Good morning. I'm Marcelo Noronha.

I'm here once again directly from Cidade de Deus, headquarters of Bradesco, to present another quarter of our results, results for the first quarter of 2026, on this Thursday, May 7. It's now a little bit past 10:30, 10:31, we are here live from Cidade de Deus.

My presentation will be briefer when compared to our last earnings release presentation, and after the presentation, we will go straight into the Q&A session. It's a great pleasure to be with you once again, and thank you for joining us.

I'll start by presenting the numbers, and then I will also mention a few issues that have raised questions from colleagues on the sell side and also buy side, questions that were posted to our IR, I'll start from what you saw since yesterday because the presentation was already made available to all of you. Our recurring net income for the first quarter of 2026 was R$6.8 billion, up by 16.1% year-on-year and 4.5% quarter-on-quarter, delivering an ROE of 15.8%.

Just as a reminder, in the last quarter of 2025, our ROE was 15.2%, so that means that we were up by 0.6 percentage points. Here is our recurring net income.

What drove this recurring net income? Total revenues were up 14% year-on-year, and this is a main driver of our profitability and cost-to-income ratio, not only this quarter, but this will lead to improved results throughout the year.

I've been talking about moderate risk appetite, and I've been referring to that for several quarters with a more conservative bias. That doesn't mean that our risk appetite will decrease when it comes to growing our, loan portfolio.

We will continue to grow, but with certain ratings and maybe we will not choose certain ratings, ratings or maybe we may not want to choose certain segments or crops, and we want to have more feature portfolio, and I'll show you later on our restructured operations. I'll talk about the market as well.

The mean cost of risk has increased. I'll certainly mention that further on, but there was, there's a very specific wholesale case that drove a lot to that portfolio up on the wholesale side to be even more conservative.

I will also talk a little bit about agribusiness, old crop cohorts. Some of them may be on stage 3 or stage 2, that's what we saw here.

We've been operating heavily on agribusiness, but with more security. Our insurance segment has delivered consistent results, reaching almost 22% for our ROE.

Last week, on the 30th, we launched Bradsaúde, consolidating all of our healthcare assets with a positive impact on our capital, but above all, this unlocks value to our shareholders. This was a very important operation.

I think you can look at the capital market and its market cap was R$46 billion, which means that it brought a higher goodwill surpassing R$30 billion in our organization. This was quite an important move, in my view, my personal view.

This has upside, and our transformation continues at an accelerated pace with increased use of GenAI and high technology. We continue to gain productivity and delivering even more.

I will always begin with my discourse of cause and effect, I would like to say that this is our recurring net income, but there was also R$1.8 billion in non-recurring expenses related to one fiscal contingency, and according to legislation, it could have been negotiated. What happened is our contingency was around R$5 billion, but we decided to pay for that contingency, and we paid in full using DTA.

This is a very exciting, positive piece of news. This is, again, about the opportunity to make a move like that, and the impact was that now our balance sheet has even superior quality, and in the past two years, we've paid for fiscal contingencies amounting to 20%.

That was an opportunity to make a move that gives us better quality because it reduces the risk in the balance sheet, for all of us, for all shareholders. This doesn't change, by all means, our recurring net income, but it improves the quality of our balance sheet.

As I was saying, total revenue, almost R$37 billion, up by 14% year-on-year, and I'd like to highlight these higher revenues. I start with insurance, pension plans, and savings bonds.

The indicator is 20.4% growth year-on-year, even surpassing the guidance at this point. We call it annual, nothing else.

We override that guidance, but we are reiterating our guidance, and overall, I am expecting that these numbers will be above the guidance at that point in terms of the guidance, like I said last quarter, and our confidence remains the same, and on top of that, and again, I'm talking about cause and effect. Fee and commission income was up 6.2% year-on-year in a quarter that is usually the worst quarter for the financial industry.

The bulk of volume happened in the fourth quarter, in the first quarter, volume goes down, fee and commission income is down as well, but in spite of all that, we continue to grow. Our NII, the highest, of course, that, we have had, all of the other was lower, but the main highlight, NII grew 16.4% year-on-year, quarter-on-quarter 4.2%, and this should continue to drive our growth over time.

You'll also notice that we have perennial performance in our discourse. There's no change in the discourse, except for Bradsaúde, which was a recent announcement, and I'll elaborate a bit more on everything, but always cause and effect.

Cause and effect again. Client NII, market NII stems from our activity.

Our activity is quite robust, our origination capacity as well. Why is it that we are originating, originating properly?

We start with our credit business unit with a robust loan portfolio management, a new pricing area working with client segments and pricing in accord, and we look at all of the cohorts to see, to look at pricing intervals, and we're also delivering better experiences for every client segment, and individualized approaches through our channels. This has made a difference in our distribution, and that's why we are growing significantly, on the asset side, on the liability side, in fee and commission distribution of all insurance products, and consortiums.

This certainly drives increases in our margins, as well as up 16.4%, as I mentioned before, and expanded allowance for loan losses, or ALLP, cost of risk 13.5%, and our total NIM, or NII, net of provision, is R$10.4 billion. When we look at client NII, our NII went up 4.1%, our expectation, you still have NIM around 9%, very stable NIM, but in addition to growing 16.3% year-on-year that we've had, the calendar effect that impacted this quarter, instead of growing 2% quarter-on-quarter, it would have grown 5% quarter-on-quarter.

We believe that our NII will continue to grow. This is the line that we expect to see going forward, and I would also like to draw your attention to market NII that was R$600 million.

Again, cause and effect. It grew because all of the origination comes from the client desk.

This is also something that comes from trading, managed desk, and ALM, we have a very good team of professionals to take advantage of all these, all the opportunities. Our ALM is here.

These are not like one-offs, but it's actually maintaining steady deliveries and good treasury operations throughout the year. Then I was talking about the calendar effect, and the same thing applies to client NII net of provision, and this impacts the bottom line.

It was down by 4.5% to R$10.3 billion in the last quarter, and if you excluded the calendar effect, we would have had growth of 1% quarter-on-quarter, the number would go to R$10.3 billion. Now, I'll give you another fact.

We broke down our provision costs for wholesale ALLP and mass-market ALLP. There was a higher cost.

There were some provisions, but there was one case that represented the bulk of the volume, if you exclude that, the NII, NII net of provision will be higher. It doesn't mean that this is a recurring number.

Remember, it's just to show the fact that we're more conservative, even though there is a negotiation underway, and we still have a good chance of collecting. Also here, I mentioned mass-market ALLP, but also it includes other segments, look at the indicators.

We are growing R$500 million, R$300 million, R$400 million quarter-on-quarter, and we make provisions as our portfolio grows. Our portfolio grows, and we put on more provisions, and this is the catch-up of 4966.

We have a portfolio, it's large in the entire market, because in the past, with 2682, in N+1, we were at breakeven. These are the ALLP, or the provisions, with 4966, we have portfolios that only reach break-even in N+5 or N+6, and this is what you call, this is what happens with credit cards.

We are growing well in auto, payroll loans, in micro and SME, and therefore, our portfolio is growing, and we have called for other provisions. This doesn't mean to say that, okay, you are provisioning just because the NPL portfolio is increasing.

Look at the numbers in these boxes down below: 1.3%, 1.4%, 1.3%, 1.4%. This is what we monitor quarter-on-quarter.

If you look at the full earnings release there, you have a presentation that looks like this, with the annualized indicators. Quarter-on-quarter, these are the values, we should grow the cost of risk here, we will continue to perform like this.

It may grow by R$500 million or R$300 million, but we are putting on provisions when we are expanding our portfolio, and this certainly leads to this NII. This is what we've seen.

We are very confident about everything we're doing, and I'll also talk about the quality of credit. Our portfolio reached almost R$1.1 trillion, growing 8.4% year-on-year.

However, the impact of depreciation of the real, appreciation of the real, had a significant impact on large companies, large corporates and SMEs. Net of this fact, we will be growing 9.5% year-on-year, even if we look at the entire market looking, at moderate risk appetite.

Individuals, 9.5%, mean cause and effect once again, and this stems from, client base penetration and new experiences, SMEs, 14.4% growth year-on-year, and here I will elaborate further. Large corporate is really fluctuating, R$10 billion up or down because we have short-term portfolios, and I will draw your attention to some highlights that are part of our plan, part of our plan.

Again, cause and effect. We are not growing in auto loans by pure chance.

We are growing in auto loans because we had a careful plan. We drew up a very detailed diagnosis of the market where we operate in, in new quadrants: new vehicles, heavy vehicles.

We have very small stake in new vehicles, and semi-new and used cars. Used vehicles, much older, and semi-new vehicles is the largest market in Brazil and after the chart.

Therefore, we look at all market options, and we also looked at the experience of our managers, dealers, and clients, and we realized we had two platforms: one for account holders and another for non-account holders, dealers, we changed the platform. This was part of our transformation process.

We now have a single platform that brings a much better experience to our dealers and our managers, and above all, to our clients. It's much more efficient in operating terms, and it is also much more efficient when it comes to pricing.

Very quick decision because of you, because of loan machine and pricing within this interval of RAR that ranges between 20% to 28%, which is satisfactory to us. Therefore, growth comes because we have commercial capacity, and we have this penetration base throughout our customer base and also with dealers, but now with a much more competitive platform where we choose our more assertive, that's why we're growing 7.3% in quarter-on-quarter terms.

If we keep on growing at this pace and the same thing with other portfolios, that we will have more provisions because we have 4966, because we have to stack up this intermediation margin over time, and credit cards is no different from what we have shown so far. It's growing 10.6% year-on-year, above all with high income, which is 18.6% growth.

Our payroll deductible loans, if you look at history, you will notice that this level was growing around 5% year-on-year. Now, we've reached 8.3% growth year-on-year, 3.2% quarter-on-quarter, and the portfolio reached R$117 billion.

We are very well positioned in public payroll loans, and I can also talk about the private sector. INSS made different changes and pushed the market down, and it was a bit lower in certain moments, to 50%, but the market started to resume, just like we did.

That's why here we're not posting growth in the portfolio, because we have a very large portfolio and also because of the amortizations occurring on a monthly basis. Overall, we are growing, and we will grow in INSS.

Private sector was almost 43% year-on-year, and in the past quarter, it was 31% across. You should recall that we said that we would accelerate in the private sector once we have, we're totally certain that all of the agreements have been made between the banks and Dataprev, and that's what we did, also being more selective in terms of selecting clients that are more, into who with our risk adjusted.

Our portfolio adjusted to risk. In our case, we are talking about slightly over 4% of NPL overnight, we are performing quite well in these portfolios, and in the general payroll deductible portfolio, the market has around 2.9%, 2.97%, if I'm not mistaken, whereas we have 2.4% in the overall NPL portfolio, everything is on track, and also working capital that grew 16.3% year-on-year.

It's here, large corporate and SMEs. Government-backed lines, FGI, FGOn, last year, we had 26% of the entire production, and I showed that number of the entire FGI and FGOn production, but by the end of the year, by December 31, we hit zero, and we start, counting our production once again.

By the end of March, the we ended up, the number was 20.6% of production share. We are market leaders, obviously, with other players, and competition is good because it pushes everyone.

The competition comes naturally, and when one bank is putting pressure on the other one, and it's good, and it's positive for the market and also for the companies. Here, we show you the growth of our portfolio.

We grew almost 81%, which means that here, we didn't grow too much, because these are portfolios with less guarantees, not secure. We are not obsessed to be leaders, but what we want, what I tell our team, two days ago, I reiterated that what we want is with the adjusted return.

This is what we want with the adjusted return, certainly based on these portfolios, but we also expand the relationship that we have with these clients, with micro and small and medium-sized companies. We are very confident in what we are doing.

We are keeping our appetite, and our agribusiness cohorts, have a lot of guarantees, and the same thing goes for 2024. They are much better.

We are seeing much more stress in previous cohorts, especially in the south of Brazil, because of rain and drought, and large companies, small, mid-sized companies, and also individuals. They renegotiated their debt, and banks gave a grace period, in general, of two years.

This grace period is over, and what happens is that once that grace period is over, certain crops are not yet ready or mature enough to pay the debt. That's why I'm saying that in agribusiness, things are still not that flat.

Still speaking about the portfolio, our overnight NPL is flat, and now I'll bring you another phenomenon. Stage 3 goes down to 7.6%.

Our restructured portfolio between December '23 and March '26 was down to, by R$14 billion. When we look at this problematic asset, was down by 15.7%, reaching 3.1%.

You may ask, how big do you think this portfolio would be? I think that a portfolio of around 2.9% to 3.1% is just size, certainly, it will fight, be more stable going forward.

Down below, we are showing this chart every quarter. We're talking about our secured portfolio, we went from 59.3% in December at the end of last quarter to almost 61% of our entire portfolio with guarantees.

If you look at individuals, it's almost 70%. This shows that we are operating quite well, and we are very confident about the quality of our portfolio.

Look at stage 2. Stage 2 is growing slightly.

Why? NPL overnight is flat, but the gray line refers to micro and SMEs, and where is it growing?

It's growing in government-backed lines, FGOn, FGI. Why is it growing?

Most companies are, paying, but the grace period is over. Even until the grace period, and for those who are growing the portfolio at the pace I showed you before, 80%, it puts pressure actually, puts, puts pressure on, NPL overnight.

Even though with 4966, even though the expected loss is lower, it's still, stage 2. What happens here?

FGOn, when you have to start paying, is 180 days of grace period, liquidation of 5 days, the FGI period after 90 days, you have to start paying, and you have 30 days, and so another 90 days. There is nothing different and it's flat.

Individuals and large corporates performing quite well. Another interesting thing is that stage 3, coverage ratio of stage 3 is growing, and you have this mismatch between stage 3 and stage 2, stage 2 to stage 3.

You have transfers between stages. I was referring to old cohorts, rural cohorts could be in here.

We are in cure operations, and it could, it could just migrate to restructured operations with better guarantees. You got some movements in the 4966 that we believe are absolutely aligned with what it should be.

There's another note in the footnote that talks about write-offs. The write-off was up in absolute terms, but it was also up in other banks.

It grows or decreases depending on the cohort and the mix of cohorts. The ratio is 1%.

You can challenge, write-off, better cohort is 0.9%, when it's worse, is 1.1%, and when it's flat, as I said before, when we adopted the 4966, we adopted the first, the same write-off criteria we had in the previous, we didn't change anything, we are very much confident about everything we are doing in our portfolio, and I've been monitoring this very closely. Looking at all the cohorts, and I'm looking at it with the, with our team, of our credit business unit, with the risk team, and the team of every customer segment.

We have a price rating, and also a rating that measures stress over 94, which is our rating, and all of them are within the foreseen interval. You could have, one issue that, was, but we immediately look at all the model, and we make adjustments and policies accordingly, if needed.

Therefore, we're very confident in terms of quality of our assets, and again, growth is, credit risk, but nothing apart from that. Then the income, it was up 6.2% year-on-year in this, in a quarter that is knownly weak for banks, for the financial industry, but we are leaders in the consortium business, and that's a very important line.

We reached almost R$4 billion in assets committed in Q1 '26, and our growth, in fee, was almost 20% year-on-year in custody and brokerage services, 15.5%, and this is recurring. This is also for our activity.

It's not by, it's not a random, that this happened. It's a lot of hard work, good experience that we're providing to clients, and in the capital market, a journalist at the press conference asked me about market expectations for the capital market and saw growth in investment banking, more than 60%.

I'll give you more information on that. We have rankings.

Our fixed-income team has been originating much more. It's not, it's not random.

It grew because of our origination and placement capacity in this market, which is in high demand. Last year, we were the second bank in origination in fixed income in the Brazilian market, according to Anbima.

We had 14.1% of market share. We ended Q1 with a growth of 69%, still ranking second, with 22% of market share in fixed income origination.

We have traction throughout the whole organization in different business lines and for different customer segments. Operating expenses absolutely controlled, up 7.8% growth year-on-year, a reduction quarter-on-quarter of 4.6%, and I'd like to draw your attention to personnel and administrative expenses, 5.4% growth year-on-year, -8.8% quarter-on-quarter.

The main impact here in personnel expenses is the profit sharing and variable compensation, which is quite positive. If you looked at the complete release, you'll see personnel expenses where negative is flat, except for variable compensation.

This is good, right? In administrative expenses, if you look at the details, you'll see processing, transactional, which means when we have higher activity, they grow.

Transportation of money, bills, etc., all of these expenses are decreasing. We continue about our, in terms of our footprint, 238 branches were closed, and then the insurance group, our insurance group, as I said in the beginning, is delivering and our ROE is almost 22%, R$2.8 billion in net income, 13% growth year-on-year, R$29 billion in premiums, and the result of the insurance operations, the whole insurance of Bradsaúde, the whole insurance group brought this result of insurance operations up 20.4% year-on-year.

Highlights: increase in operating results, 22.1%, two-thirds of the result of Q1, which is very positive, and technical provisions continue to grow, almost 10%, R$455 billion. We're happy with everything being done in the insurance group with other affiliates and payment, here for us.

Now, looking at capital, represent our capital, tier 1 went to 14.5% and common equity, 12.7%, leaving those levels. As you, you can see the movement of Bradsaúde, which is, it has a positive impact for us, and we can answer all your questions, but our team, our IR team, and the finance team is available to explain all of the details for this movement that has put us in a comfort zone regarding our capital.

We haven't changed our expectations, with or without it, we will continue on our journey, because the first quarter, you have a decrease in capital, and after that, we stabilize. There is the JCP for the year.

Here, our transformation. As I said in the beginning, I gave a huge analysis of the transformation in the last quarter, I'm not going to repeat a lot.

I already spoke about the new auto financing platform, I'm not going to repeat, there are a number of innovations, extensive use of GenAI. Putting new stress off it, we are following this, and interesting, this tool, we have George, which is connected to SMEs, and they can connect directly and perform operations.

Drawing attention to two, three more characteristics. That I showed, who had a high, in the past quarter, with a very high accuracy level.

We grew further to 94%. We can gain productivity, we improve the experience of clients.

We continue to offer upgrades in Prime and Principal, we made comments about it, you can check that in our previous earnings release, and in the first quarter, we offered upgrades to more than 500,000 clients, we continue opening offices for Principal and Prime, and digital retail, close with 19 million clients, acquired in 2026, and 28 million. We are very confident with the transformation, bringing productivity, important gains from all sides, on the side of efficiency, of customer experience.

Conclusions: first, strong operating results in Q1. This is what we're seeing.

We're very pleased with this result. Up almost 8% quarter-on-quarter, and consistency, almost 15% year-on-year.

Now, I already spoke about technology. The new client segmentation is always bringing high NPS, good experiences, and it drives the top line.

Risk appetite, as I said in the beginning, with a more conservative bias. We continue with our risk appetite, moderate, but we continue with traction, and we will deliver what our expectation is in the guidance.

We are competitive, even in those lines where we have risk appetite. Very confident about this.

Another thing that is worth highlighting, our net income not only at the bank, but in all affiliates, in the insurance group, and we maintain our commitment to increasing step by step, continue investing, and improving our competitiveness in the short and long term. Bradsaúde, the most complete health ecosystem in Brazil, generated an important goodwill.

It is a brilliant company, well-diversified. We brought this to give you information, we were really proud with the Banker Award, in machine learning, mobile, AI.

We got very important awards by international banks that highlighted our technology, and that's why we're valuing this. Concluding my presentation, we're available for the Q&A.

I will, I have Cassiano Scarpelli, our CFO/CRO, and André Carvalho, our IR, and also we have Bradsaúde, we don't ring the bell anymore, we just press the button at B3, and I have my two colleagues that I'm calling, Manoel Marinelli, CEO of Bradsaúde, and he was the one who pressed the bell in our open company, and you already held the conference call on Tuesday, and also Ney Ferraz, the CEO of Bradesco Seguros, now in Bradseg. They replaced Ivan, our colleague who went to the board of the bank and is supporting the transition of our colleagues Marinelli and Ney Ferraz.

Good morning, thank you both for joining us.

Thank you, Marcelo. Thank you, Cassiano.

Thank you, Marinelli. Ney, good morning to all.

I would like to say that in order to ask questions, please send your questions via email, [email protected], or by WhatsApp, +55 11 97443-8238, or point your camera to the QR code on the screen. The first question comes from Mario Pierry with Bank of America.

Mario.

Good morning, congratulations on the results. You've been delivering very consistent results and in keeping with the guidance you provided.

Congrats on the listing of Bradsaúde. Of course, that will boost capital, and I think that it will no longer be an issue going forward, right?

Capital will no longer be an issue for the bank. Noronha, I would like to focus more on client NII.

In the presentation, you showed that a big highlight was NII growth, but how do you see this growth continuing, given a more moderate risk appetite? We also agree with you, in this macroeconomic scenario, with higher interest, inflation, given the current scenario, it could get a bit worse.

How do you see the evolution of NII with a more moderate appetite? What are the segments that worry you the most when you look at credit in the next 12 months?

Thank you.

Mario, thank you for your question, and thank you for joining us. As I said during the presentation, our risk appetite is more conservative.

It means more conservative because in certain models, we adjust the models. We also adjust some policies.

We can be more conservative in terms of credit policies, for example, for agribusiness. Agribusiness is an important segment for Brazil.

It increases competitiveness. We maintain our risk appetite for agribusiness, but we maintain this risk appetite with a policy that is directed to agribusiness, and we're looking at certain crops, at certain traditional clients, but also for other clients with potential and we have to see the lines and guarantees that we have to operate.

It doesn't mean that we will not grow. On the contrary, we have a lot of traction, and I reaffirm this to you.

NII, the financial margin net of provisions will drive our top line, and we are piling up credit, good quality credit, government-backed lines, payroll deductible loans. I also spoke about credit cards with more restrictions to some client segments, as we showed in the credit segment, and we will continue, we are accelerated, and we want to do business, and we want to have growth.

We published 81% growth, government-backed lines year-on-year, which shows that we have an ability to deliver. I see NII growing with NIM around 9%, as we showed, and if you have higher growth, you'll call for more provision.

That's not a concern as long as you have controlled cohorts. For each modality, we can have expectations, but this is the focus.

Also, grow auto loans. This is another growth driver, because there is a market, and it delivers a good return, and risk-adjusted return.

There are markets that are not delivering this, we don't want to be there. We are very aware of what we're doing to increase our competitiveness, okay?

Now, also for the middle-market segment, in the wholesale segment, yesterday, Milton spoke about de-concentration and also here, we de-concentrated our shareholding, our share in large companies. I think that the top 10 represent 13% of our total number.

We have to look at this with a magnifying glass. We are focused on this, so that we can continue to make things happen.

Remember that our portfolio management works with a living portfolio, and points out potential default risk for all sizes of companies all the time, comparing both client segments. Thank you, Mario.

Thank you, Mario. Next question from Daniel Vaz with Safra.

Thank you, André. Good morning, Marcelo, Cassiano.

Thank you for the space. I think that that step-by-step message has been admired by everyone.

The results have been good, and trajectory of ROE, you are close to 16%, and probably equal to the cost of equity, the bank is not destroying value as it was the case in the past year. Your message of step-by-step, has been more conservative in terms of risk appetite.

You mentioned a more conservative bias after observing a degradation in some of the credit lines. What could be better than expected beyond credit, that we have a bit more intention and more conservative, so that you can again accelerate ROE step-by-step, and cost, you were above the guidance, and when will you converge to the level of your peers, Santander, Itaú, when we think about cost?

In the cost trajectory, it was under more pressure. When could we expect costs converging to an average close to inflation or less than inflation?

What could surprise us in the short term? Could it be costs in 2026, 2027?

Thank you.

Daniel, thank you. Thank you for joining us.

While you were asking the question, I regretted mentioning that we were more conservative. It is smarter to say.

I meant conservative because in certain models, we are shutting down the faucets with some policies, we have lost risk, and this is also what we do with the credit business unit. This is what we are looking at all the time.

We continue to be accelerated, on the asset side, but please remember that we built our NII, also addressed our liabilities. We reduced our liabilities costs, as I said, and the treasury that has been very important, delivering more than expected.

I feel much more confident regarding what we're doing all the time. The flip side of the story, growth or deduction of other expenses, I think that we're doing our homework really well in terms of administrative expenses.

You see negative growth, a decrease, quarter-on-quarter and year-on-year. The difference is that technology costs, processing, transactional activity, because we have very high activity, they grow.

The cost of the financial system also grows, for things like that, but if you look at the complete presentation, we've been doing quite well. Of course, we still have some labor claims, civil claims, these are contingencies that eventually will cause a lower number.

This will happen now, but for 2027, 2028, we will definitely see the impact of the actions we're taking now. The top line will leverage us much more.

Last quarter, I mentioned that our investment in technology is not capable, OPEX and CAPEX, we grew 26% in 2026, investing in technology, and we will continue to invest to improve our competitiveness focused on different fronts, but primarily on technology, including cybersecurity, also to improve customer experience, delivering a new auto loan platform. Cassiano, anything you'd like to add?

You've talked about everything. I would just like to add, remember that we're in the middle of a transformation process that started two years ago.

We still have a footprint adjustments that is still weighing on our expenses, although we have a lot of control, we also had a change in our procurement with guardrails, we control expenses. There's also the footprint adjustment, and that is important.

You mentioned labor claims that will decrease. We are still seeing the results of the footprint adjustment and the adjustments made in the cost of risk, I believe that we have costs that are adequate for the moment, because we are not giving up on investing in technology and the formatting of all segments, and in training our managers to deliver a different value proposition for each segment, and also technological transformation for becoming a digital bank.

That's another important footprint that is being adjusted. I think it's all very adequate to the moment we're living now, and improvements will come as part of the plan.

We want to lower our cost-to-income ratio at the end of our transformation. We've been talking about that, and I can see we're in the right direction.

One more point is our effort in consumer DTA. This is very important.

We went straight for this year, the expected stock of DTAs at the end will be close to the end of 2025 in nominal terms, which increases the tangible assets and improves our profitability expectation, and that's also very important.

I think you raised an important point, Daniel. It is important that you know that because of this event, which actually unlocked value for our shareholders, as I said, that goodwill, but every month, we study our DTA and the opportunities related to that.

The greater the capital, the greater is the profit expectation. We're going forward, but the profit, the faster those DTAs are profit and consume DTAs faster, and we're continuing with discipline and we're looking at all of the opportunities.

Thank you very much, thank you, Daniel.

Next question from Pedro Leduc with Itaú BBA.

Thank you, André, Noronha, Cassiano. Good morning.

I have two questions. My first question is more like a clarification in terms of capital source that is used in the 250 bps.

Is this net of tax that you have to pay, or it needs any other event? That's my first question.

My second question is whether you could tell me what is part of that R$50 billion in non-net adjustments. This is just related to capital.

I'd just like to understand a bit more about that 250, if it is net of tax. Thank you for the question.

The first answer is yes, because the closing was April 30th, but Cassiano can certainly elaborate more on the answer.

The answer is yes. There is nothing else happening.

It became a reality on April 30th, and this consists of two major pillars. One is the fact that it's the concept of the company, it's a pure holding company versus an insurance lead, capital is part of the 250, and the second pillar, recourse to generated tax credits, and this generated DTA that you have to pay taxes and you offset that with DTA.

These are the two basic things. We registered the operation, market validated is not accounting, and let's go, you generate payment through the DTA, and the second part had to do with potential adjustments because it's a pure holding company.

These are the two elements related to the 250. Is that clear?

Yes, excellent. Thank you.

My second question, it's more like the BAU, you refer to ALLP. I'm getting some inquiries from investors.

In mass market, seasonally speaking, the cost of risk increases, and then there is a corporate case which is very specific, but we have a lot of news about that. Then the investor may ask whether that net 9.7% NPL, whether this will continue into the following quarters, or you would have any kind of gains stemming from seasonalities in the mass market, or whether this is not going to be present in the second quarter, and whether we could see this later in the following quarters.

In terms of the wholesale ALLP, I am not seeing provision like that, but eventually, you could have, wholesale is like that. It fluctuates.

It's lost. You're also experiencing the reverse scenario.

Now, in terms of the other portfolios, we showed great consistency: 1.3, 1.4, 1.3, 1.4, and with nominal growth between R$300 and R$500 million per quarter, but we are growing the assets. With the 4966, you call in provisions.

I remember that I said that we have some portfolios that with the 4966, our break-even was N+1, but now it's N+5, N+6 depending on portfolio, and part of the 4966 brings additional challenges, because you stack up a little bit more in the portfolio, so that in fact, you can start getting the due remuneration along the timeline. Therefore, I believe that we will continue to grow the cost of risk, but following the line that I mentioned to you before, and certainly, it depends on the growth level of the portfolio.

If we continue to grow fast, excluding the FX, we grew 9% year-on-year. If we continue to grow, we will grow more, and then the cost may increase more, and the reverse is also true.

If we thought that we would not grow as much, maybe we will need all these divisions right on the onset, 4966. The common provision for the year should be higher, but I do not let go of the quality of the portfolio.

Quality is good, portfolio is well-managed. I've been looking at all the cohorts, and we are very confident about what we're doing.

When I am more present in the auto loans, there is an expected loss, and this is net, even for credit cards, even for high income, low income, there is some expected loss. Everything has been captured, we are growing, and we will continue to grow, bringing more NII, as I said before, going forward, and we're very confident.

The same thing with the government-backed lines. When you have the pressure from FGI and FGOn, on top of the NPL overnight, when, according to the 4966, even though expected loss is lower, but it's in the maturity cause, and it's the rate period, maybe provision cost will increase, but once it becomes flat, then you can just look at NII.

The cost of risk for the year, if you take 3.3, it starts higher and then it will converge to 3.3. It's a natural movement.

Thank you, Pedro. Next question comes from Henrique Navarro with Santander.

Go on, Navarro.

Good morning. Congrats on the results.

My question is on sustainable return on equity. Every time we talk to you, and it's always a very pleasant event, the message is that, and that we agree, is that the step-by-step is a process that goes into 2028.

It goes on gradually until 2028, and it's backed on all of these things that we know, cost-to-income ratio, better operating performance, risk-adjusted return, etc., etc. As it improves, there is the issue that the effective tax rate tends to increase, and there is also the issue of provisions.

It's a pushback that we get from investors. It's not that Bradesco needs more provision, but it would help you probably to have higher provisions compared to its peers, so as Bradesco improves, maybe they should increase provisions.

The question is, what would be a sustainable return on equity? I don't want a guidance, I just want your help.

Just say it better, what would be the optimum level? If I run a weighted average, the number will come to 18%.

My question to you, Noronha, is whether 18% is a number that bothers you, or whether that would be a sustainable level for return on equity.

Thank you, Navarro, and thank you for joining us. It's always a pleasure to talk to you.

We still have the same discourse. That I make no promises regarding ROE.

18% ROE in Brazil, you know that that's fully feasible, and having higher ROE is also feasible, and we will pursue growth. I do not promise you when, but we are moving in this direction.

Again, step-by-step, building our path to increase competitiveness and achieving the goal and being sustainable over time. Our plan, as Cassiano was saying, is only two years old.

We started the implementation process only two years ago, meaning that we still have some ground to cover. I often say that until 2028, it's not just now or maybe the end, but during, therefore, we continue to pursue that goal, delivering better deliveries for all of our shareholders, much better environments to our all employees, better experience and better relations for our clients.

This is what we are seeking to achieve to build the bank's competitiveness. André, please feel free to add to what was said, because I know you're constantly talking to our colleagues, buy side and sell side.

Navarro's question answered part of the question. We're talking about that.

Basically, we're talking about consuming DTA, reinforcing our NII. That we increase profitability, and we reinforce our NII.

At the same time, when you say that it would be probable or desirable to have better or higher provisions, last year, we increased provisions, on the labor side, civil side, tax side, and this year, we're doing the same thing. We are reducing restructured portfolio, we are reducing the numbers of civil and labor lawsuits.

We are doing everything at the same time. We're juggling with everything at the same time.

We're sitting looking at all of these options.

Thank you, Navarro. Next question from Thiago Batista with UBS.

Hello, good morning, everyone. First, congrats on the results and on the Bradsaúde operation.

I'd like to have a follow-up to Leduc's question regarding capital. You indicated 250 bps of capital, it was a positive impact, but we had -80 bps in adjustments, and what are the main components of this 80 bps, and should we expect something similar the next quarter?

My next question, something that I've asked to other banks regarding the new Desenrola program. Could you give us your view on the new Desenrola program?

Will there be an impact on Bradesco? Will the impact be small, given the size of your business?

I'd like to have your first impressions about the new Desenrola program. Thank you.

Thank you, Thiago, for joining us. It's a pleasure talking to you.

I think Cassiano can answer the first part, and then I'll speak about Desenrola.

Thiago, good morning. Thank you.

It was a pleasure to hear you. There will be no impact, okay?

There will be no more impact at this amount in the next quarters. This happened specifically in Q1, but of this 0.8, 0.4 would be fiscal loss as part of the Bradsaúde portfolio.

In fact, it's 0.4 as part of, we think, as traditional prudential adjustments and 0.4 related to the operation of a whole of Bradsaúde, they balance each other.

Cassiano, I want to add and remind Thiago and everyone joining us, you see, in all Q1s, there's a slightly greater pressure on capital because there are some adjustments already conducted by the Central Bank, big ramp-on in terms of operational risk. When we pay variable compensation at the beginning of the year, and we've been provisioning 1/12 along the previous exercise, in our provision, we did not have any type of fiscal impact.

When we pay, that fiscal impact is created, and that's why Q1 is an unique clinic, but in our view, independent of Bradsaúde, which took the business, we would recover the capital as well. I'm mentioning just one event, but there are other events causing this, and this happens to all banks, not just to our organization.

Now, to your point on Desenrola, a journalist asked me about this. We are prepared.

We had about 18,000 clients until last night who had applied to Desenrola, but we, just like other organizations, committed to foster this movement, to offer lower rates with FGO guarantee to make people not delinquent. We're moving in that direction.

Now, in terms of impact, if we look at what is past due for much longer, the impact could be greater, but for short-term past dues, the impact is not going to be very, very significant. That's my expectation, Thiago.

We start with over 90 days NPL, if it were closer to 2 years, then it would be more significant, and we have a very controlled portfolio with more guarantees, so, to opportunities to make short-term. The only comment regarding capital, remember in the previous quarter, the base scenario is the capital position would be 11 in 2026, dropping in Q1 and returning to around 11% by year-end.

Then, what's the new scenario? 12.7% as of March, ending the year close to 12.7%, perhaps a little higher.

A much more comfortable scenario. That's why it's important to say that we had that 0.4 because that's consumed and adjusted.

It is created and it is consumed in April. It's exactly what you said, at 11.2, navigated at 10.8, and we would go back to 12.7 in the operation of Bradsaúde.

That is important. Thank you, Thiago.

Next question from Gustavo Schroden with Citi.

Good morning. Good morning, all of you, and congrats on the ROE, above cost of capital.

I would just like to congratulate you on the Bradsaúde transaction. Following Leduc's question, but more focused now on large corporates, I think we understand that, as Marcelo said, there is always the risk of one or another particular case or one-off case, but I always get questions from investors because this was a known case, or a specific case.

Usually, you make provisions if it is a known case. If Marcelo can share with us some information about the coverage ratio for large corporates that you have.

We've heard many news of maybe other possible cases of court reorganization. The second question is about balance sheet efficiency.

That operation with Bradsaúde, in our reading, the numbers speak for themselves. It was a very successful operation.

Then given the number of investees or control companies that Bradesco has in the conglomerate, my question is whether this is a path that could be further explored to increase efficiency, such as in the case of Bradsaúde, not only that had an impact on the capital, but also in terms of the value. Thank you again for joining.

It's always a pleasure to talk to you.

Gustavo, thank you. We are always looking at other opportunities in terms of our balance sheet.

We discuss that extensively among us and with the board. It's also important to remember that it's the ninth quarter that I am here presenting the results.

Since day one, I keep saying that the entire organization of Bradesco is very rich and there is a lot of wealth to be allocated, but everything has its right moment. We have to look whether it's economically feasible or not.

We often talk about this. Rest assured that this is part of our homework, and as I said earlier, we are very disciplined in terms of capital allocation and everything that we can do in terms of DTA.

I wish I could expedite its consumption, but it is our net income that allows you to accelerate things, and we'll do everything we can, but I would like to remind you that the calculation of expected loss doesn't have anything to do with knowing or not knowing the case. I said that I aggravated.

For us, we're very well covered, but you may have very specific cases, and we thought that the level of expected loss was X, and you realized that the company was deteriorating, and it could have been X + 1, you had an expected loss was X, but it was X + 1, you come in full. We work with technical elements, expected loss for cases of other portfolios, cases of civil or labor losses, we use that.

That's a mathematical and technical evaluation, and in cases of large corporates, it involves some technical analysis, expertise in terms of what can be recovered, and there's another level, what is the level of guarantee you have, what is the type of line that is involved. In all cases, has nothing to do with expected loss, because it doesn't matter that your provision was X, and if you aggravate a provision and added a Y to that X.

That's why I said we decided to increase it, and you talked about some other reorganizations. You can take a look at it.

I'm not going to give an example of a court reorganization, but I saw two examples, I think it was last week, maybe André has that information, and I cannot refer to any of them, but we can talk to you later. We are not in any of these court reorganizations, we are out of the majority of them, we are very confident in terms of what we're doing, in terms of our coverage ratio for various one-off cases, and also in the wholesale bank.

Our ALLP budget for a large corporate remains the same, but sometimes, you shift ALLP when there is the aggravation of a particular case. The next question comes from Yuri Fernandes with J.P.

Morgan.

Thank you, André. Good morning, Marcelo, Cassiano.

Also congrats on your improved capital. This is a very important message for maintaining this level of 12.7, even higher than that.

That was a very important message. I would like to go back to large corporate cases, and looking at the stages, and the way you show things in the stage 3, stage 3 improved by 20 bps, but when we look at expanded portfolio that also includes, real estate, stage 3 is worse.

Tell us that the expanded portfolio is creating more court cases, and then when we look at stage 3 formation coming from expanded portfolio, your provision, your provision was high, and was not even enough to face that formation, the question is, if we should look at provisions or whether, cost of risk is higher, and because of higher cost of risk, you will probably increase provisions, or maybe no, not, because you would say, okay, we have more, volume, and so the cost of risk in the first quarter, I'm not, not saying that it was a peak, because you never know with, in Brazil, maybe we should see better levels of provisions. I just would like to have a better understanding of stage 3 in your provisions in this first quarter.

Yuri, thank you. Thank you for joining us once again.

Before I start answering, you've always provoked us when it comes to capital, having higher capital, then maybe we will be able to use up DTAs much faster, and it is a provocation that has always been in our mind. It's interesting because we look at that every month, but thank you for your provocations again.

André, over to you, and then I will add if needed.

In terms of provisions, the idea is that the cost of risk in the year should be close to 3.3%, starting higher, and then converging to that number. The issue is that we have more ALLP right in the onset, and this is a characteristic of a landscape of monetary tightening and agribusiness.

The fact that the grace period is over, but this is part of our plan, nothing has changed. This is still the same.

As for large corporate, during the presentation, we mentioned stage 3 of the BACEN portfolio, which is more restricted. In the historical series, we mentioned stage 3 of the expected portfolio, and looking at that, you see the aggravation of what would be sureties, DTM, and that's what is behind it.

Why is it that our provision is not high? Because there is more secured loan, and more number of restructured portfolio, and we reduce our restructured portfolio to 3.1% out of the total one.

We are writing off debt that were heavily provisioned, and so here, you have that reduced. There is also other one in terms of guarantees, which is 61% in total, and calculated as a scenario of ALLP for in total portfolio, 61% of guarantees.

Naturally, this does not require having provision.

I would just like to add saying that when it comes to stage 3, you notice that we increase our coverage ratio. I think it was about 105, and it went to 113%.

Right? When we look at every business cohorts, our provision level is quite significant.

It's very high. We are covered for higher risk operations.

When we look at lower risk operations, there is an expected loss, which is much lower. We are very comfortable about that, and we've had good performance even in the large corporate, because we had good guarantees, the structure was well-orchestrated.

The decision to increase provisions was even more conservative, when you look at our stage. I don't know whether everyone else will do the same thing.

I didn't look at that. This was really our decision, and certainly, we are very confident when it comes to our coverage level in all portfolios, and we are growing on stage 3.

Thank you, Yuri, and again, thank you for all your provocations in terms of capital.

Thank you, Yuri. Next question from Matheus Guimarães with XP.

Good morning, André, Noronha, Cassiano. Congrats on the results, and thank you for the opportunity to ask questions.

I have two, actually, two. It's about INSS, deductible loan, and it has dropped since March, and this product went through a number of changes, and there was a communication of TCU of potential suspension of the product, and now under Desenrola, with a potential reduction of limits.

If you could comment on how you see this product evolving in the future. Noronha covered that in his presentation, origination he said has been reduced, given a number of changes that were made by the social security, INSS.

We'd like to have an idea of what you think for the future. The second question is on insurance.

Guidance mentions growth between 6% and 8%. You finished the year growing 16%, and you started the year growing 20%.

Way above the upper range of the guidance. I'd like you to comment about the performance, which is well above what is expected.

What do you expect to do, is that Q1 level be very strong, that this number will accommodate throughout the year? These are the questions.

Thank you.

Matheus, thank you for your question. It's a pleasure talking to you.

I'll take the second one, and I'll ask my friend, Ney, to answer the question about guidance. Ney, over to you, and then I'll speak about the INSS deductible loan.

Thank you, Marcelo. Good morning, Matheus, and my dear colleagues.

Indeed, we posted a fantastic result, 20%, but we're looking at the whole year with some challenges. When we came from a result in the previous year that was higher, we believe the guidance remains adequate for the whole year.

Despite Q1, for Q1, we expected greater growth, and that was factored in for the guidance for the full year. We continue working, paying attention to cross ratio and opportunities in the market.

We are very comfortable with the guidance that we have for the full year.

Matheus, regarding INSS, indeed, many changes. The process of contracting the loan, and also portability, the models of offering suggested, created a huge rush for those using portability, and there was a message from FEBRABAN asking for a change in the scenes, so that they accepted that suggestion.

In our case, on the other hand, we had the INSS card, but we don't work with benefit cards, and the card has a low penetration. We worked with lower rates, and this small margin that we can have in this traditional product, it's positive for us, and we have come back to growth, even with a modified, that was smaller, in terms of origination.

Yes, we got that resolution yesterday, suspending some modalities, and after May 19th, everything will be released for us to operate with the new modalities, but Matheus, I maintain a positive expectation regarding all three lines of deductible loans: private payroll loans, public payroll loans, and INSS deductible loan. Thank you for the question.

Next question from Eduardo Rosman with BTG. Rosman.

Good morning to all. I want to go back to tangible capital, this discussion has intensified, and after the transaction, it became more clear with Bradsaúde.

I'd like to understand, how did the change in mindset happen above all at the board, and I think it's also a new framework that we can understand how did the mindset change, and how did it mature? Thank you.

Rosman, thank you for participating, and it's also a pleasure to have you. What I can say is that the sponsor, and the one who put this on the table was Trabuco, Trabuco, Sandoval, who was a board member until recently, Ivan, now, and also the Bradsaúde teams, together with our finance team.

All of these people participated in a lot of debate, always focusing on the possibility to unlock value in an asset that gained maturity in time, with a view to other players, and Carlos Marinelli, you can give us more color on that. Not just regarding the health plan, but also OdontoPrev, and also talking about hospital, dental, and health.

Rosman, I would say that we are at a very solid level of maturity at the organization. Bradesco was always a very dynamic organization, as it relates to acquisitions, and always in pursuit of generating value.

I'm not saying this lightly. I think that our debates have been very open debates, and we discuss on different topics.

I'm very pleased with the debate yesterday at the meeting with our team, a meeting we always hold in the eve of an earnings call. In our case, we have to thank Trabuco, and the board, because they fully supported all the initiatives that we put on the table.

Look at the transformation we're carrying out in the organization. For that to happen, you need to have support from the board, and you need to have the full engagement of our employees.

Otherwise, you can't do it. You have to have a consistent plan on the table.

Marinelli, would you give us more color regarding the value unlocked at Bradsaúde?

Perfect, Noronha. Thank you, Rosman, for the question.

As we've been saying, this is something that started more than 40 years ago. We got into health insurance back in the 1980s, and this was always the best market in Brazil.

Our presence in the healthcare group has been coherent throughout this time. It started with health insurance, and then it evolved.

It evolved to dental insurance, it evolved to investments we made in other areas, and segmentations, like diagnostics, now in our shareholding in Fleury. Also technology, big investments we have in Orizon, we expanded primary care clinics, serving more than 1.2 million people per year, and more recently, with the Atlantic Health partnership, which is Short Hills, 20 hospital equipments, both in operational hospitals and one in development, and it will be one of the top four hospital networks in the country.

It's a clear story. It evolved over time, and that led to an important presence in the Brazilian healthcare, and two days ago, we disclosed the managerial numbers for Bradsaúde in Q1, together with plans information from OdontoPrev, and information from Bradsaúde, and this is the most complete health system in healthcare in Brazil.

This is a new chapter for the Bradesco organization in healthcare, now with Bradsaúde, and we have a lot of synergies to be achieved, but always, we'll continue with all the knowledge and expertise that we have developed over more than 40 years in healthcare. Thank you, Marinelli.

Just to remind you of an additional detail, we have a big partner, with Atlântica, we have Rede D'Or, Santa group, and Albert Einstein in a field that is very important. Thank you, Marinelli.

Thank you for the questions, and pleasure talking to you.

I would like to emphasize that in terms of growing in terms of assets, just like Marcelo said, we're constantly looking at it. Next question comes from Eduardo Nishio with Genial.

We can't hear you. Good morning, all of you.

Good morning, Noronha, Cassiano, and André. Congrats on the results, and congrats on the operation of Bradsaúde.

Excellent news. I had two questions.

The first is strategic, your evolution in terms of the footprint. The server network was down by 25% year-on-year.

However, I would just like to get a better understanding of this trajectory for this year and next year, because this is a longer process. I don't know whether you have room for other reductions, and the headcount, which is a bit lower, 5.6% year-on-year.

How do you see this line coming in the coming quarters and years? Also, balance sheet efficiency.

The second question is to get a better understanding about the impact of the deferred tax asset, in contact to previous question from Rosman on intangible assets. Looking at the DTA, you've seen a drop of 1.1 billion, and this was the same amount when you look at the full integration, total of 1.8 billion.

Was there any other impact that you should monitor here, the transition, or the transaction of Bradsaúde? Did it generate an impact, or you think that you would be too conservative on your maintenance of guidelines in terms of maintaining this balance?

Thank you.

Thank you for your question. It's also a pleasure to talk to you.

I'll ask Cassiano to answer the question, and then if André wants to add, I will.

Good morning, Nishio, and glad to hear you again. There was no other impact.

What you said in the beginning, was not RTI, but in fact, it's a bilateral negotiation, direct negotiation with the IRS, that improves the quality of the balance sheet. Reduction of a loss that was 5.4 billion that was down to 1.8 billion, and it was paid within DTA, and it's important to highlight, no other impacts.

In the case of Bradsaúde, it's a positive impact. We've shown what the colleague asked about 0.80 and the 2.5.

These are the two positive impacts coming from Bradsaúde, and we don't have any other impacts ahead. It became effective on April 30th.

This is our capital, 12.7%, CET1, and we understand that from now on, it's just a matter of maintaining it or even improving it further. This is a major goal.

What about footprint? It's been 4 years, I think it's initial 2 years.

I'd say that these divisions would have bulk of the volume, and most of the adjustment would happen in the initial years, because you had to migrate clients to our digital bank. Marcelo talked about that in the beginning of the presentation.

28, 29 million clients are already digital. We expect to reach 50 million clients migrated to Bradesco Digital, and this will give us the opportunity to make other adjustments, but now these adjustments are lower amount and just prompt.

Then, when you look at headcount, you have to remember that we are hiring, because we are doing reskilling, upskilling, both in the loan side, technology as well, bringing developers to the bank, reviewing the architecture, we're bringing people in data, and pricing, all in all, there is this difference in headcount, but in our case, we are moving in the right direction towards improving our cost-to-income ratio, especially in the future. Thank you, Nishio.

Right. I think you said it all in terms of higher, lower headcounts.

We increased our team. Thank you, Nishio.

Next question from Carlos Gomez-Lopez with HSBC.

Hello. Thank you.

I have two questions. The first question is about the extraordinary liability you have in the quarter, original 5.4 down to 1.8.

You didn't have any provisions for that, or maybe now that you made an agreement, what is it, do you have extraordinary, and you're using DTA? Can you give me a bit more information about your agreement with the IRS, and whether you expect other cases like this for the future?

About DTA, the level at the end of the year, is 119 billion gross and 112 net? Is this the percentage of capital?

Thank you, Gomez, and thank you for joining us. It's always a pleasure to talk to you.

Cassiano and André will continue with this. In fact, this is a goodwill we had in the past.

There was a dispute, and it decided that, and they benefited us with a reduction of fines, the decision, even though it was possible, they also suggested that we settle that using DTA. It was a possible contingency, that's why provisions were not so high.

When you have large cases, the lawyers expressed their opinion. That's why we had in a probable expected loss.

Yes, law 14689, specific cases analyzed individually, we can't talk about what may lay ahead, because of the decision, it's possible. When it's possible, it doesn't require provision.

When you see a possibility of bilateral agreement, you reduce that potential from 5.4 to 1.8, and using DTAs, improve the quality of our balance sheet, which is calculated, it was a win-win for both parts. The quality is even improved because you remove potential contingencies.

About DTAs, at the end of 2026, the inventory, nominal amount, the 116 billion from the end of 2025, almost the same, 25, 26, therefore, in a scenario, in nominal terms, the inventory will be flat. Shareholders' equity should increase.

Just to add, now Gomez, again, we never lose sight of our DTA inventory. We're constantly looking at the stock of DTAs, and now we started paying that amount related to the 14689.

Thank you, Gomez. Pleasure to talk to you.

Next question from Tito Labarta with Goldman Sachs.

Thank you, André. Nice to see you, Marcelo, Cassiano.

Thanks for taking my question as well. Just one follow-up question on capital, and also echo the congratulations on the healthcare spinoff, definitely good to see that boost in capital there, and the bank's in a good capital position.

One lingering concern, talking to some investors this morning, when do you think the bank in and of itself, aside from you have the healthcare and some of the other subsidiaries, the bank can generate capital organically on its own? Like André, you mentioned by year-end, you'll also be around this 12.7%, and I know that will be a function of ROE continuing to improve, which you continue to deliver on.

Just when do you think you'll be at that point? Is it 2027 or 2028, or what else needs to happen so that the bank on a standalone basis is organically generating that capital?

Thank you.

Thank you, Tito. Good to see you again.

André, it's up to you first, then I can comment.

We are already generating capital, this is important to say, because every quarter, we show the contribution of our net income, and this will continue to occur, and we are gradually increasing and improving net income, and you'll see a higher contribution coming from organic capital generation. This is point one.

Point two, it's important to highlight that we have some government regulatory measures that were enforced in 2025, but it will lessen to 2028, and they consume a bit more capital, especially in the beginning of the year, and this will end in 2028. You will add up a higher organic capital, and with the end of the regulatory measures, our capital position will be even more robust, with 12.7% of CET1.

If this level remains the same by the end of the year, we will build a bridge to go over all the regulatory changes, and we will be able to grow and also transform the company.

You said it all, André. You already answered, but there is another point here, because in fact, it goes beyond that 13% that you mentioned.

We have a very complex conglomerate. Here, we have a large insurance group, and there are other financial institutions that are connected to the conglomerate, and there are different distribution agreements that are also more efficient towards one way or another.

If I put everything together, this ROE would also be higher, but we have to look at the organization as a whole, and then we can guarantee this return of 15.8% against a cost of capital that should range close to 18%. Thank you for your question.

We are moving on very confident in terms of what we are building, not only in the present, but also in the future. Thank you, Tito, and have a good day.

Thank you, Tito, and with that, we conclude the Q&A session. Before turning the floor over to Marcelo and Cassiano for the final remarks, I would like to say that all questions that cannot be answered today will be answered by our IR team.

In our IR website, we have all the material related to this presentation, everything is there for your analysis, and we are certainly available to answer any additional questions.

Thank you, André. Thank you, Cassiano.

Thank you, Marinelli, and Ney, who are also engaged here with us. Thank you, all the teams that make this event possible.

I would like to emphasize, once again, that our IR team and our colleagues of the financial area are available to answer all your questions about capital, or about any other item of our balance sheet. Thank you so much for being so patient, for joining us today, and we will see you soon, or in our next earnings presentation.

Thank you very much.