Good morning, everyone. I am Marcelo Noronha. I'm speaking directly from the headquarters of Bradesco at Cidade de Deus to present our earnings results referring to the second quarter of 2025. We are speaking live. It is now 10:31 a.m. in Brazil. Thank you very much to all of you for joining us in another earnings conference call. Almost straight to the point to what matters. We disclosed yesterday our earnings. We reached a recurring net income of BRL 6.1 billion, posting a significant 28.6% growth year-over-year with an ROAE 14.6%, plus up 3.2 percentage points year-on-year. So what is the summary of our earnings in this quarter? Firstly, we believe that our operating results showed consistency in all of the line items particularly in the top line -- in the main revenue streams and I mention NII net of provisions, fee and commission income, especially fees and another good quarterly result of the Insurance group. Operating expenses are under control. The loan book is absolutely under control over 90-day NPLs indicated, over 15-day NPL, all under control, Stage 3 as well as I will be showing you momentarily. So the organization has a lot of traction and matching the plan that we presented in February of last year. So we have changed the bank and run the bank very well connected with a lot of intersections between the 2, a lot of deliveries and the use of Gen AI to help us gain productivity and efficiency across the organization. So this is the summary. And based on that, we are delivering consistent results in our view. Here, our attempt is to present cause and effect because net income, the operating result is the result of all of the seeds that have been planted and everything that is being done…

Thank you, Marcelo and Cassiano. Good morning, everyone. I'd like to let you know that Ivan Gontijo, CEO of the Insurance Group is joining us from offline. Questions can be sent in Portuguese or English. You can send your questions via email to investidores@bradesco.com.br using a WhatsApp channel (11) 97443-8238 or just scanning the QR code that is on your screen. First question from Thiago Batista.

Congratulations on the results. I think you have strong points in the top line. That is a positive highlight. My question is regarding the positioning of the bank regarding low income segment or mass market. When we look at that sector, it is perhaps the only one operating well below the cost of capital of the bank. Looking at the midterm, do you think that this segment will be able to be profitable even if it's served by the branches you need to implement a more structural change to provide more digital service? And how digital next will be positioned? How will they be used in this segment? A – Andre Rodrigues Cano: Thank you for joining us for the question. And the answer is yes. This is what we believe in, and we have working -- have been working strongly in the mass market with the transformation of the bank. And I mean digital mass market. We have some million clients being served remotely and having different experiences with high personalization. And eventually, we will be talking more about that. Net should be close to this Digital that was a completely separate operation. Well, not yet. They continue on their own track, and we'll speak about that strategy when the time comes. But yes, that segment can be profitable. A super important channel for these clients for service and for client acquisition is called Bradesco Expresso. As I mentioned in the past, we have been trying different models, models [indiscernible]. Remember that we only have variable costs. We have about 39,000 banking correspondents across Brazil. And we had a relationship platform, B2B2C. Now we have a B2C. And now we have -- we offer a much better experience connected to CRM and the intelligence behind the offering for the clients offered by the banking correspondents. And all the transactions are done with the merchants and with a very high penetration in our acquiring business so that these merchants can offer clients alternatives services and products. So this is a strategic important channel. And in due time, we will give you detailed information of everything we are doing on that channel. But we are convinced that we are accelerating and that we will get to very different levels with us combinations reviewing the footprint, reducing some points of service, growing in principal, growing in corporate, growing in SMEs, growing in businesses and in banking correspondence as well. And it is this balance that we will be showing you in due time, Thiago. But we are very excited with everything that we're doing at the bank.

Second question from Daniel Vaz with Safra.

Congrats on the results. I'd like to explore two points about your presentation, Marcelo. You mentioned signs of the slowdown in economic activity and demand. And looking at the Business segment, there's a new segmentation. So exploring this segment, SMEs making up to BRL 3 million in revenue per year. Could you elaborate on the slowdown of economic activity in this segment? It would be reasonable to think that these SMEs would be the first impacted by this economic slowdown. And I'd like to understand the opportunities you're seeing in this segment to understand this new segmentation. What will be the position of Cielo because we have seen some campaigns geared to this segment by Cielo. So I'd like to hear about Cielo's risk and opportunities.

Thank you for the kind words, and thank you for joining us. Here's what I can tell you in this segment up to 3 million barrel a year. And you know about the level of mortality and risk of these companies across Brazil. We have another segment that we call MEI, the micro enterprises. And there are a large number of companies spread all over Brazil that have been in the market for many, many years, and they are really small. And they present a slightly lower risk, but we see an opportunity to manage these clients because they bring us interesting profitability. They still require contact and service by a human. They use a lot of the digital channels. We talked about the app that we delivered. But what have we been doing? I mean this does not apply only to small business. This applies to individuals, legal entities of different sizes in the middle market. The work that we are doing with the credit BU to which we implemented many new models and also portfolio management permanently monitoring and kind of with an early identification of possible losses in some sectors, in some companies, in some ratings. So all of this gives us a different complexity level in our modeling. We have credit policies adjusted by the modeling periodically and all the time. And so we have this ability to execute that we didn't use to have. And all this credit monitoring with solar signs automated by machine learning models. It's all connected to the segment, and we've been doing this very success. So we have the Enterprise segment, and this is happening in the business segment. And also, we are choosing the modalities in which we want to operate. We are operating with a mode of secured…

Now Pedro Leduc from Itau BBA.

Congratulations on the deliveries. You're making solid steps when you speak about step by step. Now two brief questions. One, as I look at operating expenses, 2/3 of the increase came from the line named other. When you look at administrative and that cost, that is under control. But when you look at the line other, then you see the increase. So have there been adjustments and when you look at personnel and administrative, you already have a higher level of efficiency. So next year, other will also be under control. I mean it drew my attention that this line item other has all the expense increase. So this was my first question. The second question, we've seen you reviewed a few indicators in the guidance, services and insurance. But when we look at the NII net of provisions, if we compare that to the midpoint of the guidance, it seems like the loan loss provision will remain the same in the second half of the year. Is that right? Or I mean, you did not change the guidance because the high range is already including some growth -- so I'd like to hear more on why you kept this guidance equal.

Well, thank you. Thank you for participating. It's a pleasure to see you. I think that maybe Andre could begin.

Cassiano, alright. Yes, well, it already includes the loan loss provision. We had a large number now compared to what we want to have in the future. And also, you have gains from the reductions we made. When you look at personnel and administrative, yes, we already had the adjustment. So I believe we have an interconnection there. But yes, this line item other is helping us accommodate to make the changes we have in the change the bank initiative. But -- and then when you look at personnel and administrative, it has already been optimized.

Andre?

[Interpreted] Yes. Let me add that operating expense, as Marcelo said, grew 5.8% in the second quarter of 2025 compared to last year. And the inflation was 5.4% in the same period. So even considering what Cassiano mentioned, operating expenses grew at the same pace as inflation with all the investments we've made in the transformation of the bank. And that shows that cost is under control. And even we are preparing for a slower growth in the second half of the year. Now we can see a growth in the OpEx. And as we already have some of that in the numbers of the last quarter last year, I believe that now the line item other will be adjusted. Yes, about the guidance, yes, the NII guidance remained the same. Our NII net of provisions will be BRL 39 billion, which is the midpoint of our guidance between EUR 37 million and EUR 41 million. So our guidance, as Marcelo mentioned, we are at the top range of the guidance. So our NII net of provisions can still grow in the second half of the year compared to the first half of the year, but always cautiously because we are building our portfolio with full collaterals. But every half year, we have seen a growth.

[Interpreted] Let me add to what my colleague said. When we look at all the expenses, personnel, administrative and other expenses under our control because under our management. All of this has been approved, obviously, but we are growing 5.8% in operating expenses, even with all the investments made in consulting, in technology, and we are growing in some important areas of the bank, for example, technology, data scientists, data engineers, developers. We have a bigger team now. And in time, we see that it will trend towards a normalized curve. But in relation to the NII guidance, I mean, this is our target, but always net of provisions. And that is perhaps more important than the net income margin, which could be a bit higher or lower. But I mean, what is really important is the number we see at the bottom line. And that is the number we look at with a lot of discipline and risk-adjusted return. So we will not stop doing business. I mean I hope I will be favorably surprised because I want to do more. And when I say I want to do more, I speak on behalf of my team. We want to do more, but always looking at risk and our current risk appetite that we've imposed to ourselves because we want to grow, but we want to grow perennially, reaching a higher level of both profitability and return.

[Interpreted] Thank you, Pedro, for the question. The next question come from Gustavo Schroden from Citibank.

I will agree with my colleagues and give you congratulations on the earnings. We see the bank is back on credit in terms of revenue and the loan book. I'd like to go back to Leduc;s question on expenses. We can see, I mean, on the one hand, we see a reduction and adjustment in the bank's footprint initiative to prepare for the future. But still, I mean, it still has not translated into numbers, so to say. I mean you still have high numbers. I mean, so do we believe we can continue to improve efficiency? Or are we going to see a slower efficiency improvement? Is that going to happen this year or next year? Because I think this is important for us to calculate the ROI. I mean, because when we look at revenue, it seems to me that everything is on track. Next, looking at trading and market NII, the soft guidance was BRL 0.8 billion, and it's already at BRL 700 million. So can we exceed BRL 1 billion because we already have 2 quarters ahead of us this year.

[Interpreted] Thank you, Gustavo. You have a nice background behind you, great. Cassiano , would you like to answer the question?

[Interpreted] Yes. Let me begin talking about treasury. I think it's really important. Our guidance was from BRL 0 to BRL 1 billion. Today, we believe the soft guidance would be BRL 700 million and BRL 1 billion. We don't expect a drop in the second 2 quarters of the year. But this is a mix, as Marcelo said. It is our asset and liability management, our trading desk. And -- but there's also a lot of work that we do on ALM, which is part of our structure. It's not something we do isolatedly as setting up a trading desk. So I mean, we're working between BRL 700 million and BRL 1 billion. This would be a reasonable number until the end of the year. The next 2 quarters will be more challenging, but we have a good strategy. Now from the viewpoint of [indiscernible] I mean, we said that we would have 52% already in 2025, so that we'll have more improvement as of 2026. So that still applies. But we've had an improvement of 3 percentage points already this year with very rigorous cost control. 5.8 expense -- operating expense growth is not a trivial number, especially if you consider the investments we are making in the change the bank initiative. 5.8%, I mean, and if you look at administrative and personnel, 4.9%, so I think these are important numbers because we are executing according to the plan, even better, 3 percentage points better. We believe we will keep that guidance, but maybe in 2026, we'll have better results as well as in 2027, then we'll see more efficiency gains. It's good to see you, Gustavo.

[Interpreted] Let me also add, Cassiano. Gustavo, thanks for the questions. The EIO is not a paradigm. We -- the efficiency ratio is not a paradigm. But we told you that we have a target in the long run. However, this -- I mean, the efficiency ratio is not a paradigm for us. If we believe that we need more expense to gain competitiveness, then we will do that because the key word for us here is competitiveness in the short run and also in the long run. So if we can gain competitiveness, then we will do it. Remember, when we disclosed the guidance by year-end in 2024, if you said it was conservative, but we said, look, we will not stop any investment initiatives. We will continue the bank transformation in agriculture, in corporate platforms and in all of the initiatives. We continue to invest in technology and growing the team. So of course, that adds to our expenses, and we are talking about this. It also generates pressure in terms of labor, but we are on the right track and executing our plan. The plan is a straight line. I mean you make adjustments, but we follow a straight line. And we are following all the steps in our plan with great deliveries according to our expectations. And Cassiano mentioned that we have a more favorable expectation looking at our origination in the wholesale bank, in the treasury deals and in all other teams, the energy trading desk, I mean, we see great opportunities to do more business. And let me tell you, I mean, sometimes you may ask, is that nonrecurring net income? I mean, we don't originating. We continue to originate. You close the deal with the customer and then you're thinking about the next, right? That's recurring net income. And this is what we mean when we say step by step. Thank you, Gustavo.

[Interpreted] Next question from Mario Pierry with Bank of America.

[Interpreted] Again, on my side, congratulations on the results. I'd like to focus on growth that you're talking about you expect a slowdown of the portfolio with the portfolio growing close to 12% and in your guidance, 6% to 8%. I'd like to understand in what line items do you see this kind of slowdown? And why are you so comfortable in terms of delinquency? Nora, you said over and over that you're comfortable that you're not seeing a worsened delinquency. Well, the economy is slowing down, you're becoming more cautious, but at the same time, you're keeping provisions and delinquency under control. What metrics concern you when you look at the economy? And what metrics do you see that give you comfort that delinquency will remain under control?

[Interpreted] Thank you, Mario. For starters, there is a second variable here, which is the baseline of the last quarter. It is higher. So variation or relative variation can be lower. In addition, we have a lower demand for credit in the market. This is what we observed in the recent data published by the Brazilian Central Bank. It is only natural. With a high real interest rate and a 15% Selic rate, it is only natural that there will be a lower demand for credit. What makes me comfortable though is what I said during the presentation of our earnings. First, metrics, vintage by vintage, line by line, product by product, modality by modality, with the right pricing, risk-adjusted return, adjustment of the models and dynamic policies and the choice of those segments that present lower spreads, NII but a much higher risk-adjusted return, which is the case of FGO FGI programs and other secured lines such as payroll deductible loans. So let me give you one example, one piece of data. If you look at our payroll deductible loans portfolio, you will see that we grew by 4% quarter-on-quarter, slightly above 5% year-on-year. But please note what happened in payroll loans. The banks have agreements with the companies. And there was a change in the private payroll loan via CTPS. However, we prepared for that. There are some people operating at much higher volumes. But we kind of had a reduction. We did not operate with that change because we had 2 payments here. The first was in May, the second one in June. of the amount of the companies. And secondly, [indiscernible] published a delinquency rate observed by the market was higher than 16%. So we prefer to be down towards because the bookkeeping was not very…

Thank you. Next question comes from Jorge Kuri from Morgan Stanley. Jorge, floor is yours.

Congrats on the numbers. I wanted to ask about net interest margin. Your margins were close to around 5% in the past. They're at a little bit below 4%. And that seems to be what's dragging your ROE down. Like you've done a relatively good job on the expense side. However, your efficiency ratio continues to be quite high because of that margin pressure that you've seen over time. So how do you think about the path for normalizing net interest margins to levels closer to 5%, so that your ROE can really tick up to the high teens? And to what extent it's your balance sheet sensitivity to rates. So if rates are 12%, 11%, 12, 24 months from today, how does that help your margin or not? How does continuing to grow, particularly on the lower income segment where you can generate higher spreads contributes to that. So walk us through your -- I would say, your next 24 months of net interest margins, what are the puts and takes? And where should that normalize?

I'll start answering that. The expectation for NIM is that it will grow safely. Here at Bradesco, we focus on risk-adjusted return of our operations. If we find a good opportunity with low spread and very high RAR, we do grant the loan and we expand our portfolio. NIM is the consequence. RAR is the objective. Our NIM is growing because we are finding good opportunities in those lines with a slightly higher spread but with adequate RAR. That's the first point. Second point is because we are pricing the macro risk that we see coming with a decelerating economy. So there's a macro moment favorable for banking spreads, Central bank data reflect that. And this is reflected in our NIM and in that of the other banks, it is not by coincidence that other banks are also posting increasing NIM. In our NIM, it was 8.8%. It was 8.4% in December. And the trend is that this will gradually get close to 9% by year-end. But we don't have an explicit target for that, but it is though a trend that we are observing in our analysis. It seems to be a trend of recovery. And then you asked about the sensitivity of our earnings to the interest rates. And here, I'm going to focus on 2 aspects. Market NII. Cassano mentioned that our market NII increased from BRL 2.2 billion last year to between BRL [indiscernible] billion this year. So higher interest rates do have a negative impact on our ALM. Next year, if the scenario is confirmed of a declining interest rate we would normally see a recovery of this line item. Our Chief Economist at Bradesco expects the Selic rate to be at 11.75% by the end of next year. So we have to do our best to work internally and see if the scenario will be confirmed. Second aspect about interest rates is the impact it has on the economy. That's what Marcelo mentioned, a gradual slowdown of the economy. What we expect in terms of economic slowdown is a gradual deceleration more than we expected 6 months ago. So the macro risk reduced in the last 6 months, high interest rates, but showing a labor market that is very robust and a very gradual slowdown of the economy, which allows the banks to adjust their NII to face this deceleration with a match being positive or neutral in terms of profitability for the system.

[Interpreted] And could you let me add to that. That's a good question actually. You asked about the expectations regarding NII and NIM. And I answered that before. NIM, of course, we wanted to grow, but it is not the most important indicator. We have to continue to grow our NII. And that growth came from better liability management, reducing the cost of funding. It came from this stacking of portfolios that have a much higher risk-adjusted return. So this is adding NII with longer maturities. And I think that we have room to continue to grow. Yes, we have room to grow our NII with our client credit operations. And I'll take your question and speak about -- because I spoke about the quality of the portfolio overall. So our loans are very much under control. Auto loans very much under control. But we have been granting more auto loans for new vehicles and heavy vehicles with a better credit quality and delinquencies under control, overnight the NPL under control. But we see an opportunity. There is a positive RAR for a part of used vehicles until a certain age of the vehicle. So we do have an expectation of growth, just like this expectation of growth in private payroll loan as long as it is well adjusted and we can gain market share. So I see an evolution of NII is very important. In the ER efficiency ratio that we talked about in the previous question, we tend to grow, but we are very convinced about the growth of our NII with good efficiency ratio and good quality of the portfolio.

[Interpreted] And the next question comes from Henrique Navarro from Santander.

[Interpreted] Congratulations on the earnings. Congratulations, Andre, also for the communication, it's very good, so it helps reduce volatilities. My question, the second quarter showed that Bradesco is on the track to deliver the right higher than the cost of capital. So now I keep thinking about the next step. And taking question, if we have a better -- we have better market conditions if Selic begins to fall as of January 2026 and delinquency under control. And when we look at Bradesco transform, we will begin to see more tailwinds in 2026. So what could be a possible number? I mean what's the size of this expansion in terms of quality and profitability, which will naturally happen in 2026. Can we think about 17% or 18% ROE or ROI? I mean just a number we'd like to have so that the market can align if -- I mean, what would be the structure of Bradesco ROI?

Thank you, Navarro, for the question. Well, as we've said, we do not promise what the ROI would be or what the ROE will be. But we will do everything in our reach to deliver higher profitability, higher net income, higher revenue, expense control, higher quality of the loan portfolio, and we'll do that quarter after quarter. I mean, step by step, and that has not changed. So we will keep our promise. Of course, we do have the expectation to be able to continue to evolve. But if we would now go back to February 8, we expected the interest rate to be 13%. So the cost of capital would be lower. I mean, we would already be delivering the right numbers now. But I mean, we don't promise anything about that. But I believe the balance sheet already has consistent results as I mentioned earlier on, I mean, if you look at the operating result, I think it's the best snapshot we have looking at our balance sheet. Now how much that will be? I mean, we expect to continue to grow with good deliveries, stacking our portfolios. And there's something I didn't mention when I answered [indiscernible] question, but I'll do it now. I mean, in addition to stacking our portfolios and controlling liabilities and having the right segments and good credit policies, I mean, when you have a segment where the delinquency, the expected delinquency is lower, you do face more competition in those segments. Well, we launched a 5-year plan only 18 months ago. So we still have a long time ahead of us to execute the plan. And what we want to do is to improve profitability quarter after quarter, step by step continually. Now talking about the ROE, the idea would be to come to the cost of capital. I mean we have a double target in the short term, the cost of capital. And in the long run, we have to continue to work in the long run. That's why Marcelo said we will continue to invest in the bank transformation because that will ensure competitiveness in the long term. And then I mean, if you want to calculate where we want to get, we have to continue to work to improve efficiency and 40% would be a good number, good ambition. A – Andre Rodrigues Cano: [Interpreted] Let me add, Navarro and tell you. I said the same thing in the interview with the media. We feel highly excited at everything we're doing at the bank. It's a straight line. We just make dynamic adjustments, but we feel highly confident a few deliveries are better and then we make adjustments. I believe we have a lot of traction in the organization, high engagement and all teams in the organization, all areas and in all customer segments. Thanks for the question.

[Interpreted] Thank you, Navarro. The next question comes from Eduardo Rosman from BTG. Rosman?

[Interpreted] I'd like to hear more about collateralized portfolios, especially those that are backed by the government, either by FGI, FGO, [indiscernible] and other government programs. I'd like to understand the magnitude of this market, the size of this market. I mean the impact on RAR has been good. But what about the future? Can we have an even higher return growing these portfolios? Or are we going to have to find new ways to monetize these customers or maybe have less cyclical, less cyclical effects. I'd like to hear more about that from you.

[Interpreted] Thank you, Rosman. Thanks for the question, and thank you for joining us. It's a pleasure to see you. My answer is that this portfolio, I mean, I don't know the exact number, but looking at all of these government programs, FGI, Pronampe, [indiscernible], I mean, this year, up until June, the amount released on the market is the same as we did in the full year 2024, the whole market. So the volume has grown. We -- I mean, last year, we said we ranked second with 18.3% share. Now we've gained market share in this business. But however, this portfolio have a risk-adjusted return only if you follow your models because you have different models for different ranges and also depending on the program providing collateral. So Andre and the teams and even myself, we're always talking about this. But obviously, when you do that, you are building a long-term relationship with customers. And then you begin to know these customers and you have more fees from that customer because that's a long-term customer. So we're not doing just that. If you look at direct credit or personal credit, our margins are lower. Why? Because we do have restrictions. But who do we provide these loans to? We have a few people, high income that will take -- will accept personal loans. However, there will be a lower return, a lower rate. But if I grow, if I increase the rate, I am not going to have this high-quality customer. So we want to attract the best customers, customers that will pay our due date. So maybe the spread would be lower. But when you look at personal credit or individual credit, the rates are usually very high. So we're looking for a point of balance. And…

Thank you Rosman. The next question comes from Carlos Gomez-Lopez from HSBC. Carlos?

Congratulations on your next positive step. I think you have 6, and these are typically 12-step programs. So you have another 6 to go. I have 2 questions. The first one to Ivan, who has been there all along, and he's responsible for almost 40% of the company. So the insurance business continues to do very well. I wanted to -- but you imply lower growth for the next of the year. So I wanted to ask you what the evolution is going to be in the second half, in particular in health care, which in my account has had very high profitability. How sustainable is that? And what leads you to maintain the guidance for insurance? And second, could you define once again what your cost of equity is?

[Interpreted] Okay. I think Ivan is connected.

Carlos, thank you very much for your question. What I can tell you is that we are very optimistic. I just talked to the press, very optimistic regarding the new guidance of the insurance group as a whole. Secondly, regarding health care. we have been seeing in Brazil a consolidation trend in the private health insurance segment, the number of MCOs, the regulatory challenges. They are all components of our interpretation of this consolidation. Well, what you will see is that this market of private health insurance, we see it very positively, particularly with the basic need for protection in this area by the Brazilian middle class, approximately 100 million people, people who need health care protection. At the same time, we do not see nothing very incremental, nothing very different in this segment of public health care, which leads us to believe that private health insurance will be the solution for the Brazilian people. So we have a positive look of the private health insurance and we intend to take part in this growth in the several phases of our chain of action. So we operate with Bradesco Saudi and Odontoprev, which ensure the lives of about 13 million beneficiaries if people look at the 2 operations together. They benefit Brazilians with high-quality solutions all over Brazil. We also execute a robust program of investments investing primarily in our network of hospitals through a recently created arm called Atlantica Hospitals. So we have a very positive approach to this market. We will continue to invest in it, Carlos. And we see this market very positively. I don't know if I answered your question, and I remain available if you need any further information.

Yes, I was going to say you have made about BRL 900 million in health every quarter in the last 2 quarters. Is that a sustainable level? Or is a period and we should go back to something like the historical returns.

Ivan, would you like to answer that?

Of course, we cannot really give you any numbers at this point. In the first half of the year, our company operating in the private health insurance segment published a very robust earnings and this is published in our results. For the second half of the year, we do envision some difficulties, but more related to the indexes. Of course, people will be using the health care services, and we will be prepared for that. The point of attention would be the financial indexers because given the macroeconomics, they might change either because of IPCA index or even the Selic rate. So these are points of attention. But in structural and operational terms, reducing medical loss ratio and in terms of gaining new lives in the several regions of Brazil. Earlier today in the press conference, I mentioned the new product that we just launched in the region follow through in Mato Grosso and Mato Grosso do Sul to bring a new understanding of private health insurance in the Midwest of Brazil. South and Southeast regions of Brazil are very well covered. And we are growing strongly in the Northeast region gives us a lot of potential more recently in [indiscernible] private health insurance, bringing new clients, new customers, new lives to our portfolio. The trend in the next 6 months is to increase the balance of under the scope of private health insurance, adding to this number of 13 million beneficiaries that I mentioned earlier. So regarding the cost of equity, Carlos, what we have observed is that cost of equity in the last 18 months has been oscillating between 14% and 16%, depending on market and economic conditions. Our last survey with sell-side analysts indicated a median estimated median by the analysts of 15.6%, already dropping vis-a-vis the previous survey. So it seems that there is a trend for slight reduction looking forward. But of course, we don't control this number. We pursue this number. We monitor it, and we intend to get to that number as quickly as possible preferably. And thank you for the questions.

[Interpreted] Next question from Bernardo Guttmann with XP.

[Interpreted] Congrats on the of the results of the bank. My question is about the agribusiness portfolio, which continues to grow significant with delinquency still under control even in a moment where we have seen clear signs of deterioration in this segment. How can you explain your more resilient performance? Is it a more structural profile of the portfolio concentration in midsized and large clients, greater guarantees, lower exposure to subs is it linked to an active risk management that avoided a worse. And looking forward, does the bank remain comfortable in maintaining this pace of expansion in the agribusiness portfolio?

[Interpreted] Thank you, Guttmann. Thank you for joining us. It's always a pleasure to have you on board. Well, it's actually those 3 factors that you mentioned. It's all on the table. Of course, we have models to operate with certain ratings. Look at some crops. For example, we have some traditional clients with us in the agribusiness. The bank has an important share of this sector. We're very active in several regions of Brazil, but it is what you also mentioned. There are crops that have a slightly higher risk. There are crops that have a positive margin. They've had a positive margin over the years. I see the Brazilian agribusiness as centers of wealth. And of course, there are some exceptions, some sectoral exceptions or some exception companies, either geographically speaking or by crop, we do have an effective market share, and we have a dedicated team to analyze that. Those platforms that I mentioned in the presentation, Guttman, we have specialized team that we have. Agronomists working together with our managers in the conversations with the clients to understand details about the farms, crops and we have all the technological support to monitor. We have a credit team specialized in agribusiness and specialized in different crops also supporting us. And we have a group that analyzes periodically the risks and this group helps the managers understand the risks. So yes, we are comfortable in expanding this, but expanding for what? Certain crops for which we have a controlled expected loss. And we intend to expand to companies that have acceptable ratings for us. And this is, 100% of what we do in rural loans. All of them are secured loans. Most of them were the trusted, valuable guarantees. You might have strong or weaker guarantees. Yes, that happens, but we are very confident about what we see regarding our NPL. And I'd like to highlight in the month of May, we saw a slightly greater deviation, but then it returned to the expected level even with the John Deere Bank. And year after year, we can see in the month of May, it increases a little bit, then it drops again. So there are some characteristics in the agribusiness that you have to know about. And yes, we are comfortable to continue to expand. But considering our criteria in our business unit, we have a portfolio management. And we sue AI-backed model to monitor together with our economy group to analyze expected loss. And I'm not talking about past due loans, okay, Goodman? I'm talking about the life portfolio. When we see signs of potential expected loss, we do active management. And operationally speaking and actually on a daily basis, we see signs and we observed them for the whole set of companies from small business to middle market. And thank you for the question.

[Interpreted] Thank you, Bernardo. Our next question from Eduardo Nishio from Genial Investments. Nishio?

[Interpreted] Congratulations on your results. I have a question about strategy. If you could provide an update because a few things, we can see; a few, we don't see. In this quarter, you reduced -- you further reduced the footprint. We can see some relevant numbers, 14% fewer bridges only in this quarter, a 5% reduction in the number of bridges. The overall footprint is down 23% year-over-year if we also add branches or points of sale. Now in addition to the footprint reduction, what other initiatives we have that will release value in the next few months? And looking at the numbers, the guidance update and other numbers, I can see you were a bit more optimistic in terms of the plan. So can you please let us know what is working well, what not? What can you tell us about that?

[Interpreted] Yes, Nishio, it is true. We feel optimistic about the outlook for the bank. Of course, we remain cautious regarding the economy, but we do feel optimistic. Maybe Cassiano could begin to answer, and I can add something else in the end.

It's a pleasure to see you. Yes. I think Marcelo spoke about that. And you mentioned the footprint reduction. But I mean, what we're looking at is return and efficiency. So controlling expenses as part of the equation. We are always looking at the cost to serve. And that's really important. Again, productivity, that we've improved using technology. And today, Marcelo provided a few more details. That's one of the foundations of our plan, massive use of Gen AI, upskilling of the whole team, especially in technology and the principal segments growing, we will have 40 new units and a significant number of new customers. Now, further penetration rate in terms of technology, the new app and the Internet banking services for companies, all of these are important business levers. The concentration of the liquidity optimization is again a very important element. We are also reengineering our legal processes. And that's something we do every day as part of our daily activities, looking at labor losses and other losses. And also the new concept of the digital mass market, so having the right resources for the right customers, so we already have a number of customers, a few million customers served by the digital platform. And that is something we're growing. I mean it's a profitable segment when you provide the correct level of service. So these are the pillars. These are the fronts where we will be working in 2025, and you will see the evolution in many of these aspects, especially technology. So we now have a quicker time to market. We've had a 94% efficiency improvement. Marcelo mentioned that today, we're doing 4x more in technology than we used to do in 2023. So these are the levers that will help us accelerate. So Bradesco culture has engaged all employees of the organization to do differently to bring ideas, to bring new solutions so that we can continue to develop the bank. I believe this is our future.

[Interpreted] Let me also add, Cassiano and tell you that about what we have been doing, what we have been delivering can be seen in operating numbers. We have consistent operating numbers. But he mentioned a few points that can help us release more value and continue to execute our plan. We'll close the year with more than 50 principal offices and about 400,000 customers, and that will grow even more. Also, our segment of companies will continue to grow, especially now that we have a new segmentation. Small businesses will also grow. I spoke about our initiatives in the wholesale bank, including new cash services for large companies and also for SMEs. We have a large number of initiatives that have come out really strong with a lot of support of technology to improve productivity, always backed by Gen AI. So we will have more news, and we will be talking about that in the next meetings.

[Interpreted] Thank you, Nishio. The next question comes from Renato Meloni, Autonomous.

[Interpreted] Congratulations on the results. First, about the payroll deductible loans for private companies. You said that in June and July, you would be able to begin to grow with this product, looking at the better collateral conditions. And you also said that you would be growing also outside your customer base. Is that happening? Have the problems been solved? And also, I'd like to understand what we need to do to protect the customer base? And does that have any impact in terms of personal loans? And if I may, talking about agribusiness, I think you have a clear intent to grow there, although the moment is not really very favorable in terms of agribusiness loans, but this is a winning industry. And so I'd like to understand about the capacity to grow agribusiness loans in the next few years.

Great. Thank you, Renato, and thank you for participating. I'm happy to see you here again. Now in terms of payroll deductible loans for private employees or employees in private companies, we prepared for that. Until we had the new regulation, the new rules for that, we had agreements with companies. And so we would do the transaction directly with the company. Now after the new regulations, we begin to use CTPS, not really using our channels, but you have to use CTPS to sign these loans. And we had a lot of work to do to do the paperwork. I mean, I provided the loan, I disbursed the amount and then I need the approval by the company and then the funds are transferred from cashier to the bank and then to the customer. So what we could see was that the process was not really well oiled. I mean we had 2 payments, as I mentioned, recently. The second was a bit better than the first one. But looking at the market, the delinquency was higher than 16%, which is very high for this type of loan. When we talk about protecting the customer base, I mean, we already have deductible -- payroll deductible loans provided to the companies that are our customers. And we want to protect that business. But I mean, first, we did that according to our own criteria. So the answer is yes, we will continue to grow. We will begin to accelerate. And now we will trend towards gaining more market share. Why? Because we are a market leader. If you look at the public sector payroll deductible loans plus private plus FGTS, which are usually separate. I mean, but if you look at all these 3 buckets, we are market leaders. We are ranking behind 2 public banks only. However, in payroll deductible loans and private companies, we do not have a big share because we only provided these loans to the clients that have their payroll with us. So -- but I believe we will now begin to grow because now we have the new regulation. I mean I said the market had 16% delinquency. We had 5%, which is high for us. But we will be able to solve that. Why? Because we have a small customer base. We know the companies, we know the customers. So that's my expectation. And then you asked a second question about agribusiness. Maybe Andrea can answer.

Yes, as Marcelo mentioned, agribusiness is one of the most vibrant industries in the economy. And we see a favorable outlook for the second half of this year and for the next year as well. And we also have good opportunities to grow our agribusiness portfolio. We just have to find the right customers, the right credit lines and the right collaterals. But yes, of course, it is possible to grow our portfolio in agribusiness, right? With the right crops, the right geographies, the right rates, the right loan rates and the right collaterals according to our criteria, that's what we will do, Renato. Always looking at our risk appetite and still continue to grow, doing good business with our customers, providing loans for equipment purchase, including John Deere transactions.

[Interpreted] Next question from Yuri Fernandes with JPMorgan.

[Interpreted] I am another person congratulating you on good earnings. Most of the questions have been asked. So I'll be more technical in my question. Something regarding the DTAs. Here, we consider the consumption of DTA. There was an increase, slight increase in DTA. So I'd like to understand why DTA is increased? Because if I look at the bank, everything is better. I know it depends on which [indiscernible] generates credit and I understand that with 4966 something has changed. And you should stop generating so many DTAs. So what happened in this quarter? And what is the trajectory of use of these DTAs? Because it has an impact on your CET1 and it could be a good driver for market NII. So I'd like to understand a little bit about the DTAs.

Good to see you, again. I'd like to ask Cassiano to answer your question.

[Interpreted] Good to see you. Well, that’s a simple answer. In this quarter, there was an increase in DTA related to the provision we made to neutralize gains coming from the comprehensive transaction program because -- so that generated more DTAs. That was a one-off case, a specific case. And the more we grow step by step, we will consume more DTA. And that there was no deviation. This has nothing to do with 4966 and nothing to do with credit origination itself. This is just due to PTI, the comprehensive transaction program and the provisions we made for labor. The provisions for -- the provisions for fiscal claims and labor claims. And regarding the expectation of using the DTAs in our report of economic and financial analysis, we present a scenario to consume the DTAs in the next 10 years, considering full IOC payment, growth of the loan book. And we can see that the expectation is that there will be no capital consumption will be taxable base and to consume the DTAs. It's all in the report. Thank you, Yuri.

The next question comes from Tito Labarta from Goldman Sachs.

And yes, congratulations on the continued improvements in the quality of results. My question is, I guess, on your capital base. Core Tier 1, 11.1%. We did start to see shareholders' equity increasing a little bit, particularly as ROE is improving. And you're paying around 60% payout. I know you're maximizing interest on capital to take advantage of the tax rate. But just how do you think about your capital base? Would you want to increase that at some point, particularly as profitability should continue to improve from here? Where should we think is the sustainable core Tier 1? I mean if we look at the midpoint of your guidance, you get net income BRL 23 billion, BRL 24 billion, implies about a dividend of maybe BRL 13 billion, BRL 14 billion. Is that sort of the right assumption? And would that be -- could you increase capital in that perspective? Or should we stay around 11.1% or so?

[Interpreted] Our core Tier 1 had an index of 11.1% in Q2, exactly the same as Q1 with an expectation of stability in this indicator until the end of the year. In other words, everything that we need to pay IOC to enjoy to benefit, the most and grow the portfolio, we'll find funding sources internally, organically based on our profit generation, stabilizing this indicator. This is a very adequate level in our opinion, well above the minimum regulatory requirement and according to our internal requirements. So we have a buffer to take advantage of all opportunities that arise without an evident capital restriction. And as I mentioned in the previous question, in our report of economic and financial analysis, we consider a scenario in which we absorb our stock of DTAs without impacting our capital base. So that is a very realistic and stable scenario for our capital base.

We now close the Q&A session. The questions that were not answered today, our Investor Relations team will answer them immediately after the meeting. Before I hand the floor back to Marcelo to close the meeting, let me tell you on our Investor Relations website, we have the full presentation plus more details about our results. Marcelo?

Thank you, Andre. Thank you, Cassiano . Thank you all for joining us this morning. Thank you, all the analysts and investors who contributed with your questions. You can come and talk to us the whole sell side and buy side if you have questions about our quarterly balance sheet. Thank you all very much. Have a great week. Thank you. Bye-bye.