Financial Data and Key Metrics Changes - Total assets increased by approximately $37 million during Q1 2025 [8] - Net income for Q1 2025 was $8.6 million, equating to $0.76 per basic share, down from $0.88 per share in the previous quarter but up from $0.58 per share in Q1 2024 [12] - The net interest margin (NIM) improved to 0.7% in Q1 2025, up from 0.54% in Q4 2024 and 0.16% in Q1 2024 [13] - Total equity increased by $6.7 million, primarily due to net income and employee stock option exercises [11] Business Line Data and Key Metrics Changes - The loan book decreased by $23 million in Q1 2025, with a strong loan pipeline anticipated for Q2 [5][22] - Non-interest income decreased by $693,000 compared to the previous quarter, primarily due to elevated non-interest income in Q4 2024 [17] - Non-interest expense increased by $1.3 million, mainly due to employee compensation and related benefits [19] Market Data and Key Metrics Changes - The Texas economy remains strong and growing, with no negative impacts observed from national economic uncertainties [3][4] - Non-performing assets (NPAs) remained low at 0.15% of total assets, slightly improved from 0.16% at year-end [24] Company Strategy and Development Direction - The company is focused on maintaining a granular and stable core deposit base, with plans to open 10,000 checking accounts this year [60] - The strategy includes systematic investment in the bond portfolio as opportunities arise, utilizing cash flows from maturing securities [66] - The company anticipates a 2% to 5% net growth in the deposit book for the year [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the loan portfolio and the quality of the customer base, despite national uncertainties [71] - The company is prepared for potential economic slowdowns while also being positioned for future growth [7][30] - Management does not expect to build reserves unless significant systemic concerns arise [46][50] Other Important Information - The company increased its dividend to $0.25 per share in Q1 2025, up from $0.24 per share in 2024 [12] - The liquidity ratio improved to 0.8% compared to 0.5% at year-end [30] Q&A Session Summary Question: Can you provide insights on the loan pipeline and its composition? - The loan pipeline is strong and similar to the current loan portfolio composition, with opportunities across all regions [39] Question: What are clients looking for to feel comfortable in the current environment? - Clients are cautious due to national uncertainties but see strength in local markets [44] Question: Can you elaborate on the CNI loan portfolio and the recent contraction? - The contraction was primarily due to lower utilization and paydowns in CNI lines [58] Question: What is the outlook for deposit growth for the full year? - The company anticipates a 2% to 5% net growth in deposits, focusing on core deposit relationships [61] Question: What is the plan for cash flows from the securities portfolio? - The plan is to systematically add to the bond portfolio as opportunities arise [66] Question: What areas of the portfolio are being closely monitored for credit risks? - The company is monitoring customers with potential direct impacts from tariffs, but currently sees no significant concerns [71] Question: What is the company's approach to share repurchases? - The company views share repurchases as a good utilization of excess capital and plans to continue this strategy [81] Question: What is the target for the expense to average asset ratio? - The target remains around 2.5%, with flexibility to adjust based on revenue and growth opportunities [84]

Sify Technologies Limited (NASDAQ:SIFY) Q4 2024 Earnings Conference Call April 21, 2025 8:30 AM ET Company Participants Praveen Krishna - IR Raju Vegesna - Chairman M.P. Vijay Kumar - Executive Director and Group CFO Conference Call Participants Greg Burns - Sidoti & Company Jonathan Atkin - RBC Operator Greetings. Welcome to the Sify Technologies Financial Results for Full Year 2024-2025. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note this conference is being ...

Financial Data and Key Metrics Changes - Total sales in Sainsbury's grew by 4.2% in the year, while Argos sales declined by 2.7% [21] - Retail sales growth was 3.1% excluding fuel and 1.4% including fuel [21] - Retail underlying operating profit grew by 7.2% year-on-year, driven by double-digit growth in Sainsbury's operating profit [24] - Total underlying profit before tax grew by 8.6% [32] - Underlying basic earnings per share increased by 4.5% to 23.1p [33] - Retail free cash flow was GBP531 million, down year-on-year due to lower working capital inflows [35] Business Line Data and Key Metrics Changes - Grocery sales growth was slightly stronger in the first half, with continued volume growth in the second half despite tougher comparisons [22] - Sainsbury's general merchandise and clothing sales improved in the second half, particularly in clothing [23] - Argos sales were behind expectations in the first half but strengthened in the second half [23][25] - The number of primary customers increased by 18% over the last four years [10] Market Data and Key Metrics Changes - Sainsbury's achieved its biggest market-share gains in over a decade, with profit growth of over 15% [11] - Grocery inflation averaged between 1% and 2% in the year, with a slight uptick in the fourth quarter [22] Company Strategy and Development Direction - The company is focused on being the first choice for food, enhancing customer loyalty, and expanding Argos offerings [4][5][16] - A GBP1 billion investment in price has been made to improve value perception and competitive positioning [9][46] - Plans include opening 40 new stores and reallocating space from general merchandise to food [15][59] - The company aims to deliver GBP1 billion of structural cost savings over three years to March '27 [12][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining a strong competitive position and outperforming the market [17][88] - The company is prepared for potential market changes and inflationary pressures [100][130] - There is a focus on improving customer satisfaction and operational efficiency [57][88] Other Important Information - The company announced a progressive dividend policy, with a proposed full-year dividend per share increase of 4% year-on-year [43] - A special dividend of GBP250 million is expected from the Sainsbury's Bank disposal proceeds [32] Q&A Session Summary Question: Why is the company confident not to give a range today regarding price guidance? - The company has spent four years resetting its competitive price position and is confident in sustaining this position despite market noise [96][98] Question: Can you elaborate on the half-two weighting and industry competition? - The company expects some disruption in the first half due to store space reallocation, with benefits flowing into the second half [104][106] Question: What is the outlook for Argos in terms of EBIT? - The company has seen positive trends in Argos, with a focus on increasing customer visits and average spend [77][78] Question: How should investors view profit growth in the medium term? - The company is confident in its ability to sustain competitive positioning and manage inflationary costs, indicating potential for profit growth [126][130]

Financial Data and Key Metrics Changes - For Q1 2025, GAAP net income was $44.4 million, with diluted earnings per share at $1.04, resulting in a 0.93% return on assets and a 5.94% return on average common equity [23] - Adjusted operating net income was $45.3 million or $1.06 diluted EPS, representing a 0.94% return on assets and a 6.05% return on average common equity [23] - Tangible book value per share increased by $0.85 during the quarter, reflecting solid earnings retention [24] Business Line Data and Key Metrics Changes - C&I and small business loans increased by 2.1% and 2.6% respectively in Q1 2025, while CRE and construction loan balances decreased by 1.2% [10] - Total loans remained relatively flat, with a 2% annualized increase in C&I balances, while total CRE and construction decreased by 1.2% [30] - Wealth Management business grew AUA by nearly 1% to $7 billion, with organic growth totaling $41 million in the quarter [15][16] Market Data and Key Metrics Changes - Non-time deposits increased by 2.8% year-over-year and 3.2% from the fourth quarter, with the cost of deposits at 1.56% [15] - The overall mix of deposits remained stable, with non-interest-bearing DDA comprising 28.1% of total deposits at quarter end [29] Company Strategy and Development Direction - The company is focused on reducing commercial real estate concentration and shifting towards C&I lending, with plans to continue reducing transactional CRE business [10][12] - The pending acquisition of Enterprise is expected to close in Q3 2025, with a strong belief in the strategic and financial merits of the deal [13] - The company aims to capitalize on its historical strengths, including a skilled management team and strong brand recognition, to navigate a volatile economic environment [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty due to tariffs and federal government actions has caused clients to pause significant expansion initiatives [9] - Despite challenges, management expressed confidence in the ability to navigate the current environment, supported by a strong deposit franchise and capital base [20] - The company anticipates low single-digit percentage increases in loans and deposits for the full year, with a focus on asset quality and resolution of non-performing assets [46] Other Important Information - The company raised $300 million in subordinated debt to strengthen capital ahead of the Enterprise acquisition [39] - The net interest margin improved by 9 basis points to 3.42%, with expectations for continued margin expansion [42] - The tax rate for the quarter was approximately 22.3%, reflecting an increase from the prior quarter [44] Q&A Session Summary Question: How many of the top five NPLs came from East Boston? - Two out of the five NPLs are from East Boston, with the largest one also from there [55] Question: Can you recap the $38.5 million loan that came onto non-accruals this quarter? - This loan matured in the fourth quarter and reached 90 days past due in the first quarter, leading to its non-performing status [57] Question: What gives confidence in resolving the large NPLs given the challenging economic climate? - Confidence stems from being far along in the resolution process for several loans, with due diligence completed [60][66] Question: What is the current loan pipeline status? - The loan pipeline is robust, with a significant increase in C&I business reflecting a strategic shift [75] Question: How does the company plan to deploy elevated cash balances from the sub-debt raise? - The priority will be to support loan growth, with some cash allocated for the acquisition and to pay down wholesale borrowings [162]

Financial Data and Key Metrics Changes - The company reported over $40 billion in revenue with over 300 million paid households, representing an audience of over 700 million individuals [6][8] - The operating margin for the year is forecasted at 29%, with expectations of growth in content expenses in the second half of the year due to the timing of the content slate [31][32] Business Line Data and Key Metrics Changes - The company has seen strong, stable acquisition and retention trends, resulting in healthy member growth in Q1 [27] - Engagement remains strong, with no significant changes in plan mix or take rate noted [12][26] Market Data and Key Metrics Changes - The company represents less than 10% of TV hours from an audience perspective and about 6% of consumer spend in the countries served [7][8] - The low-cost ad plan is expected to provide resilience in the current economic environment, with strong demand anticipated for entertainment [14][18] Company Strategy and Development Direction - The company aims to double revenue and triple operating income by 2030, focusing on long-term growth potential [3][4] - The strategy includes a commitment to producing original content in 50 countries, contributing to local economies and cultures [20][21] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring consumer sentiment and the broader economic environment, noting that entertainment has historically been resilient during tough economic times [11][13] - The company expects to continue improving value and accessibility for members, with a focus on enhancing the overall entertainment experience [17][24] Other Important Information - The company is rolling out its proprietary ad tech suite, which is expected to enhance advertising capabilities and drive increased sales [38][42] - The company is committed to leveraging AI to improve the creative process for content creators, enhancing both efficiency and quality [81][85] Q&A Session Summary Question: How should investors think about Netflix's internal goal of doubling revenue and tripling operating income by 2030? - Management clarified that internal discussions about long-term aspirations do not equate to forecasts, emphasizing a focus on building a valued entertainment company [4][5] Question: How has member retention been trending? - Retention trends remain strong and stable, with no significant changes noted [26][29] Question: What are the key incremental costs that will drive lower margins in the second half? - Content expenses are expected to grow in Q3 and Q4 due to the timing of the content slate, with no significant differences anticipated between the two quarters [32][33] Question: How is the rollout of the first-party ad tech platform performing? - The rollout in Canada and the U.S. has gone well, with positive feedback and expectations for further improvements [42][44] Question: What types of games have resonated on Netflix so far? - The company is focusing on immersive narrative games based on its IP, mainstream established titles, and kid-friendly games, with plans to improve user experience [97][99] Question: How is the adoption of extra member accounts trending? - The extra member account option is seen as a healthy part of the offering, providing flexibility, but it is not expected to be a major driver of business growth [92][93]

Financial Data and Key Metrics Changes - Total sales grew 13% year over year in Q1 2025, with a 10% increase excluding smart cover, following a 23% growth in Q1 2024 [9][10] - Operating profit margins reached a record 22.2%, expanding 360 basis points year over year, while gross profit margins improved to 42.9%, also a 360 basis point increase from the prior year [12][17] - Consolidated EPS increased by 31% to $1.30 from $0.99 in the prior year [17][18] - Free cash flow for the quarter was $30 million, up 60% from $18.8 million in the previous year [18] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 16% year over year, or 12% when excluding smart cover revenue [10] - Sales for the flow instrumentation product line decreased nearly 5% year over year, although there was a sequential improvement of 7% from Q4 2024 [11] Market Data and Key Metrics Changes - Year over year growth in utility water was driven by cellular AMI adoption, including associated meters, Orion cellular endpoints, and beacon software [11] - The company noted strong positive feedback from customers regarding the integration of smart cover into their water management solutions [7] Company Strategy and Development Direction - The company aims to manage uncertainties related to tariffs and macroeconomic conditions while focusing on operational execution and supply chain management [19][27] - The acquisition of smart cover is expected to enhance the company's product offerings and drive sales and operating synergies [7][28] - The long-term average revenue growth outlook remains at high single digits with modest margin improvement over time [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of their business model, particularly in the context of replacement-driven demand [46][72] - The evolving tariff situation and macroeconomic challenges are acknowledged, but the company believes it can manage these effectively [19][27] - The company remains debt-free and has ample capacity to invest in growth despite economic volatility [29] Other Important Information - The company was recognized on the Barron's list of 100 most sustainable companies for the third consecutive year [29] - Karen Bauer, the retiring Investor Relations Executive, was acknowledged for her contributions over 72 quarters [30][105] Q&A Session Summary Question: Can you provide more color on the favorable product and customer mix benefits? - Management indicated that while the margins are impressive, they are influenced by various factors, and some elements driving Q1 results may not be sustainable [40][42] Question: Are core customers showing signs of pulling back on spending? - Management reported no indications of customers pulling back, emphasizing the durability of the replacement-driven market [46][72] Question: What is the aggregate impact of tariffs on COGS? - Management stated that the situation is complex and variable, but they believe they can manage the impact through pricing actions [56][60] Question: How are municipal budgets affecting AMI investments? - Management noted that utilities often reprioritize budgets to ensure meter replacements are funded, even during budget constraints [71][72] Question: Are price increases already communicated to customers? - Management confirmed that price increases are forthcoming but have not yet been communicated to customers [94] Question: What caused the increase in receivables? - The increase was attributed to timing differences in sales between Q4 and Q1, along with the addition of smart cover [102]

Financial Data and Key Metrics Changes - The company reported record earnings of $115.2 million, translating to $0.58 per share, marking a significant increase from previous quarters where earnings were around $100 million [15][16] - Core earnings were reported at $111.9 million or $0.56 per share, with a non-recurring expense of $2 million related to a Texas lawsuit impacting this quarter [16][17] - Revenue grew to $260.1 million, surpassing the previous quarter by $700,000 and the same quarter last year by $13.1 million [17] - The net interest margin improved to 4.44% from 4.39% in the previous quarter and 4.13% a year ago [18] - Nonperforming loans decreased to 0.60% from 0.67%, and nonperforming assets improved to 0.56% from 0.63% [22] Business Line Data and Key Metrics Changes - The community banking segment saw a net loan growth of $187.6 million, with total loans reaching a record level of $14.95 billion [19] - The CCFG segment experienced a decline of $103 million in loans, primarily in the commercial and industrial loan portfolio [19][38] - The commercial real estate book remained stable, with a 5% increase over the past year [41] Market Data and Key Metrics Changes - Deposits increased by over $395 million, bringing the total to $17.5 billion, which led to a decrease in the loan-to-deposit ratio to 85.24% [20] - The rise in interest-bearing deposits decreased to 2.67% from 2.80% at year-end [20] Company Strategy and Development Direction - The company aims to reward shareholders and maintain a conservative approach with strong capital and liquidity [10][12] - Management is focused on maintaining strong asset quality and operational efficiencies while navigating uncertain economic conditions [10][11] - The company is open to M&A opportunities but emphasizes the need for deals that make financial sense [123][136] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite economic uncertainties, highlighting a strong quarter and potential for continued growth [10][11] - There is a focus on maintaining a disciplined approach to loan growth and managing expenses effectively [76][156] Other Important Information - The tangible book value increased to $13.15 from $11.79 a year ago, and the return on tangible common equity for the quarter was 18.39% [24] - The company continues to buy back stock, having purchased approximately 1 million shares in the quarter [25] Q&A Session Summary Question: Insights on borrower demand and boat lending - Management noted elevated volume in boat lending due to manufacturer subsidies, but there is some uncertainty affecting project developments [49][53][55] Question: Margin outlook and loan yields - New loan production yields were reported at 7.75%, with competition affecting deposit pricing strategies [57][59] Question: Credit cleanup and industry concerns - Management indicated that there are no new material concerns and that recoveries from previous charge-offs are ongoing [63][64] Question: Legal expenses and future expense control - Elevated legal expenses related to the Texas lawsuit are expected to decrease, with management aiming to maintain expenses around $111 million [74][76] Question: M&A strategy and deal flow - Management is open to smaller deals and multiple transactions, emphasizing the need for accretive opportunities [132][136]

Financial Data and Key Metrics Changes - For Q1 2025, funds from operations (FFO) were reported at $0.68 per fully diluted share, an increase from $0.60 per share in Q1 2024, indicating a positive trend in financial performance [22] - Cash same-store rental growth for the quarter, excluding termination fees, was 10.1%, driven by increases in rental rates and higher average occupancy [22][23] - In-service occupancy at the end of the quarter was 95.3%, a decrease of 90 basis points from year-end and 20 basis points from the year-ago quarter [22][23] Business Line Data and Key Metrics Changes - The company achieved a cash rental rate increase of 30% for new and renewal leasing, with a projected growth of 30% to 40% for the full year [15][29] - Development leasing included a successful expansion of a tenant in Denver, bringing a 200,000 square foot building to 100% occupancy [16] - The company plans to break ground on a 176,000 square foot facility in Dallas, targeting a cash yield of approximately 8% [17] Market Data and Key Metrics Changes - Nationally, vacancy in Tier 1 U.S. markets was reported at 5.9%, unchanged since year-end [12] - Net absorption was 56 million square feet, with 24 million square feet in target markets, while new construction starts were 75% lower than the peak in Q3 2022 [13] - In the Inland Empire, vacancy rates decreased by 30 basis points, with net absorption of 3 million square feet, indicating a positive trend in that market [65] Company Strategy and Development Direction - The company is focused on executing objectives to drive long-term cash flow growth while monitoring the impact of tariffs on tenant demand [30] - Future developments will target areas with unmet demand, particularly in Texas, Florida, and Pennsylvania [50] - The company remains opportunistic regarding new investments, emphasizing risk-adjusted returns in targeted sub-markets [50][134] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the evolving landscape surrounding tariffs and their potential impact on business activity and leasing markets [10][11] - The tone remains positive, with good momentum and increased foot traffic, although decision-making has slowed due to uncertainty around tariffs [75][90] - Management anticipates that the majority of tenant demand will continue, despite some conversations being paused [88][90] Other Important Information - The company renewed its senior unsecured revolving credit facility by $100 million, extending the maturity date to March 2030 [24] - The company acquired two fully leased developments in Phoenix for $120 million, with a cash yield of 6.4% [20] - The company expects to capitalize about $0.09 per share of interest for the full year of 2025 [29] Q&A Session Summary Question: Impact of tariffs on tenancy perspective - Management indicated that exposure to Chinese 3PLs is minimal, with only 450,000 square feet leased to them, and no significant concerns from auto tenants [35][37] Question: Development leasing visibility - Management confirmed that the majority of development leasing is expected in Q4, with good activity in the market despite some tenant concerns regarding tariffs [41][46] Question: G&A expenses related to stock-based compensation - Management acknowledged an increase in G&A due to accelerated stock-based compensation but did not provide a specific dollar amount during the call [55] Question: Current tenant activity and leasing velocity - Management noted that while some tenants have paused, the overall interest and demand remain strong, with no specific concentration of paused activity in certain industries [88][92] Question: Development yields and construction costs - Management stated that they can achieve yields over 7% on new developments, despite rising construction costs, by focusing on areas with strong demand [112][114] Question: Amazon's expansion plans and RFPs - Management observed that Amazon is focused on expanding same-day delivery capabilities and is active in several markets, indicating a shift in their approach to warehousing [161][162]

Financial Data and Key Metrics Changes - The company's earnings for Q1 2025 exceeded both street expectations and internal projections significantly, with strong performance in NOI and leasing results [6][7][10] - The company closed nearly $200 million worth of DPE investments in the past nine months and is negotiating a pipeline of over $1.2 billion in new debt investments [10][12] Business Line Data and Key Metrics Changes - The debt-related businesses are expected to account for increasing profits, with management indicating that these earnings are a meaningful component of the company's identity [11][12] - The acquisition of 500 Park was completed, achieving 100% occupancy shortly after, and a significant improvement program is planned to increase rents [12][13][76] Market Data and Key Metrics Changes - The CNBS market for New York City office properties saw $6.9 billion completed year-to-date in 2025, a significant increase compared to previous years [32] - The company noted a fight for quality in the market, with New York City demonstrating resilience and positive momentum despite macroeconomic turbulence [31][34] Company Strategy and Development Direction - The company remains focused on both growing its equity portfolio and capitalizing on opportunities in the commercial debt market, with a strong emphasis on high-quality office development sites in Midtown Manhattan [12][49] - Management is optimistic about the long-term viability of the New York market, indicating a commitment to significant new developments despite current market uncertainties [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the leasing pipeline, noting that there has not yet been a slowdown in tenant activity despite macroeconomic challenges [25][60] - The company is confident in its ability to meet its leasing targets for the year, with a strong start in Q1 and expectations for continued demand driven by a return to office trends [71][72] Other Important Information - The Summit One Vanderbilt has become a leading experiential attraction in New York City, setting a ticket pre-sale record recently, indicating strong demand despite concerns over international tourism [14][120] - The company is actively pursuing office-to-residential conversions, with several viable projects underway that could significantly reduce available office space in the market [110] Q&A Session Summary Question: Can you discuss the trends in pre-built spaces and their economic rent potential? - Management indicated that pre-builds are essential for competitiveness, especially for smaller tenants, and they have a competitive advantage in executing high-quality designs [19] Question: How do you assess the impact of market sell-offs on leasing activity? - Management noted that there has been no slowdown in their pipeline, with an increase in tenant activity despite recent market disruptions [25] Question: What are the trends in the overall debt financing markets? - Management expects some turbulence in credit markets but believes New York City will remain resilient, with a strong demand for tangible assets [31][34] Question: Can you provide updates on your leasing targets and occupancy rates? - Management remains confident in achieving their leasing targets, with a strong start in Q1 and ongoing demand for office space [71][72] Question: What is the status of the casino license process? - The process is moving forward, with expectations for local approval by September and a license award by year-end [56] Question: How are concessions and free rents trending in the market? - Concessions have remained stable, with potential tightening in certain submarkets as face rents increase [65] Question: What is the outlook for the office-to-residential conversion opportunities? - Management sees a significant volume of conversion candidates and anticipates that this trend will firm up the market over time [110]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted earnings per share were 58 cents, with core pre-tax income of $247 million and adjusted net revenue of $2.1 billion, reflecting solid execution across core businesses [14][15] - Net interest margin for the quarter was 3.35%, up two basis points compared to the previous quarter [14][36] - The company reported a GAAP loss per share of 82 cents for the quarter, primarily due to a pre-tax loss related to securities repositioning [35] Business Line Data and Key Metrics Changes - In the auto finance business, consumer originations reached $10.2 billion, driven by 3.8 million applications, the highest quarterly application volume ever [19] - Insurance written premiums were $385 million, representing a 9% year-over-year increase, supported by new relationships and growth in P&C exposure [21] - Corporate finance delivered pre-tax income of $76 million with a 25% return on equity, demonstrating resilience across economic cycles [23][64] Market Data and Key Metrics Changes - The company serves 3.3 million customers with deposits reaching $146 billion, up nearly $3 billion quarter-over-quarter [26] - The average number of Ally F&I insurance products sold per dealer increased to 2.2%, the highest since the IPO [22] - The consolidated net charge-off rate was 150 basis points, a decline of nine basis points from the prior quarter [45] Company Strategy and Development Direction - The company is focused on simplifying its organization and prioritizing resources in areas with demonstrated competitive advantage [12] - A multi-year partnership with the WNBA was announced, establishing Ally as the official banking partner of the league, highlighting the brand's commitment to community engagement [10] - The strategy includes further investment in core franchises: dealer financial services, corporate finance, and deposits for sustainable growth [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position despite macroeconomic uncertainties, emphasizing the importance of focus in navigating challenges [13][73] - The company anticipates some near-term volatility due to changes in trade policy but remains optimistic about long-term economic benefits [73] - Management highlighted the importance of maintaining a disciplined approach to capital management and expense control to drive shareholder value [75] Other Important Information - The transfer of the credit card business to held for sale was completed, which is expected to strengthen the balance sheet [16][41] - The company executed two securities repositioning transactions to reduce interest rate risk and increase net interest income [17][42] - The average carrying value at termination for weaker performing lease units is expected to be lower going forward, improving future lease gains [58] Q&A Session Summary Question: How do tariffs impact the business? - Management acknowledged the evolving uncertainty regarding tariffs but emphasized the company's strong balance sheet and strategic positioning to navigate the environment [82][84] Question: Can you discuss the NIM outlook? - Management reiterated guidance of 3.4% to 3.5% for 2025, considering various rate scenarios and the impact of the credit card business sale [89][103] Question: What is the outlook for credit performance? - Management expressed optimism about stabilizing credit performance, with expectations to reach below 2% loss rates by the end of the year, contingent on macroeconomic factors [110][116] Question: What is the used car price outlook? - Management indicated that used car prices are expected to remain elevated, potentially benefiting the business due to supply-demand dynamics [126][128] Question: How will the company approach unwinding curtailment? - Management stated a cautious approach to unwinding curtailment, closely monitoring market conditions and performance metrics [121][123]