Banco Santander Chile (BSAC) 2010 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the third-quarter 2010 Banco Santander-Chile earnings conference call. My name is Marcella, and I will be your coordinator for today.

At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions).

As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Raimundo Monge, Director of Strategy. Please proceed, sir.

Thank you very much. And sorry for being late; we had some technicalities with the webcast. Good morning. First of all, good morning, ladies and gentlemen, and welcome to Banco Santander-Chile third-quarter 2010 results conference call. My name is Raimundo Monge, Director of Strategic Planning of the Bank, and I am joined today by Robert Moreno, Manager of Investor Relations.

Thank you for attending today's conference call in which we will discuss our performance in 3Q10. Afterwards, we will be happy to answer your questions.

In the 9-month period ended September 30, 2010, net income attributable to shareholders increased 30.4% compared to the results in the same period of last year. The Bank's net interest margin reached 5.9%, that is, 40 basis points higher than in the first 9 months of '09. The efficiency ratio in the first 9 months reached 34%, while the Bank's ROE reached 30.5%, among the highest in Chile's financial system.

In the third quarter of this year, net income attributable to shareholders totaled CLP125,356 million. That is CLP0.67 per share and $1.42 per ADR. These results represent an increase of 14.1% compared to 3Q09. With these results, the Bank's ROE in the quarter reached 29.3% and efficiency levels stood at 33.8%.

By business segments, results were driven mainly by retail activities, in line with our strategic objective. Gross income, net of provision and costs in retail banking increased 23.5% Q-on-Q and 42.1% year-on-year. Net interest income grew 18.9% Q-on-Q and 15.1% year-on-year, driven by loan growth and higher margins with both individuals, and small and middle-sized companies, SMEs.

Fee income grew 3.7% Q-on-Q, and 4.8% year-on-year in this segment. These reflect the more recurring nature of our earning growth and return on equity.

The Bank's capitalization ratios also strengthened in the quarter. The Basel ratio reached 14.5%, 40 basis points higher than in last June. The Tier I ratio, which is comprised solely by shareholder's equity, stood at 10.5%, among the highest in the Chile market.

Our strong capital base should allow us to support solid levels of asset growth in the future while high internal capital growth allow us for an attractive dividend payment to shareholders.

The Bank's lead position in the Chile market, strong profitability, conservative credit risk policies, and strong capital ratios has also led to a continuous improvement in our credit risk ratings.

In October 2010, Fitch increased our foreign currency deposit rating to AA minus, two notches above Chile's sovereign ceiling. With this action, these rating agencies has followed the other two that rate our deposit and bonds.

As a consequence, we have been able to act in convenient terms in the international bond market in order to maintain solid liquidity levels and to minimize interest rate risk by funding the longer duration portion of the loan book with funding of similar characteristics.

In September '10, the Bank issued, among other notes, CLP248 billion 10-year bond in the international market. This was the first ever international Chilean peso issuance abroad by a Chilean corporation.

Results in the quarter also reflected our strategy for the 2010-2012 period, which has been designed to generate high EPS growth and solid ROEs. Accordingly, the Bank's activities has been and will be focused in four main strategic objectives to fuel our future growth and profitability.

The first objective is achieving high retail growth and to continue expanding banking penetration levels in Chile. These should help us to maintain our net interest margins and boost our net interest income.

Our second strategic goal is to increase fee income by expanding product use and cross-selling. We believe there is still plenty of room for increase of the total client base, where alliance are becoming a key element in achieving greater use of our products, especially credit cards.

The third strategic objective is to consolidate the improvement of our credit risk management system. This will help us to support a healthy expansion of our growth in loan volumes to riskier, higher yielding retail segment.

Our last strategic goal is to continue an active efficiency management. We're planning to expand our capacity during the next three years, and the Bank expects to invest close to $380 million in expanding our alternative channels and branch network to fuel growth and improve the systems and processes.

Part of this investment will be funded with productivity gains and by lowering, both the cost of bringing new clients to alliances and reducing our delivery and transactional costs, relying more on low-cost remote channels such as the Internet, phone banking, mobile banking and ATM.

In terms of the first goal, high retail growth, in 3Q10, total loans increased 4.5% Q-on-Q, with growth seen in all products and segments. The recent economic data for Chile showed that economic growth has been accelerated with a strong rise in investment and consumption levels. And employment figures have also been better than expected as well as wage growth.

Higher yielding retail loans increased 4.2% Q-on-Q. Loans to individuals increased, again, 4.2% Q-on-Q, led by a 6.3% increase in consumer loans.

Notable was that 9.9% Q-on-Q and 35.6% year-on-year increase in credit card consumer loans. The Bank's market share also continued to increase in the quarter. The most important rise in market share has been in consumer and credit card loans, which increased 180 basis points since the beginning of the year.

The Bank's net interest margin reached 5.7% in the quarter. Net interest income increased 8.5% year-on-year. This was mainly due to the 10.3% increase in average loans.

By segment, year-on-year net interest income growth was led by a 15.1% increase from retail banking and a 29.4% increase in net interest income from middle market.

Compared to the second quarter of this year, the 2.9% decrease in net interest income was mainly due to the lower inflation rate and higher short-term interest rates, which increased funding costs. This was partially offset by the 4.1% Q-on-Q increase in average loans.

Going forward, we expect the Central Bank to continue rising rates as inflation is expected to continue to rise and economic growth remains strong.

In line with our second strategic objective, our client base and cross-selling standards have also been improving. The Bank's checking account base grew at an annualized rate of 8.4%, year-to-date. The amount of clients that are cross-sold, among our middle- to high-income clients, has increased 17.5% annualized, year-to-date, and in Santander Banefe, our unit for mass consumer lending, the amount of clients that are defined as being cross-sold has increased 22.9% on an annualized basis in the same period. However, only around 20% of our current customer base fulfill our cross-selling standards, with a standard what we believe is a relevant growth source for the future.

Notable has been the Bank's growth in its credit card business. The number of clients with a credit card is expanding at an annualized rate of 16.8% year-to-date as the Bank increasingly rely on its alliances with key corporate partners as an efficient way to gain access to a larger number of potential clients.

In 3Q10, the Bank signed a co-branding agreement with Pre-Unic, a retailer in Chile with 42 stores and 1.5 million clients. We also renewed our alliance with LAN, Chile's largest airline.

These agreements, along with the Bank's other accords, with Chile's largest cell phone company, newspaper, electricity distributor and more than 60% of Chilean universities, give us access to more than 7 million potential clients. Currently, the Bank has 3 million clients.

As of June '10, the latest of data available, the Bank's market share in terms of monetary purchases with credit cards reached 19.1% including retailers. Year-on-year purchases with the Santander cards were up 33.2% in real terms.

The rising cross-selling and product usage continued to drive fee income, which increased 2% Q-on-Q, and 2.6% year-on-year. The Bank's main fee income such as collection fee, cards, checking account fee, asset management and brokerage fees will experience -- all experienced strong sequential growth as the client base continue to grow, cross-selling rises and the negative effects of the earthquake on certain fees has diminished.

In line with our third strategic goal, during the quarter, the Bank continued consolidating the improvements in credit risk management and collection procedures. In 3Q10, the Bank proactively implemented some improvements in its standardized credit scoring models for consumer lending.

This is part of our strategic objective to maintain good asset quality as the Bank grows at a rapid pace in retail banking. The implementation of this improvement impacted two line items in our income statement; provision expenses and other operating income, as explained in detail in the earnings report.

The net effect of this improvement in the models was a charge of CLP2,077 during the quarter. Incorporating this effect, adjusted provision expense in the quarter increased 1.8% Q-on-Q, and was down 28% year-on-year. Asset quality and coverage improved in the quarter. Non-performing loans decreased 1.9% Q-on-Q. The non-performing loans ratio reached 2.68% as of September 30, 2010, compared to 2.85% at the end of the second quarter.

The coverage ratio also increased to a 105.1% as of September 30, 2010, compared to 93.3% as of June 2010. The non-performing loans ratio of consumer loans decreased from 2.99% as of June 2010, to 2.87% as of September 30, 2010.

Operating expenses in 3Q10 has decreased 3.7% Q-on-Q. Efficiency ratio reached 33.8% in the same period compared to 35.2% in the previous quarter. The Q-on-Q decrease in cost was mainly due to lower cost from the earthquake and lower personnel expenses. Headcount did not vary significantly in the quarter.

The 6.4% Q-on-Q increase in administrative expenses was mainly due to higher costs related to the maintenance and repair of branches and other fixed assets. The year-on-year rise in costs was mainly due to a rise in personnel expenses directly related to an increase in commercial activity, and as a result, variable incentives to commercial teams have increased, especially in retail banking.

This should be compensated in future quarters with stronger revenue growth. The year-on-year increase in administrative expenses was mainly due to higher costs due to the earthquake. In total, in 2010, the total impact of the earthquake on cost, including impairment, should be around CLP10 billion. Most of this was recognized, both, in the first and second Q of this year.

In summary, 3Q results were positive, in line with our strategic objective and the positive evolution of the economy. Our 3Q results were fueled by a stronger growth in individual and SME banking, the most profitable segments of our business. This growth in retail activities was also reflected in our results, which were driven by retail banking activities, especially consumer lending.

In the quarter, we also improved our balance sheet by increasing our capitalization levels, improving our funding mix to minimize the negative impact of rising rates on funding costs, and maintaining better asset quality indicators. For these reasons, going forward, we are optimistic about the Bank's growth outlook and profitability levels.

At this time, we will gladly answer any questions you might have.

(Operator Instructions). And your first question comes from the line of Saul Martinez with JPMorgan. Please proceed.

Hi, good morning, Raimundo. My question is on your net interest margin and net interest income evolution. You did mention that, that is -- that growing in retail segments is one of the top goal, the number one goal, I guess, of the four you illustrated.

And you also gave various moving parts in terms of what drove the NIM, including higher funding costs on the one side, with growth in retail lending on the other. Having said all this, you had -- I would have thought your net interest margin, your net interest income growth would have been stronger this quarter, given we had deflation in the year-ago quarter; inflation this quarter, and you had very strong retail lending growth.

Can you give us a sense for how you think your net interest margin will evolve going forward, considering the various impacts that I mentioned, the higher funding costs associated with higher rates in retail lending growing as well? Should we see stability in the NIM, or do you expect to see some contraction going forward?

Secondly on the fees, you talked a lot about cross-selling your alliances, but your fee growth was only 2% year-on-year. Can you talk a little bit about where you are seeing pressure and what the expectation for fee growth is going forward, whether you expect to see a pickup there?

Okay, well, thank you for your questions. Addressing number one, maybe there's margin in the very short term, specifically on September, were affected by an abnormally low inflation rate that we saw that month. That situation is very short term and should be reversed in October, and to some extent, in November.

Yet, we have been -- as most analysts are expecting inflation to keep on growing because of higher economic activity and a normalization of inflation level. We are positioning our balance sheet to benefit from a higher inflation normalizing towards a level close to three-and-a-half, something on those lines, this year and 2011.

So when you have zero inflation, that produces a short-term drag in your net interest margin. That gives us a very short-term explanation. So -- and it should be mostly cancelled in October.

In terms of the more medium-term concern, which is probably worthwhile addressing, we think that our margins have probably peaked in this cycle, and that, because of three things will be under pressure and there's some counterbalancing effect.

Number one is that the risk environment is much more sounder than, say, 12 months ago. As we show in our press release, asset quality indicators have been improving. So naturally the margins, the gross margins, are under strain because of the clients that were willing to accept certain margins now are in a much better position, and therefore you don't charge the margin that you used to charge, say, 18 months ago. So that's element number one.

Second, again, in the short-term, rates have been increasing, the short-term rates, and that produces a short-term compression in our margins because the repricing of the liabilities, which tend to be shorter than the asset, produce a short-term compression because you reprice them very quickly as opposed to your loans and other assets that take longer to be visible.

Yes. So those are elements that are negative for our margin. And the counterbalancing element, which sometimes produce -- fully compensate or partially compensate is the mix, as we currently -- we possibly have been growing in high yielding categories, but still not enough to fully compensate the other two effects.

And secondly, the fact that we have around one-third of -- 30% of our funding comes from non-interest-bearing liability, mostly checking account balances, et cetera. So those balances, which used to be invested at 0.7%, 0.1%, today can be invested at 2% et cetera, supporting our margins. And going forward, the fact that we have grown a lot in terms of checking account balances, make us believe that we, at some moment of time, more than compensating for the repricing effect and the higher [environment].

So net-net, that's why margins have to be looked in connection with the provision levels. They are not completely isolated. They tend to move in line because when spreads were -- when provisions were increasing, we have to increase our spread to compensate for that.

Now that provision levels -- because of the stronger operational environment that we are seeing -- are coming down, of course, spreads have to move in line. At the end of the day, what really matters is our risk-adjusted net interest margin that still is in a relatively high level by historical standards.

So net-net, we think that spreads will come down, but relatively on a moderate way going forward in the -- before this cycle started, our net interest margin was around 4.8%, 4.9%. Today, we have 5.7%. So, but that process won't be, we think, dramatic because the counterbalancing forces will be the mix and the fact that our non-yielding balances should be much more profitable with high interest rate.

So it's simply a reflection that we expect spreads to be relatively stable or slightly going down in the next 24 months. But of course, the fact that provision levels should be much lower than what we saw in the last 18 months or so will be more fully compensated.

In terms of fees, there are basically two realities. One is flat fees, which are -- been under a lot of the scrutiny, both by authorities and the general public. And that's why we have been conservative in those type of fees. We have been waiving fees throughout the earthquake, the following quarters.

We have been trying to eliminate as much as we can those fees because we have been giving more -- trying to -- when you are growing very healthily on your lending volumes, you try not to charge fees that are not very important in terms of your contribution to your profitability, and some of them are a little bit annoying from the standpoint of the client. So it's simply a way of how you are getting the profitability from your clients.

Today, given that we are seeing a growth period, we prefer to grow more on the lending side and on the net interest margin side than on the fee side. But if you take a closer look to our fee structure, the usage type of fees has been leading the growth. It's simply that that picture is a little bit mixed because of flat fees being waived in part because we have been doing it for us to stimulate our growth on the lending side. And secondly because last year there was a change in the regulation concerning some fees applicable to checking accounts, which we have the highest level of checking accounts in Chile. So we were impacted by that.

And that was kind of an alert that those fees will be, going forward, under scrutiny. And that's why we prefer to privilege our usage fees where we have a strong position. Especially in credit card, in asset management, in ATM's fees, we had a leading position.

So it's simply, we have been changing the way we collect revenue from our clients. In this growth part of the cycle, you tend to try to stimulate growth more than collecting fees, flat fees that some of them are not very -- clients don't like then to pay flat fees, especially when you are in a more growth mood.

So net-net, we think that provisions will be, as we have seen in the last three quarters, we have been, on a sequential basis, gaining some momentum. It will be subdued because of the change of the nature of the fees that we are charging. But no doubt that going into 2011, our growth should be going back to levels close to the upper 9%, 10% they're finishing for 2011.

Yes, I don't want to take up too much time, but just one quick follow-up. There were some talk earlier this year about changing provisions for commercial loans. I think it was supposed to be July; it got pushed back. What is the status of that and will that -- do you think that has any impact on your loan loss provisioning line?

Yes, that was a change that was introduced by the superintendancy for commercial lending.

Yes.

The first draft was perceived to be very harsh, especially because in that piece of our loan -- not ours, but all the system, there was no major deterioration, no relevant deterioration on asset quality on the commercial side. So the industry claimed that it was too harsh for the -- given the status of the segment and given the fact that we were entering a more positive cycle. So the superintendancy set a more light scheme, which is -- will be in place starting on January the 1st.

That has, as most of the new regulations, some positive and some negative, but net-net are good for the system, to be more conservative than not. It has been part of the explanation why Chilean banks have emerged in a relatively solid position. And they shouldn't be very binding from a profitability standpoint, because you'll see the positive force coming from an improved operational environment, to some extent blurred by this more conservative provision levels.

But net-net, we think that provisions shouldn't be a drag to our performance. But this year, they have been fairly positive, next year probably neutral or slightly positive.

Okay, great, that's very helpful. Thanks, Raimundo.

Your next question comes from the line of Tito Labarta with Deutsche Bank. Please proceed.

Hi, good morning, Raimundo, thanks for the call. I just have a couple of questions, just following up in terms of the provision levels, as you mentioned, they have come down quite a bit. So I just want to get a sense going forward, given that the focus on retail loans, do you think that that could have an impact at all just from the shift in the loan mix that provisions [or such increases.]

I just want to get a sense of what do you think the recurring level of provisions will be going forward. Should they stay around what we saw end of the third quarter excluding the one-time items, or could that either come down further or could it pick up?

And then also just get a sense in terms of the loan growth. As loans have been growing kind of above the system level, what kind of loan growth do you see for next year?

And then finally, just one question on the tax rates since it was a bit lower given -- you mentioned the different taxes. Just want to get a sense if that's just a one-time thing or that's going to go back in the fourth quarter to normal levels, and then go up to 20% starting next year.

Sorry, could you repeat the last part of -- because I understood that you're concerned about provisions going forward, loan growth going forward. But the third part, I just didn't get it.

I'm sorry. Just on the tax rates, the bit lower --

Tax?

Yes.

Okay.

Yes.

Yes. Well, in terms of the provisions, I would say that at least for the remaining of this year, and to a large extent the first half, they will be contributors to our bottom-line performance. From then on, they will start picking up mostly because of -- as you correctly point, because of the mix effect, you will be growing in high yield, but, of course, higher growth per segment.

And the fact that we have been adjusting our scoring to a more demanding -- we have been anticipating the recognition of provisions, and we have been slicing and dicing our scoring to incorporate more richly the different kinds of risks that we saw in this, the downturn of economy, at some moment will be reflected in provisions starting to grow again probably well into 2011.

But still we are like 20%, 30% above the gross provision level above the good old times before this downturn started. So we think there is room there for improving, but we are seeing the floor, probably in the first half of next year.

In terms of loan growth, we have been growing faster than the market throughout this year and we've started in the second half of last year to gain market share. That process has been achieved in all the segments under the prices that we expect, given our capital consumption and given our profitability target.

We think that eventually, the competition would start to grown again and we will see price pressures there, and that process will be less difficult. But the other forces; the recovery of the economy and the growth outlook of the economy has been basically increasing in these seven, eight months despite the effect of the earthquake.

And that's why we think that the market should be expanding faster than what we were expecting before. Today, growth of 18%, 19% up to 20% has been hinted by analysts. So we think that we can maintain our profitability target by compensating lower expected spreads with higher volume growth as the market should be expanding faster than what we were thinking.

So in our terms, the only area where we have specific targets to -- for loan growth is in retail where we think that we can keep on growing market share unless we see crazy pricing decisions by our peers, which up to now we haven't seen.

In terms of growth rate, it is more open because prices -- the normalization of spreads abroad and because the Chilean market is very open and these corporations can borrow a lot outside -- and we have been doing that process as a corporation as well. There we see high pressures on margins. And therefore, growth is more a consequence of getting other more profitable products than by itself. If you simply lend money at the current margins, it's very unlikely to maintain high ROEs as we're targeting.

And so in terms of retail, probably we can maintain and to some extent increase our market share. In terms of corporate, it is an open issue. We only will be growing as long as we see enough profitability at the end of the day.

In terms of taxes, there are some technicalities here. It's the following that taxes are still calculated taking into account, inflation adjustments. And that's why although the tax rate will be higher in the next two years, you shouldn't expect the full tax to be seen in the financial reports, that is what you see, simply because in that financial -- in the -- for tax purposes, you are still adjusting things by inflation as it was the case before IFRS report in -- for Chilean banks.

That's why although rates will increase in -- the fact that inflation is still picking up will imply that our rate from our current 14%, 15% should increase a couple of points. But it's very unlikely you will see taxes of 20% on the financial side because inflation that is still used for calculating your tax payment will help to some extent that process. So you will see an increase in the effective growth, but not as high as the 20% that should be applicable for tax purposes.

Okay, thanks; that's helpful. Just -- and -- but we won't see it -- in the third quarter it was around 10% because there was some deferred tax adjustments you had to make. So that was just a one-time thing; you won't see that again in the fourth quarter?

That's right. That's why you should be more into 14%, 15% more or less.

Okay, great, thanks.

And your next question comes from the line of Jason Mollin with Goldman Sachs. Please proceed.

Hello, everyone. Thank you for hosting the call. My first question is related to the impact of the currency, the strong Chilean peso. It's appreciated about 10% I think since June. If you can give us a sense how this is impacting your clients, the economy in general and then directly and/or indirectly the Bank, and what are your expectations for the currency going forward?

And my second question is a follow-up a bit on what you were suggesting on the credit scoring changes for the consumer segment. If you can describe a little bit what that entailed? Why are we seeing this now?

Is it just because of the experience you had in recent quarters, or is this incorporating a different sense of risk for the Chilean consumer going forward? We have seen reasonable growth in that segment. Is this acknowledging that the, let's say, the penetration of credit is higher and credit scoring needs to be different?

Okay. In terms of currency, I have to be very humble, nobody knows very well where the exchange rate is bound. Our economy, we think that it should be stable or -- and today, the bet is whether the Central Bank will be intervening the market to some extent or not, which is something [practically] that is very difficult to predict.

But in terms of the impact, in the case of the Bank, the direct impact is very limited because we have -- at all times, we're almost closed in terms of the exchange rates. In each day you can generate an open or closed position for -- but it's very -- it's not a relevant gap that we have. It's very expensive to have a high gap in terms of the currency mismatch, and that's why banks usually operate very close to being completely closed.

In terms of the impact on our clients, there are good and bad news. Some marginal exporters are facing the heat of these strong currency and are having difficulties in terms of -- up to now, in terms of a low profitability because the majority of big banks -- a big proposition of our exporters are related to commodities, to food, to mining, et cetera, where you have had prices increases, in some cases, compensating fully or partially compensated for the strength of the currency.

So the other thing is that, Chile has a very diversified export mix. So if you're exporting to non-dollar areas, the prices are very competitive. So basically for exporting to US denominated homes, you face the impact. But the price of basic commodities are still at a very high level. So that's why there are compensations.

But some of them are facing difficulties; in terms of profitability, up to now, not in terms of delinquency, at least what we have seen of late. And there are sectors, retail services, all that rely or need to import, which are being benefited and have been having a very good time.

So but, where we see the currency going, it's very difficult to know because in the short term, currency movements depend more on expectations and interest rate differentials than in terms of fundamentals. And that's why it's very difficult to know what to expect.

In terms of the changes we did to our scoring model, first is that the conservative buyers that you can see in any bank should be good news in the middle term. We had a lot of discussions internally whether this was the moment to strengthen our scoring or wait until you see more clouds in the horizon because today it's a very clear picture in the next two, three years.

But we thought that it's better to take -- to be consistent throughout the cycle. And we have been strengthened, we have -- what happens, remember that scoring process? Our processes are statistical process that learn from their mistakes, to call it some way.

So the more information you have, the longer time series you have, with different sorts of data, well, you have to change the parameters. And precisely because of that, we were having our scoring with 2 years of negative affected parameters, to call it some way. And that's why those negative quarters are fitted into the system and the system say okay.

My new reflection, to call it some way, is that you need more provisions and that provisions have to be recognized early in the life of the loan. And there was the choice to say, okay, let's forget about this for a while, because we're just getting out of the mess, or simply say, okay, we have to be consistent, and it's a more robust production when you include negative information and positive information. And that's why, to be consistent, we keep it.

And the other is a more -- there was a change at the beginning of -- that was the first element, to be consistent with the scoring requirement, which are statistical process that needs to be strengthened when you have more, a quarters of negative information than before. Simply it's a learning tool, that the more information you feed to the system, the system is continuously upgrading the requirements of provision.

The second part was more of the following, that there was a change in the regulation in line with the IFRS. We had to -- the Bank didn't provision for the unused lines of credit that you had. For example, you have a line of credit of $1000, you were using $300. According to your profile, you had to set provision for the $300 you were using. But the remaining $700, you didn't set any provisions. So there was a change, and you had to set some basic provisions for that unused part of your credit line.

What happens is that, at the beginning, we set the provisions according to the average, the average of the loan consumers, the credit card consumers, depending on the product. And today, we have refined our process because it was a change that happened at the beginning of the year, and we can set provisions one by one, which are more accurate. And that's why, at the end, we were too conservative, and we released part of that provisions that was set.

So they were two unrelated things, but they conceded in time. It's simply end of the story to have a sound asset management that is consistent on a cycle at adjusted basis.

Thank you very much, Raimundo.

(Operator Instructions). At this time there is no more questions. I would like to turn the call back over to Mr. Raimundo Monge for closing remarks.

Okay. Well, thank you very much for taking the time to participate in today's call. We look forward to speaking with you again soon. Have a good day.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect. Have a great day.