Business Performance - Loan book grew by 8% QoQ, outperforming the industry growth of 7.6%[8] - Total deposits increased by 15% QoQ and 40% YoY[8] - US$ deposits reached record levels, up 31% QoQ and 56% YoY[8] - Net fee income increased by 7% QoQ and 9% YTD[8] Profitability and Asset Quality - The company experienced a net loss of 50 billion in 3Q25 due to increased Cost of Risk (COR)[8] - Net Interest Margin (NIM) declined to 11%[8] - NPL ratio increased to 3.9%[8] - Net COR was 6.4% in 3Q25 and 5.2% YTD[8] Strategic Initiatives and Capital - CET1 ratio stood at 13.2% as of September 2025, increasing to 14.5% by October 2025[8, 18] - The company continued to evolve its SuperApp[8] - Cost reduction of 2% QoQ and 12% YTD was achieved[8] Macroeconomic Context - The Central Bank Market Expectations Survey as of October 2025 projected inflation of 30%, an Fx eop at 1,532, and GDP growth of 3.9% in 2025[15, 19]

Economic Overview - The S&P 500 has increased over 70% since the launch of ChatGPT in November 2022, while job openings have decreased by approximately 30% [1][2] - Job openings peaked at 11.5 million in March 2022 and fell to 7.18 million by August 2025, while the S&P 500 rose from around 3,840 to nearly 6,700, marking a 74% gain [2] Monetary Policy Impact - The Federal Reserve began raising interest rates in March 2022 to combat inflation, leading to higher borrowing costs and reduced business investment, which subsequently affected hiring [3] - Construction and manufacturing sectors experienced the most significant declines in job openings, with construction openings dropping nearly 40% year over year by late 2024 [3] AI and Market Dynamics - AI-related stocks have significantly contributed to the market rally, with 75% of the S&P 500's gains since late 2022 attributed to AI-linked companies like Nvidia, Microsoft, and Alphabet, generating $5 trillion in household wealth [5] - The concentration of gains in AI sectors raises concerns about potential bubble risks, as noted by Morgan Stanley's Lisa Shalett [5] Labor Market Disparities - The effects of AI on the labor market are uneven, with early-career workers in AI-exposed fields experiencing a 13% employment drop, while software jobs are projected to grow nearly 18% by 2033 [6] - There appears to be a bifurcation in the economy, characterized by a thriving AI sector and a struggling broader economy [6] Additional Economic Factors - Trade and immigration policies have further constrained hiring, with estimates suggesting that immigration restrictions could reduce the U.S. workforce by 15 million over the next decade and cut annual GDP growth by one-third [4] - Concerns about a potential economic slowdown due to a prolonged government shutdown and rising national debt have been raised by industry leaders [7]

Core Viewpoint - The anticipated appointment of Satsuki Katayama as Japan's finance minister may lead markets to reconsider pushing the yen lower, while also aiding the new prime minister in exploring new funding avenues for economic stimulus plans [1][4]. Group 1: Market Reactions - Following the news of Katayama's expected appointment, the dollar briefly dipped to approximately 150.50 yen before recovering to above 151 yen [2]. - The yen is currently trading around 151 per dollar, reflecting market expectations regarding the Bank of Japan's monetary policy [3]. Group 2: Economic Context - Katayama has previously indicated that the yen's real value should be closer to 120-130 per dollar, suggesting a preference for reversing the trend of a weak yen [2][3]. - Rising living costs, partly attributed to higher import prices from a weak yen, have negatively impacted households and the ruling party's approval ratings [7]. Group 3: Political Landscape - Sanae Takaichi's election as Japan's first female prime minister represents a significant milestone in a male-dominated political landscape [4]. - Takaichi is known for advocating expansionary fiscal and monetary policies, which may lead to increased government spending and a delay in rate hikes by the Bank of Japan [4]. Group 4: Katayama's Profile - Katayama, a seasoned politician with a background in the finance ministry, is recognized for her decisive and outspoken approach, contrasting with the current finance minister's low-profile style [5]. - Her familiarity with currency diplomacy and relationships with key figures in the finance ministry may influence exchange-rate policy [5].