Financial Data and Key Metrics Changes - The recurring net income for Q4 2025 was BRL 6.5 billion, representing a year-on-year growth of 20.6%, and for the full year, it reached BRL 24.7 billion, a growth of 26.1% [2] - The return on average equity (ROAE) was 15.2%, exceeding the cost of capital for the first time in this quarter [2] Business Line Data and Key Metrics Changes - Digital retail clients increased to 19 million, with a target of approximately 40 million by 2026, and the direct cost to serve these clients was reduced by 40 times [6][7] - The affluent client segment saw an upgrade for over 3.1 million clients, with expectations to reach 4.7 million clients by the end of 2026 [8][9] - The SME segment's market share increased from 14.3% to 16.6%, with a robust digital model and new value propositions introduced [11][12] Market Data and Key Metrics Changes - The loan portfolio reached BRL 11 billion, with micro, small, and medium-sized companies growing by 21.3% [20] - The net interest income (NII) increased by 17.4%, and credit income grew by 14.4% [22] Company Strategy and Development Direction - The company is focused on a transformation plan initiated in February 2024, aiming to enhance competitiveness and operational efficiency over a five-year period [3][4] - Investments in technology grew by 22% in 2025 compared to 2024, with a strong emphasis on AI and digital solutions to improve client engagement and operational efficiency [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and the ability to maintain growth despite market challenges, emphasizing a disciplined approach to capital management and risk-adjusted returns [19][66] - The company expects to continue growing its loan portfolio and maintain a CET1 ratio around 11% throughout 2026, despite potential regulatory adjustments [61][64] Other Important Information - The company has reduced its operational footprint by closing 2,800 points over the past two years while continuing to invest in new branches and technology [24][44] - The insurance operations reported a growth of 16.1%, exceeding guidance expectations [25][26] Q&A Session Summary Question: Insights on underlying business trends and NII guidance - Management highlighted that the NII remains focused on secured products, with expectations for growth in line with operational performance [31][33] Question: Clarification on restructuring expenses and growth expectations - Management explained that restructuring expenses are aimed at enhancing operational efficiency and that they expect to grow expenses in line with inflation while continuing to invest in technology [40][42] Question: Strategy for Cielo integration and expectations for payroll loans - Management confirmed ongoing integration efforts with Cielo and expressed optimism about growing market share in payroll loans, particularly in the private sector [51][72] Question: Capital outlook and CET1 expectations - Management indicated that CET1 is expected to remain around 11%, with careful monitoring of capital allocation and growth strategies [63][66]

Financial Data and Key Metrics Changes - The company reported a recurring net income of BRL 6.5 billion for Q4 2025, representing a year-on-year growth of 20.6%, and a full-year net income of BRL 24.7 billion, reflecting a growth of 26.1% [2] - The return on average equity (ROAE) reached 15.2%, exceeding the cost of capital for the first time in this quarter [2] - Total revenue growth was driven by an increase in net interest income (NII) and fee and commission income, with a growth of 5.5% when excluding the Cielo tender offer [19] Business Line Data and Key Metrics Changes - Digital retail client base grew to 19 million, with a target of approximately 40 million by 2026, and the direct cost to serve these clients was reduced by 40 times [6][7] - The affluent client segments saw an upgrade to over 3.1 million clients, with expectations to reach 4.7 million clients by the end of 2026 [8] - The SME segment's market share increased from 14.3% to 16.6%, with a robust digital model and new value propositions introduced [11][12] Market Data and Key Metrics Changes - The company reported a loan portfolio of nearly BRL 1.1 billion, with micro, small, and medium-sized companies growing by 21.3% [20] - The insurance operations grew by 16.1%, exceeding guidance expectations [25] - Capital markets experienced a 29.2% increase compared to the previous year, attributed to structural changes and investments in the investment banking sector [23] Company Strategy and Development Direction - The company is focused on a transformation plan initiated in February 2024, aiming to enhance competitiveness through technology and operational efficiency [3][4] - Investments in technology grew by 22% in 2025 compared to 2024, with a strong emphasis on AI and digital solutions [16][17] - The company aims to maintain a disciplined approach to capital management while expanding its loan portfolio and improving risk-adjusted returns [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing that there will be no settling year and that they will continue to invest in competitiveness [80] - The company anticipates maintaining a CET1 ratio around 11% throughout 2026, despite potential regulatory adjustments [68] - Management highlighted the importance of maintaining a high degree of engagement and quality in the credit portfolio, with expectations for continued growth in payroll loans and other segments [39][76] Other Important Information - The company has reduced its operational footprint by closing 2,800 points over the past two years, while continuing to invest in new branches and refurbishments [24][48] - The engagement survey showed an increase in employee engagement from 74% in 2024 to 84% in 2025, indicating a committed workforce [15] Q&A Session Questions and Answers Question: Insights on underlying business trends and NII guidance - Management indicated that NII remains focused on secured products, with expectations for growth in line with operations and a maintained average rate [34][36] Question: Clarification on restructuring expenses and growth expectations - Management acknowledged an additional BRL 700 million in restructuring expenses, emphasizing ongoing investments in technology and footprint adjustments [43][45] Question: Strategy for integrating Cielo and expectations for large accounts - Management confirmed that Cielo is undergoing significant transformation, with a focus on improving logistics and maintaining profitability while growing in the SME segment [57][59] Question: Capital outlook and CET1 expectations - Management expects CET1 to remain around 11%, with careful monitoring of capital allocation and growth in the loan portfolio [67][69] Question: Expectations for payroll loans and market share - Management expressed optimism about growing market share in both public and private payroll loans, leveraging competitive models and technology [76][78]

Financial Data and Key Metrics Changes - The recurring net income for Q4 2025 was BRL 6.5 billion, representing a year-on-year growth of 20.6%, and for the full year, it reached BRL 24.7 billion, a growth of 26.1% [1] - The return on average equity (ROAE) was 15.2%, exceeding the cost of capital for the first time in this quarter [1] Business Line Data and Key Metrics Changes - Digital retail clients increased to 19 million, with a target of approximately 40 million by the end of 2026, and the direct cost to serve these clients was reduced by 40 times [5][6] - The affluent client segment saw an upgrade for over 3.1 million clients, with expectations to reach 4.7 million clients by the end of 2026 [8] - The SME segment's market share increased from 14.3% to 16.6%, with a robust digital model and new value propositions introduced [11][12] Market Data and Key Metrics Changes - The loan portfolio reached almost BRL 11 billion in December 2025, with micro, small, and medium-sized companies growing by 21.3% [20] - The net interest income (NII) increased by 17.4%, and credit income grew by 14.4% [22] Company Strategy and Development Direction - The company is focused on a transformation plan initiated in February 2024, aiming to enhance competitiveness through technology and customer engagement [2][3] - Investments in technology grew by 22% in 2025 compared to 2024, with a strong emphasis on AI and digital solutions [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, expecting continued growth in ROE and net income, despite potential macroeconomic volatility due to elections [54][55] - The company aims to maintain a CET1 ratio around 11% throughout 2026, with a focus on disciplined capital management [49][50] Other Important Information - The company has reduced its operational footprint by closing 2,800 points and plans to open approximately 50 new offices in 2026 [24][39] - The insurance operations reported a growth of 16.1%, exceeding guidance expectations [25][26] Q&A Session Summary Question: Insights on underlying business trends and NII guidance - Management indicated that the NII remains focused on secured products, with expectations for growth in line with operations and a maintained average rate [30][31] Question: Clarification on restructuring expenses and growth expectations - Management acknowledged an additional BRL 700 million expense for restructuring, emphasizing continued investment in technology and footprint adjustments [34][39] Question: Expectations for payroll loans and market share - Management expressed optimism about growing market share in payroll loans, particularly in the private sector, leveraging competitive models [52] Question: Capital outlook and CET1 expectations - Management expects CET1 to remain around 11%, with fluctuations possible due to regulatory measures, but overall confidence in capital management was reiterated [47][49]