Financial Data and Key Metrics Changes - The company's net income for the quarter was EUR 3.7 billion, reflecting a 10% year-on-year increase and a slight decrease in ROAE [5][48] - Net Interest Income (NII) decreased by 3.3%, primarily due to market NII and carryover costs, although client NII showed a positive evolution [5][39] - The efficiency ratio improved, being the best in the last three years, with expenses growing well below inflation [7][47] Business Line Data and Key Metrics Changes - Consumer finance grew by 16%, while card spending increased by 13% year-on-year [36] - The portfolio for SMEs increased by 11%, indicating a positive trend despite macroeconomic challenges [36] - Personal loans secured by FGTS grew by 81%, while real estate loans increased by approximately 7% year-on-year [37] Market Data and Key Metrics Changes - The bank's customer base reached almost 72 million, with active customers growing by 34 million [9] - The Net Promoter Score (NPS) increased to 86%, reflecting strong customer satisfaction [14] - Digital consumption increased by 38%, while visits to physical stores decreased by 30% over the past two years [29] Company Strategy and Development Direction - The company aims for profitability of 20% to 21% in the coming years, focusing on technology and customer service improvements [8][50] - There is a strong emphasis on digital transformation, with the introduction of the ONE App to enhance customer engagement [25][50] - The strategy includes diversifying the portfolio and maintaining a disciplined approach to capital allocation [51][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 20% ROE, although high interest rates pose challenges [56][60] - The macroeconomic environment is being closely monitored, particularly regarding the impact of interest rates on SMEs and overall loan growth [70][72] - The company remains cautious in capital allocation while seeking growth opportunities in the SME sector [70][72] Other Important Information - The company is investing 30% more in technology compared to previous years, aiming to enhance operational efficiency [27] - There is a focus on improving asset quality, with a slight decrease in non-performing loans (NPL) in certain segments [45][75] - The bank is adopting a proactive approach to write-offs, ensuring a cleaner portfolio [80][82] Q&A Session Summary Question: About ROE and its drivers - Management acknowledged the challenges posed by high interest rates but emphasized their commitment to achieving a 20% ROE through efficiency and disciplined capital management [56][60][66] Question: Concerns regarding SMEs and delinquency rates - Management remains optimistic about the SME sector, indicating plans for cautious growth while monitoring macroeconomic impacts [70][72] Question: Asset quality and write-off policies - The bank is closely monitoring asset quality, with a focus on maintaining strong coverage ratios and proactive write-off strategies [75][80] Question: Growth in individual portfolios and payroll loans - Management is rebalancing its individual portfolio towards higher income segments while being cautious with payroll loans due to profitability concerns [94][98][102]