarter reflected continued momentum in core earnings with net interest margin expanding by 11 basis points to 3.28% [4] - Customer fees, excluding net credit valuation adjustment, grew by $10 million, while adjusted expenses declined by $1 million, leading to an improved efficiency ratio of 59.6% [4] - Average loans and customer deposits increased by annualized rates of 2.1% and 3.1% respectively compared to the prior quarter [4] - Diluted earnings per share was $1.48 compared to $1.63 in the prior period and $1.37 in the year-ago period [5][6] - Adjusted non-interest income was $174 million for the quarter, representing a 6% increase versus the second quarter and an 8% increase versus the year-ago quarter [10] Business Line Data and Key Metrics Changes - Net interest income increased by $52 million, or 8%, relative to the third quarter of 2024, benefiting from fixed asset repricing and favorable shifts in the composition of average interest-earning assets [7][8] - Customer-related non-interest income was $163 million for the quarter, slightly down from $164 million in the prior period but up from $158 million one year ago [10] - Capital market fees, excluding net CVA, increased by 25% compared to the prior year period, driven by higher loan syndications and customer swap fee revenue [10] Market Data and Key Metrics Changes - Average loans increased by 2.1% annualized over the previous quarter and 3.6% over the year-ago period [12] - Average non-interest-bearing deposits grew approximately $192 million, or 0.8% compared to the prior quarter [13] - Total borrowings declined by $1.8 billion during the quarter, with short-term FHLB advances decreasing by $2.3 billion [14] Company Strategy and Development Direction - The company expects to continue producing positive operating leverage as revenue growth outpaces non-interest expense growth [19] - The outlook for customer-related fee income in the third quarter of 2026 is moderately increasing relative to the third quarter of 2025, driven by increased customer activity and new client acquisitions [11] - The company is focused on maintaining a strong capital position and is open to M&A opportunities, particularly smaller deals that enhance market density [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the recent credit issues are isolated incidents and emphasized the strength of their credit history [22][24] - The company anticipates continued loan growth driven by commercial loans, despite some recent paydowns and payoffs [56][59] - Management noted that the current regulatory environment is shifting towards a focus on solid regulation, which they view positively [72][74] Other Important Information - The company recorded a $49 million provision for credit loss, with net charge-offs in the quarter at $56 million, or 37 basis points of loans on an annualized basis [4][16] - The allowance for credit losses as a percentage of loans remains stable at 1.2% [17] - The common equity tier one ratio this quarter was 11.3%, indicating a strong capital position [18] Q&A Session Summary Question: Can you talk about the isolated incident regarding the charge this quarter? - Management reviewed the portfolio and believes it is an isolated incident, with no similar loans found [22][23] Question: How much fixed-rate asset repricing is factored into the NII guide outlook? - The guidance includes expectations for fixed-rate loans and securities, with potential yield increases embedded [27][28] Question: What is the outlook for operating leverage? - Management expects positive operating leverage but did not provide a specific range at this time [34][35] Question: How has loan demand changed over the last 90 days? - Loan spreads have improved slightly, and production has been up in most months this year compared to 2024 [65][66] Question: What is the company's current risk appetite? - The company will continue its historical underwriting practices, and the recent credit issues will not impact loan growth [80][81]

Core Insights - IDFC First Bank reported a significant 75.5% year-on-year increase in standalone net profit, reaching Rs 352.31 crore for Q2 FY26, driven by strong business growth and improving operating leverage [7] - The bank's net interest income (NII) rose 6.8% year-on-year to Rs 5,112.57 crore, although the net interest margin (NIM) declined by 59 basis points to 5.59% [7][8] - Asset quality remained stable, with the gross NPA ratio at 1.86% and net NPA at 0.52% as of September 30, 2025 [6][8] Financial Performance - The bank's total customer business expanded by 21.6% year-on-year to Rs 5,35,673 crore as of September 30, 2025 [2][7] - Loans and advances grew by 19.7% year-on-year to Rs 2,66,579 crore, while customer deposits increased by 23.4% to Rs 2,69,094 crore [2][7] - CASA deposits rose by 26.8% year-on-year to Rs 1,38,583 crore, with the CASA ratio improving by 119 basis points to 50.07% [7] Operational Efficiency - Operating leverage is improving, with total business growth of 22.7% year-on-year in FY25 and 21.6% year-on-year in H1 FY26, compared to operating expense growth of 16.5% and 11.8% respectively [4][8] - The cost of funds decreased by 23 basis points year-on-year to 6.23%, providing a buffer against margin pressure [7] Market Outlook - Brokerage Motilal Oswal Financial Services (MOSL) noted robust business growth, with net advances rising 20% year-on-year and deposits up 24% year-on-year [6][8] - MOSL projects a 20% CAGR in loans and a 63% CAGR in PAT over FY25–28, with FY27E ROA/ROE at 1.0% and 9.3% respectively [6][8]