Bancolombia S.A. Price & Performance (CIB)

Mrs. Catalina Tovant, Investor Relations and Capital Mark Director And Ms. Mrs. Laura Clavio, Chief Economist. I will now turn the call over to Mr. Juan Carlos Mora, Chief Executive Officer. Mr. Juan Carlos, you may begin. Good morning. [indiscernible] Welcome to Bancolombia Fourth Quarter Results Conference Call.

Please go to Slide [indiscernible] In a challenging fiscal landscape in Colombia, the year 2024 concluded with a positive economic trend presenting moderate growth. This growth was facilitated by decreasing inflation and reductions in interest rates which consequently led to an increase in household [indiscernible] Net income for the quarter amounted to ARS1.7 trillion. Reflecting an 11% increase primarily due to resumed loan growth across all segments. And a significant reduction in provision expenses. This resulted in a quarterly annualized cost of risk as low as 1.35%. Offsetting the decline in interest income associated with a lower yielding loan portfolio. Thereby reducing the net interest margin to 6.4% for the quarter. Overall, the return on equity for the quarter increased to 15.7%. Net income for the year was 6,300,000,000,000.0, a 2.5% increase which boosted shareholders' equity by 14.3% and resulted in a 15.8% ROE. In evaluating this positive annual performance, we identify three key factors that explain these results. First, our unparalleled capabilities and assets liability and treasury management. Which have enabled us to maintain high net interest margins. On an asset sensitive portfolio despite significant rate cuts. Effectively supplemented by a strong contribution from the investment portfolio. Second, the robustness of our well calibrated risk models.

Which allow us to manage credit risk with greater efficiency. There, our rigorous cost control strategy implemented throughout the year resulting in an annual operating expenses increase of only 5.3%, slightly above the annual inflation. [indiscernible] Following these strong results, we announced to the market yesterday our proposed dividend to be submitted for shareholders approval amounting to approximately 3,800,000,000,000.0, which represents a 10.3% year over year increase equivalent to more than 500 basis points above inflation and achieving a payout ratio of 60%. The dividend will be paid in one installment MXN3900 per share on 04/01/2025. Aiming to enhance value distribution to our shareholders. Lastly, I would like to inform you that we are making significant progress with our corporate evolution towards the establishment of Grupo Cervist. Our new holding company. We have obtained the necessary approvals from all Central American regulators and are continuing to advance in the process with the Colombian regulator. Our goal is to complete this transaction by the second quarter of twenty twenty five. I will now turn the presentation over to Laura Clavijo, our Chief Economist. Will offer an analysis of the macroeconomic [indiscernible] [indiscernible] Thank you, Juan Carlos. Now if you could please turn to Slide three.

Our 1.8% growth expectation confirming an ongoing economic recovery.

Especially if compared to twenty twenty three's GDP growth of just 0.7%.

Expected performance from specific sectors such as agriculture, entertainment, which expanded at an annual rate of 8.1% but that may nonetheless lose momentum in 2025. Underwhelming activity from other key sectors such as mining, manufacturing, and housing continue to reflect the challenges that the economy still faces. On a more positive note, the final quarter confirmed an uptick in retail sales. And consumer demand for durable goods is taking a turn towards the positive For example, vehicle sales grew at an annual rate of 7%. Indeed, a more constructive macroeconomic framework has enabled an upswing in both sentiment and growth. Inflation continued its downward trend towards the end of year mark of 5%. The monetary policy rate closed at 9.25% and unemployment has subdued close to 10%. Historically low year average.

Moving forward, the global setting plays as a backdrop of amounting inflationary challenges and monetary policy caution. These headwinds coincide with local inflationary pressures such as that of the above expected minimum wage set for this year, the fiscal debate around compliance of the fiscal rule, also necessary expenditure cuts amidst the flexibility and an overall acceleration of government debt back to a 60% of GDP level. Consequently, inflation expectations are being pushed higher. We expect inflation to reach 4% in 2025. In addition, the Central Bank will be adopting a more cautionary approach. Despite the challenges ahead, signs of an economic recovery are more widespread. As the macro scenario brings tailwinds and we confirm our view of 2.6% year end growth forecast for 2025. Now please let me turn the presentation back to Juan Carlos, who will present Ban Colombia's quarterly performance. Thank you, Laura. Please proceed to Slide four. Before discussing the quarterly and year end results, I will provide an overview of our market position in Colombia and Central America. This is based in our significant presence in the region, reflecting our focus on an integrated client centric approach, which is important in the current competitive environment.

Starting with Colombia, it is notable that we hold a strong position in both the loan portfolio and deposits market share. In the loan book, we lead in the commercial and consumer segments and are second in mortgages. Additionally, We launched a reduced rate mortgages loans program. Resulting in a 15% year over year expansion in our mortgage portfolio in Colombia. Regarding deposits, Pan Colombia holds over a quarter of the total deposits in the country. Utilizing both physical and digital channels. We also maintain a leading position in terms of executed transactions within the country. Securing a 31% share of credit card transaction value, 40% in debit card transactions, and an impressive 80% in the number of monetary transactions through our digital channels. This significantly contributes to our consistency through preserve our market share in deposits year over year. In the Central America market, we hold a significant presence with approximately 25% of loan and deposits in Banco Agricola in El Salvador. As BAM currently holds 10% of the loans and 80% of the deposits in the country. The above statements describe our position as strong regional franchise based on an universal bank model. Which currently serves abroad and diversified base of our 30,000,000 customers in Colombia and nearly 3,000,000 in Central America.

The results achieved in the year 2024 which differ significantly from system wide results particularly in terms of NIM cost of risk and ROE, reflect our competitive advantages. Our clear strategy and our readiness to address both traditional and new competitors as well as regulatory changes. Please proceed to Slide five. Continuing with the strategy overview, I will now discuss the progress made on our second value driven pillar. Which leveraged our digital capabilities and multichannel [indiscernible] Recently, we launched the Tuz Javes program. A solution that enables Bancolombia and NEC customers to easily select their keys for instant fee free money transfers to other savings accounts. Checking accounts or low value credit deposits among the eight entities participating in this initiative. Our overall approach of the program is threefold. First, facilitating the movement of flows. Secondly, strengthening Bancoombians and NECKI's ecosystem with seamless and reliable experience and thirdly, deepening our understanding of customers' by having greater traceability of flows. In developing an innovative, multi channel and interoperable [indiscernible] As shown, we now serve six out of 10 Colombians through Ban Colombia or NEC. With over 30,000,000 customers. We manage 33% of the country's payrolls handle 90% of interoprollable QR payments for merchants.

We process 75% of payments via Transfvia and 85% of international remittances. We firmly believe that interoperability enhances financial inclusion, foster market competitiveness and promotes economic growth. Therefore, we are taking the lead in addressing this by inviting other market participants to join this initiative, which act as a precursor of the Breve immediate payment system. Additionally, we are educating customers on how the keys will function within our nation's financial system. This combined with our established presence in the transactional space, and a stable customer base, provides an opportunity to improve interoperable features within our payments infrastructure and pursue distribution and cross selling initiatives. I will now turn the presentation over to Mauricio Bottero, [indiscernible] present further details on the fourth quarter twenty twenty four results. Mauricio? Thank you, Juan Carlos. Please go to Slide six. The results in 2024 for the regional operations were mixed On the one hand, Bancoagricola and El Salvador Registered an ROE close to 21% on the back of an increased volume of consumer loans as it kept expanding in new market niches coupled with a reduction in cost of funding. BAM achieved net income growth, which resulted in an 8.1% ROE supported by loan growth Across all segments, driving higher interest income generation.

Additionally, provisions dropped 21% during the year due to the release of provisions associated to certain corporate [indiscernible] On the other hand, Banismo's net income dropped 56%, resulting in a 4.5 ROE for the year due to a lower net interest income and higher provision expenses. Let's now proceed to Slide seven. Continuing with the slow but positive trend the loan portfolio recorded the largest quarterly expansion with a 3.7% increase. Which represents a 10% increase over the year. Leaving behind the contraction dynamics of 2023. Home lending posted the largest growth both on a quarterly and an annual basis as the reduced interest rate program has fostered credit demand, among individuals in Colombia and helped to stimulate a recovery in the real estate sector. There was also a significant growth 11.5% in commercial loans, due to decided incentives to boost credit demand among our corporate clients. On the other hand, the consumer loan book slightly increased on a quarterly basis. Accumulating a modest 2.3% during the year driven mainly by the positive dynamics of unsecured lending in El Salvador and credit card loans in Guatemala. Please go to Slide eight. Deposits picked up 7.4% in the quarter. Mainly explained by a seasonal effect as corporates and public entities typically increase their balances.

Individuals, also hold more liquidity on year end. On an annual basis, deposits increased 13%, outpacing loan growth and was driven mainly by the operations in Colombia and El Salvador. In the case of Colombia, this explains to a large extent the ample liquidity held throughout the year. When breaking down by type of deposit, the aggregate balance of side deposits remained pretty stable year over year. However, I would like to highlight that saving deposits in Colombia grew close to 14% on a quarterly and an annual basis. Reflecting the bank's capacity to attract and maintain low cost funding sources even as competition evolves. On the other hand, time deposits intentionally grew at a moderate 1% in the quarter reducing the annual pace of growth compared to side deposits. This growth has been driven by short term online time deposits [indiscernible] attracting retail clients. Now our overall funding cost [indiscernible] by 23 basis points during the quarter and 118 basis points during the year. Partially offsetting the NIM compression related to the Central Bank reference rate cuts. Please proceed to Slide nine. Net interest income from loans and financial leases [indiscernible] by 2.5% during the quarter and 4.1% during the year.

Due to the monetary policy mentioned before. That kept exerting pressure on our asset sensitive loan book [indiscernible] Regarding margin sensitivity, we continue to adapt our asset and liabilities strategies to remain well positioned according to the interest rate cycle. As depicted on the upper right hand side graph, in the last twelve months, we have been able to decrease the net sensitivity to interest [indiscernible] Despite the increase in non sensitive to interest rate liabilities, which in turn is explained by the growth on-site deposits, which by definition our low cost source of funding that provides an anchor to our overall cost Also, I would like to highlight the positive performance of our investment portfolio during the entire year. Which by virtue of a skilled asset liability strategies increased Earnings from valuation of financial instruments and the sale of derivative securities to clients contributing to overall interest income generation. On the other hand, the net interest margin for the quarter was 6.4%. Equivalent to a 42 basis point reduction and 6.8% for the full year. Implying a 20 basis points contraction as anticipated explained by the lower yielding portfolio. Partially compensated with the investment portfolio income. Please proceed to Slide 10.

Fee income increased 4.4% over the quarter, due to a higher volume of transactions associated to year end seasonality. And better results on bank assurance as consumer credit originations accelerated towards the end of the year. Now on an annual basis, net fee income increased 5.6%, explained [indiscernible] by an increase in interchange through debit and credit cards given a higher transactional value. An increase in banking services [indiscernible] associated with the use of electronic and digital services. And an increase in asset management fees. On the other hand, fees expenses increased 13% year over year mainly due to higher credit and debit card royalties as per higher transactional values. Third party collections and increased banking agent costs attributable to more transactions and new agents. The fee income ratio remained relatively stable reaching almost 19% as a proportion of the total net operating income. Please go to Slide 11. Continuing with the positive trend [indiscernible] since June loan deterioration kept receding during the fourth quarter as reflected on the declining pace past due loan formation Calling for 2024 as the tipping point in terms of asset quality. Consistent with the above, net provision expense for the quarter amounted to 930,000,000,000, a significant 41% decrease quarter over quarter [indiscernible] to the better performance across all segments.

And the sale of distressed assets. Also there was a $444,000,000,000 provision release as the consumer portfolio expected losses dropped and the macroeconomic variables that feed the model have turned more promising. Hence, cost of risk for the quarter to 1.3% On an annual perspective, net provision expenses closed $5,500,000,000,000 which represents a 27% annual contraction on the back of the better performance of the consumer segment throughout the year. Coupled with a more than €1,000,000,000 in provision has become increasingly positive enough to compensate the growth on SMEs and corporates. All in all, cost of risk for the year reached 2.1%. In terms of asset quality, total past due loans presented a quarterly and annually improvement In terms thirty days past due loans preserving an ample coverage ratio at 112%. Whereas the ninety days past due loans ratio decreased as collections efforts diminish over time, yet allowing for a 159% coverage. From an expected loss perspective, loans in Stage one increased throughout the year as per the Better Risk outlook. Increased due to the actual deterioration of specific corporate clients All in all, the coverage ratio for Stage II and Stage III loans, reached 41% providing comfortable coverage to the loan book.

We expect that as the economy turns more dynamic, and sectors such as construction and retail sales, [indiscernible] the SMEs loan portfolio should perform [indiscernible] Please go to Slide 12. Operating expenses increased 13.4% compared to the previous quarter. An expansion associated to a year end seasonal effect consisting of higher IT and cybersecurity related expenses as well as marketing expenses, which were partially compensated with an 8% drop on a tax provision release. Moreover, personnel expenses grew 8.6% due to higher bonus plan provisions as year end results were better than expected. However, when analyzed on an annual basis, operating expenses grew as low as 5.3% well below the 12.3% of the Colombian minimum annual wage increase and the 9.2% inflation at 2023 which were the basis of around 75% of the group's expenses in 2024. The positive annual result was possible due to a Aiming at capturing efficiency on six key areas which in turn reinforced our culture of efficiency and productivity. Notwithstanding the above, when measured on their the cost to income ratio it came in at 49% compared to the 45% of the previous year given the lower pace of operating income growth the limited expense dilution Please proceed to Slide 13.

The effective tax rate for the year was 28%.

Higher than the 24% recorded in 2023 provided the higher contribution of the Colombian operation to the group's net income. All in all, net income reached ARS6.3 trillion in 2024, increasing 2.5% with an annual return on equity of 15.8% which if adjusted for Gluil translates into an outsized outstanding return on tangible equity of 20% reflecting the ban strong operational and financial performance. Now please proceed to Slide 14. Shareholders' equity grew 6.5% in the quarter and more than 14% in the year. Explained by the generation of net income as well as currency depreciation. For equity Tier one ratio, ended at 11.89%, a 32 basis points increase over the quarter well above the Basel III minimum requirement. Whereas total solvency decreased 60 basis points to 13.75 on the back of a lower Tier two as per the redemption of the 2029 subordinated bonds executed in mid December. Based on our proven strong capital origination, and the loan growth forecast, we are confident capital ratios will remain well above the minimum. Providing room for a 60% payout ratio which results in an attractive yield balancing all our stakeholders interest. With this, I will now hand the presentation back to Juan Carlos for the final remarks.

Juan Carlos, Thank you Mauricio.

Please proceed to Slide 15. By the end of the year, we originated over Bancolombia trillion under our business with purpose strategy. Bringing the total to 197,000,000,000,000 since 2020. And moving towards the goal of €500,000,000,000,000 by 2030. Showing our commitment to financing environmental preservation and sustainable development projects. In 2024, we scored 85 out of 100 in the Dow Jones Sustainability [indiscernible] [indiscernible] Please refer to Slide 16. [indiscernible] I will share our updated guidance for 2025. We anticipate a consolidated loan growth of 5.6% which is slightly below previous projections due to the increase in loan growth of So in the fourth quarter of last year. Thereby adjusting the baseline. We project a net interest margin of approximately 6.2% contingent upon the Central Bank's rate cutting pace. The cost of risk is expected to be between 1.92.1%. With an efficiency ratio in the vicinity of 51%. Additionally, we forecast a return on equity of around 14% and a core equity Tier one ratio ranging from 11% to 11.5%. With this, we conclude our We are now ready to address any questions you may have.

Thank you.

If you are using a speakerphone, you may need to pick Thank you. Our first question comes from the line of Brian Flores with Citi.

Hi, Tim. Good morning and congratulations on the results I wanted to expand a bit and ask you on how Capital V utilized with the new holding structure So first, I know there is some perhaps core equity Tier one that could be utilized. Wanted to to ask you if you can remind us how this can happen? And then a second question is on your payout ratio. Do you have a a higher valuation right now? And we know you announced plans to maybe start a buyback program within this new structure. So just wanted to to check with you if the new valuation levels modify naturally with the new payout ratio modify your plans on the buyback program?

Thank you very much. Thank you, Brian.

Let me address your two questions and then I pass to your question to Mauricio to see if he has any additional comments. Regarding capital, it's Gregor to have in mind that the evolution of our corporate structure allow us to manage capital much more efficiently. The holding structure allow us to assign the right capital for the different operation. Banks will have to comply with the the requirements of capital. But the holding company is not subject to those requirements. So it allow us to manage very efficiently our capital. What we have in is once we have this structure in place, is that we will assign the needed capital with the buffers that we consider reasonable but optimize that use of capital. That allow us to have better returns on equity. And that's related to your second question, the payout ratio and the current valuation of of this stock. What is happening in the market is not going to modify. What we have in mind regarding the ability that we will have with the with the evolution of our corporate structure to buyback our shares. So on that with the valuation that we have now, we still we will once we have the structure in place, we will propose to the shareholders meeting a buyback program.

Mauricio, I don't know if you have any additional comments on Brian's questions. Yes. Hi, Brian.

When thinking about CET1, it's important to take into account that the target levels for each of the banks will remain the same. So we will still be thinking about 11% to 11.5% as a target at year end for each of the banks.

And excess of capital will go to the to the holding. Now in terms of the buyback program, as Juan Carlos said, it's it's a tool mainly used by the financial groups issuers in the world. So So we still want to have it. And we will approach the market depending on pricing conditions but that's definitely something that we will continue to to propose and implement gradually depending on market conditions.

Thank you, Juan Carlos and Olesio. And if I may just a very quick follow-up The 60% payout ratio do you think we could on the as analysts use it and project it for 25%, 26%, 27% or do you think this is more of a temporary to You are using Thank you.

So the way we think about payout is not percentage of net income When we say 60%, is a result of the way we come up with the number. So the right way to think about that is the capital levels of the operating companies. So having a target capital level of at least 11% at year end what you're going to see is the excess capital flowing to the holding we have an ample space to distribute dividends according to the double leverage that accounts only to 103%, 105%. So what you should be able to project in the models is an ordinary dividend growing slightly in real terms. At least slightly but in real terms. Now the buyback the buyback program, we depends not only on market conditions, but on capital levels. But ordinary dividends they will be growing at least in real terms.

Super clear. Thank you. Thank you for taking my question. I have two questions on my side. The first one is regarding loan growth. So your guidance is for loan growth around 5.6% this year. Which is a bit lower than Colombian nominal GDP. I would like to know if that is mostly explained by either lower demand or by lower growth in the Central American countries where you operate? And if you expect loan growth to catch up to nominal GDP growth at some point? And my second question is regarding NECKI. So you had good performance there in 4Q, almost 1,000,000 new active users good loan portfolio growth in NetKey, and Airpack surpassing $1 If you could give us any color on the strategy, how it's going? What are your plans to increase monetization? And also when you expect the operation to be profitable?

Thank you, Beatrice, for your questions. The first one regarding loan growth, We are cautious on loan growth. We need to balance [indiscernible] So we need to be careful with the current conditions. The GDP As you mentioned, we will grow a little bit higher during 2025. We estimate that growth to be around 2.6% And in real terms, as you mentioned, it's close to probably 6.5%. And our loan growth with the the combined loan books, it's around 5.2%. We are expecting the commercial book to grow a little lower And we expect mortgages to moderate a little bit the growth. So we are on the conservative side regarding loan growth and we are going to focus on quality. We are forecasting well, we are seeing a cost of risk on the vicinity of two, around two to 0.1%. So we will prefer to be cautious on regarding loan growth. That's why we are our guidance looks lower in terms of nominal GDP. Regarding NECKY, your second question, as you mentioned, Necky continues performed very well. It continues growing We are now close to €22,000,000 customers one figure that I like a lot is of those 23% are active customers.

So they use NICI for their day to day operations. So that shows that NIKE is really useful for those customers. So we continue growing. As you mentioned, we continue including or growing our loan book in NECE is growing on a healthy way, even though we need to be careful also with risk. But it's a continuous growth. So what we see is that we we will have During this year, our development in continued long growth, our income will continue to grow with different fees coming from different products. And we still or we continue thinking that we will reach our profitability or at least we will be in a level in which our income and our expenses are going to be in the similar magnitudes. By the beginning of twenty twenty five. So 2026, I'm sorry, 2026. Beginning of twenty twenty six. So we are very happy with the development of NIKE, how it's evolving presence in the market, it's very good, Beatrice. Thank you very much.

Our next question comes from the line of Alonzo Arambura with BTG. Please proceed with your question.

Yes. Hi. Good morning. I'm thank you for the call. Yes. So two questions. So So just a follow-up on your recent comment. About NEGI. Can you give us some color as to where the fee is coming from? Based on the presentation think roughly about 40% of income comes from fees. And second, can you just comment as well on the performance in Panama? ROE has been in the mid single digits now for a few years. What are your expectations for to turnaround that and and to potentially get to a double digit ROE in Venizmo? Thank you. Thank you, Alonso. Fees in ERC are coming from different sources. We have different services. Including some regarding to transportation, but also insurance, but also remittances So they come from different sources. The part of fees but the main income in the future of MEC is going to come from interest income. That's what we are doing building a loan book. So we continue adding new services on the marketplace of MECI. But we will move to October's profitability will be our loan book. Complemented by the fee income that we will continue to to grow to grow. So it's a mix. [indiscernible] remittances, FX transportation fees, coming from transportation services insurance, bank insurance, So it's diversified Source of of of income.

Regarding your second question Mauricio, [indiscernible] Yes, Banizmo posted a 4% ROE in 2024. That's not a narrowy that you should be thinking about for coming years. The ROE of Banizmo should go up to double digits but a challenging scenario due to the competitive landscape. However, we have been doing a lot of work in terms of operational IT and building a value proposal that is competitive enough to be able to gain traction and to gain momentum in that market to be able to deliver higher ROEs that are to be able to get close to that cost of equity of Banizum. Thank you. Thank you, Lois.

Our next question comes from the line of Julien Azike with Gabriella. Please proceed with your question.

Hi, everyone, and thank you for having my question. I have two questions. The first is regarding the dividend. I would like to know the rationale to change the statement of the dividend. And the previous years you paid the dividend during every quarter and now you are paying in one installment. And if there is something related with Curufasura or your main shareholder in terms of liquidity And the second question is regarding the information that it will be available after the creation of Cybez. I mean, after the Cybez maybe all analysts we are going to do the evaluation through some of the parts So I would like to know if we will have information related Colombian operation. We already have the superintendency, but for example, Central America or even Nekior won't be too to have a more precise value of Bancolombia in terms of projections everything else Thank you so much. Thank you, Julian. Regarding your first question, We are paying the digital in one installment, which we don't use to do it in that way, just because we are in the process of evolving as a new corporate structure. So you have to understand that Ban Colombia, as we know it today, is the company that distributes [indiscernible] And we will have our shareholders meeting on March.

Then we will create new entity that is going to be the listed company. So we are in that transition. So if we if we are going to the dividend in different installments will be in a different structure. So that's why we are doing that in one installment in April when Bancolombia still is the listed company and the holding company. [indiscernible] evolve very soon in the next month to a new structure will be cyber and we will now operate under that corporate structure. So [indiscernible] regarding any particular investor of Bancoombia. It doesn't have any relation with any condition it's because we are evolving We are having a new corporate structure in which the current company that is listed and is the holy company is going to evolve to be commercial bank and we will have a new new holding company that will now operate. That's the only reason why we are just paying the the dividend in one is formed.

Second question Mauricio? Yes.

Hi, Julian. And just to follow-up on that, You should not think about that way of distributing ordinary dividends going forward. What we plan to do next year is to go back as CVS starts distributing dividends we'll go back to the quarterly installment. Now regarding your second question, the way we are going to disclose the numbers, the results is going to start in the second quarter of the year. If everything goes comes out as planned. Second quarter results will be serviced results and you're going to be able to see each of the countries with all the businesses that they are responsible for. So Colombia will not only be Ban Colombia, it will be the consolidated operations in Colombia, including capital market subsidiaries and also the offshore subsidiaries that's going to be Colombia and then the same for the other countries. We will disclose figures for each of them so that you can do some of the parts valuation for the whole year. Let me add that one of that's one of the main goals that we have with Sypest.

It's to have more transparency on our report So as you mentioned, we will be reporting each operation separately. Bear in mind that, for example, Colombia we will report it on the IFRS [indiscernible] In the standards that are international standard of accounting, not Colombian standard are those that you have on the Colombian superintendency. So will be some differences on the Colombian operation reporting but we will report the different operations separately. So you can have a better view of the different operations on their side. Does that complete your question, Julian?

No, thank God. That's perfect. Thank you so much.

Thank you. We have no further questions at this time.

I'd like to turn the floor back over to management for closing comments.

Thank you, everybody, for being present in this conference call We are confident that our operations under the new evolution or the new corporate structure will act as I mentioned, transparency will allow us to manage more efficiently our capital and will produce positive results. So our next report will be for the first quarter of twenty twenty five under the current structure. But as Mauricio mentioned, our second quarter report we expect to be under the new the new corporate structure if everything goes as planned. So again, thank you very much for for attending this conference call and I wish you a very good day.

This concludes today's conference. Thank you for participating. You may now disconnect.