Good afternoon, ladies and gentlemen, and thank you for waiting. We would like to welcome everyone to Banco Bradesco's 3rd Quarter 20 18 Earnings Results Conference Call. This call is being broadcasted simultaneously through the Internet in the website, banco. Bradescoir en. In their address, You can also find the presentation available for download.
We inform that all participants will only be able to listen to the conference call during the company's Presentation. After the presentation, there will be a question and answer session when further instructions will be given. 8. Before proceeding, let me mention that forward looking statements are based on the beliefs and assumptions of Banco Bradesco's management 8 annual information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future.
Investors should understand that general economic conditions, Industry conditions and other operating factors could also affect the future results of Banco Bradesco and could cause results to differ materially from those expressed in such forward looking statements. Now I'll turn the conference over to Mr. Carlos Feretti, Market Relations Director.
Hi, everyone. Welcome to our conference call for 8th quarter results. We have today with us our Chief Executive Officer, Otavio de Radari, Jr. 8, our Executive Vice Director and Investor Relations Officer, Denis de Tavarina and 8. Vinicius Donbernas, the CEO of Bradesco Securities.
Now to begin our presentation, I turn to Denise.
8. Good afternoon, everyone, and thank you for participating on our call. I'll present the main highlights for the quarter and then I'll pass to Fred to complement the numbers 8 and Vinitos' albernas for the Insurance Group results format. Going to Slide 3, 8. The Q3 was a good one even with the volatile environment that we faced.
We reached the BRL5.5 billion of net income, 8 13.5% year on year growth. Our operating earnings with a 24.5% growth year on year 8 show the improvement we had in our operations. Our return on EBIT reached 19%, an expansion of 100 bps in the last 12 months. If you look at the other side of the slide, our loan book continues to grow with improving quality, the delinquency ratio It's in one of the lowest levels we ever had. And our Tier 1 ratio improved 80 bps 8th quarter.
Going to slide 4, I would also 8. To draw your attention to some of the 3rd quarter events and things that have a major impact in our activities 8 among the list that it appears in this slide. I would recall that our efficiency, the mortgage leading that we 8 having the 1st 9 months both in commercial as individual loans. This is a very important activity for us. Yes, provides long term relationship with our clients the possibility to sell a set of products.
And now you were a leader even when you compare to Cachacomo and Caserao that traditionally was the leader. Secondly, the termination of the EV that we did with Fidelity, we 8 unified card processing and the European synergies that we ramp up reaching up to BRL200 1,000,000 per year from 2020 onwards. We also have acquired 65% of RCB shares, which is a recovery company with objectives not only to enter in this business that can be very interesting for us, but also to increase our credit recovery efficiency in up 25%. We are improving the cross sell capacity within our non checking account customers about 8. Looking forward to a more worthwhile and long term relationship with this client and completing our 8 digital platform with digital wallet, as well as providing a full May platform under open banking concept, 8, where we have already 257,000 users.
Going to slide 5, We have been adjusting our branch network and this will be a continuous process looking for more efficient and cost reduction. This is also possible due to the growth we've had in the number of digital clients, 8, a growth of 35% only in the last 2 years. We have continued to close our transform some branches 8. We like the branches or cashless branches, which will maintain our presence and therefore our clients, which are lower with a lower cost structure. In parallel, we are growing our digital platform and should reach 1 point 5,000,000 clients by the end of 2019.
These platforms allow our account managers to cover 8, 3 times more clients, increasing by 4% the profitability year on year when we compare to the traditional branches. 8. As we analyze it by case, we still see great opportunities in maintaining our presence locally 8 in several regions. As we have in the payroll acquisition transaction in Paraipa, state as an example, where we experimented a 50% increase in the credit portfolio and almost 44% growth in deposits. 8.
Slide 6, following the macro trends, we have developed a few years ago in innovation ecosystem that has brought already a number of good improvements and strong innovation culture to Bradesco. 8. So important in this disruptive scenario that financial services are facing nowadays. Our Innovada Habitat 8. It has already 60 companies and 180 start ups, which have a relationship with us either via collaboration, ideas exchange, as well as through investments with our venture capital firm.
We have also the most advanced initiative in artificial intelligence in the Brazilian financial market, with BIA, where 7,500,000 clients already interact with BIA. Besides improving our clients' 8 experience in reducing costs. Our clients already can perform some interaction with BIA in order to see their statements 8 and the call for acquisition and very soon they will be able to do transactions. 8. Continuing the slide 7, the number of 8.
Our clients set up the transactions have been increasing fast as you can see in the chart. We reached the 300,000 clients in our total digital born bank next. And we should reach 500,000 clients by the year end of 2018. If we consider also the opening 8 of accounts digitally at Bradesco not only next, we have already opened 365 18,000 accounts together. We've done a transaction we had over the last 2 years a fast expansion for individuals and companies also do most of their transactions via internet or mobile banking.
And you can see also in the chart the increasing lower origination both for individuals and for companies. In the case of the individuals, we more than doubled the volume of loans via mobile and Internet and companies. We tripled the volume in the last 2 years. If we go to Slide 8, 8. As you know, we have complete solution in payments for our clients.
We have already distributed to our clients 85,000 co branded POSs with Cielo and 123,000 with Taillenas, 8, both incremental to Cielo's existing client base to face the new competition environment. We believe we are developing the best solution for the small business and our website, Melsaso, offers a full range of solutions 8 and have already 350,000 users. Our clients, May clients 8. They are entering this platform and start their business getting the registers they need, get accounting, 8 advisory and do their financial transactions. So it's a complete platform to those plans.
We also have a complete range of alternatives in digital world as we can see in the chart. And I would call the attention to the usage of the QR code 8 that we are doing that we will enable almost 200,000,000 cell phones 8 that has the NESC function to perform payments, which is the majority of Brazilian population. 8. In slide 9, one of the points that were addressed that really needed to catch up and we feel that we are Very well now addressing the same. We designed a strategy focusing on improving the experience of our clients in wealth management.
And this 1,300,000 clients that we have. We also redesigned Agua 8 and services that Agro and Bradesco brokerage House provides to our 300,000 clients. That includes for all of the groups includes recommended portfolio, investments as a general view and pension plans also 8 in terms of advisory. The service is focused on the persona, not the simple profile, but it's a little bit deeper than the profile. 8.
And we have been investing in 2 and qualified people besides the increasing the team that's attending those clients, either locally or globally. And the last page, just to 8. Remind that Bradesco has a bunch of amount of a great amount of value to the society 18 up to September, we added BRL 45,000,000,000 and this dividend is showing this sharp 8 dividend. The government contribution to basically tax was remuneration and 8 Property Reinvestment as a whole and Bradesco Foundation, which is our main shareholder, but is 8. They're inspirational for us and are proud because they provide the student 8 study from Kindergarten for a few high school.
And we have provided through Bradesco Foundation just in 2017 to 97,000 students. And
now I
would add to Fereci to detail the financial results and I'll be here also to answer any questions. Thank you.
Okay. Thank you, Denis. So going now to the highlights of our income statement. 8. We had, as Denis pointed, a good result.
Our earnings grew 6% in the quarter and is growing 13.7% year on year, 1st 9 months accumulated at 11.1%. In the quarter, we reached an 19% ROE. We think it's a big highlight is the evolution of our operating income that in the quarter is growing year on year 8. 24.8 percent. I think the improvement in the operational income gives 8, a very good assessment on how we have improved our operations over the last quarters.
8. Going to Page 13, our return on equity, as I pointed, we reached 19%. We had a very good evolution considering the horizon since the last To the Q4 2016. We believe we have reached a new level of ROEs and we still focus For keeping spending, we believe that the economy improvement in the economy then the opportunities that will arise from it with more loan growth and also the maturity of many of our initiatives will allow us to Actually look for higher profitability level. Page 14, we have our loan origination.
We have been delivering for a while very good levels of loan origination growth. Individuals in the Q3 year on year, we have an expansion of 29.5%. For companies, loan origination is growing at a rate of 40.6%. The reduction in the quarter in companies is more related to a strong base in the Q2 due to some specific operations, but We continue seeing a very good pace of evolution in loan origination. In Slide 15, the you have We have our expanded loan book.
Our total loans are growing at 7.5% 8 year on year. In the quarter, we grew 1.5%. Excluding the FX impact 8. From the loan growth, loans increased 1.2% in the quarter and 5.6% year on year. The majority of the FX impact is on the corporate portfolio.
8. We see individuals growing nicely at 8.1% year on year. 8. Most of the lines in the individuals book is growing at high rates, 8. Exceptions for cards where we are growing actually nicely on the 8 portfolio of clients of Bradesco, our own clients.
The slowdown happens more on private label where we are still finalizing some adjustments. We believe we should go
back to growth 8.
In terms of SMEs growing at 8.3% year on year, We see a good demand, and we believe this portfolio will keep 8. It's pending. On large corporates, it's partially this growth is explained by effects, also some specific operations. We have appetite for 8 operations in corporate, but keeping a very high level of discipline in using Our capital, we believe that in the longer period, we're going to see 8. Individuals and SME loans growing more than corporates.
Another 8. Important thing on loan growth, we believe a sizable part of the growth we have been presenting That is due to the fact that we have been improving our credit score models, 8, bringing more data and having better information for models and taking decisions that has been allowing us not only to originate credit with good call it, but also to originate more because it gives us the security to actually underwrite more loans. In Page 16, our net interest income, our net interest income 8. It's shrinking 1.6% in the 1st 9 months of 2018. The interest earning portion that is the base of our guidance is shrinking 2.2%, almost in the middle of our guidance as we had 8.
Indicated, in the quarter, we had an expansion of 4% with 8. The improvement in the insurance line and also in the asset liability line and also increase in the credit intermediation mostly due to the positive impact 8 of loan volumes. Page 17, the 90 days NPLs remain As one of the biggest highlights, right now, we had a big improvement in the SME book, where we had almost 70 bps reduction in NPLs, 8. Basically, with some companies in the segment actually 8 paying some nonperforming loans. We think The quality of the SME book should remain quite strong or even that The new vintage is performing very well.
Also, we had a good performance in individuals, where we had, as I mentioned, the positive impact of better vintage, also helped by The improvements we have been making in modeling. In corporate, the NPLs are still high. We believe Over the coming quarters, over the coming year, we can see improvements in this line. The performance there is not It's sometimes driven more by a few cases, but we believe that with the economy improving and looking to the profile of most of our exposures, we believe trends should be also 8 positive on corporate. In the Slide 18, we have 8.
On the top, our NPL creation versus the gross provision expenses. 8. Our provisions represented this quarter 121 percent of the NPL formation. This is 8, a large portion due to the credit recoveries we had this quarter, where We had some of the recovered based on new loans that we bring back to our loan book fully provisioned and that increases provisions in the quarter. The NPL formation itself is doing quite well, remaining as a percentage of the loan book, very well behaved.
8. In the lower portion of the chart, we have the cost of risk. Basically, we reached We remain at that 2.7% of the loan book. This is close to the lowest levels we have seen. We believe 8.
Cost of risk can continue improving over the coming year. We potentially can go to levels below the bottoms we have seen in 20 14. Page 19, we have our renegotiated portfolio. The total renegotiated portfolio 8 has an increase of 30 bps, but this is mostly due to the recovery of loans that were off balance. This increase in the renegotiated portfolio didn't affect NPLs that can be Seeing when you look to the red line, that is the renegotiated portfolio of loans that were In our book, this portfolio actually decreased In the Q3 by BRL 600,000,000.
We remain quite well provisioned in the renegotiated portfolio. 8. In Page 20, Slide 20, the coverage ratio over 90 days 8 increased to 243% in the 3rd quarter from 230%. This is a very high level of coverage. We think the coverage is not a driver for provisioning In our basically, this increase has to do with the improvement in NPLs and the fact that we have a buffer of BRL 6,900,000,000 of excess provisions That has been remaining intact in our balance sheet.
We don't have any defined intentions of Doing anything for reducing proactively coverage, but it's something we can always 8 discuss. Fees and commissions, Basically, we had an increase in the 1st 9 months of 5.6%. 8. The main the lines that presented the best performance was The customer brokerage with 10.9% growth year on year despite the fact that It's reduced in the quarter. We keep growing nicely in checking accounts.
8. It's due to the partially due to the synergies we have been able to capture from our acquisition and also asset management that is due to the efforts we have been making in 8, our Wealth Management business. In Slide 22, our total Spences are growing at 0.9% in the 1st 9 months. This quarter, we had the impact of the collective bargain of banking workers that happened in September. We believe our costs will remain well behaved in the middle of our 8 guidance from minus 2 to plus 2 or close to 0.
We had an increase in the number of employees this quarter. This is mostly due to some projects we have been investing on. One of the most important of them is the milder tour health clinics That is a project that we believe can over time help us to keep The costs in our health insurance operation under control. We kept reducing the number of branches, almost 50 branches this quarter. We keep focused on adjusting our branch network, closing some branches, but also converting branches in points of service where we can keep the business and at the same time having 8 benefits in terms of costs.
In the Slide 23, our slide on 8 Insurance. The net earnings of Bradesco Insurance is growing at 11.6% year on year despite the fact that in the quarter, We had a reduction of 7.6%. We believe in the case of insurance, it's always better to look longer periods 8. Since we have some variations in the quarter by quarter that are sometimes due to 8. Some specifics of the business dynamics.
The ROE for Bradesco Secururos is at 19.1% in the 1st 9 months of 18. We in terms of the performance of premiums, premiums are showing a reduction 8 of 3% in 9 months this year. This is due to the 8 weakness. We have seen in the market, especially in the pension business and also some adjustments we have been making, especially in In our auto insurance, we reduced a lot the operation with fleets 8 of cars and trucks. And this is what is causing this impact in auto insurance.
In Page 24, we have the 2 important ratios for insurance. The claims ratio that is going down for the Q2 in a row, reflecting 8. The improvement in claims in other segments, but I would like to highlight the improvement, especially in health That is a result of the measures we have been taking to control the claims and costs 8th in the health insurance operation like negotiating with service providers package 8 of service that has been helping us to reduce the overall costs of the operation. 8. Also, call your attention on the combined ratio that has been improving for 8.
Many quarters reaching 84.1%. This is a very important indicator of the performance of insurance company and we are delivering well on that. 8. Slide 25, our BIS ratio, we have an increase in Tier 1 by 8 bps This quarter, this is due to earnings retention, but also the effects 8 of Central Bank Resolution 5,680 that changed the treatment on the tax credits from tax losses. 8.
Basically, it gave us 40 bps in capital. We keep originating capital organically quite strongly, and we believe we will keep adding 8 Capital over the coming years, even considering we are 8 Growing More. Considering FX, if FX remains
8. In
the levels they are right now are below. Actually, that could also help additionally So since we could consume the tax credits from tax losses that are still in our balance sheet, that would also reduce risk weighted assets on that particular item. 8. To conclude on Page 26, we have our guidance. We have been delivering 8.
In almost all lines, the only one where we are below is on the insurance premiums with total premiums in the year dropping 3.1%. We feel we can approach The guidance range in the Q4 considering it is by far the most important quarter 8 in the year. But the important there is, apart from premiums, actually, we are doing quite well on the operational 8 results of insurance. So now I conclude the presentation and open to questions.
8. Ladies and gentlemen, we will now initiate the questions and answer 8. Our first question comes from Mr. Carlos Marcebo with Goldman Sachs. You may proceed.
8. Hi, good afternoon gentlemen. A couple of questions. I think the first question is about your provisions. 8.
You mentioned the highest probable coverage that we had in a long time at 240%. 8. When you look at the breakdown of provisions, most of that is coming from growth in the generic provision. So we don't have any growth in the excess provision and the required provision basically say decline. So the question is, is there room for you to that's a large part 8 driven by your perspectives on creditworthiness, particularly on the corporate side as that's where the generic provisions have been 8, largely situated.
Is there any perspective in improving or changing some of the credit perspective there? In other words, 8. Is there a room for you to be more positive about the ability of these large corporate borrowers to repay their debts and therefore 8. Lower the requirement for provision on a generic basis, which is something you could do. 2nd question, if you could talk a little about margins, The credit margin declined this quarter.
We saw similar things in what the competitive retail income there. Is there something Specific year for the therapeutic part of the regulatory change or is this just more pressure from competition? Thank you.
Okay. Thank you, Carlos. On generic provisions, Carlos, this quarter specifically, as we mentioned And we put in a note in the release. We recovered about 3 credits that amounted BRL 9 8. BRL 20,000,000.
And this credit were coming came from 8, a quarterly process. And when we recover them, actually, we made 8. Generic provisions because after recovering, they are performing loans and making these provisions, they are generic. So this quarter, We had about BRL900 1,000,000 increase because of this credit recover. It is not really something That relates to the dynamic of the portfolio.
It is the specific thing on which actually we don't have control. We have to follow this rule. Overall, the trends on provision in credit quality remain quite strong. And We believe that they we should continue have seen improvements going ahead. Regarding margins, basically, we see spreads in some lines 8 going down.
Nothing actually dramatic, but going down gradually and that's It's fair considering that we had a big reduction in the cost of risk and banks As a whole, are looking for growing more. What we believe is basically, We have in some portfolios a very good capacity of origination like mortgage, our position, The way we operate in payroll loans and also overall margins, we believe the mix, Especially when we have much bigger growth in individuals and 8 SMEs as opposed to lower growth to corporate, this mix effect should help our margins. We believe from the current levels, we believe margins are probably likely to 8. Even improve a little going forward considering mix.
8. Thanks, Shrede. Just going back to the first question, even if you exclude Aetna and the dividend, you're still up year over year in 8. Generic and I understand that it's a year over year look. But going out, what conditions would you need to see to start taking a more favorable view.
And that, I think, is a key question. Do you need to see GDP growth accelerate? Do you need to see pension reform. What should we think about that we believe maybe some reductions in the provisioning requirements such as some of your corporate
8. Basically, we need to see this client 18. Part of the debt actually 8. We have to see their actual credit capacity or credit quality 8. Clearly improving.
You have to remember, there's we had a big 8. A big crisis and that the corporate segment was especially affected. There were some 8 renegotiations and most of the cases we got, we were able to strength our position in terms of collaterals. But we think in some sectors, even though we see good signs that the companies 8 are improving. We need to see Much clearer signs that actually the companies are totally turning around before actually reviewing some of the provisions.
Okay, perfect. Thank you.
Our next question comes from Mr. Marcelo Perez with Credit Suisse. You may proceed.
Hi. Hello, everyone. Thanks for the time and congratulations on the strong results. 8. I have a couple of questions.
The first one, now that you have elections behind us, 8. How do how are you assessing your credit risk models? I mean, do you think there is a chance that you might Increase your risk appetite, elections now behind. And is it possible to see 8 loan growth for Bradesco. Now let's say, going to next year, growing at a double digit 8 rates in a scenario of a more benign economy, considering that this year, you guys are already at 5.6% 8 FX adjusted.
That's my first question. And the second question, Regarding the threat of Fintechs, how does Bradesco see 8 playing out for you. I mean, we know there has been some pressure on fees. I mean, it's very clear. I think all the banks have reported so far 8.
Showing some fee pressure. Do you think that's what we're going to continue to see down the road or you anticipate potential threat on the credit side as well? 8. Thank you.
Okay.
Hi, Marcelo. This is Zenizi. 8. Starting by the risk appetite, we increment 8. Marginally the credit according to our model, because they are able to capture the better performance of our clients.
So we increased the appetite according to those model shows. So we will not do anything that 8. Few investors, but we follow the market. And as you know, we like to earn money. We like to 8 offer service to our clients.
So we will use all the instruments we have to increase the level of credit we have in our safe way. In terms of loan growth for next year, of course, you need to understand 8. How this growth of the country will happen, but unknowingly we see 8. And lastly, it has been twice the GDP. So we can say something around 8%.
We are not giving guidance 8. This is something you do in the beginning of the year, but it's possible, likely possible to have a number like that. 8. In terms of fee pressures, you're asking about the constitution that's correct and you don't know if the correct will you separate through that? 8.
Yes, I think that.
Okay. So what we see of course, we see a lot of movements going around, 8. But we haven't seen in credit any special movement that could call our attention. And in the other side, we are preparing all of our platforms to be able to provide credit to our clients in a more 8. Cheaper way for us in the sense that we can offer the best price, best condition to Erkline.
So We don't see, but we are preparing ourselves to any challenge that we had to face in the market.
8. Marcelo, let me complement your questions. Regarding growth at 2 digits, 8. For the full portfolio, it's hard to say. We it's the corporate book could be growing less, given that part of what's going to be and the reason is going to go through Capital Markets Investment Banking.
But in some portfolios and maybe individuals, Maybe small companies, we think actually we there There's conditions of actually accelerating growth. For and we have, 8 as the risk appetite. Apart from that, as mentioned, there's big improvement in the credit models. We have been able to given this improvement, given the a better 8 assessment of credit quality. We can approve more.
This is part of what's going on. There is very important projects being finalized soon that could help us even more on that better assessment 8 of credit quality. And therefore, even though we are not Lowering the bar, we are actually Approving more. On fees, complementing what Denis said, This quarter, when you look to the performance, it was not really the best quarter in terms of But there are some specifics like Investment Bank. It was a particular 8 week quarter.
There was not much activity, given the scenario. We think Going ahead, this line can be a very, very strong one given the what we expect and our position actually in the market. The fees are also being impacted by 8. The cards line where there is a lot of competition, especially in the acquiring business, But we believe that with the acceleration of the economy, we're going to see the positive impact of volumes. In terms of asset management, actually, given what Denise mentioned, our efforts In terms of wealth management, we are doing a lot of things that in our view can actually allow us to grow more than the market, given that we can actually go more towards We believe it's our fair share in the business market.
So I think I wouldn't say necessarily We the fee line is going to be very weak. It's we still believe we can have some decent growth there.
8.
Yes. Also the letters of credit and guaranteed line, it was mostly due to Some redemptions on some letters of credit, maybe in 8. Stronger economic activity potentially we can have that line actually expanding. It's sometimes related to The Exactimate Banc activity.
That was very helpful. Thank you.
Our next question comes from Mr. Jason Mollin with Scotiabank. You may proceed.
8. Hi, thank you very much. My question is on the balance sheet. Specifically this quarter, We saw another negative impact from the mark to market of the available for sale securities of about BRL600 million according to my calculation. This followed last quarter's BRL3.5 billion hit 8.
That doesn't go through the income statement. So I'm just trying to understand I understand what the mark to market of available for sale is. 8. I'm looking in your balance sheet and I do see a large increase in the bonds and 8 securities long term of about $40,000,000,000 and I see short term reduction in $12,000,000,000 Just trying to understand the movement. 8.
And in the Q3, we didn't see it. I'm just looking at long term rates, a big decrease 8. Should we expect the book value to rebound if the market stayed where they are? And then the way I'm really looking at this is to try and understand the trends in return on equity because 8? It is enough to change our calculation of that.
Okay. Thank you for the question. Jason, Basically, as you mentioned, the market to market is related to the fact that the interest rate curve still moved up in the quarter. As you said, The improvements we saw in the scenario didn't were not fully captured in the end of the third quarter. 8.
With the reduction in rates and better market conditions, Yes, the values of the security increased, but during the quarter and also last quarter, As a measure to protect our balance sheet in a scenario of volatility, we transferred some securities to help to mature it. Basically, with that, Some of the market to market will not flow back immediately with the improvement in the market, but We don't feel this is a problem because the nature of those securities are relatively or the maturity is relatively short. 8. We will accrue the interest on that and we capture the higher value of those securities 8 as we converge to maturity. But the part 8.
Of the book that is still available for sale, yes, we can see improvement in market to market. 8. So would you say that the majority I mean, I'm just trying to say, I guess, so there could I'm just looking at Short term securities declining
$12,000,000,000 in the long term $40,000,000 Is that I mean, that wouldn't be the switch from available for sale 8. To held to maturity in this case. I mean, it could
have that's the impact that I guess is adjusting. It's going
to impact the future valuation
8. But what's going on? Is this a strategic shift in the balance sheet to put
8. More bonds and securities there. Is this coming more from insurance and from the banking operation?
There wasn't any specific switch this quarter, Jason. Maybe I have To look further on the details of what you are saying, but basically, structurally, we didn't do anything 8. This quarter apart from actually this change of part of the portfolio to help mature it. Sometimes When we acquire a position, it's still in trading, then it goes to other lines. I think it's better if We just talked and you show me specifically what we are referring to and I try to get an explanation.
8. That's very helpful. Thank you. We'll do that.
Thank you,
8.
8. Excuse me, ladies and gentlemen, since there are no further questions, I would like to invite the speakers for their closing remarks.
8. First of all, I'd like to thank all of you for your time taking the call. And to say that our balance sheet 8. This quarter and if we look at the 9 months, have showed the efforts that we have been doing 8 to work in several areas. As El Paso Life said, we don't have a bullet silver bullet.
We do work in several lines in several fronts in order to include the results as we've seen costs, which will continue to be our efforts. And 8. Bradesco being a bank that has a branch network 8 Spreadswell Brazil is well prepared to take advantage of the growth of the economy before it comes for the next year. So thank you very much and have a nice weekend.
That does conclude Banco Bradesco's conference call for today. Thank you very much for your participation and have a good day.