Thank you Nathan, it's a pleasure to be here to discuss our results. We are effectively reaching two years and so of our management.

We started by the end of 2023 and then we established the guidelines and the goals for our work. Now we have been consolidating everything that we have devised last year to change the portfolios, change a bit the rural portfolio loans, adapt our companies' accounts portfolio, and we have seen the results, the consolidation of this work the bank has been implemented.

Our net income reached $1.6 billion, ROAE of 14.9%, our loan portfolio grew 4.8% year-on-year, especially in companies' accounts. Our total funding reached $112.4 billion, 15.4% year-on-year growth, and our net interest income increased in 8.6%, and our cost of risk is 1.6%, and our costs are well managed, basically almost only the effect of the collective bargaining agreement, and all other administrative expenses are below the inflation rate.

We have consolidated these numbers this year, and as we had the problem regarding the seventh and eighth hour here in the bank, and we managed to reach a collective bargaining agreement, and over 3,000 employees started working six for six hours. This will bring benefits ahead.

We are pretty pleased with the development of our bank, which was expressive, robust growth based on this work to streamline the bank's portfolio regarding the growth of those more profitable accounts and portfolio and leaving the special credits within the adequate pole considering our bank. We increased rural loan adequately in proportion, and also real estate credit.

We've had some funding problems because the savings accounts are not very attractive at the moment, but the Central Bank has implemented some changes. We are waiting to see how it's going to be developed.

All in all, we are pretty happy with the development of our bank, and we'll check about the changes our tax reform laws will bring. We're still waiting to see what it's going to be like for companies and this tax regulation changes will bring.

Effectively, I can say that we've had a 2025 that is pretty pleasing. We are very happy about it.

Our ROAE is consolidating above two digits. It used to be below one digit, but now it's two, and the bank has a more structured position right now.

Initially, I'd like to tell this to our friends and co-workers, and our officers are here to complement on these numbers and results. Thank you, Nathan.

Hello, good afternoon, everyone. Now I'm going to go into greater detail regarding the bank's results for 2025, year-on-year and also quarter-on-quarter results.

As you can see, we have delivered the last quarter of 2025 of 656.9 million growth year-on-year for the fourth quarter of 131%. If you compare the four quarters of this year in the growth of 98%, if you consider if you compare the third quarter to the fourth quarter.

The net income in 2024 was 916, and in 2025 it was 1.6 billion. In terms of ROAE in the past year, and also comparing the last quarter of 2024 to 2025, there was an increase of 23.8%, ROAE of 11.6 percentage points in the past quarter of 2025.

Annualized percentage was 5.8%, 9.1% in the final quarter of 2024 versus 14.9% for the fourth final quarter of 2025, placing an ROAE a 5.8% upwards in terms of ROAE profitability, which is really expressive, as mentioned before. In terms of net interest income, we managed to reach 24 in 2024 of 4.5% growth if we compare 2024 to 2025, and a growth of 0.8% quarter-on-quarter.

If you compare 2024 to 2025, we reached an increase of 8.6%. In the year 2024, it reached 5.9 billion, in 2025, 6.4 billion.

The loan portfolio was 62.1 billion in 2024, 65.5 million reais in December 2025, 4.8% increase if we compare this December 2024 to December 2025, and 1.5% if you compare September 2025 to December 2025. Our guidance was 4.8%, a little below what we managed or we wanted to reach, but it was a pretty well-consolidated portfolio.

Credit lines with higher profitability had a good performance in this portfolio. Both for companies and individual accounts, we had a very good annualized performance.

In the past quarter, the the accounts' profitability decreased a little. This is this was expected.

In the companies' accounts, we had a highlight of the Conta Única in our debit accounts, cards, and also the working capital. The the final balance, if you compare the final balance with the average balance when it comes to the second or the third day, we have the payroll, we have a series of amounts that are paid, there is a decrease.

As the month goes on, that is a very good result for this portfolio, for this accounts. They deliver a pretty expressive and robust performance, which helps or really helped build the the performance of the bank.

The retail accounts for both company companies and individuals' accounts. In terms of exchange, foreign exchange in Rio Grande do Sul, in terms of exports, we had a good work and a performance of 34.9%.

It adds spread, margin, and service to this portfolio. Foreign exchange has been contained, and companies, they have a natural swap.

They come with a natural hedge for their position. In terms of asset quality, in the 90 days number, we had a slight increase in terms of the delinquency and default, but this is natural because we have, due to Ordinance 4966, there is the result of this.

Next month, we'll have a natural flow of the credit that entered in January 2025 and will start to be written off naturally. From April on, April 2026 on, we'll have better results.

Even in January, we could see for this portfolio with a little under 180 days, we had some written written-off credits. We'll have percentage a percentage equalization in a less attenuated line of growth, which is natural.

We have a very expressive retail portfolio, and it has some delinquency rates, but it's part of the game. We have 20 3.6% of these loans of Stage 3 credit is up to date, they are up to date and they are they have been paid, but have to do with a cash flow regimen.

In terms of cost of risk, there is a slight increase, 1.4%, we will go up to 1.6%. We need to be careful with the increase of cost of risk, but it's part of the routine game, part of the work.

It's also result of Ordinance 4966, which changes the framework in terms of default rate after 90 days. This will be corrected in time for the whole market in financial institutions.

In terms of administrative expenses, there was 6.2% increase, 1.1% increase in terms of other administrative expenses, and personal expenses reached 8.5%. There was some adjustments regarding our frame of work to six hours.

This is embedded in this percentage of growth. This will be corrected as the year goes on of 2026.

All other administrative expenses, they account for 1.2% only, below IPCA. It's almost a residual growth.

We have worked in terms of renting and all types of expenses, we have been negotiating them and working them, trying to streamline these expenses in terms of branches, to control to keep this administrative expenses under control. In terms of service income, we have very strong competition, Central Bank—sorry.

Just a second. Thank you, Nathan.

In terms of other operating expenses, well, we had some events that took place later. We can give you further explanation on them if you want to.

We had an expense related to a labor suit, we had to adjust some things, but the residual of all the stock, it was the residual. From now on, labors lawsuits will have to do with monetary actualization and actualization based on the Selic interest rate.

We also had other operating expenses, some due to a a labor lawsuit, it was negative for us, it's has been judged and passed into judgment. In in due time, we will reverse this operating expenses.

Anyway, it's recorded there. We had a lawsuit which started in 2003, 2004 related to an expense that we acknowledged as a fiscal rebate expense, but the fiscal authorities said no, and then we went on and discussed that in in the in the suit, and we had to wait on the judiciary to decide on that.

It had to do with the remodeling of the financial institutions that also restructured the bank. Then we had the fund pension funds for Banrisul, and it was a natural we thought it was a natural expense of the bank.

The judiciary said no, but in fact it was, there was what we call the reversal of this operating provisions. This is the value that we adjusted by the end of this understanding, because this is the final judicial sentence in terms of the legal part of it, in terms of legal discussion.

It's not up for discussion anymore, and it's more about the bureaucratic part of this lawsuit. It hasn't been passed into judgment yet.

It's not a final lawsuit yet, but and so if you put it all together, we had this effect on our balance sheet in terms of recurring expenses, and we had to go back to the origin, delivering this as a in a recurring form to the balance sheet. Performing all of this adjustments, we reached this positive number of $844.3 million in the last line over there in the total line.

It's part of the game and these things happen. We also had concomitant actions to offset this in terms of in in terms of reversing this judicial decisions.

It was a final decision, it was a government lawsuit, and now we are appealing this decision, and we trust we will be able to reverse this first decision, but we have to mark this in the provision. We also had some labor adjustments, as I said before, as I mentioned before, but we had a positive balance, which helped to increase our results even more, which was an exceptional result.

In terms of service fee, it wasn't what we expected, but the Central Bank managed to make some cuts and benefits to clients in the past. We were not charging for some of these fees yet, but we'll start charging for this fees and adjust ourselves to the market.

We we cannot charge anything that we want. We need to be careful related to the credit card.

The market says something, we cannot play against the market, otherwise we'll lose our base of clients. This is an revenue that has been loaded or carried with the slighter or reduced speed.

Digital banks removed a lot of margins, especially in terms of credit cards annual fees and all of this package that come. They decreased the growth, and we have worked really hard to increase our client base, and we need offers to provide the customers with to prove to our clients that our services are good.

Once the clients get used to our service, then we can start charging some fees if possible or when we have the opportunity to do that. We have a positive number for service fees in terms of and it's an annual growth, usually corrected based on the IPCA.

In terms of funding, with 87% of costs funding, really good, excellent performance, 15.4% in the portfolio, we ended with 112.4 million, 4.9% growth, this and if we add everything, we have 132 billion in terms of funding. We equalized this portfolio to balance to offset with the bank, and in the prefixed area, we are really well placed in terms of our assets, prefixed assets and post-fixed funding in terms of liabilities.

We almost have a perfect balance doing away with any volatility in terms of Selic interest rate, for example. The cost of funding is a very positive one, and the balance in terms of prefixed products is also really robust.

Next. Our capital, it's excellent results, 19.5% of growth in terms of the Basel ratio, a comfortable Basel ratio.

As we said before, there was a funding of 1 billion and 850 in LF financial letters of credit issued in 2025 for the LFSN based on Selic interest rate, it's growing. It has to do with our needs for capital based on the Basel ratio.

There was a redemption bond Tier 2 in of $300 million paid in January in 2026. We recovered this in the fifth year.

This Basel ratio presented in this picture of the balance will decrease a little bit, maybe reaching the levels of November of 2025 due to this return of this redemption, which was programmed. We anticipated this this funding to be protected in terms of capital.

We have another LFSN which will be redeemed in 2026 and 2027. We have available credit, we have a good Basel ratio, we are prepared and poised to grow.

Our in terms of our guidance, we wanted to reach 8.8%, we reached 4.8%. There are some explanations for this guidance.

We stagnated the growth in real estate portfolio, and also reduced the growth in the rural portfolio, and there was a mix of credit with higher profitability in the accounts. There was a migration which reduced the the payroll loan, there was a decrease in this payroll loan portfolio, and the higher profitability portfolio had an excellent performance throughout the year, which I discussed before.

There was a migration from one portfolio to another portfolio, giving priority to those that are more profitable. In terms of net interest income, we wanted to go from we our range was 7% to 12%, we reached 8.6%.

Our cost of risk was 1.6%, and our administrative expenses was good, we were below our guidance, 6.7%. The lowest the better, the lower the better, right?

It was good. The net interest income for 2026, we aim to reach 8% to 13%, and cost of risk 1.2% to 2.2%, and expenses 5% to 9%, with a total loan portfolio guidance for 2026 ranging from 3% to 8%.

This is our results, our performance. We are very pleased with this to deliver this results to our clients, to our investors, those who believe in the role of Banrisul, to our shareholders.

This is what we wanted to deliver, and we did our homework and we worked really hard to deliver this results. Thank you.

Hello, everyone. Yes, I can hear you.

Thank you very much. Thank you so much for your time.

I have two questions to understand your guidance a little bit better. When thinking about provision and cost of risk, your guidance is pretty open, it encompasses many events.

Given the new profile of the portfolio, when we look at the expansion of the portfolio, as Mr. Gonzaga said, was based on more riskier lines in 2025, given this mix, shouldn't we talk about a cost of risk of provision of the portfolio near the top of this guidance?

My second question is, should this be the portfolio profile in 2026, this guidance from 3% to 8% is focused on which lines? Maybe mortgage, payroll, rural growing on a slower pace and the commercial lines growing faster?

These are my questions. Thank you.

Good afternoon. I would say, yes, I agree with you.

Our expectation, in terms of rural credit, we have appetite is for good clients, and depending on their cost regular cost, we will renew this. We do not have a lot of appetite for those rural investment credit lines, the idea is to renew the the stock of that portfolio.

In terms of real estate loans, we've been financing some enterprises, and we have a commitment with the builders that the the apartments will finance the apartments produced by these constructors. There is a recurrence, right, and will be replaced by the new credits, new loans from this builders.

Then the portfolio will not have an increase in balance, will be stagnated. There will be a renewal, and the loans that were given will maintain the balance of that portfolio.

We are not going to grow on other lines, as you mentioned, the group of specialized services will not increase, but these are part these are portfolios that deliver a lower profitability in the market. In the commercial accounts, in foreign exchange, we are going to go into this portfolio, make this portfolio grow.

This give us margin, and simply 0% in default, the default rate is simply 0%. In those portfolios that deliver results, like overdraft in Banrisul, overdraft has a different bias.

We are the second-largest balance in overdraft. Half of our overdraft in Rio Grande do Sul is in Banrisul, but it has a different bias.

We have Banricompras, a service which is the electronic overdraft service, let's say. It's a plane of payment that competes with Visa and Mastercard in the client's debit account.

It has a balance like a credit card limit, and they use this. We have an expressive amount that they can use, $15 million a year.

Recurrently, they use their this comes mismatching from the payroll, and they always have a debit balance till they get the payroll. The day they they get this 30 days.

They if if you go to a restaurant and you pay with Banricompras, you have 30 days. It's 12th if if it's today, it's March 12th.

Not even 12th, it's March 14th because it's 30 days. If you go to the petrol station, to the gas station, you have 60 days to pay.

It's all over the city of Porto Alegre and the state. Any gas station, most of them will give 60 days to pay.

There is a default default rate, but it's a low rate. According to my experience and our models, we have been following this, I'm not worried about this this portfolio.

If if the margin is 5%, yeah, excluding a gross margin and income tax, you have 100 million in the portfolio and 5% delinquency rate, but it's 50 millions if you have If you have 50 million in the portfolio, you have 30 million in the default. There is this this delinquency rate is expected in the retail, but they do deliver a margin.

Even the overdraft portfolio has the same behavior, credit cards have the same behavior, but the margins are not are are are expected. We have the delinquency rate, if I have 100 millions in 5%, and then if I reach 200 millions, there will be the same rate of 5%, but I'll get more because I so So this we have this companies' portfolio, this Conta Única, and the Conta Única delinquency rate is residual, very, very low for the companies' portfolio.

We work with a very good working capital, they only pay that fixed interest. This and other lines of loans for companies' accounts, we have a expected delinquency rate.

In terms of payroll loan, it's not expected to grow, only to renew this with better advantages and for those loans that will be paid up this this year that started in 2021 or 2022, and then we have a rate that that will be higher with a shorter period because we work we used to work with 144 months, 120 months, but now we now we cannot work with more than 84 months. The loan on INSS, we only have a small number for of a small number of clients who can get a INSS loan with 96 months.

Then for the payroll loan, we have a portfolio of 60, 76, 75 months depending on the client's age age bracket. We can expect the delinquency rate, but it's not to be we're not afraid of that.

We want to give a very good result for the bank considering all of this aspects.

Thank you.

Thank you.

Good afternoon, everyone. Thank you for this Q&A session.

I have a question regarding PDD and the delinquency rate. If we exclude the provision for doubtful accounts on judicial deposits, this provision for doubtful accounts would have gone up considerably.

I would like to understand more, what is pulling this delinquency rate upwards? What about the 4966 Ordinance, or the deterioration of the portfolio, what is teaching this?

Could you talk about the dynamics for the 2026 in terms of delinquency rate or default rate, please?

Hello Mateus, thank you for your questions. Regarding PDD or the provision for doubtful accounts and delinquency rate, we left it 20 92, we did 180 or 200, and then we will write them off.

With the 4966 Ordinance, we adopted the policy to write them off around 720 days top. They will be longer in the portfolio, in the active portfolio.

Consequently, in this first period, there will be a higher elevation of this provision amount. Consequently, in the delinquency rate indicator, we had 4.2% by the end of it in 2025.

For 2026, our idea is to have this something around that. Around this range, 4% to 2%.

We do not have any worries about expressive amounts because, as Mr. Gonzaga said, we decided to operate with small and medium-sized companies in the retail, thousands of thousands operations every day, low-cost operations with good margins.

Then we have a portfolio growth of 4.8%, and companies' accounts grew 20%. We reached 16 billions in the companies' accounts portfolio, we doubled this considering the amounts two years ago, especially receivables and collaterals of credit cards.

Our collections portfolio in this period, they give us for the payment installments and guaranteeing credit operations, they grew expressively in the past year, and we have modernized all of our banking collection systems, and so we are delivering a super modern product to our clients. Now regarding credit card receivables, they help for the result.

Vero has given us a very good support, very reliable support, 120,000 clients accredited by Vero, transaction in every day with credit cards operations, plus Banricompras service. All in all, I'll tell you that there's nothing that worries us in terms of significant amounts because the portfolio has grown based on a large client base based on receivables, especially.

For 2026, we want to follow the same pathway. We imagine, as you saw, the guidance that grow around the market projects for credit growth, it talks about 8%, 8.9%, that's the pathway the bank wants to follow, giving priority to short-term operations and also operations based on receivables for companies' accounts and for individual accounts.

We will focus on personal accounts, and also as I said, the payroll loan will not be increased, will not make it grow because we have a portfolio of 150 months with an interest rate which was lower that we are using today, the refinancing of these operations is not viable, especially in the state in which the margins was reduced, the state changed the criteria to provide margins. It went from 40% to 35%, and it changed the gross margin of gross salary.

Today, the state authorizes the margin based on the net amount. Considering all the obligatory figures and amounts, and based on this discounts, they authorize the margin.

This give us more security, is safer for the market, the client has less debt to pay for. We maintain the purpose of these two previous years for 2026.

Thank you very much. Great.

We remodeled the collection services, yes.

Mateus, let me just add after Mr. Gonzaga has also reminded us of this, we've been restructuring the collection services.

McKinsey has helped us, we have hired their services to have a predictive control over the whole portfolio, and anticipate possible issues in the credit portfolio management. We have implemented it, and we worked with a collection hub that we call Up-to-Date Finances, we can connect all of our branches, all of our digital channels to collect the services, including companies and firms specialized in collection services.

We have implemented Serasa, the bank didn't use this marketplace in Serasa and other services, and Serasa is the second-best collection service to recover payments.

Yes, let me try Portuguese.

My question, in fact, is a continuation of Antonio's question. We've been talking about what's not going to grow: payrolls not going to grow, rural portfolio, real estate portfolio is not going to grow.

Could you talk in more detail why you're not growing the rural portfolio? Is the same problem faced by Banco do Brasil?

What about this interest rates? That's my first question.

My second question has to do with legal suits, longer suits, do you have this in the future? Should we consider this legal lawsuits that can affect the bank in the future?

Thank you.

In terms of real estate, rural loans, well, real estate loans in Brazil, it's about funding. The natural funding for this in Brazil is the savings accounts.

In Brazil, the new generation that generates wealth, they do not have this habit of putting money in the savings accounts. Only older people have savings accounts are mostly So this product is is not providing a very good result, the Central Bank from 2026 on and in 2027, will implement a new law, a new regulation for the concession of real estate loans.

We still waiting, the market hasn't found its position yet. We are implementing some some services and we are working with some builders to finance apartments for the final users, final clients, and also used apartments and used houses.

We we can provide loans for for these. The portfolio growth has to do with what is paid for monthly based on the the installments.

We do not expect it to grow, but we expect it to continue. In terms of rural loans, we in the bank management, we decided that the bank will have a size of rural loan.

We are a regional bank, we operate mostly in Rio Grande do Sul, we have to we have to provide rural loans. The bank cannot be exposed or cannot expose half of its assets in rural loans.

That's why we decided to have this, we have an equity equity as as a reference for this loan. As we increase our net income, and we will grow this rural loan and we'll manage this growth.

We have some priorities for some products. We have the working the payment of rural loans for the for paying for the crops and for some products like irrigation, soil correction.

We have some loans for these services, they are paid every six months or every year, but for longer loans, our appetite has been decreased. These loans are not expected to grow, but they will are expected to continue.

We want to grow to increase we want to increase our share in the companies' accounts because the corporate accounts is a is a very good option. We do not work with Petrobras, we do not work with other big companies, but we have companies, they that have their payroll with us, we have Finame operations, these clients that have their payrolls with us, these companies that have their payrolls with us, we will continue we'll make them grow.

They have they are but the rural loans are not going to grow, but they have a certain weight in the mix of the product services. For the companies' accounts, we want to make them grow.

For the companies', sorry, for the individual accounts, we also want to grow, we want more clients in the digital accounts, and we also want to make our retail services grow based on these individual accounts. Lower values, but a very higher margin.

This is our priority. Thank you very much.

What about future liabilities?

No, no, in terms of future liabilities, well, our PDD, our provision for doubtful accounts, and labor liabilities, we are very well protected in this position. We change the personnel management, now our employees, they work for six hours.

This has protected us from these liabilities. We have some liabilities still, but we have been provided for them, they were accrued for.

Then we will reverse this provisions as time goes by. We have some money in our cash, in our loans operations, we have a positive margin, and then we will go little by little, no rush.

Then we will negotiate with those that will get the money or we need to pay.

Thank you.

Good afternoon, Nathan. Good afternoon, everyone.

Thank you for the space. I'll try to approach a subject we've been discussing not only in this quarter, but also in the previous quarters, which was a positive surprise on our side and also on the side of the investors regarding the ROAE, and also the profit of the bank.

In terms of reported profit, it was around 15%. The question here on our side that we are trying to understand not only how it's going to be in 2026, and always, basically what is the level of return, the ROAE for the next few years?

This level of 15% in the ROAE, is it sustainable? If it's not sustainable, should we expect that level 10 11% for the ROAE?

In a nutshell, I would like to understand your mindset regarding this ROAE that you reported in 2025. What do you think about this percentage moving forward, considering everything that you provided us with in terms of OPEX, and provision for doubtful accounts?

I would like to understand this outlook for the ROAE, which was pretty strong in 2025. Thank you very much.

We have a very positive frame of mind regarding the ROAE moving forward. This 14.9%, almost 15%, that you observed, I don't know if we're going to reach 15% ROAE in the next few years, but the idea is to set the bank in a pathway.

Our frame of mind is very positive, okay? Just let me repeat that because the audio was not so good.

So 14.9% was delivered this year. It was a very good surprise, a very good performance.

We have been remodeling the bank. It's a matter of time, it won't change overnight, this portfolio mix, but we've been consolidating credit models, advancing in a higher share in participation in the market.

We understand that is a room to advance. Our participation is small in the share in Rio Grande do Sul.

We have a network of branches throughout the state. We work on-site in Rio Grande do Sul, 98% of the Rio Grande do Sul state GDP, and also we cover 98% of the population.

We have worked on our selling digital channels. We have been remodeling and restructuring the bank, truly deep changes to prepare the bank to face this new changes.

Also, we hired McKinsey to help us with the collection service and to increase our share. Collect safely, rely on models to do that in the retail area because profitability goes to do with the control of the default rate.

It's a fundamental pillar of our evolution and growth. In terms of our collection, we work on four pillars: the model of collection for the rural collection is one thing, for the real estate is another thing, and for the companies', we have another guideline.

We advance our share if we increase our accounts, if you have a proper mix of products with higher profitability, with the direction in credits that is well-designed, what we want from the commercial credit, then, yes, we dream of reaching a very good return. Maybe not 15% or 14%, I cannot give you an exact percentage.

Of course, yeah, I understand, but otherwise, I could be mistaken. No problem.

Thank you very much.

No, no, perfect. Thank you.

Thank you for the answer.

Hello, Nathan. Good afternoon.

Thank you for allowing us to ask questions. Regarding the rural portfolio, which is still a representative segment, 20% of the total portfolio, well, we've talked about limiting this portfolio.

I would like to understand your motivation to be a little bit more cautious in this segment and what it represents, a structural change for the rural portfolio? Second question, could you talk about the expectation of the fees growth for 2026?

Yes, the growth of fees, yes. Thank you, Fernanda.

In terms of rural appetite for the rural portfolio and second, fees. In terms of the rural, we need to understand the size of Banrisul.

We are a retail bank. I think your mic is off.

Can you hear me? Not quite.

I can hear you, yes. Is it better?

I can hear you. Thank you, Fernanda.

We cannot make the rural portfolio grow so much more and bend the bank's balance, or hinder the balance. We need to manage the bank with this view: we are a retail bank.

We need to have a well-distributed loans. We will continue with the rural loans, but we want to have a limit, a threshold, to maintain the equity of the bank.

It's hard to achieve profitability if you make a portfolio grow and grow. Even if it's 100% paid up, if it has a 0% default rate, if the margin is not so good, if the profit is not so good, well, we need to reconsider that.

We need to make other lines grow, the companies and the individual accounts, especially small, medium-sized companies. Since I came back to the bank, we realized that we needed to make the companies' accounts grow more because we have a acquiring company, which is Vero, and they help us, they support us in this procedures.

In terms of individual accounts, now we will work more with the private payroll loans, because in the public payroll loans, our portfolios are on their limits, I would say, are almost their limit. We have a tradition of working with the public payroll loans, and so it has almost reached the maturity, we need to have this bird's-eye view to understand our portfolio mix, to make sure we keep the profitability of the bank in a proper fashion, and to maintain the bank's financial equity, otherwise we will unbalance this.

We all love the rural loans, but we have a limit. Also, the real estate loan is very, very important for the economy of the country, it generates jobs, it's a good portfolio.

However, in order for you to buy an apartment, a house, you need to have a safe or a good interest rate. The interest rate in Brazil is very high, there's not a lot of funding, we would like to make this portfolio grow, but we need to be careful about the bank's profitability.

What we've been doing here is about trying to find the right balance to make the portfolios and the fundings of the institution and the profitabilities all work out for the bank. This year, the ROAE had a very good, robust performance, as we have seen, and we want to continue this.

In order to keep up with this ROAE and this profitability, we want to follow this pathway, this safe pathway, to make the institution grow.

No, that's super clear. Could you discuss the fees aspect, the fees and the perspectives on fees?

As I mentioned before, well, the fees have a limit imposed by the Central Bank. They have a limit for the consumer.

It's good for the consumers, but it has certain effects on the banking systems at Vero. Even at Vero, the market has changed.

We have worked with this offset is all embedded in this unique fee, and then we consolidate revenues that could come from fees, they will be consolidated based on the anticipated receivables. Instead of waiting for 30 days or for more days, they will get the money all in hand.

It will appear in a different fashion. It's a very important point.

In terms of companies' accounts for small and medium-sized company, individual companies, we will make this grow. We will make the service fees grow as we advance in this markets.

Another aspect is that we need to increase the client base. If you have more clients, we have more fees.

We have been increasing this in the companies' accounts. We have been working to make this base grow, to grow in terms of lots of clients, bulk clients.

We have an excellent payroll in the state working with municipalities. Now with this new change brought of company benefits, and there will be a change in this market.

We have lost some of this at Vero, but we are working along with municipalities to make this grow again. This will help us compose an important revenue in terms of benefits paid by companies.

Anyway, the idea here is to make the client base grow in the company side and its individual accounts side. Also, the currency portfolio is a very good way to make this grow.

We want to double this base, but this will not be quick growth. This growth will take time.

We will maintain our bases and make them grow maybe based on the IPCA, but they will be consolidated, and persistently and little by little we expect to reach good results.

I don't know if I answered your question, Fernanda.

Yes. Thank you very much.

Hello, good afternoon, everyone. Good afternoon, Fernando, Gonzaga, Nathan, and the other executives.

I have a question regarding the guidance and the efficiency of the bank. I'd like to understand a little bit more of the planning and the remodeling that you made in the footprint.

What we see in national banks, a dramatic reduction in branches, and Banrisul has maintained the number of branches, right? I'd like to know a little bit more about footprint and also administrative expenses above inflation rates for some time.

How have you invested or how have you worked around on this delta above inflation rate? What do you expect to do around that?

What about the efficiency rate, which is around 60%? What number do you expect to reach?

In general, I'd like to know about these expenses. Thank you very much.

Regarding the branches' footprints, we have been remodeling some of them. The clients enter directly into the branches, and then they have another door and then they go directly to the ATM's cashiers.

We also work with ATMs, these branches. We have been consolidating branches like we take two or three branches, and we turn them into just one.

We have exclusive branches for companies' accounts, not a lot of them, but in specific cities like Caxias do Sul, Porto Alegre, and Pelotas, we have a bank branch that is specifically devoted to companies' accounts. It's another model of the branch.

We will continue with this on-site branches. We do not want to close down the branches, but we want to turn this regular branches into business branches, like two or three employees to receive the clients and offer the services.

We are planning Banriponto, like a point of sales desk, also has this. This like a banking correspondent service to meet the demands business and also daily operations to pay bills like bills and water bills, they can go to this banking correspondence services.

This is a profitable business and will become even more profitable. Every five small banking correspondent services account for one bank branch.

We work in partnerships with this business. It has a very good long-term savings, and medium-term, this will provide us with good savings.

However, we are not going to dismiss employees, we're not going to have massive layoffs, nothing like that, but our expectations regarding operating efficiency and efficiency in general will get lower. We have a project, and we will deliver this as soon as possible.

In the next semester, we will improve our operating efficiency. That's it.

Which was the other question? It's interesting because you mentioned about the operating efficiency will go down.

Yes, little by little, gradually, we will go down. Could you talk a little bit more about this expected reduction?

Will this be based on revenue or costs?

We will increase our revenue, and also contain the expenses. We will work on the two ends of this.

Both things will need to be dealt with, will need to be managed: the income and the costs. As our old employees, they retire, and then we have welcome new staff.

This makes a difference in the human resources departments' cost, let's say. The human resources will have a change in this, and this will have a reflection in the payroll.

With this new models of branches, this new model of service provision, this will have an impact. We will also increase our work on the increase of income.

We need to work on several pillars to make this work. In order to complement, we have reviewed several investments in innovation and technology, and there's a huge expectation in terms of will gain more in scalability, in efficiency.

We'll have some innovation and which will pay off.

In the first semester of 2026, we will scale up with the digital channels very strongly to distribute credit products. Today, we still have a small size.

The idea is to scale up to scale in our app digital platform. We've been modernizing our ATMs, park and cash services in the branches will be able to distribute credit.

We also have the bank the banking correspondent, we will implement credit services in this platforms, in all this partners, strategic partners. We will then reduce the back house in the branches, centralizing some of this services, this will give us some gains in scale, efficiency, and cost reduction.

Our managers, our employees will be devoted to to the business, to the service provision, to the service they provide to our clients. This will make us growth in terms of revenue, in income.

The main motto for this year is to grow in income with new business, more services, more credit, more businesses that really make sense and add value to the bank. 2026 will be a hallmark.

We will change we will be a a paradigm shift. In terms of collection, for example, we had a model in which we depended on the the branches' footprints to collect.

Now with this new system of collection that we've been developing, this will move to digital channels. Small retails, small clients will be charged through this digital channels.

In the branches, the managers will deal with very special products: rural loans that cannot be easily renegotiated, that need more service; real estate loans, it's another type of loan that requires a face-to-face relationship with the clients; and maybe big companies also will need to continue being managed by relationship managers of the bank. This year, like Mr.

Gonzaga, we have directed 300 new colleagues to the relationship managers platform. It means that we'll have more professionals negotiating and talking to our clients with more businesses, more deals with digitalized platforms, lower-cost platforms.

Will make us business will requalify our business, and reduce our costs, and increase our efficiency.

Great. Thank you very much.