Hello. Good morning, everyone. I’m Renato Lulia. I’m the Investor Relations Director and Market Intelligence of Itaú Unibanco. Thank you for taking part on our video conference to talk about the earnings call, the earnings results of the first quarter of 2022. This event is being transmitted directly from our first Investment Center Itau Personnalité, so just launched at Faria Lima, the financial center of São Paulo. Here we offer a personalized experience for all of our clients that desire an onsite service to make these financial decisions. And also we have here rooms for meeting, for video conference in the studio for seeing and transmitting our results. And we’re going to talk about the questions and answers from the studio. I’ll give you more instructions to better use this session. For those of you that are accessing the website, you have three options of audio or the content in Portuguese or the content in English and the original audio. In the first two alternatives, we will have simultaneous translation. To choose your option, just choose the flag at the left hand corner, you can submit your questions via WhatsApp. You just have to submit to press the button on the screen. For those of you that are accessing via the website or submit a message on the number 1199-145-458, the presentation there will be presented here today is available for download at the website and also at our IR website, Investor Relations website. Now let’s start the presentation of the results of the first quarter of 2022. Milton, the floor is yours.

Good morning, everyone. Welcome to our earnings call, Earnings Results of the First Quarter of 2022. First of all, I’m going to give you some quality, quantity information, qualifying the results of the first quarter. And then we’re going to do the Q&A traditional at the end of the presentation. I wanted to start the presentation talking about our results, recurring results. If we compare it to the fourth quarter of 2021, we got a result of R$7.4 billion. And when we look exclusively at Brazil, we have a result of R$6.7 billion. So I would like to highlight that in a consolidated, we’ve been working with an ROE of 20.4%, which is a very robust one and looking at Brazil, exclusively the Brazilian operation and ROE of 21%, a return on investment. Now let’s talk about our credit portfolio, the consolidated, we had a growth of 0.5% getting to R$1032 billion and a credit portfolio in Brazil R$830 billion. Another information that is very relevant to highlight in this quarter is the efficiency indexes. When we look at the all – while the consolidated 41.8% less, the smallest index in the series of the bank and looking at Brazil 39.6%, running below 40%, which is very strong. If you look at recent years of the records, we are operating at the lowest level that we have. Now, let’s talk a little bit about the M&A, well acquisition of clients, I apologize. This quarter of 2022, we acquired digitally 5.5 million clients. We have several products and channels and I’m talking about Itaú channels, the ITI channels, credit cards, all of our businesses and products. This is a screen that I would like to highlight. And we really talk about this. We talk about this during – well, we’ve talked…

Send us your questions, your comments, if you want, you can send them on WhatsApp or using the button on the platform. Well, all this material is going to be available as I said before, and our IR page. I have Milton over here. Hello, Milton. Let me turn it over to you now so that we can start with the debate with the discussion in our earning call. So we have the first question already from Flavio Yoshida, from Bank of America Merrill Lynch.

Flavio, Hello. Good morning.

I think he’s still connecting. There it is.

Hello, Flavio. Good morning. Can you hear us?

Not sure. Flavio, can you hear us? Maybe you’re on mute Flavio, I’m not sure.

I’m not sure Flavio can hear me. Okay. I think we can try maybe the second question and then we’ll go back to Flavio.

I’ll try again. So I have a question from Tiago Batista. Tiago, Can you hear us? There is probably a connectivity issue. Let’s double check. Well, Milton, in the meantime, we’re having an connectivity issue or audio issue, I’m just waiting for the technical team to solve that. But in the meantime, it’s interesting to see all those results that you mentioned. So I wanted to know what are the main highlights, if you want to repeat some of the highlights in terms of the consistency of our results this quarter.

Well, as you were saying, this is live. So yes, I think that we’re probably having a connectivity issue maybe via Zoom or something. So as I was saying a while ago this was a very consistent quarter. I think results were well aligned with what we were expecting. Again, the main term here is consistency and there might be a few questions. And we expect to hear from all of you, but still it’s something that makes us very satisfied, very happy in terms of this quarter and in terms of the future as well. We really trust the guidance for the entire year. So that’s why we didn’t have any changes in that.

Okay. I think Flavio is with us now. Hello, Flavio. I’m not sure if you’re on mute Flavio, we cannot hear you. Can you hear me now?

I was on mute before.

There it is. Okay, Flavio we can hear you now.

Great. How are you today?

Great Flavio. Nice to hear from you.

Well, it’s great to have this opportunity to ask you a question. Well, you are talking about the guidance before. And what we have seen here in terms of the figures of the first quarter is that they’re not higher than the guidance. So what I wanted to ask you about was the margins. When you look at the growth, you can see that it is usually for credit cards that have had very good growth. And when it comes to companies to corporative also that’s a bit stronger than before. So I wanted to know – I wanted to ask you why haven’t you changed the guidance, especially when it comes to the margins. I mean, for the rest of the year, why haven’t you changed the guidance? Do you think the margins are going to suffer more pressure as time goes by throughout the year, et cetera?

Thank you very much for the question Flavio. We’re truly sorry for the inconvenience with the connectivity issue. But I think this is working now. Now in terms of the margin, what I can reinforce is that we understand there was a very solid – we had a very solid quarter. It was above the guidance. But since it is annual, when we’re looking at the forecast, when we’re looking at the future projections, we believe that this is going to be aligned with the guidance year-on-year. And we have seen some advancement in some lines. There are many reasons for that. There is also seasonality. There is also invoicing. There is also resuming activities. That’s why also we have seen an impact on cards. And in the fourth quarter, there is this seasonality with people also getting Christmas bonuses, for instance, or different amortization. And that’s why the balance for certain product or special credit, for instance, there will be a reduction in that. Also in personal credit lines, there is renegotiation. We were discussing a while ago that this is something that has or brings a reduction. So from a standpoint of credit quality and margins, we recover margins. We started the year off very, very strongly. We know that the projection that we had for the beginning of the year has of course some expectations and many aspects. And when we were preparing for the guidance, there were a few things that did change. I would say the inflation rate, the interest rate, some macro things. But you see, the last quarter of last year, we had a lot of acceleration in the margin, 13.8% quarter-on-quarter. So we have been accelerating. I mean, we were accelerating last year, so that makes the result of the margins. Now it makes them converge towards the guidance. So that’s what we see. We’re still very positive, very comfortable with the guidance. And we don’t see a reason to change that in any of the lines.

Thank you. Thank you, Milton. Thank you, Flavio for the question. And we have another question here from Tiago, but I do see Tito on screen. So Tito, let me turn it over to you.

Yes. I can hear you. Can you hear me?

Yes. Brilliantly. Thank you.

Okay. Great. Thanks for the call and taking my question. My question, sorry, I just hear the translation right after I speak. So my question, just in terms of your growth in NII and provisions, right? I mean, you had good growth in the client NII as you mentioned, but provisions are also growing quite a bit and there’s concerns about asset quality deterioration in the current market environment. So just how do you think about that growth? Are you concerned about asset quality deterioration? I mean, you have the growth in insecure lending. Do you see potential risk from that at some point later in the year? How do you think those two lines should kind of involve hand in hand.

Okay. Tito. Thank you very much for your question. Let me go through some message here from the cost of credit and the perspective looking forward. First of all, we are very positive about the guidance. So we still believe we’re going to deliver the figures with the guidance we – well, told the market at the beginning of this year. Second, we saw a deterioration situation by the second semester of last year when we found out that we were seeing some difficult in some specific vintages. So we are very fast here and other models predict a lot. So we made the decision to reduce the origination of some credit throughout that period. And this of course will have positive impact this year because we made very fast decision. But anyhow, I’ve been saying to you and to the market, that when you look 2020 and 2021, were two unusual years. That means that we saw the delinquency ratios and also the cost of credit per portfolio in a very, very low level, the lowest level ever when you look to a long series. So it doesn’t seem reasonable to have those solo indicators. So our review and what we’ve been saying to the market that we expect a gradual normalization of the delinquent throughout the period. We still believe by the year end, we’re going to be below or very similar to what we’re seeing before the pandemic. So this is basically our review. We saw some growth here in some clean portfolio in the first quarter, but in a very comfortable way because 80% of that or even more 88% in some portfolios with known clients that we have a relationship and long-term relationship and where they were consuming more and using more some credit facilities to overdraft is a good example. When we go back to the fourth quarter, we have to remember there’s some seasonable effect that the clients they have, their 13 payroll, paycheck, and they pay credit lines. And also we are comparing on a nominal basis with the previous quarter with a much higher portfolio. So when I look to the NII – the NIM of the bank and the NII of the bank, we are very positive, more than 20% growth. And of course, we have a little bit higher cost of credit, but in the bottom line, very positive for the balance sheet. So we’re still comfortable, but we expect, as I’ve been saying, telling you things the third quarter of last year that the delinquency ratios will increase throughout the three quarters that we believe. But it’s still normalizing or getting more stable, very near or close to what we were seeing before the pandemic starts. So we’re still very comfortable about the figures, but again, expecting slightly deterioration throughout the quarters that we still have ahead.

Thank you so much, Milton. Now we have a question from Tiago Batista.

Hello and good morning.

Good morning.

You can hear me okay?

Yes.

So I have a question about the bank capital. We were – you were talking about 12.5% around R$100 million below the target that you had and without really considering the consumption that you’re going to have, I mean, From XP. So when you think about capital, is that something that bothers you and also, is there a plan to reconsider all that? I mean, Milton, you mentioned that you’re creating, I think, 50% per semester, But it’s still 100% below that level. So how long do you think it might take to reconstitute all that? And are we going to see a reduction in that goal for the next few months, given the new approach of hedge? So how do you think this is going to work?

Thank you. Thank you, Tiago. Thank you for the question. There are many things that I could share here with you. First of all, in fact, with the end of overhead, that started with a 100% percent adjustment this year, that’s the rule of the central bank. And with the end of the changes in fiscal aspects, we are expecting more volatility in the exchange rate. We didn’t have the same effect in the last quarter, actually. And we usually say that this is not the structural position of the bank. I mean, it is a hedge really per se, so that we can calculate the volatility so that we can manage our assets in a perspective manner. So the first thing is in our committee, in our council, we’re working with 12% CET I, and we are comfortable to work with 1.5% CET I. So from a risk appetite standpoint, there is not going to be an impact on the dividend of the bank. We are still distributing the QCD, the 13.5% as we are used to. So that’s the first movement, and we understand it in terms of operations, the banking still work with that because the buffers that we had in the past, as you said, they were connected with those events, of course, it depends on the circumstances. And we work with more buffers, especially for dividends, because we want to invest and expand the franchise. I am not looking to pay more dividends. I am actually looking at having the right profitability from the bank’s capital. The second thing is, we expect that the assets that were funded by risk as we change the margins and the margins, and we have an adverse effect that might pressure the portfolios. So the capital generation and the…

Well, thank you, Milton. Thank you, Tiago. And we have another question now from No, we inverted in the screen. We are adjusting the question we can go with as well.

Gustavo, I thought that you were kind of different Gustavo.

Good morning, everyone. Milton, everyone, congratulations for the results. My question is very simple.

We lost the audio. No, I think we can hear it. Can you repeat the question?

Sure. Well, the question is treasury and guidance. The result Milton already specified it is what we expected. And if we think about the guidance that you passed, R$1 billion to R$3 billion, we had R$1 billion now, but we have the guidance. So that means that the next quarters will be very weak and you’ll have this very – very well match. Do you think that there is a possibility for the second quarter or review of the guidance? I just wanted to understand that because it was surprising. R$1 billion was not what we had in mind.

Thank you, Gustavo for the questions. Well, it’s exactly what you mentioned. We’ve had a better quarter than what we expected. We know that we’re going through a very volatile moment, not only Mexico, but internationally. This is what has happened. The war with in the Ukraine, this is a very important movement, China with a zero tolerance lockdown and emphasis and above what the market expected behind a curve, the adjustment in the interest rates. So we expect more volatility. Our structure portfolio of the trading we are doing well performance wise, even though there is the adversities inherent to the market. So we are still delivering a lot of results and the banking structurally we’ve had different effects when we look at the different levels of interest rates, Brazil and the United States mainly. So our best expectation is that we’re going to have two quarters that are a little bit more difficult up ahead, and we should frame this result within the guidance. So the cost of hedge is there highlighted R$400 million in the quarter and we should have, well, it really depends on the interest rate differential. And our expectation is that it is something close to the R$2 billion that we just mentioned at the beginning that this is what we should have of the cost of the head, the index hedge. Well, in the market, the perspective is not the best. We’ve seen the market as a whole. This has to do with the structural positions that we have. And remember that this year we have the end of the overhead. Last year, we still had a very important result from that R$800 million. So a long response to say that the expectation is to be within the guidance, we shouldn’t review it unless an opportunity or additional volatility might come up that might benefit us. But we will maintain the guidance nonetheless.

Thank you, Milton. Now I think that everybody thinks knows who’s next. So here is Rodman. Thank you very much.

Good morning, everyone. Can you hear me? Great. I wanted to ask about the other blocks of the results you have several opens, and for example, we can see that the ROE or return investment on the ROE of the bank is, we have a big ROE and we have – and we wanted to get your trend here.

Well, thank you. Thank you, Rodman for the return on equity question. Now we’ve seen a growth in a portfolio that is a bit higher than what we see in services and insurance. So we have more dependence on credit and we had more dependency, less dependency moments where we have a cycle of four years, the fifth year of growing the portfolio. And naturally this brings more dependency on credit results. Credit for us cannot be looked at in an isolated way. Everything that we do in credit, whether it’s wholesale it is trying to service our clients as best as possible cross sale. Everything that we generate is we can see that wholesale has a great results. And the delinquency is really low. If you look at corporate investment banking, all the large corporate in the middle market, these are we have portfolios that have low delay cost that is low solidity. The companies are less – are more leveraged, more prepared for the challenges up ahead. So wholesale, we’ve had great results, incredible results and pulled by the investment bank and in the concept, not only variable income, but also fixed income, we’ve had important growth we had in the first quarter of this year. We had record results in fixed income, even though in the fourth quarter, we’re going to have a deacceleration natural from the elections and so on to forth, but we should have three quarters that are very solid for the fixed income not so strong for variable income, but it’s very stable. And in general, the wholesale is doing well. The cost of credit is a very important lever. And the retail, and it generates a lot of credit. And retail actually, we have delinquency, the high inflation in April. We should…

Great. Thank you, Milton. Now following the order, we have Eric Friedman from Citi.

Hello, everyone. Thank you for accepting my call. Good morning. Good morning, everyone. My question is what was Milton talked the growth of clients. So we can see clearly what is happening. We have a platform that is centered on the client. This is a trend in the sports of several banks. I know it’s difficult to execute specifically, given the legal issues. In this call, I think that Milton highlighted the deliveries of the insurance, we can see the client centers. What are the other business units, Milton that have opportunities for improvement within the bank? I think that we can improve different potentials here in the bank. But I wanted to, well, the brokerage, can improve and I wanted to do a follow-up and if possible. Can you comment on how do you see the flexibility – regulatory flexibility for the M&A of these opportunities? It’s clear that we have a limited addition, but I don’t know if there is going to be the interest rates and the difficulty with some startups. Can that lead you some consolidation in the universe? Do you think?

Thank you, Eric . Thank you for the question. Here I’ve talked a lot that the mantra is cultural, digital transformation, efficiency. But all of that only makes sense if we have – if we focus on the client. We’ve changed in a very relevant way, the way that we face even the incentives related to clients. This has changed all throughout the bank. So all of our collaborators with that exception have objectives goals with clients, including accounting, people, risks everybody have to have an unlock that is dedicated to the client. Of course, to deliver that we have the modernization, as you said, the legacy system. We’ve done 25% of the migration of the legacy, all the move – all the systems, 8,000 services, we already migrated 25%. And when I say migrate, it’s not simply stop the processing of that software or that system that’s in our data center and take it to the cloud. Going to the cloud infers in modernization, new architecture and avant-garde technology. We are up and running in this process. Our expectation is to get to the end of the year with 50% of the legacy platform modernized. But we are prioritizing in the context of the client. We start from the pains of the client. We understand what it’s relevant and the modernization stems from that. So at the end of the year, 50% of the business services, these are 80% or 80-20 of what is really important for the client. 80% of what is important will be modernized and running on the cloud. This is a transformational change. And I would say that this is a new moment for the bank. So 100% of the squads, the tribes, whatever you want to call it, operating in modern platforms, which changes…

Thank you very much, Milton. It is difficult sometimes to communicate all that to the market. When we’re here on this side of the camera, we know more about that.

We have Henrique Navarro from Santander now. Hello, Henrique.

Hello. Good morning. Thank you for taking my question. I wanted to ask about delinquency or failure to pay, which is a real concern nowadays, when it comes to results, we see that the 90 day delinquency – wanted to know, actually if that has been a concern, I think it is aligned with what many others have reported already. But real, real concern, I think is the 15 delinquency. We’ve seen some rate of 90, but the real concern I think has to do with the 15 because it might lead to a bigger problem. And especially the 15 day delinquency, it is – I mean, it is normalized at Itaú, it is under control. It is aligned with a portfolio and its risk. So my question has to do with the following that a symmetry that we’ve seen with the 15 day delinquency for Itaú and the rest of the market. Why does that happen? I mean, I wanted to know more, does it have to do with the profile of the portfolio or is it something that we really shouldn’t worry about because it is very volatile. I mean, very seasonal, maybe. So I wanted to hear from you, I wanted to understand what you think about the 15 day delinquency rate?

Hi, Henrique, nice to see you again. Thank you for the question. I think you even asked something about related to that in the previous call. So it’s something that you’re truly concerned about. I can tell. Well, we’ve seen that it’s normalizing little by little. The thing is the short delays, especially in the first quarter, there is a seasonality for that. If you look at the history of the records of the bank, yes, that’s – there’s usually a deviation in that. So we’ve seen something similar to previous period of time. I don’t see a huge change in the short delays. If I look at Brazil per se, I see that it is a usual behavior. When it comes to portfolios, there might still be an increase in delinquency rate for the next few quarters, but still close to normal. And especially for the over 90, I think it’s still going to increase in Brazil and going to be stable, similar to what we had before the pandemic. I think it is a good behavior. I think there are two levers. I would say that I would like to highlight. There is no – not even one real of a sold portfolio. I mean, we’re not selling active portfolios. We know that selling active portfolios would have a positive impact on the indicator, and we haven’t done that. So whenever you compare, it is important to see what the conditions are. It’s important to understand what kind of effect or selling active portfolios would be. So we really reintegrate the sales of portfolios whenever we want to compare to have also a good reference to compare. That’s the first topic here. The second thing is the renegotiated portfolio. We’ve been very careful. I mean, ever since we…

Geoff Elliott from Autonomous, hey, Geoff, thanks for attending the call. Can you hear as well?

I can hear you hope you can hear me as well.

Yes. Hi.

So another question on this topic of credit and specifically interest rates so rates are now quite significantly higher than they were a year ago, and I know you don’t have a lot of floating rate loans on the consumer side, but how is the increase in credit, increase in interest rates speeding through into credit quality? And are there any kind of threshold levels of – where you’d start to think that your customers really start to get squeezed?

Yes. Thank you, Geoff. Thank you. Thank you for your question. I think we have to separate what we call the wholesale clients from the retail clients. On the wholesale clients, indeed, they have their credits raised on CDI plus in general. Okay. So when you have an interest rate hike or increase as we are seeing locally they have an impact. So the good thing of that is that as when we see the whole portfolio of the wholesale, we are working with much lower leverage companies than we used to see in the past. So even when you have a huge devaluation of the facts or things like that, we don’t see the same impact that we used to see in the past so this is one side. So the corporate clients in general, and the middle market corp clients as well, they do have this impacting their costs of financial debt whenever you have an interest rate hiking process. So this is from one hand. On the retail, it’s more on the margin. So you don’t have clients in general that have their liability being correct by the interest rate, putting the marginal new production. Yes, you do. Because then we have this path through of the interest rate to the new credit and the new origination. So my view is that when you look for real estate, we have an important reduction in demand, in production as well. So we do both. First of all, we see lower clients asking for less mortgage than they used to be. But on the other hand, we do adjustments in our credit policies because we are afraid that clients, you may have some adverse selection at this levels of interest rate, the same for auto loans and for products, when you have to price with the new interest rate. So lower demand but also we work very active to adjust our policies to guarantee that we won’t have any diverse selection, but I would say that the most impact stays on the corporate clients in general, they feel more pressure, but as we see a much lower level of leverage of those companies, the marginal impact is of course, much reduced when compared to the past, but it’s still something that we have to keep an eye on.

Thanks Milton.

We have a question now from JP Morgan.

Hello, Domingo.

Good morning. We’re trying to get – we’re having an audio issue here, but let me ask you my question. So Milton, I have two quick questions. The first one for card, we see that the balance in the portfolio grew 40, and FII 16. It seems like you have a little bit more control over the limits of the portfolio. The rest would be because of the use and all that. So my question is how do you see the revolving changing? So, I mean, we see the change in number of reis, so I would say that it is actually 10%, 15% of the results of the bank, and it’s something that has changed in terms of profitability. So the question is how much do you think that might represent in terms of the total profit of the bank.

Excellent Domingo. I hope you’ve been able to solve the audio issues. We were able to hear your questions. So I think it’s back to normal and hopefully, you’re going to have access to all this later, if you are not able to hear my answer right now. So, on the credit – for the credit perspective, in terms of credit cards, when we look at the first quarter last year, and we see that change in 40% - that increase in 40%, we have to actually see the entire video. I would say, not just the screenshot you see with the lockdown effect with people at home, trying to save more money and spend less money. There was a great impact. So that changes the value of everything that was consumed. That also changes. There also has an impact on credit cards. Right now, we are looking at figures that are growing and it’s in line with the market. But despite that, we’re not going to – we’re not having a great market share, we’re trying to defend market share actually right now, it is something that has grown a lot in the market, but we have a great portfolio, 30% of the portfolio in the – or 30% of market share in cards. So it is a very relevant thing, but it is really different perspectives. So you have the individuals with an account, you have the financial institutions, you have everyone in that chain. We have changed a few things. We have reduced the number of new clients, because we understand it is more of an adverse moment right now. And it’s something that we have to be very careful about because it has a higher volatility. Whenever there is an adverse moment in terms of economics,…

Excellent.

We now have a question from Marcelo Telles from Credit Suisse. Hello Marcelo.

Good to have you here, Marcelo.

Thank you, Milton and thank you, Renato. I think actually most of my questions have been answered already, but I wanted to ask about the funding. Especially when it comes to FIIs or the real estate funds in this case, there was a change of around 40%, an increase of 40% quarter-on-quarter. And we’ve been, I think – you’ve been very competitive in that scenario, but we have to consider the independent platforms. And my question here is what is the strategy in terms of funding for the bank? Do you think it’s necessary to rethink the rates – the interest rates and how that’s going to affect your strategy and also do you think there’s going to be an impact and the cost of funding or your margins in a negative manner in the future?

Thank you, Marcelo. Thanks for the question. Let me give you a little bit of a context here. We’ve been talking about an open platform for a while. We’ve been talking about avoiding conflict with our consultants, with our investment consultants. We’ve been investing on this commercial sector to be able to offer this service, as we mentioned a while ago. And this has brought great results. We have gained a lot of share in retail, also in private banking. So that shows that we’re very strong in terms of the offer, the commercial team, that we have a lot of dedication really in that regard. And we’ve seen the results. There are some also some other metrics that have shown interesting results. First of all, we have an idea of de-liquidity. When we see the relative scenario, of course, everyone is consuming all that. We came from a moment where there was a lot of savings and now we have more assets and people consuming all those savings. So the liquidity indicators have changed, but we’re still working with the most competitive indicators, the most conservative ones. So LCR for instance, is higher right now. And the second aspect here is that the commercial team, the investment consultants, they’re not compensated by the product or the spread generated by that product per se. They’re simply – their compensation is for AUM or AUC. So there is an important change, an important difference here against other places. So whenever we see that there is a hiking here in the interest rate, we’re able to migrate many clients that are having a lower yield in their product. We migrate them to a higher profitability, even though we do miss results. I mean, we may – or we might be losing an…

We have another question and then we have space for the WhatsApp so the next one is from Goldman Sachs.

Hello Renoto. Hello, everyone. So just a follow up on the participation of XP and let’s understand what happens from here till the end of the year. If this is just below 10%, can you sell more relevant? Or if I understand correctly today, you don’t have capital gains, how much that causes a hindrance in terms of selling a higher percentage of your participation?

And this is a very simple response. The acquisition that was done of R$8 billion was higher since 2017. We simply fulfilled what we committed to the multiples of XP changed in terms of price and profit. Any scenario, the values of the market will change a lot at the moment that we did the spinoff. And in May of last year, our vision is two times. Time number one is how much we do the investment should recover the capital. So it is a very small lot of shares that we have to sell to maximize the return on investment. And it is maximizing the recovery for the capital index. And the second one, it is a TBM. And let’s just mention that we do an adjustment of the position and we start to carry 9.99 to simplify of shares of XP. And with time, we will decide economically, what is the best time of exit as it is a position of equity. And as we have another investment and this will be an economic decision and we will leave the investment, if it’s on the medium term, long-term. So you’ll look at market conditions perspectives. So we don’t have any rush to do this sale. And we are discussing every receiver questions if it’s going to be a spinoff or not, it doesn’t seem like it will be a spinoff, even though we didn’t make the decision. I think at the moment that we did the spinoff of the other participation, there was a very different logic. The value market, enormous not capture in our multiples. We are in at the regular prices of the market. I don’t see the spinoff in this logic. We are going to take a look at the conditions and we can always reevaluate, but at this moment, we will make the most, the best economic decisions. There is no rush to do the disinvestment and with an exception, it’s no rush is trying to find the ultimate time of this 1.37. And it has to be 137 for us to maximize the recovery of the capital index of what we in fact will have from now on, this is a central point here.

Thank you, Milton. Can we do another two? There is a lot of questions via WhatsApp. So I’m trying to gather all of them.

For the themes that appear you mentioned the capital funds, well dividends, for natural persons this is even more relevant. So how do you see the payment of dividends in 2022?

Well, here is a response. I see an increase, the value of the dividend for the growing, because the results are growing. We have two answers how many real per share we’re going to distribute at the end of the day, since we are distributing sharing 25% of profits in the period with more profits, more dividends. So this is what we expect. The payout, which is a question, what about the payout? It is 25%. Do you want to increase it to 30, 40? It was much higher in the past. Well, really it depends on our table spreadsheet that we inform to you, which is the matrix on one side is profitably. And the other one is the risk, the growth of the risk weighted assets, how much we have a growth of demand of capital in the bank. So if I have low profitability and low capital with a lot of capital in the bank, the distribution is higher. As I have demand to use more capital than we will see the size of profitability to find the optimal point by the projections that we have. We will continue with a payout of 25% for a long time, but really increasing the result of the bank and paying more dividends per share. And this is what we expect. There is no type of change in the policy of dividends. We still continue with the same table that was discussed, and we are doing the investments, the reinvesting in the franchise, the growth of the bank and making the capital of the – the capital be profitable. We are running at 21% in ROE, 24% at the consolidated. Our goal and my mantra as a CEO is the creation for the value for the shareholders. So anytime that we are creating value for the – at the high levels the capital cost will continue to invest in the operation. If I understand that I have a capital that will not be used in the period, and then we can rediscuss the payout or the percentage of the payout, but for now, there is no discussion.

Perfect. Thank you, Milton. Anything due to the time, let’s finish with another question. We’ve had several questions about the inflation with an interest rate. How does it impact the cost of the bank? And you mentioned – we have the consolidated efficiency in Brazil. So how can we – what are the levers that we have to reach this ambitious goal of having a result of core of the stable cost of the bank not only all throughout the years.

Great. Now in an inflation environment is not very simple. We have to say that a relevant part of our cost is the payroll of the bank. And that we can see the increase in last year was almost 11%, and this is a subcontracted part, the subcontracted cost. And we have until September when we have a new discussion, and then there will be increase in a quarter, we are going through an inflationary peak that is very strong. This is not news for everyone. And this inflation is materialized through APCA, IGBM and a very strong inflationary pressure. Since we cannot control the inflation, we have to do our homework. And our homework is not simply costing the cost on – with brute force, reducing, freezing, we have to do structural changes in the way that we work. And this is our agenda. The efficiency program has over 4,000 initiatives. So there is no silver bullet here. Efficiency is something that is piloted through everyone at the level of detail and granularity that is huge. And everything adds. It’s an economy of R$100 or R$100 million. Everything adds, there is no expenses that we have to pay attention to all the expenses. There is a lot of that has to do with the culture, the example, the discipline of management, and a lot of capturing a lot of these values of investment on technology so that the bank becomes more efficient, more digital. We’ve done adjustments that in the first quarter, the amount of the physical parts of the bank, we, we will have digitalization. We have the relationship with the clients, with the more sophisticated products decreasing the number of branches. So we are not going to cost across on the short-term, just to give better indicators. And we are investing in the operation. That’s why it’s very important to look at the efficiency index and not just a line of costs in an isolated way. So adjusting costs is having revenue so what you have of 39.4%, 39.6%, which is what we published. It shows that there is a combination of a lot of revenue, expenses that are controlled. We can have a cost core of zero incorporating all the inflation, but this is a work of everyone. This is not a silver bullet. This is the day-to-day work and the results are being gathered more pressure towards the future. We have challenges. We have the guidance that has an expectation of growth of costs year-on-year that is much below the – much lower than the inflation. And we will deepen this agenda with intensity.

Thank you, Milton.

And with that, we will come to the end of the session of the Q&A, but before I bid you farewell, I would like to invite you to navigate with our manager that we published last year. And this is on our website that besides promoting more transparency in our operations, the report expands the vision of the context and the transformations and the cost of the market and all that stems from this new economic sector. You can see in this documented strategy, the business strategy, the description of what we have, how we are generating value through careful management of our portfolio in our capitals. And you can see everything in our IR website. I wanted to share something new in terms of service of investor relations. You can access our team via WhatsApp. You can see our phone number, which is 1127-943-547. In this channel, you can get information that you need and also clarify any doubts. This is another initiative for me. I would choose service our stakeholders anywhere. With that, thank you very much, Milton. Thank you for your time. Thank you for being here with us this quarter, and we will see you in the next quarter. Thank you very much. Everyone, thank you for your participation for the questions. I apologize once again, for the technical issues at the beginning of our transmission, but the important is to make mistakes, learning with mistakes. And this has been our cultural transformation in-house, and as part of a process. Thank you very much for your participation. And as I told you the result in the agenda is of consistency, and this is what we are seeking in the next quarters. Thank you very much for your time. We’ll see you shortly.