Good morning, everyone. Welcome to the earnings conference call of the first quarter of 2024 of Banco ABC Brasil. I'm Ricardo Moura, the M&A Proprietary and I nvestor Relations Director. We are going to have the highlights and the analysis made by our CEO, Sérgio Lulia, and then our Q&A session. All the content is available at our website. Sérgio, good morning, please. Thank you, Moura. Good morning, everyone. Let's start the earnings conference call of our first quarter. We will start with our highlights. The net profit of BRL 230 million, an increase of 2% in relation to the same period in 2025. The ROI of 13.5%. Here, we always have the first quarter that is a little bit smoother, but also impacted by credit provisions that are a little bit higher, that is, than what we had. Our net interest income was BRL 648 million. It increases 14% in relation to the first quarter of the previous year, with a growth in all components as we are going to see. The NIM of 4.1%, that is once again is above 4%, always a reduction in relation to the last quarter of the previous year due to seasonality. An increase in relation to the same period in the previous year. The credit quality has high numbers, 447% of total expected credit loss with overdue of more than 90 days. The total expected credit loss, Stage 3, around 82%. The credit portfolio grew 6.3% in 12 months. If we remove the exchange, variation, this would be 7.7%. It's within our guidance that is from 6%-10%. A highlight of the Middle segment, 24.5% of growth in the year base. The Middle was growing the last quarters, but this is a sign of the trust we have of growing in a stronger way in this segment, increasing its importance and the representativeness in our results in a close future. When we talk to the segments, I've mentioned Middle, the total portfolio grew 6.3%, the expanded credit portfolio. Large corporate, 9%. The Corporate, the most traditional segment and the most relevant one also, grew a little bit less, and this is due to the situation that is not a trend. This growth will return in the next quarter. The Middle, as I've mentioned, grew 24.5% of the yearly growth. It's a very important portfolio, and it's spread across all the portfolio. Here in the quarter, there was a reduction of 0.6% that can be due to the exchange rate, because it is a portfolio FX-linked with a growth of 6.3%. The revenue with clients reached BRL 462 million, a reduction in relation to the previous quarter because it is always the strongest one. When compared to the 443% of the first quarter of 2025, we have a growth. Another important highlight that we always bring to you is the participation of revenues that have little or no use of capital. It's increasing. In this quarter specifically, for the first time, it reached 50%. The net interest income, there is an increase of 14.3% in relation to the first quarter of the previous year, and a reduction of 9.2% in relation to the last quarter, and this is pretty common. If we compare annually, there is a growth in all lines. Financial margin with clients from BRL 341 million- BRL 374 million. The financial margin with the client, BRL 83, and it reaches BRL 104. The shareholders' equity remunerated by CDI rate, it reaches BRL 140. NIM, as I've mentioned, there is an uptake, a recovery, and we have the seasonality here, but you can see that it is above to the NIM in the same period on the previous year. The service revenue, here organized in all three major components. We have on the bottom guarantees issued. This is the most stable component, and it varies little quarter to quarter, and it brings stability to the results. The insurance brokerage fee and commercial banking is intermediate. Quarter if we compare to last year. Of course, lower than the last quarter, and we have good perspectives here. There was an activity that was a little bit lower in relation to the investment banking. Well, that's not the correct definition. There was a good activity of the investment banking in relation to the number of transactions, the volume of transactions. If we get, not only with ABC, but the entire market, we have two moments. January and February, the market had a low historically ratio, a good appetite of investors. In March, specifically, there was a repricing of the market and a reduction in the appetite of investors. Some operations that we coordinate with AAA clients, they had prices readjusted with a mark-to-market effect that reduce this revenue, this profitability in the quarter. We don't see that as something structural, but it's a specific moment of this quarter. Credit quality, the level of provisions in relation to the expanded portfolio was 0.8%, a little bit below from last quarter. You can see BRL 113 million, a little bit below last quarter. In comparison to the first quarter of 2025, you can see it was 0.5%, 0.6%, now 0.9%, 0.8%. We have a forward-looking methodology in which we see the perspective and the impact in portfolio. Of course, Brazil is living a macroeconomic scenario with high interest rates, and we always consider that it's important to protect our credit portfolio. Maybe the expectations of 0.8% will continue in the next quarters. In relation to the expected credit loss, it varies in 2.3%, 2.1%, 2.4%. All segments really well-provisioned and with a little variation from one quarter to the other. The overdue for more than 90 days, they have a good behavior. 0.5% of our portfolio is overdue for more than 90 years, 90 days, sorry. If we compare, it was 1%. Once again, the behavior is pretty proper of all business segments. The Stage 2 and Stage 4 operations, here, once again, we have the bank methodology that take us to have a more careful posture in moments in which we see a macroeconomic scenario that is a little bit harder. There is a growth in Stage 3 operations that are a little bit more discrete, 2.6%-2.8%, and a higher growth of the number of clients that we consider Stage 3. The portfolio went from 3.4%-4.1%. The portfolio, it has a good coverage ratio. For 147%, the provisions over overdue for more than 90 days, we have 82%, a little bit below than the previous quarter. That relates to clients coming and going with the collaterals and characteristics that are different in our portfolio. Our expenses and efficiency level. Expenses, they grow 9.8%. In this quarter, a reduction of 3.6%. This yearly growth relates to profit sharing. You know that part of our compensation is based on shares. Whenever shares have a variation, this line is impacted. If we consider structural expenses, personnel and administrative expenses, they are below 4% per year. Revenues, they grow 10.3% compared to the year. In the quarter, a reduction of 12%. That take us to efficiency ratio of 41.9%, a little bit above the guidance established by Banco ABC Brasil. That doesn't concern us. We are going to comply with the guidance for the next quarters. In relation to funding evolution, this is a strength of the bank. Funding is very important, pretty spread across the portfolio. It has good deadlines. The distribution of investor profile is quite proper to the activities we perform. Here, we have the historical evolution, and it reaches at the end of the first quarter of 2026, BRL 59 billion, and this could be even higher if the case may be. Now we are talking about the capital level. It's pretty comfortable. We finished the quarter with a Basel ratio of 15.9% compared to 16.3% that we had in the fourth quarter of 2025. Here, this 20%, 15.9% does not include the funding over our own interest that was approved by the Central Bank last April, that may cause an increase in 0.57%. Here we see the history. We saw 17%, 16%, then we are in the level of 11.4%, that bring us a good capital buffer to grow faster whenever we consider it's the moment to do so. Here, the recurring net income compared year to years. We went from BRL 2,025 million in the first quarter of last year, a positive contribution as we can see with margin with clients, margin with markets, we had the CDI rate. We had also the provisions, BRL 44 million above the first quarter of the previous year, BRL 14 million less in the service lines as we saw an impact in the investment banking impact, and the rest, small variations reaching BRL 230 million. That's what we had to share with you now. Now I would like to invite you all for our Q&A session. Thank you very much. Thank you, Sérgio, for your presentation. I would like to thank you all who are following the broadcast. Now we have Sérgio Borejo, our CFO. Welcome, Sérgio. Thank you, Ricardo. Good morning. Good morning, Sérgio. Welcome everyone who's online and watching us. It's a great pleasure to be here in this earnings conference call. Thank you, Borejo. Feel comfortable to ask questions. Just raise your hand. You can click on your Zoom bar, we are available to answer questions, please. First question, we have Eric Ito from Bradesco. Eric, please. Thank you for your participation. The floor is yours. Good morning, Sérgio Ricardo Borejo. I would like to double-click the margin. Thinking about the spread of clients, there is a small contraction in the six-month period seasonality. How do you see the dynamic at the end, and which are the perspectives for the year? Your expectation is a stronger growth in the middle, so it was 3.6%. Will that be the lowest level of the year? Do we see a recovery along the quarter? Thinking about provision, you've mentioned that that is 4.8% in the next quarter, and you said that there is an impact of clients coming and going. Could we expect this coverage of 82% of Stage 3 will return for 90%? I just want to understand the spread with clients, the adjusted spread, thank you. Eric, good morning. Thank you for your questions, and I will start answering, and then Ricardo and Borejo can help me in the answer. In relation to spreads, your first question. Let's say the summary is that we have pretty stable spreads, but with differences among segments. You have the middle that we see growing faster, as you've seen, and we have health spreads, and we have a growth in portfolio that is more consistent, and the middle growth will along the year, have an impact. The average spread of the bank portfolio will bring a higher participation in the segments of larger companies. Considering recent cases that the market has seen of overdue of larger groups, we see that movement that we've seen before. The banks are concentrated in clients that have good financial status, mainly in CIB, large corporate, a margin compression trend. We see segment by segment, large corporate, a small compression in corporate and middle spreads that are stable with a perspective not only spreads but also growth, with a growth that is a little bit higher in the middle market segment. In relation to coverage and provisions, you can see that we have, as I've mentioned, us and the market. Let's learn how to work and compare ourselves in these Resolution 4966. We have Stage 3, pretty collateral with a small level of overdue for more than 90 years. According to the methodology of the bank, we put the client in Stage 2, Stage 3, so the provision is pretty proper. In relation to the coverage%, do you have the numbers for that? Well, here, Eric, first point, you have to understand the coverage% with the provision that is not allocated. We have provisions that are allocated to specific clients, and we have additional provision, BRL 190 million, that by the time you do the math, it's interesting to take that into account because we are not using this provision for Stage 1. We are going to use for Stage 3 and maybe Stage 2. Looking ahead, we saw an increase compared to the fourth quarter. If there was an increase now, it would be smaller, but it depends on the macroeconomic status. We don't see lack of control in this coverage, depending on the interest rate that is higher for longer, you may have a pressure. What is important to mention, as Sérgio mentioned, in Stage 3 we have cases that are well collateralized that would make us to have a higher number than the historical margin. We can see this with some pressure, but with collaterals there are strong and an additional capital buffer with non-allocated provisions. I don't know if I've answered you. Just, yeah, you did. In relation to the spread, we may think that it can grow more along the year due to the middle growth, right? The corporate and middle spread will be more favorable, right? Yeah. That's what seems at this moment. Yeah. Thank you. Thank you very much. Thank you. Thank you, Eric, for your participation. Our next question is from Brian Flores from Citi. Brian, thank you for your participation. The floor is yours. Hello. Good morning, for the opportunity. I would like to have a follow-up on Eric's question. A little bit in relation to the strategy. We see a tone that is more careful in relation to the peers that have reported this week. I've seen that you restated the guidance and also the growth in the first quarter, especially in the middle market. It's pretty healthy. What is making you feel comfortable with the guidance in general, as well as in this segment in particular? If you could, Lulia, you've mentioned that you are pretty happy because the trend is to improve. Besides the revenue that will be recovered, because we have some lines that are more volatile, like IB, if you could share details, which are the leverages that makes you comfortable with the improvement of efficiency from now on? Well, Brian, good morning. Thank you. We try to have a strategy that, of course, as I've mentioned, it adapts to the macroeconomic moment, but we also understand that the market and us companies, we change opinion quickly. If we get this year, for instance, the first two months of the year, we almost had this excitement with the capital, external capital flow, the markets were forming pretty well, interest rates cut that was going to be a little bit more accelerated than was expected. Some of the analysts thought that the reality would be even faster reductions than the ones we had. We had some issues, wars, and the expectations took a step back. Some groups have credit problems. They were pretty well-monitored, but at the moment, outstanding amounts are a reality. They cause impact. We are more careful now. We are not on one side, neither the other. We shouldn't be as excited as we were in January and February, but we shouldn't be pessimistic now. We see a credit market that is still healthy, and the names, at least the major names that caused problems to the market, the capital market, they were pretty identified, so there was no company that had problems that were unexpected and that were not being followed by players. We see the rest of the year aligned to what we were expecting when we established the guidance in last, at the end of last year. Having said that, of course we will navigate respecting the markets. In the middle market, as I've mentioned in Eric's answer, we see a condition of pricing deadline and guarantees pretty well established, and they are proper for an accelerated growth that we may have in the future. In other segments, we see how is this risk-return ratio, as long as returns are the ones we expect. It's a year that is performing well in relation to Treasury. After 2025, that was a little bit below what we have as a historical average. In relation to the investment bank, we are leaving this moment of pessimism or high excitement. Well, from March to here, the market repriced negotiations, mainly high-grade ones with high grade of companies, and so far it's a little bit slower in the second half, but it may reopen, and we will be prepared. We'll be prepared to take advantage of that. Right, crystal clear. Thank you. Thank you, Brian. Thank you, Brian. Now we are going for our next questions. Ricardo Buchpiguel from BTG Pactual. Ricardo, thank you. The floor is yours. Good morning, thank you for the opportunity. I have two questions here. You've mentioned that we have a macro certainty, but could you comment on the risk of a more generalized credit problem in which the Selic rate is stable along the year? That's what we have seen in the curve. We have a group of companies that are facing some difficulties and that may accelerate some process for recovery. We also have companies that are not so leveraged, but with this high Selic rate, they will go up strongly, mainly if we don't have help from the market to fund. My second question, as you've mentioned, we had a challenging scenario from March on with corporate cases, and the spread was opening, and we see some recovers in some funds. We have elections, a strong AAA, a difficult moment. Does it make sense to expect for a year that after a set of strong years, we'll have a relevant cooling down along the year of 2026? Thank you, Ricardo. Well, this matter of companies is probably a little bit of what we try to see when we have the growth as a% of our portfolio of Stage 2, Stage 3, this prospective vision. You see that our loss overdue for more than 90 days is 0.5%, inferior to what we had the previous year, that was 1%. We have in our analysis, considering this scenario of interest rates that are higher for longer, we, as a prevention, reclassified and increased the level of provisions, something that we have been doing for a couple of quarters. That's a natural trend of the cycle. It's not something out of what we've shown in our financial reports. Probably that's in the same level. We see our provisions in half to 1% of the expended credit portfolio. Seeing this scenario, that's our expectation, at least in a shorter scenario. In relation Well, no. In relation to the capital market, my point of view is that this market has used the interest rate in the historical minimum levels. You saw companies issuing in a level of 0.8%, 0.9%, 1%, what seems to be exaggeration due to fiscal benefit because they are exempt for individuals. Now we corrected that. Whenever there is a correction, that freezes the market until the players, the issuers, and the investors realize where this will become stable. The prices where they are stabilized is quite reasonable. It's not a price of crisis. The flows, well, they will continue. At the moment, you have the mark-to-market, as we saw, affected us and affected the fundings. It show a negative numbers that we had some recovers. I can't show you the end of the year because we are always caught by surprise. We need to be close to clients, following who are the companies who have conditions to follow the market conditions, and whenever they become better, we will structure the operations to our clients. Thank you. Thank you very much. Thank you, Ricardo. Now we are going to our next question. Pedro Leduc from Itaú BBA. Pedro, thank you, and the floor is yours. Good morning, everyone. Thank you for your question. Oh, for the opportunity, sorry. When we have this expenditures, in the previous years, you were quite fast in using this leverages to compensate in the top line that was below a certain portfolio, but, well, it's a good reason to be careful. I would like to start with this question: Do we have room for that this year to push that, to pull that leverage? The second question, Borejo, you've mentioned the guarantees and everything, but the relevant portfolio, and we see some movement, so I would like to explore a little bit more about that. Thank you. Thank you, Pedro. In relation to expenses, the leverages are still there. It's a characteristic of our organization. If you get the growth of expenditures with personnel and other operations, it's around 3.8x, 3.9x. It's below the IPCA. A bank like ours, in which we have a high cost with personnel, and we have all the readjustments required by the union and all the other expenses. In this quarter, we had an increase due to the increase in the share price, there is mark-to-market because part of the compensation is paid with sharing. This variable also follows the performance of the institution on the good side and on the bad side also, brings a great flexibility to all of us when managing the banking costs. In relation to agribusiness, well, agribusiness is a broad name. We have 23% of our portfolio, and out of those 23%, it includes the entire agribusiness, the industry of agribusiness, as well as the rural farmers. You have the industry of machinery, fertilizers, seeds. You have sugar and alcohol, the entire supply chain of animal protein. You have all the cooperatives, mainly those in the South of the country, that are strong companies. They are important clients of the bank, and they have been for many years. In agriculture you have grain manufacturers, and they are going through a difficult time now, and also sugarcane, cotton farmers. That's a market that we believe Brazil is structurally competitive. We have better cycles, worse cycles, but along the cycles, this is a segment that we want to be present and we are going to grow because that's a segment that we believe Brazil has a high competitiveness. On the short term for grain manufacturers in the Center-West, they have to be careful. Careful, and they have to have a profile with less leverage. They have to have two guarantees, and that's what we do. Of course, we have some outstanding amounts there, as in any other segment, but we have a good perspective to grow with good margins and good guarantees. Thank you. Thank you for your participation, Pedro. Now our next question, Antonio Ruette from Bank of America. Antonio, thank you for your participation. The floor is yours. Good morning, everyone. Thank you for your time. I would like to focus on SMEs. You always mention how much the interest rate is harmful to asset quality, mentioning the water level as an analogy for this type of company debt, so a high interest rate. My question has two sides. How do you evaluate the risk of asset quality for this segment in particular, and how do you follow the growth, mainly considering the government lines? Once again, we had an FGO for the segment. Probably we have more funding. How do you see these lines? Thank you. Thank you, Antonio. It's how you've mentioned. It's a segment in which companies are more exposed to interest rate. The interest rate is high. You have to be careful, and as possible, you have to fund the operational flow of the company. If you have guarantees of receivables, it can be receivables from credit cards. Well, it can be real estate, that is a good guarantee, that is more and more common nowadays. You need to understand on the other side, companies that are exposed to interest rates, but the entrepreneurs, they know it's their reality. At the end of the day, there is a natural selection happening, and only those who are able to navigate in such scenario are the ones who survive. Our participation in this segment is very small. Even with this growth of 24% that we had from one year to the other, we still have more than BRL 5 million, close to BRL 5 million. When you look to the market, it's little, and we still have this condition of having good choices, avoiding and increasing the presence in good clients. Different from other cycles, this is a cycle we grew our portfolio in middle market without increasing the number of clients, because there was a certain turnover of clients, and we reduced the exposure, or we left clients that we saw they had some adverse status, and we became more important and more present in clients we realized that they are navigating well in such scenario. That's a continuous perspective. We are going to continue to do that along the years. The government lines, they are a good support for such companies. Mainly, the deadlines they offer, it's a good condition, more appropriate to such companies than the market lines. Did we answer you, Antonio? I think you are on mute. Yes, perfect. Thank you very much. Thank you, Antonio. Now to our next question, Carlos Gomez-Lopez from HSBC. Carlos, thank you for your participation. The floor is yours. Thank you. I would like to ask about the investment banking revenue that is quite small in this quarter. What are the perspectives in general, the service or revenue? The second part, the credits. Could you identify the sector, please? I didn't understand the second question. Stage 3 credit, if you could talk a little bit about that. Yes, that's it. Right. Yeah. Go ahead, Carlos. No, that's it. Okay. The investment banking revenue it depends on the market behavior as a whole. If we separate to two worlds, the high-grade and the high-yield world, what we see is a moment in which the high-grade went back due to the reasons I've mentioned a while ago. There was a repricing of the market that came from the historical minimum rates to something that became more reasonable. Once the market finds this balance of pricing, the issues will come back. In relation to the investment bank for high-yield, it is a market that is quite active. In the last years, the Brazilian market has developed itself, became more sophisticated, and today you have an instrument diversity. You have security instruments, funding, CDI, or other receivables of things that are quite diverse. We have the project finance market. Those are markets that were way too small in Brazil, and today exist. Even in harder moments, they are still active, and that's the case now. It's difficult to bring a perspective for the year, but it's a market, I believe, that will be present and will continue to help Brazilian companies. In relation to Stage 3, there's no sectorial concentration. It's name by name that we work companies that we see a perspective that is a little bit more complicated, more fragile. We can increase the level of collaterals. I don't see any sectorial concentration. Thank you. Thank you very much. Thank you, Carlos. Thank you, Carlos. We finish our Q&A session. Thank you very much, everyone, for your participation. We are reaching the end of our earnings conference call broadcast for the first quarter of 2026. Lulia, Borejo, any final considerations? Thank you for the opportunity. We will see each other soon. Thank you, everyone, for your presence, and see you in our next earnings conference call for the second quarter. We close our conference call for the first quarter of 2026. It's been a pleasure, and the presentation is available at our website of investor relations, and the video will be on our YouTube. We'll also have the audio version in Spotify. Any questions, we are available to serve you. Thank you very much, and see you soon.