And the consumer use of buy now pay later continues to grow becoming a more like credit cards used for expensive purchases over longer periods with higher interest rates. CLA which is a major player in that space has recently revived its IPO plans aiming to expand beyond its initial offerings. Joining us right now is an analyst who covers that sector closely.Moshe Orinbach TD Cowan senior analyst covering specialty finance. Good morning to you. buy now pay later has become sort of the phenomenon of the cred ...

Consumer Behavior - Younger demographics, including college students, increasingly prefer debit cards and buy now, pay later (BNPL) options over traditional credit cards [1][2] - BNPL is becoming a preferred payment method for consumers [1] BNPL Growth - The company's BNPL product experienced rapid growth, exceeding 20% last quarter [1]

[Music] Final trade time. Tim Seymour. First of all, we got the intern class, the next Wall Street Titans from Morgan Stanley.Let's give it up for these guys over here. All right, make some noise. Make some noise.Anyway, uh Danny Moses, great having you. And ultimately, I think airlines have not participated. Delta Airlines is your best of breed.Danny Moses, FICO beginning to incorporate buy now pay later into people's credit scores. I will sell a firm here. Dan, yolo, you only lose one guy.Um, USO being a ...

Financial Data and Key Metrics Changes - The company reported a total gross revenue of BRL 3.2 billion and net revenue of BRL 1.8 billion, reflecting a year-over-year growth of 3831% [30] - The efficiency ratio improved to 48.8%, with a return on equity (ROE) of 12.9% [33][35] - The cost of risk decreased to 4.6%, marking the best performance since 2022 [27] Business Line Data and Key Metrics Changes - The total loans grew by 33% year-over-year, significantly outpacing the Brazilian market [23] - The Consumer Finance 2.0 portfolio expanded over five times year-over-year, reaching BRL 920 million [15] - The investments vertical saw assets under custody (AUC) increase by 54% year-over-year, reaching BRL 146 billion [16] Market Data and Key Metrics Changes - The company achieved an 8.2% market share in transactions made through PIX, totaling BRL 315 billion in the first quarter [14] - The marketplace's gross merchandise volume (GMV) grew by almost 30% year-over-year, reaching BRL 300 million [18] - The company gained more than 40 basis points of market share in seven out of ten presented products [21] Company Strategy and Development Direction - The company is focused on sustainable products and a diversified revenue stream, positioning itself well in a rapidly changing banking industry [6][8] - The launch of the private payroll product is seen as a significant opportunity for market share capture [44] - The strategy emphasizes digitalization and client engagement through a complete digital platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid a secular shift in the banking industry, driven by digitalization and financial inclusion [7][10] - The management highlighted the importance of maintaining credit quality while pursuing growth, particularly in the context of inflation and high interest rates [58] - Future growth is expected to be supported by new product launches and improvements in credit modeling [58] Other Important Information - The company added 1 million new active clients, achieving a 57% activation rate [13] - The credit card portfolio is undergoing a reshaping process, with the participation of installments increasing from 7% to 9% [16] - The company surpassed 12 million clients in its loyalty program, which significantly enhances client engagement [20] Q&A Session Summary Question: Comments on the private payroll product and its impact - Management expressed excitement about the private payroll product, indicating a strong market demand and potential for significant market share capture in the future [42][44] - There was no impact from the new product in the first quarter [45] Question: Insights on NIM trajectory - The NIM growth is attributed to improved credit mix and rising interest rates on loan portfolios, with expectations for continued expansion [46][50] Question: Loan growth expectations and inflation impact - The company anticipates loan growth of 25% to 30% for the year, with no significant impact from inflation or interest rates expected [57][58] Question: Explanation for the decrease in net ARPAK - The decrease in net ARPAK was primarily due to seasonal factors affecting fees and the impact of the 4966 rule, which deferred certain fees [66] Question: Outlook on efficiency ratio and expense growth - The company aims to improve the efficiency ratio to 30% by 2027, with expectations for revenue growth to outpace expense growth [72][74] Question: Asset quality and NPL levels - Management indicated that the NPL levels will depend on the product mix, with expectations for continued improvement in asset quality [92][93] Question: Increase in stage two formation for credit cards - The increase in stage two was a result of the 4966 requirement, with no significant changes in performance or delinquency levels observed [99][100]