Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Banco do Brasil's second quarter of 2020 earnings conference call. This event is being recorded, and all participants will be in listen-only mode during the company's presentation. After this, there will be a question-and-answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. This conference call is also being broadcast live via webcast through the Banco do Brasil website at www.bb.com.br/ir, where the presentation is also available. The replay of the conference call will be available through the phone number 551-121-880400 until August 13, 2020, in English and also in Portuguese. To access the replay, please ask the operator to listen to this conference call. Identification will be required. Participants may view the slides in any order they wish.
With us today, we have Mr. Daniel Maria, Head of Investor Relations and Sustainability. Mr. Daniel Maria, you may begin now.
Thank you. Good morning, everyone. Thank you for attending this call. Let's start with the presentation of stage four. Let me bring some highlights of the event. First of all, the adjusted net income for the first half was BRL 6.7 billion. This represented an increase of 22.7% when we compare to the same period last year. This performance was mainly influenced by the increase in the allowance for loan losses. The credit provisions grew by 51.8% in the same period, showing a quite conservative approach that we are going to describe later. The NII showed good gains in the moment that we had decreased in the base rate, reaching BRL 28.5 billion, an increase of 9% when we compare the first half to the first half in 2019. Fee income decreased by 1.4%, and the administrative expenses grew in line with inflation, reaching BRL 15.6 billion.
Moving to the next slide, slide five, we bring the net income. The net income, probably a good way to look at this, is to see what we call the PPOP, the Pre-Tax and Pre-Provision Earnings. Excluding the credit provisions, we see a growth in the structural results generated by the bank by 11.7% compared semester to semester and 8.3% when we compare the second quarter to the second quarter last year. Moving to the next slide, slide six, we bring here the behavior of NII. As I said, quite recent, we had a large decrease in the base rate, and we had a growth in the NII by 9% in the period. This can be explained mainly by the structural position that we have in net liabilities. Our liabilities that are floating rates are pricing quickly, and we see that the funding expenses decreased by 36.9%.
Treasury contributed to this half of the year in R$ 6.7 billion, a decrease of 4.4% when we compare to last year. Moving to the next slide, slide seven, we bring the dynamics for NII. First of all, we're starting on the left-hand part of the slide. We bring the spread by portfolio. The spread is quite stable. The changes that we have are basically due to the changes in the mix. In the case of individuals, the decrease that we observe here compared to last year is mainly explained by the cap in interest rate that is thought to be here for overdraft facilities. When we go to the SME, we see that the behavior of SMEs is completely dependent on the liquid assets.
This quarter, we saw an increase in the liquid assets moving from BRL 1.5 billion-BRL 1.7 billion, as you can see in the bottom part of the slide, and the higher participation of liquid assets extends the reduction. If we normalize the liquid assets, our mean would be in the region of 4.33, higher than the last quarter. Slide eight, we go into the allowance for loan losses bringing some breakdown of provisions. The extended view for credit provisions. We see the credit deterioration. The stage-based approach to the provisions is basically the way we are behaving. Since we see the NPLs behaving quite well, and part of this can be explained by the growth orders. We know that there will be a delay in the NPLs. Basically, what we're doing is creating provisions exactly to prepare for when this NPL comes.
Another aspect that you can observe here is a higher impairment that happened in the private bonds, basically coming from some transactions in large corporates. Moving to the loan portfolio in slide nine, we show the behavior of the credit portfolio. We had an increase of 5.1% when we compare to June last year. Comparing the credit portfolio to the last quarter, we saw a reduction of 0.5%. That mainly can be explained by the movement of the large corporates that we're going to describe later. Some of the highlights of the credit portfolio is the growth in the SMEs by 10% year on year, and individuals by 6.6%. That is completely aligned with the approach of the bank of concentrating the business into the retail portion of the book and using for the wholesale mainly capital market solutions.
On the next slide, right hand, we magnify here the individual loan portfolio. We see a reduction of the loan portfolio compared to March. However, when we look at the size, the payroll portfolio grew from R$ 84 billion to R$ 86 billion. And here, on the right-hand side of the slide, we bring some more colors about the composition of this loan portfolio, payroll loan portfolio. 86-87% is comprised by civil servants. We have also added up to the disproportion of the retirees. We reach almost 98% of this portfolio with segments that are more protected in terms of unemployment. Moving to the next slide, slide 18, slide 11, we bring the company's loan portfolio. And here, as I said, the main driver for reduction in this portfolio is basically explained by the large corporates.
This is completely in line with the strategy of the bank to use more capital markets. I would say that the synergies of origination of credits, origination of mandates for capital markets, distribution to the markets, and another leg of the strategy is distribution to the retail of the bank. We grew a lot. The AUM under management inside the bank in terms of customers. We increased the number of managers giving special attention and advisory for those customers. We increased the number of products, and we are very active in distributing corporate bonds and equity. This is quite a hot trend here in Brazil, and we are demonstrating good behavior in this direction. Moving to the next slide, we bring specifically the SME portfolio. SME portfolio, as I said, presented a growth in comparison to the last year of 10%. This growth is more concentrated in working capital.
Comparing to the last quarter, it was a growth of 1.5%. The dynamics of the SME portfolio tends to change a little bit in the third quarter. Just as an example, this Pronampe, Pronampe is a loan with some mitigators using a fund to guarantee that you have first loss for that fund. We were able to grant BRL 5 billion for those loans at the beginning of the third quarter. And this tends to change a little bit the dynamics of this portfolio for the next quarter. Going to the next slide, slide 13, we go to the agribusiness portfolio. The agribusiness portfolio, the performance remains positive. We have a growth of 1.1% compared to the last year. We see that movement, that dynamics of decrease in the agro-industrial. And the reason is exactly the same as the large corporates.
We see more instruments like the CRA, that is an instrument linked to agribusiness, being distributed to retail and to institutional investors. And the bank is quite active in this. And the growth is more based on the growth loans and mainly in individuals. On the right-hand side, we bring some highlights. The participation of the bank in the market share, almost two-thirds of the market share. The new Harvest Plan that was launched in the quarter, we have 103 billion BRL channeled to finance Harvest Plan. Comparing to the amount that was disbursed last year or the last harvest, we see an increase. And one important aspect that highlights the innovation of the bank and commitment of the bank to the sustainability is that this year, the Low Carbon Agriculture Program is reaching the 10th year.
We have roughly two-thirds of all those instruments in the Brazilian markets that were developed by the bank. We reached BRL 15.4 billion of transactions done in those characteristics. Moving to the next slide, we go to slide 14 that we show the asset quality of the portfolio. We see decrease in the NPL and increase in the coverage ratio because it's exactly that movement that I mentioned. NPLs with the rollovers, they tend to lag the effect. Lagging the effect, in a more conservative approach, we are being conservative. We are making preemptive provisions and growing the coverage of the bank. The next slide, we bring the credit quality separated by segment. Then we see for the three segments, individuals, companies, and agribusiness, we observe decrease in the NPL and growth in the coverage ratios. Now, moving to the new NPL. New NPL, slide 16.
We saw a decrease in the new NPL for the total portfolio. The coverage of the new NPL is higher than 100%. We're actually 149%, almost 150%. Looking at the new NPL by segment, we saw decrease for individuals. We saw decrease for the business. We saw some increase in companies. That is completely explainable because this segment is more affected by the challenges we see with the economic situation. The next slide, slide 17, we bring the rollover key characteristics of the rollover. Let's start on the right-hand side that we bring the disbursements in the period. And those disbursements will include new transactions, renegotiations, rollovers, and basically, it was distributed this way. And bringing light to the rollover specifically, we had BRL 71.8 billion in rollovers. And the distribution was roughly 43% for individuals, 53% for companies.
Amongst this 53%, almost two-thirds of this represents SME portfolio and the other parts of the larger companies and 4% for agribusiness. Just some highlights. These rollovers represent 11.6% of the credit portfolio. We had more than 1.7 million customers or 1.7 million transactions that were extended in a certain way. And what we did for those customers is basically customers that they are paying accordingly their installments. 99% rounded up, they were in regular situation. And this portfolio, 98.4%, the rating of those customers are in the region of AA and A. In terms of guarantees, 69% of those transactions we had guarantees and mitigators. And in relationship with those customers, we have more than 14 years on average relationship. Next slide, 18, we bring the fee income and the behavior of fee income. Certainly, there are a few reasons that explain the decrease in fee income.
One is structural. At the moment, we have a decrease in the base rate naturally. We've repriced some of the products and the asset management. I think that is the best example, and this brings some pressure to the fee business, and secondly, it's more situational. Since you have a different stance of the consumers preserving income, reducing consumption, certainly this decreases the potential for cross-selling of products. But although we had this situation, the performance was quite well. Asset management, for instance, we had a large decrease in the fee business. However, volume compensated this in a certain way that we saw an increase of 3% in the period. Other lines, this is much clearer as good credit and insurance. Moving to the next slide, we bring the administrative expenses. Administrative expenses, they were in line with inflation, and the bank is committed to control costs.
In terms of efficiency ratio and the fee income to administrative expenses, we saw worsening. But this basically can be explained by the reduction in the fees, much faster compared to the cost. However, the bank has some measures to address this. And here in the upper part, we just show some of the measures that we did in the past to control costs and so on. The next slide, we bring a little bit of what we are doing for the future in terms of costs. And those are just three initiatives. We have more. And just reminding some of them that we discussed, we had the opportunity to discuss in the past. The first one is what we call the Performa. Performa is basically redefining, redesigning the compensation plan for the employees, giving more attention to variable components based on performance and reducing the fixed portion.
This was announced in February this year. We had the opportunity to discuss. Here, just putting some numbers to this, and basically, we are going to capture the benefits along the years and certainly completely detrimental to the turnover of the workforce. The second aspect that we had the opportunity to discuss also was efficiency, equal efficiency initiatives. We mentioned about the solar energy farm that we inaugurated last quarter. There is another one that will start operations this quarter, and there are others in this process, in addition to buying energy, clean energy in the wholesale markets and also using technology to reduce consumption. Another aspect here is at the center that we call flexibility. Actually, this project we have been studying even before all that story.
Actually, the concept is to bring a more collaborative environment in the office, moving from the cubicles and going to an open space and so on, and stimulating and using the home office more frequently. Actually, from one day to the other, due to the pandemic, we had more than one-third of our employees working in home office. Then this project actually was tested in an asset test and worked quite well. What is the idea? To extend this concept of remote work and also reviewing all the corporate space. In this process, we have a space to reduce the space, and we have a possibility to reduce the space and also to sell some buildings that are owned by the bank.
All those three initiatives that actually they were contracted, and we are executing them, they will show liquid savings in costs of 3.3 billion BRL accumulated in the next five years. This shows actually how we are addressing the cost structure of the bank. As I said, this is only after the initiative, and certainly we are going to have more things to say in the future. The next slide, slide 21, we show the capitalization of the bank growing organically. We reached 10.56 of CET1. We continue committed with our target of reaching minimum 11% by January 2022. Finally, going to some aspects of innovation. The bank has been working and investing a lot in the last years in terms of innovation. All those investments that we made were able to have the bank prepared, including to face the social distancing in this process.
Just bringing some numbers, some highlights. For instance, we have currently more than 90 million people using our app, and on a daily basis, we have more than 6 million people accessing our app every day, and this concept, thinking about new ways of monetizing the customer base, is quite relevant because we want to have people accessing recurrently and in a way that we can offer products and services through those instruments. Certainly, the pandemic or the social distance accelerated this process as we show here the number of users that grew quarter on quarter. Another initiative that I would like to highlight here is the WhatsApp. WhatsApp is basically we had this last year, is a new way of interacting with the bank using artificial intelligence, and you can access and discuss about products, including paying bills and so on, and the number grew exponentially in this process.
With a high percentage of resolution. Just reminding that the systems learning as we have more movement on this. This shows innovation in the bank in this way that we changed the interaction with customers and opened new channels of communication. The digital wallet that we have here. This is an MVP. We tested this through the payment of benefits. In those tests, we had 1 million people using those products with more than 1.5 billion BRL in payments. This product is being launched, and we have potential to grow in this product. Saying that, we can move to the next slide that we just give some color of things that we are thinking, things that we are analyzing, and it shows a lot of innovation. First of all, it's what we call Broto.
Broto is a platform for agribusiness that you can access just to check broto.com. Through this platform, you have the agribusiness customer interest. We have information about the productivity and so on. We can advise that person about ways to increase the productivity. We can sell products and services based on that. We can sell insurance, including link, non-banking products, machinery, and so on, then this shows a little bit new ways of monetizing the customer base, and for that reason, it's important to have the app and the instruments and having people accessing the system, then we have ways, again, of creating value for the customers and creating value for the shareholders as well. The second aspect that is quite relevant, we are doing a great resolution in the company's relationship.
The same thing that was done for the individuals and is quite well developed, the access to apps and internet to do services, we are doing in the company's front. And we are using APIs to do this. This is quite fast to implement, and we can have levels of customization. Just reminding that Banco do Brasil used API for the first time in 2017 and some solutions for credit. And we have 72 customers sorry, 71 customers that are using solutions, integrating their systems. One example of this is that the boleto that we have for collections, we have 12 million, 12.7 million of those boletos generated through the app. And we have 400 customers that are in the process of implementation. And this shows change, a completely transformation in the way to interact with this segment.
We launched this week the new platform for the digital for companies. This is basically bringing user experience to these forms and giving some level of customization and, again, making it much easier to do the business. The other aspect I would like to highlight is venture capital. We are investing the first tranche in venture capital now in the third quarter. This is BRL 100 million. The idea is to partner with fintechs. This is important for co-creation of new solutions and products. Finally, in the payment front, this is the greatest transformation in the system. Banco do Brasil was the first bank to meet all the requirements of the regulator. We are prepared to start Pix, the instant payment system as it will be defined by Central Bank. As a complementary approach, we have announced also Facebook Pay.
Actually, we are waiting for authorization of the regulatory authorization for this. But moving to the next slide is just to mention that innovation is not only in the technology and the cultural aspect. There is one aspect that probably we hear a lot in the last weeks or in the last year is about ESG and social responsibility. This is something that the bank has a lot of this as part of the strategy of the bank. And just I brought some landmarks that show why the bank is well recognized in terms of awards and indices in terms of ESG. Just some examples in terms of voluntary programs. Since 2001, we have programs in the social aspects. We have more than 25 initiatives that were done in these periods and 25,000 initiatives in those periods. The BB Asset Management currently has eight ESG funds.
The first fund that was more driven to governance was launched in 2002. And currently, we have BRL 141 million in assets under management in these characteristics of funds. What we call Agenda 30, those are the strategic plans of the bank to meet, to grow in terms of social responsibility. This is started in 2005. We are in the seventh version of this instrument, this planning. We realized, or not we realized, we implemented more than 500 actions along those years. As I said, the low carbon agriculture is celebrating the 10th year, and this is starting in 2010. The bank was the first bank to implement in Brazil to implement social environmental guidelines for credit, having very specific, which are the restricted and exclusion lists. The agroenergy program, we started in 2016, working with implementation of renewable energy for agribusiness.
Then more recently, we replicated this for companies also, and those two initiatives together, they reached almost BRL 1.1 billion, and one thing that we got, we enhanced, was the geo-social environmental diagnostic. This is basically the geolocation that we have been using to finance working capital to the business and a compliance model that basically we capture using geolocation. If that area is not in a protection area or it's not in a reserve and so on, then in addition to the technical information that we have about production and so on, we add these aspects that is quite relevant in terms of compliance and meeting all those standards, and one example, more recent, is the carbon-free certificate that we launched for one customer that is completely aligned to the HILTS protocol.
That being that, ending the presentation, I would like just to highlight that what we are showing here, that we are delivering consistent results in the last years. We are working a lot in terms of innovation. We understand that the banking world will be completely different, and we are bringing innovation, new ways to interact with customers and creating new business models, approaching efficiency, new ways to bring efficiency and to adapt to the cost structure of the institution, and certainly taking very seriously the aspect of ESG. Thanks a lot, and we can move to the Q&A. Okay. Then, ladies and gentlemen, we now begin the question and answer section. If you have a question, please dial star one at your phone now. Our first question, it is from Marcos Assumpção from Itaú BBA. Please Mr. Marcos, you may proceed. Hi, Daniel. Good morning, everyone. Two questions.
The first one, comparing a little bit the extended portfolio of BRL 72 billion with the additional credit provisions that you made around BRL 4 billion. When we compare that to the other banks, the additional provisions were a bit higher, and the extended portfolio were a bit lower. Can we say that your extended portfolio probably has a lower risk than the peers in terms of the profile of the clients that are there? As you mentioned, also the high level of guarantee is around 70%. That's my first question, and the second question is on the venture capital initiative that you just announced. What is the strategy there?
Is to acquire partnerships, acquire stakes in fintechs, as you mentioned, with the idea of making some money or with the idea of bringing solutions and also more service to the bank, like helping the bank to offer new products and solutions for their own clients? Okay. Thank you, Marco, for the question. First of all, going to the rollovers in the extended portfolio. Actually, our portfolio, we understand that it's less risky compared to the system. And some of the reasons for this is, first of all, the agribusiness portfolio that we present is one-third of our portfolio. Secondly, when we look at the individual's portfolio, we have a higher participation relative to the system, to the payroll. Then this gives a different risk profile of the portfolio compared to the system. The second aspect is what we are doing in terms of provisions.
Basically, what we are doing is when we have a customer that has any situation of past due, we are aggravating or downgrading the risk and downgrading those risks, including sometimes much faster than defined by the regulators, certainly for those ones that we see much weaker. In doing this, we accelerate the provisions that we are doing. The second aspect is, although central bank gave some provisions, regulatory provisions to free the rate of the customers when we roll over those loans, we are not using it. Then these extend also these movements that we are doing. The third aspect is basically even transactions that we are comfortable with a level of provisions, we are reinforcing, we are increasing provisions exactly to prepare to those times, and these extend a lot how we are driving the provisions.
Probably, your question is quite interesting because probably those numbers, when you compare, the first aspect is the profile of the portfolio. The second aspect is how the other banks are doing those additional provisions. And probably, I don't assume that all of them are using the same standards. And then this is for the first question. About the venture capital, the third one, actually, we have several formats for this. We have co-participation companies. There are some funds that we are only participants in those funds. The idea is basically co-creation of solutions and certainly entering in the capital of those with a participation through the funds exactly to implement and to bring those solutions to the company, including to test some of this inside the company to bring to the customers. It's less than in the perspective of investing in a company to sell later.
It's much more in terms of creating innovation and bringing different dynamics for the origination of products, services, and also innovation. Perfect. Just a follow-up here, Daniel. I know it's early because you just launched this venture, but do you think that this could be growing in terms of size in the future for the bank? Yes. Yeah. This was the first bench, and we see this for sure to grow. Perfect. Thank you very much. Thank you. Our next question is from Nicolas Riva from Bank of America. Nicolas, you may proceed. Yes. Thanks very much, Daniel, for taking my questions. I have two questions. The first one, if you can provide us with an update on your pipeline of asset sales. One of the assets you had mentioned in the past was your stake in Banco do Brasil.
You can also talk about your views on your stake in Cielo. That's part of your core assets or not. And then my second question, so I understand that yesterday the Senate in Brazil approved a bill implementing a couple of interest rates on both credit cards and overdraft loans, a 30% interest rate cap, and that it will be temporary until the end of this year. If you can talk about, in your view, what's the likelihood of this bill being also passed, being approved also in the lower house and passed into law? And if it is passed into law, what will be the impact on your financials this year? Thank you. Okay, Nicolas. Thanks a lot. Let's start in terms of divestments. As we have been mentioning, the bank certainly is revisiting all the investments we have.
And what is the driver for this? It is basically, let us understand what will be the markets in the future, what is the relevance of this participation, if there is any way of tapping these markets, and certainly based on that, taking decisions to make those movements. Nicolas, so far, we have no definition about those cases. We continue to analyze, but we have no definition about those cases specifically to bring to the market. By the way, yesterday, we revisited, actually answering some requests coming from the regulator about the card business. Basically, this is the M; it is one flag that we have in the market. We just mentioned that we are certainly analyzing possibilities, but there is no conclusion, there is no approval in the corporate governance of the bank about those issues. And this is very similar to all the other cases.
There is nothing defined, there is nothing approved. As soon as we have something, certainly we are going to come to the market and we are going to communicate to the market within the core about. Okay. Thanks very much, Daniel, and then as for my second question about the bill to put a cap on interest rates on credit cards and overdrafts. Okay. The cap of interest rates certainly would affect the system as a whole, and that's presumably because, as I said, the cap that we observed in the overdrafts represented a reduction in our spreads for the system as a whole, but for our spreads. In our case, the impact was a little bit lower, mainly due to the competition. Let me give you some numbers, and those are public numbers that we have. The total system has, in terms of overdrafts, BRL 29 billion.
We have BRL 1.7 billion, including I mentioned in the previous conference call, 0.5%, but actually it's 5% that we have in the system. When we compare this to the system, our participation is lower due to the system. When we go to the revolving credit cards, the participation of the bank is even lower compared to this. The system has BRL 42 billion. In total, the bank tends to have less than BRL 3 billion in the system. Then there will be some impact, certainly, due to the size of the reduction or the size of the cap that is being established. However, we tend to have a low impact compared to the system exactly due to the approach we have.
Just reminding, overdrafts and revolving, when the customer starts to use very often, what we do, we channel the customer to other lines of credit because if they use very often those lines of credit, we could have higher ATRs, and mainly in channeling to those lines that have different rates and different formats, we can manage the cash flow of the customer. This is basically due to the financial education of the population that sometimes doesn't understand all the effects of interest rates, and that's the main point, Nicolas. I think that is important, and this is what makes more difficult the second part of your question, what is the likelihood of pass this? Because rates stay at those levels not because the banks stay bad, but mainly because there are structural reasons for that. Probably the best way of addressing this is exactly addressing the structural reasons.
I personally, I don't believe in capping interest rates is going to solve a problem. Probably capping interest rates is going to create some externalities that you're not expecting. Then it's hard to think, it's hard to predict how will be the behavior of the Congress, the lower house about this. Certainly, the association of banks is exactly approaching and showing all those effects to reach that discussion. But this is a follow-up that we need to have. But certainly, there will be some impacts. And to estimate these impacts to the system, probably you can crunch some numbers. You have further information about the rates that the banks charge in Central Bank web page. For instance, Banco do Brasil is not; we are in the rank in the 20th position in terms of rates. Then you can compare the rates. And the same thing for the revolving credits.
Then you can estimate a little bit how much would be the impact for the system for that impact. But certainly, there will be some. Did I answer your question? Yes, it did. Thanks very much, Daniel. Thank you. Our next question is from Henrique Navarro do Santander. Henrique, you may proceed. Hi. Good morning, everyone. So my first question is on provision. The second quarter earnings season is pretty much over, and we already believe that in the second semester, the amount of provisions is going to be lower than in the first semester. But let's say that for the case of Banco do Brasil, because you have a higher exposure to agricultural loans and let's say lower exposure to SMEs, can we say that for Banco do Brasil, maybe in the third quarter, we could see cost of risk going back to normalized levels?
That is the first question, and the second question is that on rollover. First, we have the 60-day credit being rolled over, so it's already about the time for the clients to pay for the first installment after the COVID-19, so how was the behavior of this first payment after the first rollover? That's it. Okay. Thank you. Thank you for the questions, Navarro. Let's start with the cost of risk, and to be very frank, there is a likelihood that the second half would be better in terms of provisions than the first half. It's hard to have full visibility of this because there are some other data on this, because we have so far the benefits that are being paid by the government. When those benefits reduce, what's going to happen in terms of NPLs isn't clear.
How it's going to work in terms of services since we have the reopening? The behavior of the customers will go to the same levels or not. Then this is another aspect that is quite interesting to observe. The economic growth, I would say that you see this based on forecasts that every week the perspective for the GDP is getting better. It's negative, it's still negative, but better compared to the past. If those variables confirm for the benign scenario, I completely agree with you that the likelihood is that we have better cost of risk. But there are unclear cases. Exactly because things are so dynamic that we need to fine-tune every week what is happening. And basically, if we are going to have any larger cases coming, we don't foresee this. But again, those things happen so fast that it's important to monitor.
But what you can expect on our side is to continue to be conservative and continue to have those preemptive provisions exactly to create cushion to all those scenarios. And we understand that this is the right way to do it. The second aspect is about the rollovers. Your question is quite interesting because certainly the rollover is lagging to facing NPLs. And the way we approach rollovers for companies is basically for 60 days. And we made the first wave. We made the second wave. We are entering in the third wave. But when you look at the customers individually, you have a little bit of everything. People that adopted, requested to go over in the first wave and paid in full. People that paid part and rolled over for the additional periods. People that didn't enter into the first wave, now they are requesting.
Then you have different behaviors on that. But we understand that so far, the way we are looking, the level of provisions that we have is quite sufficient to absorb the impacts. Okay, Nicolas. Thank you. Did I cover everything? Yeah, that's perfect. Thank you, Daniel. Thank you. Our next question is from Neha Agarvala from HSBC. Neha, you may proceed. Hi. Thank you for taking my question. Just wanted to follow up on the previous question on Cielo. I understand that you have not yet evaluated what you could do with your holdings in different sectors. But the Cielo another issue is Cateno because you have a JV for your card processing business, which is with Cielo. So how would you separate the two businesses? And what are the options that you could probably explore if you decide that Cielo is no more a core asset for the business?
Okay, Neha. Thank you. Thank you for the question. I would say that it's too early to say. Certainly, those questions that you're raising, since we are exactly in the process of discussion and we are looking for the value of those companies nowadays and looking at the trends of the market and what would be the market in the future, and you know that predicting the future is not an easy thing, and mainly to try to wrap everything, and we do not have a definition, then it's too early to mention about that, but certainly, as soon as we have decisions taken and we go to the market, we are going to communicate, we can elaborate more about whichever is the decision that the bank announces, and another question on Pix. You're already ready to integrate yourself with Pix.
What do you think will be the short-term impact on the bank and the medium-term impact as well from the implementation of Pix? Thank you so much. Okay. This is a great question, Neha. First of all, Pix will change a lot of the system. Not only the banking system, the payment system, but also the e-commerce, the relationship of people and e-commerce. Certainly, we have instant payments in several parts of the world, but the way it's being designed here probably is unique in some aspects. This, as always in life, brings you to two sides. Opportunities, a lot of opportunities in our field, and challenges. The easiest challenge to see is in the fee business. And some of the lines, and probably the most clear example is 3% of our current account fees, our checking account fees are transfers. And this tends to reduce or to disappear.
Certainly, it will not from one day to the other, but tends to gradually reduce. There are other effects that all banks, all the system will have. On the other hand, this opens a lot of opportunities of creation of new products and new interactions. For that reason, we have been working in the last two years in integrating companies to the system through APIs that I mentioned, then cash management, how the collection process, how we can advise companies in the cash management. These will change a lot. I gave an example in the last conference call that is e-commerce. Here in Brazil, it's very common that you go to a web page that you sell in the e-commerce to buy some product, and you choose a collection process that you receive this list, then you pay. What happens?
Usually, this takes a lot of time between you receiving the actually, you make the payments, the company identifies the payments, and so on. At the moment, you integrate this and the financial institutions helping the customers to make the process fast. This change, including logistics, this change including the process of managing the log of the companies, and this is basically the way we want to position on this, and those are the opportunities we're seeing. At the same time, when we talk about the expansion in this ecosystem, we see a lot of space that we can develop products and solutions, and this is completely linked to the issue of working or co-creating products through the venture capital, solutions that we have internally, for instance, in the payments systems and in the companies, including for individuals.
This is the other side of the coin, and we believe that we are well positioned to these new worlds. Did I answer your question, Neha? Yes, you did. One last quick follow-up. Apart from the transfer fees that you mentioned, another source of fees which could come under threat is the collection services. It can be done directly through Pix with the government. The commissions that you earn on collection services might go down eventually. Am I right to think about that? You're right. You're right. But inside collections, actually, there are two kinds of collections. One collection that is basically payments, that you issue the slip and you make the payments. And the other that is linked to a process that if the person doesn't pay, you have a collection system that goes to the notary to enforce the payments.
I would say that this second one continues to be active in the bank in a different way, but it will continue to happen. The first one, certainly, will disappear or will tend to disappear and move to the other parts. Could you please tell us how much of the total collection revenues are from the first part, which could be under threat? A rough estimate would be good. I don't have the number on the top of my mind. I don't have this number to give you, but probably I can give a follow-up. Let me just check here. No, I don't have. But I can check this and come back to you. Sure. No problem. Thank you so much for the color. Very helpful. Thanks a lot. That does conclude today's question and answer session. Mr. Daniel Maria will proceed with his closing remarks. Please go ahead, sir.
First of all, thanks a lot for the attention, for the questions, and for the support that you all give to the bank as shareholders. We are available here for any additional question and have a nice weekend. Thank you. That does conclude Banco do Brasil conference call for today. As a reminder, the material used in the conference call is available on the Banco do Brasil investor relations website. Thank you very much for your participation and have a nice day. You may now disconnect.