Good morning, everyone, and thank you for waiting. Welcome to the second quarter of the 2021 conference call of Banco ABC Brasil. With us here today, we have Mr. Sergio Lulia Jacob, CEO, Mr. Sergio Borejo, Executive Vice President and CFO, and Mr. Ricardo Moura, Investor Relations Director. This event is being recorded and all participants will be in a listening only mode during the company's presentation. After Banco ABC Brasil remarks, there will be a question and answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. This event is also being broadcast live via webcast and may be accessed through Banco ABC Brasil website at www.abcbrasil.com.br/ir, where the presentation is also available. Participants may view the slides in any order they wish. The replay will be available shortly after the event is concluded. Those following the presentation via webcast may post their questions on our website. They will be answered by the IR team after the conference finished. Before proceeding, let me mention that forward statements are based on the beliefs and assumptions of Banco ABC Brasil management and on information currently available to the company. They involve risk uncertainties because they relate to future events and therefore depends on circumstances that may or may not occur. Investors and analysts should understand that conditions related to macroeconomic conditions, industry, and other factors could also cause results to differ materially from those expressed in such forward-looking statements. Now I turn the conference over to Mr. Sergio. Please, Mr. Sergio, you may begin our presentation now. Thank you. Good morning, ladies and gentlemen, and thank you for joining our conference call for the second quarter of 2021. In slide two, we present the financial highlights of the period. The net interest income reached BRL 345 million in the quarter, an increase of 9% over the previous quarter and of 22% over the same period of 2020. The highlight was the financial margin with clients, which totaled BRL 242 million, the eighth consecutive quarter of growth, driven by a higher derivatives and FX volume and by the increase of clients from the Middle segment in the expanded credit portfolio. Expanded provision expenses for the quarter were BRL 52 million, an increase of 5% over the previous quarter and a decrease of 45% over the same period of 2020, consolidating the transition to a phase in the credit cycle with lower provision expenses. The net income reached BRL 136 million in the quarter, presenting an 11% increase over the first quarter of 2021 and of 121% over the second quarter of 2020. The return on average equity was 12% in the second quarter of 2021, 100 basis points up versus the previous quarter and 630 basis points up in comparison to the same period of 2020, the fourth quarter of consecutive growth. In slide three, we present the highlights of the period. Continuing the strategy of expanding the client base, for the first time, ABC Brasil surpassed the milestone of 3,000 total clients and 2,000 clients with credit exposure. We ended the second quarter with the addition of 234 total clients and 94 clients with credit exposure in the quarter, equivalent to a growth of 60% of the client base in the last 18 months. Regarding product portfolio diversification, Banco ABC Brasil started to operate its captive insurance brokerage arm, ABC Brasil Corretora de Seguros, focusing initially on surety bonds, insurance line directly linked to corporate credit rating analysis, complementing to the current offer of financial guarantees line. Credit life insurance, life insurance product targeting shareholders of reference of corporate companies, and Capital Global, group life insurance product. The business plan of ABC Brasil Corretora includes a gradual expansion to other insurance lines during the following months, including agricultural insurance and other property and casualty insurance lines. In slide four, we present more highlights of the period. We continued with the expansion of ABC Link, initiative that leverages on the distribution of financial services through partner offices using the banking correspondent legal structure. We focused on the geographic expansion with 18 partner offices already operating or being onboarded in a pipeline of more than 50 offices interested in building a commercial relationship. The initial product portfolio that includes credit and cash management will be shortly extended with other services. Concerning to our payroll loan product, from May to July 2021, we've launched the private payroll loan offering to our employees when the processes and systems were successfully tested. In August, we started reaching out a universe of 700 clients, mainly from the Corporate segment, that together employ around 1.7 million employees. The first agreements that have already been signed and more than 100 are under negotiation. The expectation is to gain traction over the next quarters with an increasing presence in our corporate clients. Finally, in slide five, we discuss the energy trading company, which has been operating for a little more than one year, initially focusing on energy prepayment and trading. The energy trading company presented a 2.9 x growth in the number of counterparties and a 3.4 x growth in number of transactions, when comparing the second quarter of 2021 with the previous quarter. It's currently in the process of expanding its product portfolio to include the negotiation of long-term contracts and flow transactions. Regarding the partnership in capital markets with Banco Inter, there was a joint participation in 3 debenture issues totaling BRL 2.6 billion, all of which BRL 1.5 billion in infrastructure debentures, whose distribution is primarily driven towards individuals, one of the pillars of the partnership. In the pipeline, we have the joint execution of five other transactions totaling up to BRL 1 billion, including one infrastructure fund and two Brazilian REITs, with the distribution also focused on individuals. The two teams are having weekly pipeline meetings, jointly analyzing 5 - 10 new business opportunities. The coordination and distribution of funds is a new and promising line of business for ABC's DCM area. Besides the infrastructure funds, the partnership is also discussing other types of funds, including real estate and agribusiness. In slide six, we can see the two second quarter 2021 earnings evolution in an annual comparison. The recurring net income reached BRL 136 million in the second quarter, an increase of 121% compared to the BRL 61 million presented in the second quarter of 2020. Explained mainly by the decrease in provision expenses and the increase in financial margin with clients and with the market, partially offset by the increase in the income tax and social contribution and the increase in expenses in line with the strategy of supporting the new initiatives. In slide seven, we present the evolution of the expanded credit portfolio. The expanded credit portfolio presented a reduction of 0.8% in the quarter and grew 9.8% in 12 months. The Middle segment presented an increase of 80.6% versus the first quarter and an increase of 170% in 12 months. Although the relevance of the Middle segment within the expanded credit portfolio reached 6.9% in the second quarter, it contributed with more than 15% of the margin with clients, given its largest spreads. We believe that as the Middle segment continues its expansion within the overall credit portfolio, this effect shall be amplified. The Corporate segment presents a 0.6% increase versus the previous quarter and of 7.8% in 12 months. In the CIB, the expanded credit portfolio had a reduction of 4.1% in the quarter and an increase of 1.7% in 12 months, in line with the segment's strategy of increasing the offer of services and structured operations. Finally, we would like to reiterate the maintenance of our expanded credit portfolio growth guidance for 2021, as previously announced. In slide eight, some highlights of each segment. We've concluded the quarter with an increase in total clients in all segments. The Middle segment had an addition of 185 total clients in the quarter and of 729 clients in the year, an increase over 2x in 12 months, reaching 1,367 clients. At the same time, the average exposure per client was nearly stable at BRL 2.7 million. The Middle portfolio ended the quarter with an average term of 423 days. In the Corporate segment, the bank ended the second quarter with 1,325 clients. Of these, 1,006 had credit exposure, resulting in an average exposure of BRL 16.8 million per client. The Corporate portfolio ended the quarter with an average term of 416 days. Finally, in the CIB segment, the bank ended the second quarter of 2021 with 330 clients, of which 164 with credit exposure, resulting in an average exposure of BRL 74 million per client. The CIB portfolio ended the quarter with an average term of 414 days. In slide nine, we present the sector segmentation of our expanded credit portfolio. It continues to show a high sector diversification exposed to the most dynamic sectors of the Brazilian economy, such as agribusiness, such as grain, agriculture and livestock, infrastructure, energy generation and transmission, real estate, among others. In addition, the sectors with the largest relative increase in participation were banks + 1.1 percentage points, and insurance acquirers and others + 0.6 percentage points. While the sectors with a reduction in relative participation were sugar and ethanol - 0.9, and others, mainly retail, - 0.8. In slide 10, we present some indicators that reflect the quality of our credit portfolio. In the first graph, we present the loans overdue more than 90 days. As you can see, this ratio ended June accounting for 1.2% of the portfolio. A 0.9 percentage points increase versus the previous quarter, and in line with historical average, closer to 1%. In the second graph, we present the coverage ratio. The decrease in credit reserves, combined with the increase in past due loans, resulted in a decrease in the loan portfolio coverage ratio, reaching 264%, in line with the pre-COVID-19 levels. We see the current phase of the credit cycle as benign, with a general improvement of the business environment. The increase in past due ratios in the quarter had been previously provisioned, which reduces the pressure for higher provision expenses this quarter and in the future, assuming the maintenance of current market conditions. In slide 11, we show the evolution of the expanded provision expenses and their main components. The loan loss provision expenses reached BRL 46 million in the quarter, an increase of 35% in relation to the previous quarter, and a decrease of 50% when compared to the same period of 2020. The cost of credit was equivalent to 0.9% of the classified loan portfolio, an increase of 0.3 percentage points over the previous quarter. The provision for the devaluation of securities reached BRL 3.7 million in the quarter, a decrease of 82% versus the previous quarter, and up 29% in relation to the second quarter of 2020. The credit recoveries reached BRL 14.5 million, a meaningful volume when compared to previous quarters, resulted from efforts in the recovery of written-off loans related to specific situations. The provisions for assets not for own use, show the higher volume this quarter, but which we believe will return closer to the historical average in the coming quarters. The expanded provision expenses, which includes the items mentioned, reached BRL 51.8 million, equivalent to 0.6% of the expanded portfolio, is stable when compared to the previous quarter and 0.6 percentage points down in comparison to the same quarter of 2020. In slide 12, we present the evolution of our funding. By the end of June, the funding balance reached BRL 35.6 billion, a reduction of 5.7% in the quarter and an increase of 2.3% in 12 months. The market continues to offer abundant liquidity options, both in local and international currency, with good volume and interesting maturities. We continue to see our capacity to access quality funding as one of the advantages of our business. In slide 13, we present the evolution of our shareholders' equity and Basel ratio. The bank ended June 2021 with a reference equity of BRL 5.5 billion and a shareholders' equity of BRL 4.5 billion. In the quarter, we had a Basel ratio and a core equity Tier 1 ratio nearby stable as a result of the increase in risk-weighted assets and of the distribution of interest and capital, compensated by the appropriation of the results of the period and the ratification of the capital increase of BRL 62.5 million obtained in the quarter. In slide 14, we present the evolution of our net interest income. The net interest income reached BRL 345 million in the second quarter, an increase of 9.4% compared to the previous quarter, and of 22% compared to the same period of 2020. The financial margin with clients reached BRL 242 million in the second quarter, an increase of 11.8% in relation to the previous quarter, and of 18.9% in relation to the same period of 2020. The financial margin with clients will be further explored in the next slides. The income from shareholders' equity remunerated at CDI was BRL 28.5 million in the second quarter of 2021, an increase of 65% over the previous quarter and of 22% over the same period of 2020, in line with the base interest rate trend. Given the asset sensitive nature of our balance sheets. As a result, the analyzed net interest margin, the NIM, reached 3.5% in Q2, an increase of 0.3 percentage points in relation to the previous quarter, and 0.5 percentage points up in relation to the same period of 2020, returning to the levels seen in 2019. In slide 15, we present the evolution of margin and spreads with clients. The financial margin with clients reached a new record of BRL 242 million. The eighth consecutive quarter of growth, an increase of 11.8% in relation to the previous quarter, and of 18.9% in relation to the same period of 2020. This growth was supported mainly by the improvement of the product mix, with increased revenues from cross-selling, such as derivatives and FX, by the increased representativity of the Middle segment in this expanded credit portfolio with higher spreads, and by the higher number of days versus the previous quarter. Currently, the margin with clients remains the main line of the financial margin, contributing with approximately 70% of the total. The spreads with clients reached 3.9% in the quarter, an increase of 0.4 percentage points when compared to the previous quarter, and 0.2 percentage points up over the same period of 2020. The spread with clients adjusted by provisions ended the quarter at 3.4%, an increase of 0.8 percentage points over the previous quarter, and of 1.3 percentage points over the same quarter of 2020, driven by lower provision expenses. In slide 16, we present the services revenues. Services revenues reached BRL 72.6 million in Q2, an increase of 1.4% in relation to the previous quarter, and of 24% in relation to the same quarter of 2020. Looking at each of its components, the revenues from guarantees issued reached BRL 42 million in Q2, a decrease of 1% from the previous quarter and an increase of 2.4% over the same quarter of 2020. Investment banking reached BRL 20.8 million in Q2, a decrease of 0.9% over the previous quarter. In relation to the same period of 2020, a quarter in which this line was especially affected by the effect of the COVID-19, investment banking revenues increased by about 130%. Revenues from banking tariffs reached BRL 9.8 million in the quarter, an increase of 20% in relation to the previous quarter, and of 21% in relation to the same period of 2020, driven by the increase in the number of clients and transactions. In slide 17, we present the change in expenses and our efficiency ratio. The personnel expenses, other administrative expenses, and profit sharing reached BRL 142 million in Q2, an increase of 7.5% in relation to the previous quarter, and of 23.7% in relation to the same period of 2020. This was mainly driven by the development of structuring initiatives, including the continued expansion of the Middle segment, the launching of new business lines, and innovation and digitalization initiatives. As these initiatives are developed and gain relevance, they accelerate revenue growth and dilute costs and expenses. As a result, the efficiency ratio reached 35.5% in Q2, 0.7 percentage points down in relation to the previous quarter, and 1.7 percentage points down in relation to the same period of 2020. Finally, in slide 18, we discuss the bank's profitability. The recurring net profit reached BRL 136 million in Q2, 11% up from the previous quarter, and 120% up from the same period of 2020. The recurring return on average equity was 12.3% per year in Q2, an increase of 1 percentage point versus the previous quarter, and of 6.3 percentage points versus the same period of 2020. These are the highlights we would like to present. Now, we are available to answer the questions of the participants of this teleconference. Thank you. Our first question comes from Gustavo Schroden with Bradesco BBI. Hi, can you hear me? Yes, we can. Hi, Gustavo. Hi, Sergio. Thanks for taking my question, and good morning. My question is regarding the sustainable ROE. We've seen an improvement in the net interest income and net interest margin of the bank as supported by this better mix. Also, it seems their asset quality is under control. My question is, and the ROE is improving from last year definitely, but my question is, what is the sustainable ROE that you think that the bank can reach in the next, probably two years or three years ahead? Thank you, Sergio. Hi, Gustavo. Thanks for your question and for participating in our conference call. This is a tough question, and we could have answers, let's say, for the near future, and we could have other answers for the medium term or long term. In the near future, what we are seeing is the ROE gradually recovering from last year's hit by the points that were explained in the presentation, including, for instance, things that are external to us, like the increase in the Selic rate. Others that are a consequence of the measures that were adopted, such as the reduction in the provisions for losses, and the recovery in the margins from the investment banking. Besides, let's say, these effects that are specific to 2020, there are some structural initiatives, such as the expansion of the middle market, that start to have some impacts on our ROE, and we hope that these effects will become bigger quarter after quarter. As we have said, the middle market, for instance, it accounts now for 6.9% of our total credit portfolio, but they already represent a 15% participation in the margin with clients. I think over time, this participation will only increase. Besides that, there are some other initiatives that we have invested heavily in the last two, three years, including the digitization of the bank, the development of our trading company, the structuring of the payroll lending initiative, and others. We have incurred in costs, but the revenues are still not there. Starting from now, these new businesses, they will start to show some revenues. These revenues will be small in the beginning, but we expect that, let's say, in 18 to 24 months ahead, they will contribute significantly to our ROE. Having said that, I believe that, and please, this is not a guidance. You've been following us for many years. You know that we don't release any kind of guidance for ROE. I believe that our sustainable ROE has to be at least around 15%. We will be very unsatisfied if after those initiatives mature, we deliver an ROE that is below 15%. No, that's very clear, Sergio. I understand that it's not a guidance. I know that is just the best that you can provide. That's perfect. If I may do a second question here. It's regarding your mix. Are you focusing on SMEs as well now? Does the bank consider to do something on the individual side, maybe payroll loans for these SMEs that you are investing? Would that make sense, or the bank will continue focusing on companies? What is the strategy here? Gustavo, that's an excellent question. I would say that our strategy is to be the bank of choice to big and middle-sized Brazilian companies. Maybe in the future, we can expand to even smaller companies. For this moment, we are targeting companies that have BRL 30 million or more. We want to be the bank of choice, not only to these companies, but to their suppliers, to their clients, and to their employees. Given a relationship that has been established between the bank and the corporate client, we think that we could serve these clients better if we go also to their other stakeholders. That's why we have initiatives such as the private payroll lending, which you have mentioned, and I think it's going to be a very successful initiative because this is a B2B2C kind of business. It's important not only to have the relationship with the corporate customer, but also to understand the credit strength and economic cycle of those clients because things such as the turnover of the client impact a lot on the private payroll lending. We believe we have this strength. This is one side of the initiative, but there are others. Supply chain finance and other initiatives are targeting more on the suppliers and on the clients of those corporate clients. Every new product or every new channel that we can develop that can better serve our customers and all their stakeholders will be in the core of our strategy. On the other hand, any kind of product or initiative that has nothing to do with our main client, which are the corporate clients, we will not develop it, because then we think we wouldn't have any competitive advantage in developing initiatives that are not correlated to our existing client base. I don't know if it was clear. No, very clear. If I may, just one follow-up here. Regarding the private payroll loans, did the bank already start to talk to companies and to offer this payroll for their employees? My question is, when should we see any signal of this strategy, specifically on the private payroll loans? Okay. No, we ended the MVP period in July. The product, the system, the process, they were tested with employees of ABC Brasil. We've given payroll lending to our own employees, and we could test the systems there. In August, we launched this initiative to the market. Let's say, considering the segments of activity, the size of the company, et cetera, we have identified 700 clients to start this initiative. From the 700 clients, we have already reached 100 customers. From these 100 customers, we are negotiating the agreements. We don't have the agreements with 100 customers. We have the agreements now with seven or eight customers, and we are going to the market. There are two phases. The first phase is to establish the agreement with the company. The second phase, which I believe will be the more challenging to us, given that it's going to be our first, let's say, large-scale initiative in the retail, is going to be to reach the employees of the companies. We expect this initiative to start to scale up in the second half of 2020. In the beginning, it takes some time for you to book loans and et cetera, so they will not have a meaningful impact in our financials. I think in 2022, we can expect to have bolder figures in this payroll and be able to make it clear to the market, releasing the numbers, the number of contracts and things like this. Okay. Thank you, Sergio. Thank you. Our next question comes from Yuri Fernandes with JP Morgan. Hi, Sergio. Good morning. I have a follow-up regarding the ROE. For me, it's very clear you are doing a lot of things to improve the profitability of the bank. I guess, the SME per se, it's a good strategy. Knowing that the bank may reach at some point 15 or slightly less, slightly more than that, I think it's good news. Just exploring the Selic. You have an asset-sensitive balance sheet. I guess Selic will help a lot in that ROE expansion. I was running some numbers here, and it seems that every 100 basis points change on Selic can imply in about 50, slightly more than that, increase on your ROEs. I'm just asking you, do you have a similar sensitivity? Do you agree with my numbers? Do you have any kind of estimates of, I don't know, if Selic moves up 100 basis points, how much ROE can we see for the bank? If that's the case, if the 50 basis points we are estimating here are correct, maybe just by Selic, we could see the ROEs moving from the current 12% to 13.5%, 13 something already next year, ignoring all the other things. I guess you have more potential than that, only Selic maybe can help half of the way. That's the first question, some kind of sensitivity on rates to your ROE. I have a second question regarding funding. We saw some decrease in the funding this quarter. I guess it was down 7% quarter-over-quarter. Just asking, was that an optimization? You had excess liquidity. What was the rationale behind your funding structure this quarter? Thank you. Hi, Yuri. Thanks for your questions. In relation to the ROE, to the sensitivity of the ROE to the Selic rate, you are right. Because except for the deferred tax credits, all our equity is cash. As a consequence, the impact on the ROE is the increase of the Selic rate minus taxes. To every 100 basis points in the increase in Selic rate, you can expect over time an increase in the ROE of more or less 50 basis points. The calculation that we have is very similar to the one that you have said. In relation to funding is very abundant, both locally and internationally in Brazil. Given the increase in Selic rates, we see the fixed income funds increasing in size and receiving new investments. This reflects on the overall fixed income market, including bank papers. The market is very liquid right now. Also the international lines, because there's a global liquidity that is helping in that regard. The reduction in the quarter was a consequence of mainly two factors. One of them is the appreciation of the Brazilian real against the USD, what makes the international funding in BRL terms smaller, this is just a question of conversion rates. The other is that we are carrying excessive liquidity level. Along 2020, because of the uncertainties that were brought by the pandemic, we decided to increase our liquidity, our cash position was around BRL 10 billion, which is very exaggerated given, we have BRL 4.5 billion in equity and BRL 20 something billion in loans. We thought that this level was a little bit exaggerated. We reduced it to something around BRL 8.5 billion-BRL 9 billion. What is still a lot, is still exaggerated. These were the two main facts. The liquidity is not a concern at all. No. Perfect, Sergio. Thank you for the answers and congrats in the quarter. Thank you. Thank you. This concludes today's question and answer session. I'd like to invite Mr. Sergio to proceed with his closing statements. Sergio, please go ahead. I'd like to thank all of you for participating in our quarter results conference. I and all the team are available to any of you to answer any other questions you might have. Thank you. That does conclude the Banco ABC Brasil audio conference for today. Thank you very much for your participation. Have a good day, and thank you for using Chorus Call.