Morning to everyone. I'm Ricardo Moura, Director of Investor Relationships and M&A. You're welcome to the teleconference of results of the fourth quarter of the Banco ABC Brasil. Those of you who are watching via Zoom and you want to follow in English, please click on the button of translation below the screen. Before we start, I would like to share the following disclaimers. Declarations that can be made in this conference relating to the perspectives of business of the bank, projections, operational targets, financial targets, they are beliefs and premises of the administration of the company. Also, information currently available for the bank. Any future consideration is not a guarantee of performance. It involves risks, uncertainties, and premises because it refers to future events and therefore it depends on circumstances that can or not occur. Investors and analysts would understand that the general condition, the conditions of the sector and other operational factors can affect the future results of the bank and can result in different results than those that are expressed in the future conditions. In compliance to the data law, we also inform that this presentation is being recorded and is going onto the social media, LinkedIn and YouTube, and that you must know that your images and voice might be shared with no breach to the law. All the content, including the presentation, will be available in our investor relation site. To follow the presentation, please download the QR code, which is on the screen. At the end, we will have questions and answers. Today we have our CEO, Sérgio Lulia and Sérgio Borejo. Welcome. Good morning to everyone. Thank you very much for participating in our teleconference of results of the fourth quarter. Good morning, everyone. It's a pleasure to be here. I now invite our CEO to talk about the results, bringing the main highlights, financial and operation. If you want to access the presentation, read the QR code on the screen. Sérgio Lulia, the floor is yours. I'm going to start with the highlights of the fourth quarter of 2022 and the year as a whole. We ended the year with a growth of 27% in the margin with the clients in relation to the prior year, result of the gradual diversification of the mix of product segmentation of clients channels. The expanded credit portfolio has a growth of 14.7%, and it has an annual expansion of 40%, exceeding BRL 4 billion and corresponding to 9.6 of the expanded credit portfolio. The service revenues has a growth of 18% in relation to 2021, driven once more by a record revenue of BRL 145 million of the investment bank and by the contribution of the insurance broker. Finally, the net income has reached BRL 800 million, a growth of 40% in relation to 2021, equivalent to annualized equity return of 16.2%. This represents an expansion of 343 basis points in relation to the prior year. Now let us watch a video with our highlights. In Banco ABC Brasil, the best results start with the best relationships, Banco ABC Brasil. Okay, let's continue our highlights. About the expanded credit portfolio, we had a growth of 14.7% in 12 months. The value within the guidance of growth, which is between 12% and 16%. Besides the middle growth, it's important to notice the performance of the corporate segment with an expansion of 20% in the last 12 months, reaching almost 57% of the expanded credit portfolio. In the quarter comparison, the highlight was the performance of the CIB, which expanded 7.8% in the period. As we can observe, the expanded credit portfolio has a diversification with a spread portfolio and defensive. This composition, allied to the quality operations, has been contributing to the resilience of the portfolio along the economic cycles. The macro sectors with the highest increases and relative participation were energy, plus 2.8 percentage points, and agribusiness, 0.9 percentage points. The macro sectors with the largest reductions were commerce, - 1.2%, and transport and logistics, - 0.4%. Let us emphasize the financial margin with clients, which has had the 14th consecutive quarter of expansion, results of the gradual diversification of the mix of products and client segments. The analyzed annualized spread with clients reached 4.3%, the sixth quarter with consecutive growth above 4%. The spread with clients adjusted by the provision closed the quarter with 2.8%, a reduction of 80 base points in relation to the prior quarter. A reflex of the increase of the expenses of provision influenced especially by an isolated event relative to the CIB segment. You can see that in the fourth quarter, we again had the expansion of the three lines that form our financial margin. The margin with clients, the main line of the financial margin, closed the fourth quarter with BRL 335 million, a growth of 4% in relation to the prior quarter, and 27% in relation to the same period of 2021. The shareholders equity remunerated at CDI was BRL 139 million in the quarter and BRL 475 million in the year, in line with the evolution of the interest rates during the period. The margin with the market was BRL 82.5 million in the quarter and BRL 294 million during the year of 2022. We highlight that the financial margin reached BRL 557 million in the fourth quarter, the eighth consecutive quarter with expansion exceeding for the first time the value of BRL 2 billion in the annual accumulated. The rate net interest margin closed the fourth quarter at 4.8%, contributing for the NIM of 4.6% in 2022, an increment of 90 basis points in relation to 2021. Talking about the credit portfolio, the operations with past due over 90 days closed the quarter at 0.5% of the portfolio, up below the historical average. The ratio per segment, there was an increase of the middle ratio above 2%. It's a trend that was already expected given the nature of the companies of the segment and the maturity of the portfolio. The delays of the corporate segment in the CIB was stable in relation to the prior quarter. It's important to highlight that this level of delay is still does not capture the impact of the isolated event in the CIB segment. Following our presentation, the expenses banded provision closed the quarter in BRL 115 million, equivalent to 1.2 for the expanded portfolio. BRL 13 million were referring to the growth of the credit portfolio. The largest part of this increase was a reflex of this event in the CIB segment, which generated an increase of the constitution of specific provisions in the order of BRL 67 million. We have the generic provision allocation, priorly constituted of BRL 50 million, reaching a provisioning level around 30% for this case. It is important to emphasize that we see this event in this isolated case, a large company which is not directly related with the moment of the credit cycle. This is the loan loss reserve in relation to the percentage of the portfolio ended the quarter with 2.7%, an increase of 40 basis points during the quarter. In the segment division, the corporate and the middle maintained the levels of the prior quarter, resulting in a stable rate comparing to the quarter. In the CIB, we had an increase due to the situation that we just mentioned. Our ratio of coverage reached 543%, 130 percentage points below the level observed in the prior quarter. Let's move on to service revenues. This reached 15.4 of the total revenue in the quarter and 17% in the annual comparative. This performance was the result of the record revenue of BRL 145.10 million in the investment bank during the year of 2022, and both of the tariffs and insurance brokerage that closed the quarter with a growth of 67.2% in relation to the same period of 2021, a reflex of the contribution of the insurance brokers and the increment of our client base. In the item expenses, we can observe that the total expense grew 48.5% in the annual comparison, while the efficiency ratio of 2022 reached 38.4% within the guidance for the year. As mentioned in prior quarters, the increase of the total expense was impacted mainly by the investment cycle in structuring initiatives, including the continuity of the expansion of the middle segment, the launch of new business lines and innovation fronts and digitization. We can observe a reduction in the speed of the growth of the expenses in the fourth quarter of 2022. Our expectation is that this trend continues in 2023, while the revenue will maintain its expansion speed through the maturation of new initiatives and the capture of operational leverages, contributing for a gradual improvement of the ratio of efficiency. This will be one more leverage to contribute for our profitability. In relation to the evolution of funding, at the end of December, the funding balance was a total of BRL 45 billion, a growth of 1.7 in the quarter and 18.4 in 12 months. One of the success factors of Banco ABC Brasil is the access to competitive funding in current, and also internationally with a good volume and interesting terms. This condition is supported by the ratings equivalent to the Brazilian rating by the main eight risk agencies of the market, or in the case of one of them, one degree above sovereign. As you can notice, we closed the trimester with a reference equity of BRL 6.4 billion and a shareholder's equity of BRL 5.2 billion. The Basel ratio reached 15.2%. The Level one was stable, 13.1%, even with the growth of the asset base and more provision expenses. This stability of the capital base is a direct result of the highest level of profitability. We consider the current level of capitalization, or capital ratios, comfortable to continue to execute our business plan. On the screen, the chart demonstrates the evolution of the annual results. The recurring net income of 2022 reached BRL 800 million, a growth of 40% in relation to the prior year. This trend can be explained especially by the increase of the client margin. The shareholders equity remunerated at CDIs, compensated also by the increase of administrative expenses and provision. The return on annualized equity was 16.2%, an expansion of 343 basis points in relation to 2021. The recurring income of the fourth quarter was BRL 197 million, while the recurring equity was 15.3%. If we did not have that situation in the CIB segment, the net income would have been BRL 226 million, and the return on equity would have been 17.5%. Even considering this effect, we have a return, a good return in the fourth quarter, around 120 basis points higher than the same period in 2021. We will analyze now the results of the closure of 2022 in relation to the guidance for the year announced at the beginning of 2022. We reach an expanded credit portfolio of 14.7% being driven by the expansion of the middle segment, an annual growth of 14.1%, both within the guidance. The expense growth ended 2022 in 48.5% above the guidance of 30%. This is a result of higher inflation and the expansion of our team of employees and investments in technology, with the main focus in commercial areas and digital transformation. This growth of the expenses has been compensated by a higher expansion of the revenues, contributing to the efficiency ratio of 2022, which reached 38.4% within the guidance of the year. To end, we're going to introduce our guidance for 2023. With relation to the expanded credit portfolio, our guidance is of an annual growth between 12% and 16%, once more driven by the expansion of the middle segment with the expectation of an annual growth of portfolio between 35% and 45%. In relation to the guidance of the expenses, considering personnel expenses, other administrative expenses and PLR, our projection is a growth between 15% and 20%, substantially lower than the growth presented in 2022. The expectation is that 2023 presents a slower growth of the expenses and a continuity of the expansion of the revenues through the maturation of new initiatives and the capture of additional operational leverages. This is the rationale for the definition of the guidance of the ratio of efficiency that we're projecting between 35% and 38% for 2023. These are the highlights that we wanted to show you. Now we are at your disposal to respond to all the questions that the participants of this teleconference might have. Thank you very much. Sérgio, thank you very much. We have given you the panorama. We thank you all, those that have followed the transmission. Now the session for questions and answers is open. To all those that are with us, you can feel free to participate, ask questions. All you have to do is to click the icon at the bottom of the screen of raised hands. We are available to answer all your questions. One more minute to see if we have anyone asking any questions. The first questions comes from Ricardo Buchpiguel from BTG Pactual. Good morning, everything. Congratulations for the result. I'd like to understand the provisioning of the Americanas case this year, and also the scenario. Due to the specific case, would it be possible for us to see an expansion of the ROI due to the factors that are mentioned, middle, et cetera. Another topic, ABC has been growing a lot during the last year. I would like to understand if the bank is going to make any changes for the capital. Are you happy with the Basel ratio or something, with the issuance? Are you going to change the mix of the capital? Would this b e this year or next year? I'd like to understand your perspectives. Thank you for your question. In the case of Americanas, we have a provisioning of 30%. This is the percentage. Legal recovery, we don't have a lot of information, and with time, we evaluate and see what is going to be necessary. In this specific case, I think the level of information is still very low. We don't have the information. It hasn't been publicized. There's a huge expectation because the shareholders are responsible for the administration of the company, and I'm sure that they will solve the situation. We are gonna follow this closely, and after this, when we have a higher level of information, we will define the level of provisioning that will be necessary. If it's necessary, we will be doing this as we always have with no problem. As for the year, the year is just starting and we have a healthy and well-provisioned portfolio. As we have a, perhaps a deceleration of the economy, higher interest rates, and this is a world that we know how to navigate in, and we feel fine navigating through this year. In relation to your other question of the capital structure, well, we have a capital structure that we feel very comfortable with, depending on the acceleration or not of the growth of the bank, which is gonna depend on macroeconomic levels. We're very well prepared and very well equipped. It might be necessary to do the recapitalization of dividends that we've already done in the past. If we feel it's a good opportunity of growth, we will propose to the investors this opportunity of investment. We will decide this along the year. Thank you. It's very clear. Thank you. We have another question. Eric Ito from Bradesco. Good morning. Good morning, Sérgio. Borejo. Thank you for the opportunity. I'd like to explore the topic of the environment of the middle sector, perhaps a bit above. Independent of the specific case of Americanas, which has already been mentioned, it seems beginning of this year, we've seen a series of other companies requesting RJ, other companies preparing and restructuring and indicating and restructuring, several news of companies with challenges or difficulties to continue the operations. I'd like to understand how are you seeing this, different to the Americanas, which seems to be a specific and isolated case with a different nature. I'm thinking here more on the operational side, the business side, indebtedness, the capacity to generate cash. I've seen that your guide, I think your guidance was aggressive for the performance of the company. I'd like to know how you're seeing this and if there is any yellow flag or is it part of the business. I'd like to understand because we've gone through 1.5 years or two years. Taking out the small ones, I think the middle and large companies, healthy with a low level of indebtedness. Now in the beginning of the year, we've had some unexpected news, less than 45 days into the year. Isolating the case of Americanas, which I believe is an isolated case. I'd like to know your opinion. Well, thank you for the participation, for the question. The way that we see this, Americanas seems like a fraud. It's something independent. This new case, as you said, we've gone through a period, and we've said this, where the default is below the historical average. In the middle market specifically, we've seen a worsening of the performance in the second semester of 2022. The due dates have grown. We have about 1.2% now it's gone over 2%. It's reached over 2%. We've never considered that this would be a segment with this level of spread with... It reached 2% and now it seems to be stable. There are specific cases, but those that have been publicized up to now, we have cases of companies that are known, which were already sort of doing a bit tighter in the financial market. I don't see this as a big surprise. I think in general, the portfolio continues to be very healthy. In the corporate Brazilian universe, the companies that are not doing well are very few. On the other hand, the financing conditions due to the events announced, it's a bit more restrictive. It has been an important vehicle to finance Brazilian companies ever since the pandemic. I wouldn't say there's a yellow flag, but there's caution. As for the expansion of the middle segment, trust, this happens due getting new clients, especially in areas where we are not present. It's spreading of the credit risk, renovation of the portfolio regional wise, and we believe that we have a small market share in the segment. Even in a time with more caution for credit, we will be able to increase our number of clients. Thank you. We have another question. Flavio Koshiro, Bank of America. Flavio, please. Hello, everyone. Thank you for the opportunity. I'd like to take the cue from what has been said now. We see that it's rather difficult, I think the Capital Market, due to the event of the Americanas, we see that the issues of, you know, fixed revenue are a bit more different, the issuance of bonds, I think this is something that drove the results in 2022. I'd like to understand a bit your vision about what you are expecting for this specific line and also taking the cue again in the part of expenses, what we see here, starting with the companies that we see recurring the topic of efficiency being more and more discussed. We see your guidance, I'd like to understand if you believe that there can be any additional effort given that the economical scenario for the year is challenging. Thank you. I'm going to answer the first question, and then I'm gonna ask for help to help with the second one. Structurally, the market we see as a market expanding in Brazil with a larger numbers of companies of different sizes, and this benefits a lot because we go from the large companies until the middle and small companies. It's a market that we believe a lot in. We're very well equipped. Now in the beginning of the year, we are doing a restructuring of our investment bank, highlighting it more, a more independent system, a partnership with minor shareholders. Changing the portfolio to quality. Now the market in general is bad as cases that have been announced. Companies that had a large participation of debts in the Capital Market, it's retracting the funds, cautious of the quality and afraid of new purchases. As a total, the market is more difficult. We have to wait. If I say anything, I won't have a base to say. I believe that soon the market will be back to normal. We have to wait to see. Now, I'm gonna ask for help with answering your other question. The expenses, this reduction of the growth rate is something that we've been talking about. I agree with you. We had the year of 2021, 2022 with several infrastructural investments, reorganization of areas, transformation of processes, incorporation of several groups working in a way to improve and increment the services of the banks. This was done in these years. What happens is that the investments will continue in a more moderated annual within the plan that we have two years, three years back. If we have to tighten the belt, we have space, we have a mechanism to adjust the expenses versus the revenue, which is very good. I think we feel very comfortable with this expense growth that we have for next year and with the improvement of the operational leverage of the bank. Thank you, Flavio.. Let's move to our next question. Opa, é o Yuri aqui. Acho que tô com o link errado aqui, pessoal. Bom dia. It's Medina. Probably well. Congratulations. Esses casos corporativos, de fato, atrapalhando aí. These corporate cases. In this corporate case, if I could, going back here, I have two questions. The NII of this portfolio, is there any significant impact? Also provisioning. Does it really depend how this is sort of full capitalization? If nothing happens, this credit now is probably stopped paying with its recovery. If nothing happens, 2two months, three months, four months overdue according to the Central Bank. Just to understand this. Another question, going away from the topic of Americanas, we've seen that other revenues and other expenses are strong. There's some reversion. What was this and could we understand this, please? I'm going to start answering, and then I'm going to pass the floor to my colleague here. As for the Americanas, the exposure is short term from February to June. Nothing has expired, but soon it will be. The criteria of provisioning is either the rule or the pro-rating. If the company has a rating downgrade, and then we do the provision. We've seen this happen several times. The other way, you can have an operation with no guarantees, but if it's delayed, we provision the criteria. We hope soon that we'll have clarity of the case, and then we can price the potential of the recovery and take the necessary measures. In these other cases, as for the operational expenses, these are provision for operational expenses for several events. Specifically, in the fourth quarter, some of these events did not take place, we reversed part of these provisions. If we look year against year, the number, the years, numbers is very similar. A higher value, in general, it's not nothing very expressive. If we compare year-to-year, the numbers are very similar. The specific quarter, there was this reversion. Thank you very much. Thank you, Lulia. Next question. Carlos Gomez-Lopez, HSBC. Thank you for taking my question. I will ask it in English, if that's okay. Hello? Could you speak up a little bit? yes. Can you hear me? Yes, much better. Thank you. Okay, my apologies. First, going back to asset quality and what you see going forward. We have seen other banks saying, I mean, what we all know, which asset quality has been very good, and they expect a normalization this year. Do you expect a normalization or are you concerned that given the level of interest rates we could see, you know, at the beginning of a bad credit cycle? This is just a normalization going back to where, what you would normally have? Does it make a difference whether interest rates are cut in the next few months or it takes, you know, three months or six months longer? How sensitive is your portfolio to the delay in interest rate reduction? The second question is if you have any view about the upcoming tax reform and how it could affect you. Thank you. Carlos, thanks for your questions. I'll start and then Ricardo can help me out here. Well, in terms of asset quality, as I have described before, I think that we have right now a pretty, let's say, decent quality in our credit portfolio. In the middle market segment specifically, there was some deterioration, but it was somehow predicted because we think that in this segment, the levels that we have right now of NPLs are the levels that we were projecting when we did our business plan. In a way that we saw some deterioration, now it seems to have stabilized and we expect for the rest of the year, in the middle market specifically to continue to be as it is right now. In the corporate and in the CIB, let's say, when we are talking about larger companies, then there are more idiosyncratic events. It's more difficult to say, to establish a certain percentage of NPLs on the overall portfolio because you are dependent on one name or another name. If you have two, three, four names in a year, it goes up. If you don't have, it stays very low. What I can say from our experience in this 30+ years doing business in this segment, is that we had, in the last two years, abnormally low level of delinquencies. Our expectations, at least when we did our budget for 2023, was that the delinquencies would come back to the historical level. We don't see a credit crunch. We think that overall, Brazilian large companies are not leveraged. They have low leverage. They have recovered well from the pandemic. They have had access to the Capital Markets in conditions of tenors and amounts that gave to them a debt profile that is much better than what used to be. In a way that we are comfortable, but we are vigilant. With a 13.75% interest rate and the economy decelerating, we have to be very cautious. Ricardo. Okay. Carlos, I will switch to Portuguese just for in benefit of the audience. Okay. they can follow us. Obrigado. If you agree. Mais. I'm going to Portuguese. The tax reform, we have to understand exactly what's gonna be proposed. What we can say now is that, for example, in the question of the distribution, this is done 100% within the interest rates on our own capital. We have to see what the alteration would be. A taxing of dividends would make this distribution at the same level of what the GSP has already taxed. That's the first point. The second, any alteration would probably be applicable only as of next year. Third, I think that we have to analyze the package and not specific points, the eventual impact that we would have on our profitability. With a higher profitability, the effect of the GSP is lower. We have to wait a bit to understand exactly what the effect is, but we have to take these points into consideration. Thank you. obrigado, Carlos, pela pergunta. Nossa próxima pergunta, então, vem de Pedro Leduc do Bank-. The next question comes from Pedro Leduc from Itaú BBA, please. Olá. Obrigado a todos. Bom dia. Thank you. voltando pra o segmento de middle. Going back to the middle segment. Alguns anos segue sendo uma alegria. It continues being good. Como a gente teve agora, consumiu aí, vai consumir já mais da metade do seu estoque de provisões. We had a case, and it's going to take over half of provision as stock. We'll have to put together more provisions. Seguido que se expande o prazo médio das operações. A gente tá agora em 2017. The third quarter where the average after of this. Macro tá mais difícil, condições de refinanciamento. is more difficult, refinancing is more difficult, and you are extending the NPLs. Am I understanding wrong? Imagina. Difícil monitorar um caso grande. It's difficult to monitor. Imagine 2.3. Imagine 2.3 smaller clients. This is the average time frame. I'd like to understand how this is working. A premium that you can insert this on the information. I'd like to understand how this is working. Well, thank you for your question, for the participation. The case in the middle market, we have two sets of operations. The FGI and PAN operations that are outside these programs. After 2020, when we had these first operations, in 2022, the program came back in very good conditions. In this case, these were programs where we operated a lot in 2022. The time is longer of it. If you don't count this, it's about 180 days. Now, the risk return issue, the smaller the segment. The loss when it comes, when the middle market, in a worsened environment, the spread does not justify this and the guarantee that it's marked well. Adding to what you said, if you look at the average timeframe of the middle portfolio, it was about 370 days, and it has stability in terms of the prior quarter. It was 310 before. There is a little increase, but it's not that significant. Can you give an idea of how much of the portfolio is. The next question comes from Lucas Martins. Lucas, please. Good morning, everyone. Thank you all. We have three large cases of companies in difficulties. The first, the question is about the supply chain. Are you monitoring it? How are you following this? Second is about the spread of these operations in the credit market and the corporate and middle spread. How are you conceding these new credits in relations to the spread? Are you doing a better spread? What is the scenario like? Lucas, Thank you for your question and participation. In the supply chain, we're always following. In some areas, we can follow better in the states where we are present. We're always following. In general, this relationship, supply and company is good. If there's an interruption, we feel good about this in general. In relation to the spreads, the idea is to reprice this. We specifically haven't done this yet due to the fact that our clients have a very good credit, and we are seeing a constant spread. My opinion, if these conditions tighten and if this remains, the level of spread increases. Right now, we have not noticed this. Thank you. Next question, Bernardo Guttman. Opa. Good morning. Thank you for the attention. Can you hear me? First of all, congratulations to the results. I'd like to know about strategy. An ongoing project. What is going to contribute to the ROI of the company. It sounded very low. I'm gonna start. The middle market today is no longer a segment that subtracts margins of the bank, but it still hasn't reached the profitability margin. In 2022, if it weren't the middle segment, it would've been higher. In 2023, we expect that it will reach the profitability levels of the segment, that in 2024 it will surpass the level of profitability of the other segments. This is a segment that is never going to be the main segment of the bank. In the point of view of credit, today it represents more or less 10% of the expanded portfolio, more than 20% of the margin, and this will continue growing in the f uture years. Our core market point of view of portfolio is the corporate segment, where we made BRL 300 million, and this is ever since the beginning of our organization, and we're gonna continue operating like that. The middle will not only add profitability for the bank, we also spread the credit, and we start to follow companies much earlier. As they grow and develop, then they are attended by other segments where they will be attended by other products. I think this is a segment that is very important for us. Perfect. Just to add, as Sérgio said, this is a segment that benefits of a scale. It's much more scalable than it was last year or the previous year. A large part of the leverage that we said and that Sérgio said, it comes from the middle. With the maturity and the time of the clients using the services of the bank, the trend is that the penetration of these services will take place. When we put these three items that Sérgio mentioned, we hope that in 2023, we will reach the profitability of the bank, and we will increase the profits. We are reaching the end of our presentation, the conference of results of the fourth quarter 2022. I'm now going to give the floor to Ricardo and Lulia for their final considerations. I'd like to thank everyone one more year, and I hope to meet you all again in our next conference. Me, the same. I'd like to thank everyone for the participation. It was a very good year for the bank. We diversified the revenues even, you know, we have an adequate profitability. We capitalize. We have a very good structure with well-developed processes. We have a lot of trust, and we hope that it's gonna be again a wonderful year. Thank you for everyone. See you again. Bye, Lulia, Borejo. I thank you all for your participation. The presentation is available. The video of the transmission will be in our YouTube channel. If you want to listen to the transmission, it is available. If you have any questions, our team is available to attend to you. Thank you very much. Have a great day.