Good morning, ladies and gentlemen, and thank you for waiting. We would like to welcome everyone to Bradesco's First Quarter 2019 Earnings Results Conference Call. This call is being broadcasted simultaneously through the Internet in the website, banco.bradesco/ir-en. In that address, you can also find the presentation available for download. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Banco Bradesco's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to the future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Banco Bradesco and could cause results to differ materially from those expressed in such forward-looking statements. Now, I will turn the conference over to Carlos Firetti, Market Relations Department Director.

Good afternoon, everyone. Welcome to our conference call for discussing our earnings results for the first quarter 2019. We have today with us participating in the call our CEO, Octavio de Lazari Jr.; our Executive Vice President and CFO, André Rodrigues Cano; the CEO of Bradesco Seguros, Vinicius Albernaz; and our Executive Director and Investor Relations Officer, Nianda Miranda. Now, I return the floor to Nianda for starting the call.

Hello, everyone. Thank you so much for joining our first quarter 2019 earnings review conference call. We start this presentation with a sense of pride, about our bank and about our almost 100,000 employees. It's remarkable how much we have accomplished in terms of financial performance so far and we see there are lots of room to grow as we continue to accelerate investments in our people, diversity in all of our levels, products, services and technology. The first quarter was another strong quarter for Bradesco with the firm generating record revenue and record net income as well as a growing ROAE. Despite the increased confidence level noticed in the end of 2018 and the beginning of 2019, the Brazilian economy has not shown the expected strength in growth yet. As a result, we have revised our 2019 GDP growth expectation to 1.9%. We believe the recovery of that momentum as the pension reform is approved and the economic agenda moves forward. But we foresee a gradual but steady growth with responses for inflation control and the maintenance of low interest rates. Despite this scenario, we are very pleased with our results, which we strongly believe were due to our [sophisticated] [ph] position, growing client focus, and this is very important in our strategy, [effort simplification] [ph] of our teams and the strategy bank has pretty much adjusted in the [bank growth] [ph]. We remain flexible to face volatile market conditions and we believe that in case the pension reform get approved, that the market where we shall face. But we are going to be investing continuously in our people and technology; and very focused on serving the needs of our clients. The first quarter was very strong for us. As you can see on Page 3, we earned R$6.2…

Thank you. [Operator Instructions] Our first question comes from Mr. Thiago Batista with Itau BBA. You may proceed.

Hi, guys. Thanks for the opportunity. I have two questions. The first one about the open banking, if you can give a view about the possible impact of the guided lines what was mentioned related to yesterday, Central Bank. So I know that you had mentioned it a little in your initial speech. But if you can give a little bit more view about the possible impact? The second one is about payout ratio. Do you believe it's possible to assume that payout ratio should increase next year? Or is it soon to expect this possible increase to payout ratio?

Thank you, Thiago. This is Nianda speaking. Pretty much, we are totally aligned with what the Central Bank has released yesterday. This is something that we were expecting. We have already our main portal that aligns that. As we have for sometime also releasing press, talk through to investors, open bank is our third pillar in technology. So this is something that we do not see as a threat. We see it as an opportunity. We are ahead of our competitors, in terms of open bank. And we are going to try to collaborate the more we can, because we are very interested in this platform that will be for sure benefit for the bank as a whole. Regarding to payout ratio, I mean, we also expect that our net income shall continue to grow and perform according to our guidance. And in this sense, this is something that we shall evolve in terms of internal discussions and address this matter related to the market that that's high, the opportunity that we shall have. It's very difficult to say today what we shall have to do in a market that we still have not seen the reforms approved, the market reaction and all the opportunity that we have. So depending on this scenario this is something that we shall consider.

Okay. Perfect. Thanks for the answer.

Our next question comes from [Ms. Myra Isabel] [ph] with Wells Fargo. You may proceed.

Hi, thank you for the opportunity. My question is regarding the income from credit recoveries which was about twice the amount that you recorded for 4Q 2018 and now before the first quarter 2019. If you can provide a bit more color on what caused this higher income through credit recovery and also what is your expectation for [AOL] [ph] expenses quarter on quarter for the rest of the year. Thank you.

Okay. Thank you, [Myra] [ph], this is Carlos Firetti. Basically, first, the increase in credit recovery in the quarter mostly didn't have impact in earnings. As we put in our release, basically, where we have above R$1.8 billion in credit recovery related to mostly two companies. One of this is - this company is much larger. That would were off balance, basically they were important recovery and this process finished. With that, with the restructuring of the credits, we had the price recovered. That's the way we have accounted. This loans is R$1.8 billion, went back to the loan book in credit rating page, so we made 100% provisions on this loan. So basically, the credit recovered directly through your [press release] [ph] related to this large corporate restructuring related to the end of quarter recovery process for two large corporates without impacting on earnings on a net basis, considering the recovery versus the provision, and also without impacting NPLs. In terms of expectations for provision expenses, we believe we will throughout the year converge to the center of our guidance for provision expenses for this year, that is the guidance range goes from R$11.5 billion to R$14.5 billion. We are pretty much comfortable with that.

All right, thank you.

[Operator Instructions] Excuse me, ladies and gentlemen. It seems there are no further questions. I would like to invite the speakers for any closing remarks.

Well, this is Nianda Miranda speaking. Thank you all for making the time to be with us. After this call, we're also going to be available for any part of discussion, clarification of matter that you may wish. And we remain here [in office with the coming up over the weekend] [ph]. Thank you. Have a great day.

That does conclude Banco Bradesco's conference call for today. Thank you very much for your participation. Have a good day.