Grupo Supervielle SA (SUPV) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to the Grupo Supervielle first-quarter 2024 earnings call. This is Ana Bartesaghi, Treasurer and IRO. Today's conference call is being recorded. (Moderator Instructions) Speaking during today's call will be Patricio Supervielle, our Chairman and CEO; and Mariano Biglia, our Chief Financial Officer.

Also joining us is Alejandro Stengel, First Vice-Chairman of the Board and CEO of Banco Supervielle. All will be available for the Q&A session. As a reminder, today's call will contain forward-looking statements based on management's current expectations and beliefs and subject to several risks and uncertainties. I'll refer you to our forward-looking statements section of our earnings release and recent filings with the SEC.

We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or simple stats. Patricio, please go ahead.

Thank you, Ana. Good morning, everyone, thank you for joining us today. Starting with a discussion of the quarter results on slide 3, we are pleased to have started the year delivering robust profitability and market share gains in loans. At the same time, we maintain healthy asset quality metrics and attractive capitalization with Tier 1 at 25% to support growth initiatives. Profitability achieved another record high ROE of nearly 34% in real terms.

This good performance was driven by an unusually high net interest margin of 62%, reflecting our effective asset liability management and increased spreads. Our strong bottom line was also supported sequentially, improved efficiencies as we continue to improve in digital, virtual, and automatic channels, while transforming our branch network, establishing a solid base to drive higher productivity as growth resumes. In turn, our half-year loan mix, following the shift in loans towards middle market corporates and payroll customers where we have reciprocity with our transactional products, together with significantly lower exposure to consumer loans and tight credit scoring contributed to the NPL ratio hitting another record low of 1.5%.

So how have we been able to achieve our good results? Let me provide a brief overview of the progress we have made across our various strategic initiatives. Starting with SMEs and corporates, we are fully committed to attract new clients and expanding our share of wallet. To accomplish this, we are focused on enhancing the corporate experience, improving our Net Promoter Score, and driving operational efficiency.

During the quarter, we successfully scaled our virtual hub service model to charter the companies in the entrepreneurs and SMEs segment, which received gold recognition in the country's award of Financial Innovators in the Americas presented by FinTech Americas. On the back of improved dynamics, were actively developing products tailored to highly attractive export oriented value chains such as oil and gas, mining and agri business, while keeping a strong focus on selectively topping regional economies, with attractive prospects. On retail, digital client base have expanded significantly, now comprising 64% of total clients, up 2 percentage points sequentially and 7 percentage points from a year ago, reflecting the strong adoption of our digital wallets.

Over half of our regional transactions are now complete through our app, a remarkable increase from just 37% a year ago. Moreover, our pioneering 24/7 Inversión Rápida feature is unique among Argentinian banks, continued to perform well, with customers up 28% sequentially. We are confident that our human banking relationship model will elevate customer satisfaction, enhanced cross-selling opportunities, and further improve our NPS. IOL, our online retail brokerage platform, continues to excel, accounting for 20% of total fee income, as it captures additional market share and further strengthen its leadership position.

The new crypto offering introduced in January in collaboration with Ripio, has been well received by existing customers. And while it is still in its early days, we are seeing consistent growth, both customers and transactions. Our efforts to drive higher operating efficiencies while remaining close to our customers, continued to bear fruit, with bank branches and headcount down year-on-year by 12% and 4%, respectively, while further improving NPS.

Turning to slide 4, President Milei remains fully committed to achieving fiscal surplus and implementing bold structural reforms. While there's still much work to do, the policies implemented over the past five months are resulting in a gradual transition in Argentina to a more positive economic environment, conducive to a more sustainable, robust, and competitive financial system. To date, interest rate floors on time deposits have been lifted. The Central Bank has acquired $17 billion in reserves, while keeping a fiscal surplus since the beginning of the year.

Measures were also taken to address the challenge related to importers, commercial debt, and unpaid dividends, and we are pleased to see that inflation is decreasing faster than anticipated. Despite the recessionary environment, it is worth noting that social support remains strong. In this context, the financial industry is experiencing a greater resurgence in loan demand. However, passing the necessary reforms from Congress and the lifting of FX restrictions are crucial to resume sustainable growth of attracting investments.

It took until we have a strong capital base and solid adjusted foundation that positions us well to resume growth, as demand continues to recover. Now, moving to slide 5, reflecting anticipated macro improvement, we are strategically diversifying our asset portfolio, gradually shifting towards larger share of private sector loans and reducing our portfolio of large holdings of Central Bank repos. The share of Central Bank repos, our total assets, declined 7 percentage points to 33%, while loans expanded that measure by 6 percentage points to 29% of total assets. While increasing sequentially, the loan to deposit ratio stood at just below 44%, providing ample room to expand loan growth.

As this transition unfolds, we anticipate these positive loan growth trend to continue, as demand continues to recover, well NIM adjusted revenue from the exceptionally high level experienced in recent quarters and converging to historical levels for the auction time financial system. Turning to an overview of our loan book performance on slide 6, total loans were up 3% sequentially in real terms, while we gained 40 basis points in total market share as the economic environment began to normalize and confidence return. Reflecting our focus on lower risk segments, SMEs and corporate loans accounted for 64% of our total loan book, while retail loans represented the remaining 36%. Corporate loans saw a 60 basis point share increase in the first quarter.

For the remainder of the year, we expect to maintain our focus on MSEs and meet market clients, placing particular emphasis on the winning export climate change to the oil and gas, mining and agri business. Therefore, corporate loans are expected to grow above retail loans. Within retail loans, we have selectively targeting lower risk segments. Reflecting this, we expanded our share of car loans by 40 basis points in the quarter. More recently, we became the first private bank in the country to relaunch new 30-year mortgage loans.

Our return to adding mortgage products to our portfolio is an attractive value propositions in today's market. We're also scaling car, personal, and credit card loans. We are optimistic that there is room for further growth, once inflation and nominal interest rates decrease. With this, let me turn the call to Mariano. Please, go ahead.

Thank you, Patricio, and good day, everyone. Now, let's turn our attention to slide 7, which provides an overview of our performance for the quarter. Net income increased to nearly ARS47 billion, with ROE in real terms at 34%, a significant increase from net income of ARS34 billion and ROE of 27% in the fourth quarter last year. Starting with revenues, net financial income was up just over 2%, mainly supported by higher spreads and volumes on our investment portfolio, a drop of nearly 750 basis points, cost of funds following the lifting of floors on time deposits and increasing interest rates.

Net fee income, however, contracted for 15%, as banking fees increased below that 52% inflation for the period. In turn, costs were down 18%, reflecting seasonality or instructor and cost efficiencies. Moreover, a strategic shift in allocation towards middle market corporates and payroll customers, coupled with the update of our expected loss models 4Q '23 resulted in a 40% sequential decrease in net loan loss provisions. Other net losses declined 16%, mainly reflecting valuation adjustments of real estate to market value in 4Q '23 and higher provisions for strategic initiatives.

All these more than offset 35% increase in inflation adjustment on higher monetary assets. As shown on the left chart of slide 8, we have been diversifying our asset base, gradually shifted towards a larger share of private sector loans, while significantly reducing our holdings in Central Bank Securities. On the right, you can see the composition of our commercial and retail portfolios at quarter end where we have gained share across most loan products. In corporate loans, promissory note standout accounting for 52% of the corporate portfolio, as well as overdraft at 26% are foreign trade at 15% of this book.

With respect to retail, credit cards account for 33% of the book, followed closely by mortgages at fixed 32%, personal loans at 24%, and car loans accounting for 9% of the total retail book. Moving on to slide 9, net financial income increased sequentially in the low single digits, and nearly 140% year-on-year ARS299 billion, with mean (technical difficulty) at 52%. Following the lifting of floors on time deposits and decreasing interest rates, cost of funds posted a sharp sequential drop of over 740 basis points. In turn, interest rate on loans increased to over 300 basis points, mainly due to a higher adjustment of inflation linked costs.

Q-on-q performance also benefited for baseball game and a higher yield on increased volume of inflations in government securities, capturing the attention of big last December and January. Turning to slide 10, our successful strategy execution has contributed to further improving the efficiency ratio, reaching 34% down from 43% in the prior quarter and over 70% a year ago. Sequential improvement in efficiency was mainly driven by exceptionally high mean, driving revenue growth, while we also continue to reduce personnel and administrative costs. Turning to slide 11, capitalizations strengthened further in the quarter, with a Tier one ratio expanding 370 basis points sequentially, to nearly 25% at the quarter end.

The increasing capitalization reflect strong results, along with inflation adjustment of capital and taxes efficiencies from the merger of [you doing] to the bank, which more than offset growth in risk-weighted assets. Now, moving on to our perspectives for 2024 on slide 12. Considering the recent trend this past, we have updated our perspective on the following line items. While we continue to expect loans to grow above inflation, we now see credit demand recovering gradually, starting in the second quarter as inflation eases.

In terms of deposits, while expectation of personal deposits remain unchained, growing slightly above inflation, dollar denominated deposits are now anticipated to increase in an original currency. With respect to fee income, while the bulk of bank fees to individuals are expected to reprice in line with inflation, dollar denominated commissions are anticipated to grow when translated to pesos. In terms of profitability, we are increasing our ROE expectation for the year to approximately 15%, up from the 10% discussed in our prior call. For the remainder of the year, we expect to see a softer second quarter, reflecting negative interest rates, when lower inflation and loan growth are expected to drive higher profitability in the second half of the year.

Expectations for all other metrics remain unchanged, including closing the year with a Tier one capital ranging between 20% and 25%. Now, we are ready to open the floor for questions. Ana, please go ahead.

(Moderator Instructions) Ernesto Gabilondo, Bank of America.

Thank you. Good morning and a good morning, Patricio, Mariano, and all the team. Thanks for the opportunity to ask questions. My first question will be on your loan growth expectations and what would be the macro assumptions that you're expecting for this next year in terms of GDP, the level of inflation, the level of interest rate? I think those should be important to consider, in order to think about the loan growth in this next year.

We know that Argentina has a very low credit penetration. So considering all these assumptions, how do you see the loan growth for the second half of this year and next year? Thank you.

Okay, I will start and then Mariano will further expand. After the extraordinary high NIMs that we saw in fourth quarter '23 and as well as first quarter 2024, we anticipate a declinine in NIMs alongside falling inflation. Inflation figures could decline from 50% in first quarter to 20% in second quarter. Declining interest rates have several effects: first, in March, we saw already a surge in demand for loans from a SMEs and the corporate segment, both in pesos and dollars, and as well as in the retail sector, positively impacting our market share.

For the remaining of the year, with declining inflation, we expect the loan book to grow back in real terms above inflation starting this quarter. Second, we also foresee a shift from repos to T-bills, as the better reserve our financial margin. Do, you want to expand on that?

Sure, Patricio. Hi, Ernesto, thank you for your questions. Regarding our projections for low rolled form some macroeconomic variables, and we expect, for what Patricio mentioned, loans to start growing in real terms in the second quarter and increasing the pace of growth in the second half of the year. For the full year, it is, of course, hard to tell, but with increasing inflation even faster than originally expected, we can see loans growing at real rate in double-digits. So maybe somewhere between 10% and 20% this year and growth can be much higher next year.

Departing for such a very low point when we are at less than 7% of gross to GDP, growth can be also very fast. So within that low starting point, next year growth, if inflation keeps going down, it can be really high. It's difficult to say now, wether it will be 50% in real terms, 60%, but we can see a very high rate of growth in 2025. Then, you asked of our projections of GDP, we expect we are in line with economic consensus of a decreasing GDP for this year of 3.5%.

We saw fairly low levels of activity in the first quarter. Of course, part of that was expected. And then, the economy should start to recover gradually. A very important first call will be the lifting of the exchange rate controls, and that's shown and it's something that we want to see, probably by end of the year.

Some economists are more optimistic and can be achieved and say can be achieved by the third quarter of this year. But at some point in time, and within those quarters, will be lifting and that will also unlock growth. And in that regard, we expect next year, 2025, to see a growth in GDP of approximately feel 3% to 3.5%.

Excellent. Thank you. And just a follow up on these macro assumptions. So Patricio was saying inflation declining from 15% to 20% levels in the second half. But can you provide us these number or also in annual terms, how do you see inflation for this year, inflation or next year and also what your expectations are for the interest rates?

Sure. Yes, inflation for this year, we expect it to be in 160%. And for next year, (technical difficulty) definitely keep decreasing and it can get us as low as 60%. We know there are some variations in these projections and some economies expecting inflation to decrease at a higher base or projections in the range of 60%. And interest rates, we believe the sharp decrease and the Central Bank did during this first five months of the year, and within for the following month, it will keep at the interest rate at the actual levels.

Also the implicit interest rate in the last auction of treasury bonds shows that the market expectations are for interest rate decreases to stop in the following months. But of course, for next year with increasing inflation, interest rates also will actually going down now.

Perfect. Excellent. And then, just second question, this will be on your ROE expectations for the second quarter, your press release, you mentioned, you have a record high ROE of 34% in this quarter. But at the same time, you are guiding for the full year to have an ROE of around 15%. So just wanted to understand how it will be it is evolution of the ROE throughout the year? I think that the second quarter will be the most challenging one, given that you will start to accelerate the loan book.

But at the same time, you have the impacts of lower rates, so I'm just wanted to understand how should we think about the ROE evolution through the year?

Sure. You explained it very well. The second quarter would be the most challenging probably of the year because our loan growth is starting to grow. But we are seeing negative interest rates in real terms, so that's also a challenge to hedge our equity. But I would say, our OE for the second quarter will be in single digits, maybe ranging from 5% to 10%.

And then, the evolution of the ROE will be increasing during the third and fourth quarter, as we continue to grow our loan book and replacing central banks and treasury bonds with loans, and that will make a total ROE for the year of 15%, which was our guidance.

Perfect. Thank you very much.

Brian Flores, Citibank.

Hi, team, good morning. Thank you a lot for the opportunity. I want to start with a more strategic question on your consumer franchise. You have mentioned on the presentation, a lot of the digital efforts are already evolving, right? So more of your transactions are already happening?

With your apps, you're deploying these digital efforts. I just want to maybe get your ideas here on how are you thinking about the digital competition, right? Because and for the consumer franchises, we have a lot of competition, maybe a couple of [Merkagopago Wala]. So I just wanted to maybe ask you strategically how do you think on this competition? And how are you preparing yourselves to compete against them now that I assume, as you mentioned in your guidance, we should expect longer to become more and more relevant right in the strategy. Thank you.

Thank you, Brian, and good morning. We have, as you probably know, been focused on developing our digital wallets and making that a unique experience. That is one of our key initiatives, and it's ranked really very high and comparable to many other digital wallets that are being developed by fintechs. This is precisely part of the recognition we've got with the FinTechs America award.

And in this regard, we are also making a big effort and we've been recognized by the mobile platform and we see there, too, that we are very well positioned among the banks that have the greatest use and greatest stickiness of clients using the mobile platform as a strategic response to the medical viral loads. A lot of the answer to your question depends on what the regulator will do moving forward. As you know, the Central Bank has rules that they have to be interoperable QR. And there has been a little bit of a wrestling with the [Merkado Libre] around that point.

And so far, if progress it's made in that direction, we see a huge opportunity to be able to leverage all the investments and the capabilities we've developed in a digital wallet in that direction. We also see big opportunities on the digitalization of insurance products of all the mortgage products and all the car loans, for example, which have been our focus initially for growth. So we are very confident that these capabilities, together with our new operating model, are positioning us very well in this new digital competitive arena.

Let me react to the answer of Alejandro. Last year, at the beginning of the year, we launched a new service and investment proposal for individuals, which is called Inversión Rápida, which is, basically, an answer to Merkado Bago would have been doing over the past several years, which allows -- it's a way for individuals that have idle funds to invest them in a money market fund. So we did this and I believe that we are still the only bank that is providing this service, which is 24/7. So anytime and during the week during the night weekends and so on, you can dispose of your funds and use them. People are investing.

Also this is a way -- and the interesting thing is that, although, let's say, of course, we lost some 0% deposits on the savings accounts, but overall, when you seeing the profitability on their own financial revenues and revenues we get from individuals, they have increased. So there was there was a compensation and it was award for doing these. And the adoption was fantastic because we grew 10 times in terms of adoption or even more than in terms of adoption in Europe. So that's a way that we believe that the we can compete with fintechs. And it's surprising that we are the only bank to do this yet.

Perfect. No, super helpful. And maybe just a quick follow up on Ernesto's question. Are you going to prioritize a specific segment, because as you mentioned we might see a 10% growth this year in real terms, but at 0.5% of your loan portfolio is corporate. You have a big consumer franchise.

So are you going to prioritize one way or the other? And if you could just remind us on the and how fast you can you reprice in terms of duration each of the segments would be really helpful. Thank you.

We have initially focused in SMEs. As you know, SMEs have very low leverage from the starting point and are the ones that have been reacting quickly to the change and the fall of above inflation, particularly in export-oriented value chain. As mentioned by Patricio before like mining, agribusiness, and oil and gas, we have been more cautious on the retail side, but we see increasing demand there too. And we are focusing on payroll clients on pension is in the case of clients or non-clients of prospects that are coming on board, we are focused on asset backed loans like car loans and mortgages going forward.

We think that this approach will put us on a solid footing for when we really expect the retail part of the business to take off during the second half of this year.

Great, this is perfect. Thank you very much.

[Marina Merkins], Latin Security.

Hi, good morning, thank you and congratulation on the results. So the banking business in Argentina for the remainder of the year should look quite different since the Central Bank has been lowering rates and inflation has been coming down. So what do you expect? What do you envision for the remainder beyond 2025?

Yes, we are in Marina, as inflations are going down and interest rates are decreasing, the composition of the balance sheet will be changing and will be transitioning as it already has during the first quarter. We are transitioning from a very low weight of our loan book in total assets to very low loan to deposit ratio and to higher weight of the loan book. And at some point, we expect to convert to historical levels. This will be achieved by replacing all the weight that now central bank securities or recently short short-term treasury notes have in our balance sheet.

So when that comes with no changes also will do the composition of our revenues. So that will also be a change in thinking and quality of our revenue or earning out most of our revenues from our traditional banking business of receiving deposits and lending to individuals and corporations.

Thank you.

Carlos Gomez-Lopez, HSBC.

Hello, Ana, thank you, I'm from HSBC.

Sorry, nobody said it. HSBC.

I'm used to it, it's okay. So I'm looking at slide 8 in your in your presentation and we see the decline in central bank exposure. How do you expect this to evolve for the rest of the year? Would you continue to decrease your exposure to the Central Bank and government securities.

And traditionally, the banks have been reluctant to take on treasury securities. We understand that maybe take in is there a limit as to how much exposure to the element are you're willing to take?

Hi, Carlos, for your question. Yes, all right, as you said, we are increasing the weight of its equivalent security and personal note in our balance sheet as we replace environment by loans, and we increased our loan to deposit ratio. And also, reason being during this month, the Central Bank allows us to replace numerous short-term treasury notes instead of one day repose. And the change that Central Bank mede that for the amount that we decrease repos, we can increase short-term treasury notes without exceeding the limit of exposure to the public sector.

So that's on the regulatory side. But also the short-term treasury notes, higher higher rates there was an economic incentive to do that change of composition in the balance sheet. That within our investment portfolio. Then, for the longer term, we are, as I explained before, increasing notes and that will be finally revision replacing fee the overall growth should lead the government sector with the central bank or the treasury. We are in that transition year. And thereby, of course, expecting that the business we are in is providing loans to the private sector, but this is definitely a transition year pattern.

And you also asked about limits. There are limits, although, this waiver that I mentioned of the Central Bank to increase our exposure so we can increase up to the amount or the degree and center of our exposure. And then, we have the regulatory limits to exposure to the public sector, and also, our own policies.

Well, I guess that is the question is what is your own policy? Because again, to see if I understand correctly, the Central Bank allows you to, at this point in time, increase your exposure to the Treasury without that counting as increased exposure to the public sector and that they're obviously you a waiver there. I imagine you don't want to do that indefinitely, right?

Definitely not. As I said, this is a transition and we have our own limits, of course. And we knew, I mean, essentially, when you have on the other side of the Central Bank or the government, is a different animal, I would say. So it is, as I said, that transition and we have our own limits in order to take a treasury securities. This is not the same limits we have on repos.

This allowed for this very short term, recaps only. It's not for any other treasury would make up for the time, while we wait for that loan book or long term demand to accelerate.

That's only for the lockups in the short term?

Yes, exactly.

And only for the amount for repo, it's May 15th, I think. It was the date was the end of May.

And also this and knows are very short term. So both the interest rate reset have a lower risk than a lower term bonds.

It is (indaudible) As Patricio mentioned.

And to the subject and go back to the future, which is loans. I mean, we're all very excited about the new UBA and down to mortgages, and you have been at the forefront, I get an offer. I just wanted to know if we have already seen Europe, any of these loans granted, we're not there have been inquiries and competitions, but when do you expect to actually land that in what is a realistic prospect as to what amount you could keep, let's say, this year or next year?

It's a tough question. We already know that there are already some mortgages that have been granted.

And next in the coming days, we should we having more from our side. We know one loan, at least, as we know that yesterday was granted way by one (technical difficulty).

But definitely, there is a huge and demand expectation. I would say, most of the people in Argentina, they are ooking at the mortgages, say this is unbelievable that the potential demand is absolutely achievable. And reflects probably what happened in the last few years. We know what people were forced staying out, renting, renting apartments and so on, Nandan, what they want to move on. So it's unbelievable demand, that's it's already in there. We know it.

We understand that as operational productivity, there are some definitions that have to be made before you can actually start lending in large amounts. Is that correct?

Yes, the FX measures, some of them, they were not good for the buy and sell of the houses. These deceleration and things like that, we anticipate it will be removed in the coming days. They told us and we're working on it.

Some of them are starting to be addressed, like, for example, the parking required when you purchase a local dollars.

And the $200 million daily limit.

And this will help a lot, Carlos, to increase demand and to make it more agile. But these things, as soon as they start working out, they will be very, very important in driving demand up very quickly.

Thank you so much.

Ernesto Gabilondo, BofA.

Thank you, Ana. Just a couple of questions, the first one is on your loan to deposit ratio. So considering this excess cash that you have in security is and that you will use it to expand the loan book. How should we think about the loan-to-deposit ratio evolving in the next years? And my second question is on regulation, do you think that the big part of the tough regulation is already lifted, or are you seeing still there are some things that can be removed or lifted? And if that is true, do you have an estimate on how this removal of regulation can help your business?

Yes, Ernesto, I will take the first part of your question regarding the loan to deposit ratio, we came from October 13% as of December last year, we are now over 40%. And by the end of the year, we can be close to 50% a week, increasing in loans it faster than we increasing deposits. And for following years, we should be reaching at levels that we had in the past turning to net 90%. Remember also that right now, we don't have other other sources of funding because we don't need them.

But in the past, we always have capital market, instruments, securitizing part of our portfolio, or issuing negotiable obligations. So when we start to plan to issue also that type of instrument in order to manage liquidity, we will also see the loans to deposit increasing significantly.

Concerning your second question, I tried to make an answer and maybe Alejandro can help me also. First of all, I think that the main regulation that is restricting the entire economy, and of course, the finance committee, foreign exchange restrictions, and all of that is related to that. This is critically important that are being lifted as soon as possible. Because it will add new investments, it will bring confidence to the market, and hopefully you see growth in getting out of recession.

For us, for the banks, and also it is important because, first of all, lifting, I mean, having clear rules on FX with restriction, it will help also all export-oriented industries. And for us, it is also in that traditional business when you leave on the exchange restrictions, you have individuals archives that they want maybe I'd say, their savings dollars. So for us, it's also a very interesting opportunity to make commissions. This has been traditional in the banking system. And this is a substantial revenue that banks you wanted to get when there was no restrictions and it would happen again. So we are prepared for this. And hopefully, as I said, we know these restrictions will they should remove it as soon as possible. Do you want to comment on that?

I think you're quite right, Patricio, because it is overarching. Then, you have many other things. For example, you might be aware of the increase on gross income tax that we are we have to be in different jurisdictions, which is also making the process of lending far more expensive than it was. That is something that should be lowered into expedite and to make it more accessible to the public.

And also, if you don't, specifically, at some products, take mortgages that we would like to grow and expand, there should be also some easening under conditions for securitization to provide (technical difficulty) banks can originate the mortgages and through some securitization, which in turn leads to the question of the creation of investment funds (technical difficulty) which does not allow them. So it is a huge opportunity when you look at all these different changes that could come around, and therefore, take you from the very small 4% of credit to the private sector to something closer to at least in the first stage, around 20% by 20%, 35%, which would be closer to something reasonable over the next four years now.

No, excellent. Thank you very much, Patricio, Alejandro, and Mariano.

Pleasure, Ernesto.

Thank you, Ernesto, thank you, all. So ladies and gentlemen, we have reached the end of today's Q&A session. Thank you for joining us today and for the questions. We appreciate your interest in our company. We look forward to meeting more of you over the coming months and providing financial and business update next quarter. In the interim, we'll remain available to answer any question that you send to use. So have a good day.