Financial Data and Key Metrics Changes - Total loans grew 8% sequentially and 37% year-over-year, with corporate loans expanding 25% quarter-over-quarter, now representing 63% of the portfolio [2][12] - The NPL ratio increased to 5%, reflecting industry trends and rapid loan growth since 2024 [3][13] - The company reported an attributable net loss of ARS 19.5 billion, significantly narrowing from a loss of ARS 55 billion in the previous quarter [4][11] - NIM rebounded sequentially, supported by lower funding costs and better investment portfolio yields, with a significant increase in net financial income to ARS 246 billion, up 82% sequentially [4][16] Business Line Data and Key Metrics Changes - Commercial lending drove loan portfolio expansion, increasing 25% sequentially and 64% year-over-year, while retail loans declined 4% sequentially [12][13] - Core transactional balances remained resilient, with US dollar deposits increasing 42% year-over-year [3][15] - Loan loss provisions increased 75% sequentially, reflecting higher system-wide delinquency [11][12] Market Data and Key Metrics Changes - The fourth quarter marked the peak of an exceptionally tight monetary policy, with high real interest rates and elevated reserve requirements constraining liquidity [4][5] - Following the October elections, conditions began to improve, with declining interest rates and gradually improving liquidity [5][6] Company Strategy and Development Direction - The company continues to execute a roadmap focused on profitable growth, targeted segments, and ecosystem integration, emphasizing a customer-centric and technology-enabled model [6][7] - The integration of the App Supervielle as a financial hub is central to the strategy, with over 70% of transactions being digital [7][8] - The company aims to capture growth in Argentina's domestic capital market, focusing on affluent clients and corporations to enhance revenue stability [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the foundation for financial recovery in 2026, with expectations for gradual economic activity recovery and renewed credit expansion [5][10] - The company anticipates real loan growth between 25% and 30% in 2026, with a focus on corporate lending and a gradual recovery in retail credit [17][18] Other Important Information - The CET1 ratio strengthened to 15.4%, providing flexibility for growth in 2026 [4][11] - The company expects net fee income to expand around 5% in real terms, driven by banking and brokerage activity [18] Q&A Session Summary Question: Capital structure and dividend policy - The company confirmed that the CET1 ratio will be maintained between 11% and 13% in 2026, with no dividends expected due to the negative result in 2025 [20][24] Question: Market sentiment and catalysts for growth - Management highlighted the government's ambitious reform agenda as a positive catalyst for market sentiment and the banking sector [26][28] Question: Loan growth outlook amid rising NPLs - Management acknowledged the increase in NPLs but noted improvements in collection trends and expected stabilization in credit costs [32][34] Question: Retail credit portfolio and competition from fintechs - The company plans to gradually grow the retail portfolio in 2026, focusing on improved credit models and collections [71][75] Question: Deposit growth and monetary policy - Management indicated that deposit growth is expected to continue, with a focus on CASA deposits to improve funding quality [46][65]

Summary of Key Points from the Conference Call Industry Overview: Chinese Banking Sector Key Financial Metrics 1. **Total Social Financing (TSF) and New Loans**: In January 2026, new TSF reached Rmb 7.2 trillion, an increase of Rmb 0.2 trillion year-on-year, while new loans totaled Rmb 4.7 trillion, a decrease of Rmb 0.4 trillion year-on-year, reflecting a growth rate of 6.1% [5][12][13] 2. **Outstanding Balances**: Outstanding balances for TSF and new loans expanded by 8.2% and 6.1% year-on-year, respectively, compared to 8.3% and 6.3% in December 2025 [1][5] Retail and Corporate Loans 3. **Retail Credit**: Retail credit saw a new increase of Rmb 0.5 trillion, with a growth rate of 0.5%. New retail short-term loans increased by Rmb 0.1 trillion, while medium-to-long-term loans increased by Rmb 0.35 trillion, indicating weak household mortgage demand due to declining property prices [1][2] 4. **Corporate Loans**: New corporate loans amounted to Rmb 4.5 trillion, a year-on-year decrease of Rmb 0.3 trillion, with a growth rate of 8.7%. The decline was attributed to weaker credit demand and a shift towards bond financing [2][5] Deposit Growth 5. **Deposit Increases**: Deposits achieved a strong net growth of Rmb 8.1 trillion, a year-on-year increase of Rmb 3.8 trillion, corresponding to a growth rate of approximately 10%. Retail deposits increased by Rmb 2.1 trillion, while non-bank financial institution deposits rose by Rmb 1.5 trillion [6][12] 6. **Deposit Migration**: A notable shift from deposits to non-deposit financial products was observed, attributed to maturing time deposits at the beginning of the year. This "deposit migration" is expected to have limited impact on the stability of bank liabilities and funding costs [6] Monetary Indicators 7. **M1 and M2 Growth Rates**: M1 and M2 growth rates were reported at 4.9% and 9.0%, respectively, indicating a month-on-month rebound. The narrowing of the M1-M2 gap was likely influenced by the timing of the Lunar New Year and improved capital market performance [6][10] Future Expectations 8. **Outlook for 2026**: Banks anticipate that corporate loans will remain the primary driver of new credit in 2026, despite the current challenges in the retail loan sector [3] Additional Insights 9. **Government Bond Issuance**: The increase in TSF was driven by front-loaded government bond issuance of Rmb 1.0 trillion, which saw a year-on-year increase of Rmb 0.3 trillion [5] 10. **Impact of Central Bank Policies**: The People's Bank of China (PBOC) has expanded consumer loan interest subsidy policies, which may have contributed to the slight increase in retail short-term loans [1] This summary encapsulates the critical financial metrics, trends, and expectations within the Chinese banking sector as discussed in the conference call.

Core Viewpoint - Arthur Hayes believes that privacy will be a defining theme in the cryptocurrency market, with Zcash positioned as a key asset in response to increasing state surveillance and sanctions enforcement [1][2]. Group 1: Privacy as an Investment Theme - Hayes has established a significant position in Zcash through his family office, Maelstrom, viewing privacy as an undervalued asset in the current market landscape [1]. - He predicts that Zcash will serve as the "privacy beta," indicating a strong belief in its potential growth and value [2]. Group 2: Macro Economic Context - The broader economic thesis links U.S. political incentives to aggressive credit expansion, with energy prices acting as a limiting factor for policymakers [3]. - Hayes argues that sustained deficits and pressure to maintain economic activity will lead to increased demand for privacy-focused assets like Zcash [4]. Group 3: Political and Economic Dynamics - The U.S. political landscape, including recent actions in Venezuela, is seen as influencing energy prices and, consequently, the cryptocurrency market [4][5]. - Hayes suggests that political efforts to manage energy prices will allow for continued credit expansion, which will positively impact Bitcoin and other cryptocurrencies [5].

Core Insights - Brazil is challenging the assumption that cryptocurrencies thrive only when traditional financial systems fail, as evidenced by its high Selic rate of 15% and resilient credit markets [1][2][3] Group 1: Macroeconomic Context - The IMF's recent report indicates that Brazil's credit expansion is not a policy failure, with effective monetary transmission despite high interest rates [2][3] - Bank lending in Brazil increased by 11.5% in 2024, and corporate bond issuance surged by 30%, which typically would reduce interest in alternative financial assets like crypto [3][4] Group 2: Crypto Adoption Trends - Despite the high interest rates, Brazil's crypto activity rose by 43% year-over-year in 2025, indicating a disconnect between traditional macroeconomic narratives and actual crypto adoption [4] - The IMF emphasizes that Brazil's central bank has effectively managed monetary policy, contributing to strong income growth, low unemployment, and rapid fintech expansion, which sustain credit demand [5] Group 3: Future Outlook - Although policy tightening has affected lending rates and credit growth is beginning to slow, inflation expectations are being actively managed [6]

Credit Growth Overview - Incremental credit to India's commercial sector rose 24% year-to-date, reaching ₹20 lakh crore in the first seven months of FY26, compared to ₹16.23 lakh crore in the same period last year [1][9] - This increase in credit is attributed to lower lending rates, tax relief measures, and cuts in goods and services taxes (GST), indicating a revival in business and investment activity [9] Bank and Non-Banking Credit - Bank credit increased by 11% year-on-year, while credit from non-banking sources surged by 39%, highlighting the significant role of non-banking channels in credit expansion [1][9] - Outstanding credit to the commercial sector expanded by 13% to ₹288 lakh crore as of October 31, 2025, compared to a 12% increase in the same period last year [6][9] Corporate Funding Sources - Corporates raised ₹2.25 lakh crore from the bond market, a remarkable 473% increase over the previous year, and ₹25,475 crore via external commercial borrowings (ECB), compared to repayments of ₹792 crore last year [4][9] - Outstanding loans by non-banking financial companies (NBFCs) reached ₹35.8 lakh crore, surpassing the total lent in the previous fiscal year, while corporate bonds issued amounted to ₹22.48 lakh crore, up from ₹20.23 lakh crore in the same period last year [7][9] Monetary Policy Impact - The Reserve Bank of India (RBI) has lowered the repo rate by 100 basis points since February, facilitating easier access to credit for corporates [5][9] - As a result of these changes, large corporates are increasingly relying on market-based instruments such as commercial paper and corporate bonds, reducing their dependence on traditional bank credit [5][9]

Core Insights - Outstanding bank lending in Brazil is losing momentum, with credit growth slowing to 10.1% in August from 10.8% in July, as high interest rates impact economic activity [1] - The central bank projects annual loan growth to further decline, ending the year at 8.8%, a slight upward revision from a previous estimate of 8.5% [2] - The central bank has raised interest rates by a total of 450 basis points since September last year, with the benchmark Selic rate reaching 15%, the highest in nearly two decades [3] Credit Growth and Default Rates - Monthly outstanding credit rose by 0.5% in August compared to July [3] - Default rates on non-earmarked consumer and business loans increased to 5.4% from 5.2% the previous month, indicating rising credit risk [4] - Average lending spreads widened to 32.3 percentage points from 31.8 points, reflecting increased costs for borrowers [4]