Good afternoon, ladies and gentlemen. Welcome to the video conference of Banrisul to discuss the results of the second quarter 2025. To start off, we would like to apologize for what happened on Friday. The call was about to be held at 2:30 P.M. on Friday, and due to a contingency situation where the event is held at the headquarters, for safety reasons, we had to reschedule the call for today. We would like to thank everyone for attending the call at this time. Let's start. The video conference is being recorded, and the replay can be accessed at the IR website as the event is completed. The broadcast has simultaneous translation into English. Should this be your preferred language, you can click at the bottom of the screen. Let's go over the event.
We are going to divide it into four parts: an initial phase where we are going to broadcast a video on technology update, and the bank will share this information about its evolution. Then our CEO will address the highlights for the half of the year, and the Financial Director will discuss our financial performance. We are going to have an interaction with Apimec. We are holding a public meeting with the members, and we will close with a Q&A session. Let's see our video on technology evolution of Banrisul. Digital transformation. For us, it's more than a trend. It's a mission. It's culture. It's changing the way we think and act. Understanding that technology is not only a tool, but rather a strategic decision delivering value with intelligence, empathy, and a purpose.
At Banrisul, innovating is a verb we use every day: continuous evolution with a total focus on client experience. This story does not start now. We are about to celebrate 97 years, and we have always been at the forefront of innovation. We started the technology back then with the first steps in the direction of modernization. In the 1990s, 1980s, we started using computers more extensively. In 2001, we revolutionized the means of payment. In 2005, we launched an internet card with a smart chip. In 2007, with Banrisul, we started with innovative services for the time. In 2018, we created the unit of digital transformation, focusing on client experience and agility. In 2019, we launched a new app. During the pandemic, our transformation intensified, and our digital dimension gained strength. New journeys were incorporated, bringing more facility and comfort to our clients.
Higher credit cards, and new credit modalities, opening of accounts to companies and individuals. Today, our app has new functionalities and optimized journeys, much more intuitive. AgroFácil revolutionized the way we provide services to agriculture. Our channels are ever more intuitive and centered in the client. Our humanized service is ever stronger. We believe that innovating is evolving our more human side, more empathic, more committed, and closer to the customers with more than 4 million clients. Our digital transformation goes beyond the screen. This is for life, for the whole country, for the future. We actively participate in the financial activities in Brazil. We develop emerging technologies for a new era of digital assets. With Banritech Fly, we propelled businesses into new business models.
The digital transformation moves us to generate true transformations, not only to evolve the present, but also to bring forward tomorrow and impact positively everybody's lives. Banrisul is the protagonist in the evolution of the financial sector, actively contributing to the future every day. Banrisul, a unique bank because it understands you very well. I'll turn the call to you, President. The line is yours. The floor is yours.
Good afternoon, everyone. It's an honor to see you again. Nathan has already apologized for what happened on Friday. It's an honor to be here with you today to discuss the results of the bank on the 18th. I came back after two years. After some years, I was away. I don't know if everybody was expecting my return, but here we are.
The first contact that we had, we informed the way we would follow, looking for a better mix of the portfolios focused on companies. We understood that we were a bit away from this dimension. Also with a focus on results. As I always say, I like to look at the bank from the viewpoint of results. We are very happy with the figures we're going to present. We can see that the net income amounted to R$16.19 million, 42% higher than that of last year, and 56% quarter on quarter. Our ROA surpassed two digits. This is something that we had not reported in the past few years. Our loan portfolio reached R$64 million. Our funding, for the first time in our track history, surpassed R$100 billion.
That shows the confidence that our clients have placed on us, individuals, millions of individuals who are our clients, as well as companies and major investors of our companies that started to have a more appropriate relationship with Banrisul. Our net interest income is also increasing. As we can see in the results, $1.6 billion, a growth of 9.8% year on year, and 6.4% quarter on quarter. Cost of risk is also controlled, and administrative expenses are also well controlled below the inflation. We are on the right track. The bank will continue along this pathway. This is our purpose. With the control of the delinquency rate, we made some important changes in renegotiation as a result of Resolution 4966. That changed the way we carry our provisioning.
Our credit appetite will continue to be focused on companies with all the caution necessary, considering the selling rate as high as it is. This is our credit appetite. We are confident we are going to reach the end of the year with positive results. Thank you, Nathan.
Thank you, President. Let's turn the call to Gonzaga to discuss the lines of results and the lines of the results of the quarter.
Good afternoon, everyone. We are once again reporting to the market, rendering accounts on the results of our bank. Our profitability of net income stood at 56.4% in the quarter, an increase when we compare the first quarter of 2025 and the second quarter of 2025, and 52.7% if we compare the second quarter of 2024 and the second quarter of 2025.
If we compare the half of the year results, we report an increase of 42.4% higher when compared to the first half of 2024. We also had an increase quarter on quarter. Our ROA had a growth of 5 percentage points, 9.9%, 9.3% in the first quarter of 2025, and the second quarter of 2025, closing at 14.3%. When compared to the year-on-year basis, the second quarter of 2024, when compared to the second quarter of 2025, we had an increase of 4.4 percentage points. The half of year results, we reported a 3% percentage point growth. All of those numbers are familiar to all of you. We are just reporting the highlights of the results. Net interest income, the second quarter of 2025, had a growth of 9.8%. When we compare to the first quarter of 2025 and the second quarter of 2025, we had an increase of 6.4%.
We ended the first half of 2025 at $3 billion when compared to 2.9% in the first half of 2025, a 9.5% of growth. Our loan portfolio reported a growth in the past 12 months of 70%, R$54 billion in June 2025 versus June 2024, amounting to R$64 billion, and a small growth quarter on quarter. If we break down by the portfolios, we can see that payroll loans had a growth, and there was a drop of 2% because there were some credits which were renegotiated. This is going to be located in other areas. We had a growth in cards and also personal loans. There was a growth in those portfolios which are very profitable. As for companies that have already been mentioned by the President, we had a growth of 5.6% in the quarter.
We can see the credits, auto loans, and other parts that are also included in this line. Conta Única is also performing well. In short, we reached 5.6%. If we look at March 2025 and June 2025, we can see that there was an increase of 0.9%. There's also real estate loan and also agro loan. We have to understand that in that portfolio that is related to companies, we had a good performance in the period and an exceptional performance along the year. These are the main portfolios that have provided an upgrade in our results. This also includes small and medium-sized companies. Asset quality, if we look at default rate ratio, we reached 2.2%, as we can see here. We can see that the one for companies is lower, and for individuals, it's higher, reaching 2.4%.
2.2% at the global level and 1.4% for companies in terms of default ratio. Portfolio by stage, the first one reached 93.5%. Our target is 95%. We have been seeking this target. For stage two, 1.2%. Stage three, we stand at 5.3%. These are our targets for those stages in the future. Cover ratio by stage, 1.7% in stage one, 21% in stage two, 64.5% in stage three, with a total of 5.3% in relation to net provision expenses and cost of risk. It's working like a clock: 1.4% in the second quarter of 2024, 1.5% in the first quarter of 2025, and in the second quarter of 2025, 1.4%. We ended in 184.4% in the second quarter of 2025, and we had a little increase in between periods. We make the adjustments of the portfolios based on the 49.66%.
We made a very strong work in the retail with our collection team, and we came to those results. Administrative expenses, we reported a 5.2% when compared to quarters of the previous year and 3.5% quarter on quarter. Everything under control. For the year, for the first half of 2024 in comparison to the first half of 2025, 4.6%, a little below IPCA. We have the breakdown of our expenses, all the details. There are many lines of which we have been streamlining the costs, branches, leases. We have been merging two branches into a single one. We have been doing work to streamline the costs. We have been cutting expenses with advising and closing, including. We had a drop of 2% showing that the company has been controlling its expenses from all sides. Expenses are something that we have to control.
We have been working hard on the growth of expenses, and we are being very cautious in reducing the expenses. There are some expenses that we cannot reduce, such as the personnel and also collective bargaining. Whenever it's possible, we will cut expenses. In relation to services and their fees, we would like to share a better expense, but there were some cuts defined by the central bank. The digital banks have also impacted on our results. We have to play by ear according to the market. We have been doing what is possible, but we cannot define a price if the market will not pay for those prices. We have been growing at a moderate level in those revenues. Now there is an annual adjustment in August. There will be an adjustment, and we are going to pass through the IPCA.
There is not much to be expected in terms of growth. We have been reporting revenues below those who are indexed by Selic. We have to negotiate how much we're going to charge for the services provided to the client. This is the moderate growth that we reported in the first half of 2024 in comparison to the first half of 2025. Our funding, time deposit with a cost at the global level versus Selic. Of course, there's Selic. There's also demand deposit, but time deposit is our flagship. We also have the LCI, LCA. These are included in these costs. In the global funding, 93, 104 billion. We have a 5.7% growth as a growth in the half of the year. If we observe, this includes time deposit and demand, and we can see that the growth is above the average Selic of the period.
Our indexes have been making headway, and we have been balancing the assets and liabilities. We are very aligned in this line. We have been capturing a very healthy performance in the prefixed funding in order to secure the portfolio to avoid any market swaps and any other operations to protect our portfolios. We have been doing this in a very friendly and organic way. Assets under management have reached 19.8% in comparison to the previous year of 17.8%. We have some funds established with the city halls, and this has been a very strong line in the region of Rio Grande do Sul. Our capital dropped a little in terms of base ratio, and in terms of the tier one, we reached 13.3%. We had a capture in subordinated LF.
We have a settlement in operation that is going to be held in the beginning of next year, and the material effect has already been disclosed. The capture will be about R$300 million, which is likely to be announced in the market in line with the public caption that ended in August. These are the numbers as mentioned in the highlights by the President. We are available if you have any questions.
Thank you. Mr. Gonzaga, our CFO. I would now like to bring to our event Sandra Perez, Director of Relations with Companies and Events at Apimec Brasil. Good afternoon, Sandra.
Hello. Good afternoon. Good afternoon, everyone. First of all, I would like to congratulate you all on the positive results. In addition to the positive results, we have a long-term partnership with Banrisul and Apimec Brasil. I would quickly like to discuss what Apimec is. I would like to talk about Apimec. I'm not going to take much of your time because we would like to be available for the questions. We can see that most of the directors are there. I would also like to congratulate Banrisul because that's the evidence that the bank is saying that it wants to provide more transparency to the numbers. Let me talk about Apimec Brasil that was formed by analysts and investment professionals in the capital market in Brazil. It's a bit younger than Banrisul. Apimec was created on May 18th in Rio de Janeiro.
It started as Apimec, and it became one of the oldest entities of the country. This year, in 2025, it celebrates 55 years. Apimec Brasil, the company, is responsible for CNPI certification, which is the Certified of Investment Professionals, and it's also responsible for the regulation of the profession. That ensures that the technical and ethical standards will strengthen and generate more credibility to the market. Apimec puts together 7,000 members, and it has more than 1,200 accredited analysts. This is the role of Apimec. It's fundamental to ensure a good quality analysis, good recommendation, and also a better quality and clarity to the market. This is the reason why we make partnerships with banks and companies, and we have interactive meetings to provide more clarity to the market. I'm here today to show that this Apimec partnership with Banrisul generated good results.
I would also like to congratulate and grant Banrisul with a seal that is a proof of this long-term partnership. This seal of attendance, a platinum seal, is a proof that the bank has been holding constant meetings as a way to get closer to analysts and market professionals. This is a sign that it's been operating aligned with this corporation. All the people at the table show this confidence that we can provide to all investors. I would like to congratulate Fernando Lemos, the CFO, Luis Gonzaga, Veras Motos, and all the IR team, Nathan Meneguzzi, and all the team on behalf of Apimec. Once again, congratulations on the results, and congratulations. I hope we can continue with this long-term partnership that we have established with Banrisul.
Sandra, thank you very much. Thank you very much for your words. We feel the same on the side of the company. We are very proud of this partnership that we've been having with Apimec Brasil for those 18 years and always improving the capital market to provide improvements to our analysts and investors.
Thank you very much for your participation. Now we are going to open the Q&A session. This is a moment where we are going to be available for the market so that they can ask questions about our figures and numbers and about our management. Let me provide you some instructions. If you want to ask a question in audio, press the reaction button. If your question is answered, you can lower your hand. Let's start with the first question. Our first question comes from Ricardo Pichuquin with BTG Pactual. Hello, Ricardo.
Hello, Nathan. Hello, everyone. I have two questions on my side. First, could you help me understand which were the factors that played a role in this half of the year? Was there a change in the mix? Was there an additional gain coming from RM, which will not repeat in the future? I would like to understand how we can look at the next quarters. In relation to the agribusiness, Banrisul grew a lot in the segment of agribusiness, especially in the past five years. There were some highs and lows, some failures in the crops, some variations in the prices of the commodities. On Friday, a bank made a comment about a more challenging scenario in the agribusiness. Do you see any challenge in the agribusiness portfolio that would increase the cost of risk?
How do you see this point in relation to the risk presented by Agro today?
The first question you asked was about the performance of the bank in the result of this first, the second, the second quarter, and along the first half of the year. This is a strategy that we have been implementing since we started in 2023. Our purpose was to make a change in the mix of the portfolios with a firm strategy and well-defined strategy of having more action in the physical, in the individuals. We have a very good portfolio for individuals. There's still room for improvement. We made actions to increase the volume of those individual portfolios. We would like to use this space with credit card overdraft. We have a flagship product, which is Banricompras. We made an action in this direction, encouraging the database for pre-dated and installments. It's a direct competition with Visa and Mastercards.
We have the weapon to make changes with the pricing. In fact, there's a pre-dated electronic check installments. The client would purchase at the store, or he can make installments for 12 months, and the client will pay 30 days later. There's a mismatch with the salary sometimes. The margin of this Banricompras is always in the overdraft. The client would receive the salary, the payment, or a lease, or any income that the client might have, and that would reflect in the overdraft account. We can see that there was growth in this product. For companies, on the other hand, which is the corporate account, the debit account, since this is an overdraft for the small-sized and medium-sized companies, the client would purchase and can pay in 30 or 60 days. There is a benefit, and this is also a line where we grew.
If we look at the company account, we can see that we grew by 70%. There's also Conta Única, which is also a well-accepted product by all the segments, small, medium-sized companies, and that is a product that offers good margin. We also have a Conta Única for the agribusiness that offers a good margin. All those products put together in addition to the digital discount that we didn't use to have, and we have now a large, quite large company. We grew by 21% in the company area. The set of all those portfolios offers a financial margin that is more favorable as a result of all this work. We can see a positive result. This is likely to continue bringing good results. This is part of our strategy. We are going to continue doing what is proven to provide results, and we're going to seek our objective.
It's a group of strategy and hard work. In relation to the agribusiness, would you like to discuss this?
Yes, this is a concern. There's a concern in relation to agribusiness. It was a note provided by the central bank. In Rio Grande do Sul, we have a different characteristic. Even though we had some failures in the crops, we have small farmers and medium-sized farmers, and we work with the small producers that do not have scale for this type of business. We did what the federal government allowed us, and the state government also provides subsidies to some of the portfolios when the federal government cannot provide the subsidy. The portfolio is under control, and we are likely to continue like that. We are not likely to have any surprises in this regard.
Not to mention that, as I mentioned in the beginning, our agribusiness was one of the elements that affected our growth because we do not have a lot of appetite in the portfolio. We have been choosing very carefully the clients. We have been very cautious, and we are extending the periods according to the standards and the regulations. There were $650 million that came from the government, and those portfolios are going to be extended. We are not in a comfortable situation, but everything is under control. The default rate is likely to reach 0.5%, and this is a result of what we have been working on in order to have a portfolio under control. This is the situation of agribusiness. I don't know if I answered all your questions because your questions were very complex.
Yes, the answers were very clear. Could I ask a follow-up question? What's the sensibility that the bank has in the sensibility that the company has, and what would be the benefits considering the numbers of interest rates that we have?
Okay. I wouldn't decrystal ball in order to answer your question. We have to understand the behavior of Selic interest rate behavior. In 2026, we are going to observe the behavior of the interest rate. The government might intervene depending on the behavior of the interest rate. Services have been growing. Even though the inflation rate has been dropping, services increased. It stood at 2.5% on an annual rate, and that makes a lot of difference in the accounts. That would impact the inflation rate. I do not see the inflation rate coming down.
For every 100 basis points, we're going to a point where we are going to be at the top of the pyramid, and there's not much room to grow. We have to grow volume. We have to grow volume with good products. Resolution 4966 is implemented. It's going to help us. It has some defaults, but it has some virtues because expenses are going to be there every month. You do not have to wait all that long in order to lower your loss. This resolution is going to help us in terms of prices. It will help us in the margin.
I wanted to compliment Gonzaga. The bank did very good work to reduce the structural mismatch. The variation of the Selic will not have a lot of influence in our balance rate. The level of uncertainty is very high. We cannot imagine what can happen on one side or the other, but we are looking for a minimization of the mismatch. I don't know if we answered your question.
No, that's great. That's very clear. Thank you.
Okay. Thank you, Ricardo. Let's move on now. I would like to give the floor to Olavo with UBS. Olav, can you hear us?
Yes, I can hear you. Hello, Nathan, Fernando, Gonzaga, everyone. I hope everybody is okay. Thank you very much for the opportunity. I have two questions on my side. The first one is to address a point that attracted our attention, which was the credit recovery. We saw that the performance was very good when compared not only with the first quarter, but also to previous quarters. In this topic, this is my question. Could you provide more color on what was done in the execution so that we can understand which were the decisions made, what was the effect of this in practice? My second question along this line is also to understand the level of sustainability. Is this going to repeat? Are you expecting this to be repeated in the third and fourth quarters?
Are we going to level off this credit level so that we can understand the guidance, whether you're going to deliver in terms of cost of risk?
There's another question about another topic. Considering what has been disclosed by the local press, and you also published the material fact on the negotiations of the civil servants of Rio Grande do Sul and the payroll, could you provide an update about this in terms of what have you been talking about internally in terms of the payroll evaluation so that you're going to use it for negotiation with the public entities? Did you come to any conclusions? Anything for us to understand its impact? My last question on this topic is, do you expect to have any installments of this payment, or are we going to consider a down payment, a single payment that was done, like what was done 10 years ago?
Thank you, Olav. Thanks, all those attending this session. In relation to credit recovery, we did work based on the changes by Resolution 4966 based on the portfolio management to regulate all the pending operations and also recovery operations which were underway. We worked with our branches, with our accredited offices for collection. We worked together also with our lawyers. The result was much better than the average. What is the perspective for the future? We look at the portfolio and we see that we still have opportunities and room to manage the expenses that can be reduced, considering the changes brought about by Resolution 4966. That would also include the credits that can be recovered, and they can be in the administrative level or in the judicial level.
In relation to the sustainability of the portfolio based on these changes, based on the resolution I mentioned, everything is in line with what we planned. We were making tests and simulations since the middle of last year. We still make some adjustments along with the first half of the year. We are undergoing a process of internal maturity because we understand this is a very important product for the bank, and it will be monitored from the beginning to the settlement. If you allow me, on May 15th this year, we stopped the bank at the commercial point of view, and we stopped for 45 days. All the army of the superintendencies, the branches, all the employees who work in the front line with the client, we were all focused on the recovery, the recovery of the default rate, and also the losses.
It was a war activity that we did that was very important, and we had very good results.
It was a work of awareness and value generation purpose just for the market to know that this is a work that we did internally. If we need, we can resume that work. This is part of our management. We are also hiring a company, McKinsey. McKinsey is already working with us at the bank, and it's working hard in the work of value. We are working on a very important project to remodel all the collection systems using all the technology available and all good practices adopted by the market. That would include the recovery of credit. We are also going to be working with the collection agencies' offices in order to operationalize the collection services. We are resuming a work that we had already started in 2018 with McKinsey. This is a work that's being resumed so that we can reduce the default rate and recover the assets.
Gonzaga?
Yes, sorry.
Gonzaga. If you allow me, a follow-up so that we cannot move away from this topic, considering everything that you brought to us in terms of information and details, and the message is very positive. Do you think we could work with a cost of risk guidance from the average point down? Would that make sense?
I cannot answer this question. I don't know how to answer that.
Okay. That's wonderful.
I wouldn't say that. Interest rates are very high. The credit appetite of companies, in relation to this, we are being very cautious. We are being very strict in terms of credit.
That's enough. That's a very good contribution. Thank you.
Olav, in terms of credit appetite, we maintain the focus on companies, receivables, operations, and we're very cautious when we have related to the new opportunities.
We add collateral, especially receivables, and the receivables of credit card with Banricompras that is transacted through Vero. We modernize our process of our collection portfolio with new platforms, new tools so that we can have receivables from companies inside the bank. With this, we can make more secured concessions and also adding value, bringing in receivables and payables, payrolls from companies. Payroll is a focus of the bank for its growth. We are modernizing the process of opening accounts for payroll purposes. We are at a very advanced level, and we have been doing very good results in the digital account that also touches upon the opening of accounts for clients who are going to receive the payroll accounts that are going to receive their payments through the bank. All those activities focused on loans are centered on receivables.
Especially, we are massifying the loan both for individuals and for companies using the commercial portfolio. As we mentioned last year, we are going to grow a lot in the credit of secured operations. The number shows that we had a growth in companies of 21%. This growth was a result of the digital discount, Conta Única, and also other working capital secured by the receivables and the foreign exchange focused on ACC and ACE operations which are secured by the exports contract. This is our purpose when we look at the credit appetite. Let's talk about payroll. The Secretary of Finance made a statement when he mentioned the law of the budget of the state. In the budget document, it was informed R$1,250,000,000 of intentions to sell the payroll, so as to say.
This is a situation that is not easy because it's not easy to buy a payroll today. There is a very important paradigm, which is the payroll of the union. Any bank can bring and we can pay that is 0.03%. If the civil servant gets R$10,000, it will have R$3,000 of a discount, and it will get R$7,000 net in his bank account. We would have 0.03%. The one that civil servant can have a payroll loan, and that would not be charged, only the net value credited by the payroll. We are not going to pay that % because it's very expensive. We have to remove the risk of portability because it's a long-term business. We have to remove the risks related to the accounting. There were 206,000 civil servants in 2016, and now we have 294,000 civil servants who are registered by the state.
We may have some negotiation to anticipate the state, but that would be a business. If I want to anticipate your working cash flow, that's a business we can do. Let's say that APCA can be transferred to the civil servants along the year. If they want to have an anticipation, we can do that. We are talking about another business because it's an obligation that we have, which is different from the other business. We can have an interest rate for the anticipation. This is something that we have in mind, and that's where we're going to do business with the state if so.
Okay, Gonzaga. Okay, everyone. Thank you.
Thank you, Olavo.
Thank you, everyone.
Let's move on to Yuri. JP Morgan. Yes, Yuri.
Hi, Nathan. Good afternoon. Thank you very much. I hope everything's okay with you. I would like to do a follow-up on the topic of refinancing, renegotiation. We understand they are all different operations, but it's very difficult for me to find those numbers in the release. I would like to have some information from you, how the portfolio stands, especially the portfolio which is being refinanced by law, especially in the agribusiness. If you could understand the size and the speed of business, that would be interesting. I would like to ask another question about new products. As you said, yes, I heard about different things, but I didn't hear anything about the CLT credit. I know you have a growth in the loan portfolio, but the CLT has a collateral.
Sometimes the bank is still working in this area, but it's not so strong. Could you talk about the private loan portfolio? If you could also mention the problems related to the product.
Hi Yuri. In relation to the private loan portfolio, we have been operating with this. We are in the beginning of this operation. The operation depends on some adjustments, systemic adjustments, some platforms of concession and monitoring platforms, especially settlements that would involve the bank and also the Caixa Económica Federal. We know that there are some banks which have been working with us at a faster speed, but now we are granting to the employees of corporate who have businesses with us. We are offering this product or the ones who had an agreement of loan portfolio direct with the companies. We are looking at that. Little by little, we are doing it cautiously. We are trying to understand the product and especially understand how the digital platforms would work.
We have a very positive expectation, and we are placing bets on the product, but within safety limits so that we can control, say, the concession, but especially the return of the settlement of those operations and the installments that still have to pay for the bank. As I said in the beginning, that depends on some adjustments that we still need to make. [Banrisul] and other banks in the associations are working hard. They have meetings every day to make those adjustments of the system and to make it as reliable as possible from the viewpoint of portfolio management. There's a second part of your question. Yes, it's about renegotiated. You know, refinanced the portfolio. In the breakdown of the portfolio, I see it in others, but I cannot understand what has been refinanced by law and which ones are of this kind. Do you know?
Do you have the number in my heart?
Yuri, are you talking about the agri area?
Yes, but you can mention both. You can even mention this in general terms, how the portfolio is managed as a whole. Then you can be more specific and talk about the agribusiness.
This is a very small portfolio. It's a small portfolio. It's not very significant. In relation to the agribusiness, we are now receiving the orders of renegotiation. We have about R$700 million in the portfolio. This is within the limits as defined by the federal government. We receive an additional R$150 million to provide subsidies to the interest rates. What will be the number at the end? We still do not have this accurate number, but out of the total number of which is maturing, 30% of the clients are paying. We are going to start the renegotiation. We are going to extend the term for three years.
Does it make sense to think that this agri portfolio has a one-year period to be considered?
We have two portfolios, BTS. We renegotiated with a term of 10 years because of the flood of last year. About R$850 million in the portfolio. The duration of the portfolio would be 48 months, half of the term, 10 years, 5 years, okay? This was a portfolio that was formed because of the flood. Now the other portfolio is being negotiated for 36 months. In this portfolio, we estimate, we are talking about R$700 million that came from the federal government, which is the grant for the adjustment, and R$150 million from the state with balancing. Everything has a term of 36 months. It's half of the term of portfolio with this duration. For the rural area, it's likely to reach R$1 billion rural that is going to be renegotiated, maybe a little bit more. Let's see the new maturity dates that are out there.
Okay, great. Thank you very much.
Thank you.
Thank you very much, Yuri. With this, we end our call for the second quarter of this year. I would like to thank everybody's participation. Our IT team is available should you have any other questions. Thank you very much, and see you next time.