Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Banco do Brasil Q2 2021 earnings conference call. This conference call is being broadcast live via webcast through Banco do Brasil website at www.bb.com.br/ir. The replay of the conference call will be available through the phone number +55 11 2188 0400 until August 2021 in English and Portuguese. To access the replay, please ask the operator to listen to BB's conference call. Identification will be required. The full presentation with audio detailing the main aspects of the Q2 2021 results was made available yesterday and can be accessed at Banco do Brasil's investor relations website. If any of you need assistance during the conference call, please request the assistance of an operator by typing star zero. With us today, we have Fausto Ribeiro, CEO, Ricardo Forni, CFO, and Daniel Maria, Head of Investor Relations. First, Mr. Fausto Ribeiro will make the opening remarks, followed by Mr. Ricardo Forni considerations. After that, we will open the Q&A session. Mr. Fausto Ribeiro, you may now begin. Good morning, everyone. It's a pleasure to be with you today to talk about the results of the second quarter and the first half of 2021. Ladies and gentlemen, I would like to speak slowly in order to guarantee that everybody's going to understand. Please let me know if you have any difficulty to understand the accent, and feel free to interrupt me at any time. Okay. For the second consecutive quarter, Banco do Brasil posts record results. In the first half of 2021, our adjusted net income reached BRL 10 billion, a growth of 40.8% in one year. In the quarter, the adjusted net income was BRL 5 billion, up 52.2% from the second quarter 2020, a higher level of profitability than that we had before the pandemic. This result was supported by a robust credit growth, with a portfolio exceeding BRL 766 billion, a growth of 6.1% in 12 months. NPLs were totally under control, reducing in all portfolios. Credit expenses reduces 52% in the semester due to the anticipation of preemptive provisions made last year. With better customer service and diversification of business, we increased the fee income. At the same time, the expenses were under control, with a reduction of 0.2% compared to the first half 2020, as a result of the efforts in expenses management. The commitment to profitability and the construction of increasingly sustainable result is one of the guidelines of my term, as I had already mentioned when I was here with you last quarter. To compose the triple of our strategic agenda, in addition to focus on profitability, we have been investing in proximity, in digital, and brands. This proximity can be translated into knowledge of the customer, their profile, and their needs. As a result, we have been specializing our services models, and in this sense, a relevant delivery this quarter was the conclusion of the cycle of service specialization with over 1.5 million clients started to be served by a manager. In three months, we saw an 18% increase in the profitability of these clients. Another reflection of the success of customer proximity was 10-point increase in our NPS in one year. To conciliate the best service and efficiency, we are changing the characteristics of our service network, migrating to the lighter structures. With the increased customer preference for digital, it is natural that our service network reflects this behavior. Another important shift is that we almost double our partnership with banking correspondents in one year. These models of service is another way to efficiently expand our capillarity. The lights setup offices bring a new model of service for heavy users. Within this model, we have a lower cost with specialized service and a greater quantity of customer service. We offer human managed service with the use of digital solutions. With that, we improve scale and profitability. We have a set of ongoing initiatives in digital optimization to improve our business model and in digital transformation, which involves seeking new source of results, both being enabled by a deep cultural transformation through the intensification of the use of analytics, intelligence, new ways of thinking, and new technologies. We are optimizing our business models with the use of technology. In June, we reached 21.6 million digital customers. Of these, 6.5 million were assisted by our virtual assistants through artificial intelligence, both on Falcon, within BB App, as well on social media, expanding our digital capillarity and facilitating customers' access in addition to our own channels. This quarter, we raised more than BRL 21 billion, completely digital, through solutions that use analytics and data to recommend the best investment options based on the client's profiles and objectives. When we enter the business digital, we gain efficiency. We offer the transaction. We work with lower operation costs. We had a very positive experience, and at the same time, our sales force can be driven to relationship and advisory. When we talk about digital transformation, we look especially at new source of results accelerated by open innovation and digital technologies. In this sense, we are expanding our operations as a platform. We're inventing and new banking products and service. Broto, our agro digital platform, already achieved more than BRL 756 million in business and is our innovation hub in this segment. We also expanded the availability of gift cards in our apps with sales of 420,000 units in the last quarter. We have important competitive advantage in the open banking scenarios. Banco do Brasil was the first bank to develop APIs credit solutions back in 2017, and today is the financial institution with the greatest number of available interface. For us, it's very important to be ahead of the relevant segments that generate value, reinforce our leading roles. Here, I'd like to specially highlight our support to agro business. Our credit portfolio for the sector exceeded BRL 205 billion, and we announced the biggest harvest plan in history. With the availability of BRL 135 billion in resources, it means 10% higher than the previous harvest. Another important milestone was the achievement of BRL 100 billion in payroll loans, one of the most competitive markets in the financial industry. We also reinforced our support for micro and small companies, disbursing BRL 6.5 billion in the new phase of PRONAMPE now in July. To conclude my initial remarks, I'd like to talk about sustainability, a theme that cuts through all of our activities. In Q2 2021, we expanded the offer of ESG products with the launch of BB Crédito Energia Renovável line, in which we disbursed BRL 50 million in loans to individuals from May to July this year. The Green Group credits, which achieved more than BRL 700 million in sales in just one month. These initiatives help our customers transition to more sustainable economy. I also confirm our commitment to transparency. BB adherent to the recommendation of the Task Force on Climate-related Financial Disclosures, TCFD, and initiatives that aims to develop a consistent format of disclosure of financial risk related to climate change. With all that said, I'll give to the floor to our CFO, Ricardo Forni, who will talk more details about our numbers, and I will be available for the questions after that. Thank you very much. Okay, thanks, Fausto, for your insights about the strategic initiative moving forward at Banco do Brasil. Good morning, everyone. I'm Ricardo Forni. It's a pleasure to be here with you once again. You have all the material distributed by our investor relations team. I'll only highlight some of the numbers here. Our earnings came strong in the second quarter, with the adjusted net income reaching BRL 500 billion, the highest level in historical data, or 2.6% compared to the first quarter and 62% compared to the second quarter 2020. On a quarterly basis, we saw an acceleration in fee income converging to the guidance while administrative expenses remained under control. Provision expenses had an increase of 13.8%, remained below pre-pandemic levels as a result of the high quality of disbursements in addition to some residual effect of the preemptive provisions of 2020. The net interest income decreased in the quarter, reflecting an increase in the Selic rate, which impacted the funding expenses. This effect was partially offset by the increase in interest income from loan operations in line with the strong growth of the loan portfolio. The net interest margin contracted slightly by 10 basis points to 3.6%, impacted by the higher liquidity. If we had the same pre-pandemic liquidity level, the net interest margin would be around 4%. The expanded loan portfolio grew in all segments, reaching BRL 766.5 billion. The individuals portfolio presented an evolution of 10.3% compared to June 2020, and 2.8% compared to March 2021. The highlights were the payroll loans with a growth of 16.4% in the year, surpassing the mark of BRL 100 billion, and also the evolution of non-payroll lines, especially the personal loans and credit cards. The agribusiness portfolio grew 9.7% compared to June 2020 and 3.7% in the quarter. We reached historical markers of BRL 205.9 billion in this portfolio. Highlights also the 47.3% growth in agribusiness deals, which are new ways of financing agribusiness that have shown a significant evolution, growing over 100% in the past couple of years, reaching a balance of almost BRL 8 billion in June 2021. The small and medium enterprise segment grew 24.8% yearly and 0.6% in the quarter, influenced by disbursements in PRONAMPE, [inaudible] lines made since last year. The portfolio under BRL 4 billion is keeping a downward trend as a result of amortizations and settlements. At its peak, this portfolio reached BRL 130 billion. In June, the balance was at BRL 94 billion, of which only BRL 12 billion were still in grace period and approximately BRL 9.4 billion or 78% should be in the payments in the third quarter of 2021. The liquidity improved in all portfolios this quarter. The NPL over 90 days end in June at 1.86%, down from 1.19% March 2021, reflecting the high quality of origination and reduced methodologies for managing and monitoring the loan portfolio. The coverage ratio had a slight reduction, ending the quarter at 325.9% against 328.2% in first quarter 2021. The new NPL on the portfolio reached 0.74%, and its coverage reached 74.6%. The CET1 ended the quarter, ended June 2021 at 13.49%. Finally, we made some adjustments to our 2021 guidance. We increased the range of growth for the rural portfolio to 11%-15%, reflecting the good prospects for the segment. On the other hand, we reduced the wholesale range to 3%-7% growth due to the impact of early settlements and the strategy also targeting these volumes to the sector market. The retail estimate remains unchanged as well as the expectation for the total portfolio. In provisions for loan losses expanded deals, the good delivery situation rates in all portfolios added to the granular indicators of portfolio quality allowed us to reduce the portfolio range to BRL 13 billion-BRL 15 billion. We reduced also the net interest income range to 1%-4% due to the increase in the Selic rate and the consequent impact in our funding expenses in the new mix profile of our balance sheets. The range of fee income and administrative expenses remains unchanged. After incorporating the effects of the adjustments mentioned above, in addition to the strong [inaudible] guidance earnings delivered in the first half of 2021, we are adjusting the range of the guidance for the net income to BRL 17 billion-BRL 20 billion. I appreciate everyone's presence, we can now move on to the Q&A session. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please dial star one now. Our first question comes from Jason Mollin from Scotiabank. You may proceed. Hello. [Non-English content] for that presentation. First question is really if you can give us a sense of the strategy that you're taking in different lines of credit. We've seen some different trends in Banco do Brasil loan book versus some of your largest private sector peers. Mortgages is one that comes to mind. If you can just talk about the bank's strategy in the consumer segments and what you see driving growth going forward. My second question is an update, if you can provide an update on the plan and strategy you talked about in the past of selling non-core assets. Thank you. Hi, Jason. Here's Daniel. Let me start with the first question. I'll pass to Fausto for him to give more color about the investments, divestments more specifically. What we expect in the strategy for the credit portfolio growth is reflected in our guidance. Certainly, the agribusiness segment is quite relevant. Yeah. When you see the percentage of the economy, how it represents and how it's performing is one important aspect, and certainly this drives a lot of collateral business for the bank. Just reminding that the customer from the agribusiness has more products consumed inside the bank. This is one aspect that is reflected in our guidance. By the way, we just revealed the guidance for this segment. In the case of the large corporates, we have one effect that we see in the guidance that is basically a base effect. Certainly, we look at this segment. We are close to the companies. This is linked to the strategy of investment banking, originating deals, and certainly servicing the companies through this. When you look at the performance in this first half of the year, it's basically explained by the strong performance in the last year. Just reminding that with the pandemic, some companies came here, not only to Banco do Brasil, but to the system to raise funds, to be cash rich, exactly to pass through the period. Along with second half, they start to pay this back. Actually, then we are comparing actually a very strong semester with a semester with more normalizes. We revealed the guidance. We expect to converge to the guidance exactly because we're going to have these effects. When we go to the individuals or retail business, certainly it's one aspect that we have been growing. This is helping also the mix, because actually we are moving more towards retail. This is important for the total mix of the credit portfolio. We have certainly the consumer credit as one important driver for this. Payroll loan is one line important that we have good participation, the grant in the system. It will continue to be this, but we are targeting also the non-payroll loan. You saw, for instance, the growth in the credit cards. That is an important product, mainly for that we have space to grow, including with the newer account holders. You see also growth in the other consumer credits. More specifically, the mortgage is quite different, our portfolio relatively to the system. Certainly, you have a structural effect that is explaining why we see a growth in the system, because central bank changed some rules. This has stimulated the system to look more for those loans. In our case, the funding or the savings accounts that usually support this portfolio, in our case, is for good business. Certainly, we have space to do it. We are targeting 1 segment to grow that is basically the segment that we have the best penetration. That's our customers that we have payroll, customers that we have credits. We have also an effect that is the reduction of the portion of the portfolio of the low-income portfolio. This can be explained mainly because you have more write-offs on this. This explains a little bit why the movement in terms of mortgage is slightly different from the system. It doesn't mean that we don't have this as a target. It's much more due to the composition of our portfolio. Did I cover all the points of your question before passing to the next one? Yes. Thank you. That's very helpful. Okay. Let's try to explain a little bit about this investment strategy. I can say that this is the same. As we explained it before during our last meeting, when I tried to explain the results of the first quarter, it means that we are going to sell non-core assets. Of course, then we have to wait the best opportunities in terms of the market. Nowadays, we have a very comfort position in terms of capital index. This is the reason that we have to wait the best opportunities. The agenda is keep going. Of course, then we want to maximize the return of those assets. We are discussing about Banco Patagonia, we are discussing about Banco do Brasil, and other ones that we not consider core business. Yes. Hear. Awesome. Thank you. Yeah, that's clear. Really maintaining the same strategy that you've been talking about and the similar types of non-core assets that you've been talking about. If you're looking at market opportunities. Yes. We're keeping the same strategy. As I said before, we have a very comfort position in terms of capital. This is the reason that we don't have to move so fast in this strategy. We want to maximize the returns of those assets that we have selected in our core business. Thank you very much. Okay. Our next question comes from Nicholas Jesus from Bank of America. You may proceed. Thanks very much for the chance to ask questions. I have two questions. The first one, on your forbearance portfolio, you have a slide there on that. I understand, if I understand this correctly, you have BRL 94 billion in the outstanding balance of loans that were granted some sort of debt relief since the beginning of the pandemic. Out of those BRL 94 billion, BRL 12 billion are not paying anything at all. They are under grace period, and you're expecting those grace periods to finish by the end of this year, 2021. First of all, I wanted to check that that's correct, my understanding. Then the remaining BRL 82 billion which are not on the grace period. Are you still providing some sort of forbearance or debt relief for them, even though they are paying, are they paying less than they should be paying at this point? Then my second question, different topic. I wanted to get an update on the repayment of the hybrid debt with the government, the BRL 8.1 billion, in terms of timing and the schedule to pay that debt. Hi, Nicholas. Daniel. First of all, talking about the forbearance portfolio. Actually, it's behaving exactly the way we have expected. You see that the total amount has been reducing. The same story for the one is in grace periods. We have remaining BRL 12 billion. When you look at those BRL 12 billion, about two-thirds of this is scheduled to end the grace periods in the third quarter. When you look at inside, about 50% of these are government loans or loans to the governments. In these cases, we have almost fully guaranteed by the federal government. That is very low risk. It's a question of cash flow. This portfolio is behaving quite well. It's growing the NPL over 90 day as we expected. When you look at the NPL, it's not far from what is a normal portfolio. Another thing that is coming to another point of your question, if we're granting new forbearance, no, we're not. Just as a reference, for instance, we promoted those lines of credit with gentlemen that we contracted last year. We had the possibility, according to the program, to grant some forbearance to some specific cases. We had demand less than 5% for those cases. The portfolio is behaving quite well. Performance is going okay. We expect that this portfolio, the portion that is in grace period, will be residual in the next quarter. Things are going well. Moving to the hybrid instruments. What we have so far is the proposal that we made to pay in eight installments as for next year. So far we have no definition about that, but we understand that it's very likely the scenario. We need to wait a little bit to have a final position about it. Thanks very much, Daniel. One follow-up. On the forbearance program, the BRL 82 billion, which is not under grace period, are they making regular payments, like payments as they were making before the beginning of the forbearance program or not? Sorry. Let me check if I understood well your question. You're referring to what is in grace period or what ended the grace periods and if this portion has been paid. Did I correct? What was your question more specifically? You are saying that the outstanding balance of loans under forbearance is BRL 94 billion, and out of those, BRL 12 billion are not making any payments, if I understand correctly, they're in a grace period. The other BRL 82 billion, are they making regular payments then? Okay. No, actually, this is an extract of our portfolio. That we show just what we granted in sort of forbearance. By the way, this is the total loan. Let's assume that I have a loan for BRL 1 million, and I granted the forbearance for BRL 10. I account or I consider for BRL 1 million, not for BRL 10. For that reason, the total loan is higher. This portion that is in grace period actually is in the period that we granted for not paying. For that reason, this matrix is quite relevant because they didn't pay yet because the date didn't arrive. It's not due yet, but we expect that this will happen in the third quarter. You see that two-thirds of this. Looking backwards how this portfolio is behaving, we don't expect major surprises on this. Okay. Thank you very much, Daniel. Ladies and gentlemen, as a reminder, if you would like to pose a question, please dial star one. Our next question comes from Carlos Gomez from HSBC. Please, you may proceed. Sure. Good morning, and thank you for the call. My question is about your legal risk. We saw your strategy to finish legal cases earlier, and that resulted in lower legal costs last year, but at least having overdone what they can do here. They are substantial. It can be BRL 5.5 billion-BRL 6 billion per year. These are pretty large amounts. Where do you see this going over the next few years? Is there anything that you or that Congress could do to reduce this legal risk going forward? Okay, Carlos. Thank you for the question. Actually, the legal risk, we gave a soft guidance at the beginning of the year that we expected to reach BRL 6.5 billion for this year. Just reminding, last year we had BRL 4.2 billion. The reason why we expect higher legal risks is basically the approach that we're having to those cases. You know that previously, Banco do Brasil had as a policy to go to any resorts, to the last resorts, to the last courts, to solve the case, but sometimes it's very expensive to do it. What is the idea? Exactly the test that we made in 2019, trying to anticipate some of those cases, making agreements. This BRL 6.5 billion can be explained by the suspense of the bank to increase agreements. This is a quite interesting strategy because we increase efficiency because you don't need to have thousands of cases to follow up. When you do agreements, you get some benefits or reducing the final financial impact for this. For next year, probably we need to fine-tune this number as we arrive to the end of the year. Probably the best ballpark I can offer to you is to replicate BRL 6.5 billion for next year. Certainly, this is an update that we are going to have ahead. Sorry, just to understand. You said for this year, you're giving us a guidance of BRL 6.5, and again, we understand you don't have certainty as to how much it will be. Did you say that from this year you will expect to replicate that, to again have BRL 6.5 billion? What I said that for this year, the soft guidance for this line is BRL 6.5 billion that we expect for the full year. What we delivered so far is BRL 1.7 billion per quarter. That is consistent with this soft guidance. As a comparison, last year was BRL 4 billion approximately. In this process, we expect that for next year, we tend to continue in the region of BRL 6.5 billion. Did I clarify your point? Yes. again, similar to this year. again, in the long run, do you expect this? I think this is a strategy personally, you pay more upfront, but you pay less later. Should we expect a reduction later on or for the time being to reduce several legal costs? Exactly. This is the idea. Is to try to reduce the total cost of those cases. You have two impacts. You have the financial cost and you have the administrative costs that you have the entire group to follow up all those cases. At the moment that we reduce these, we have a lighter structure. You got the rationale of this. Thank you so much. Thanks. Our next question comes from Gustavo Schroden from Bradesco BBI. You may proceed. Hi, good morning. Thanks for taking my question again. Just one question on that internal evolution. Your cost of funding increased in this quarter and really affected the NII, and the reason behind that is the increase in Selic rates. The question here, is there a liquid continuing crazy, and so how should we expect cost of funding evolving in the coming quarters, and when should we see the benefits of this higher Selic rate on the asset side? When the repricing of its loan portfolio should mitigate or should offset this increase in the cost of funding. Thank you. Hello, Gustavo. It's Ricardo Forni here. I believe that what we have seen in the first semester and what we are seeing happening in the second semester, because all the market is now projecting Selic to be at seven or even above seven at the year end. I believe that we will continue with this territory where we have the repricing of our cost of funds growing. The net interest margin being compressed by this because the speed of the repricing on the asset side takes a little bit more. On the asset side, you have also the competition working that is, let's say, the repricing is occurring, but it's limited to the competition force over there. This is something that we are considering. This is the reason we have, let's say, readjusted the guidance for the net interest income. We believe that, let's see, this range from 1%-4% is now, let's say, fair to what we expect for the year-end, considering the speed of the repricing on the liability side, considering the ability to reprice the asset side. Sarvnet, just to give some numbers to all these matches. By the way, you can find this in our MD&A. There is a section that we show the mismatches of our balance sheet. Basically what we have, we have assets, net assets at fixed rates against net liabilities. Two-thirds of those net liabilities, net assets are financed by saving deposits. That is basically 70% of Selic rate, and 1/3 is current accounts that they are not sensitive to the interest rates. In a certain way, this has moved a little bit impact. This 1/3, this mismatch that we have in terms of assets, about 50% will be repriced in one year. This means that liabilities, they price faster than the assets. Coming to your question, we made an exercise that we shared with the market, that we expect for any 100 base points move in the interest rate base rates, we should have an impact in the region of BRL 400 million on an annual basis for the NII. When you look at the impact in the NII, it's consistent with this number. Coming to the other part of your question, when this will be repriced? We tend to have this effect more towards the end of the year and next year. Certainly, the impact tends to be more this year in terms of the liabilities. When we built the budget for this year and the other, or the former guidance we had in the projections, a Selic rate reaching 3.5% by the end of the year. Now all the market is working with 7%. This comes to what for us that the adjustment in the NII can be fully explained by this exogenous effect that is the interest rate. No, that's clear. Just to be sure, understand. We differ from that first half of our next year, maybe the repricing of our assets should be, we could see the benefit of a better price on the asset side, right? It's hard to say exactly in which quarter, because actually we have optionality for part of those assets, but for sure in 2022. Yeah. Certainly somewhere in 2022, we tend to have these effects. Okay. That's clear. Thank you very much. This concludes today's question and answer session. Mr. Fausto Ribeiro to proceed with his closing statement. Please go ahead, sir. I just want to say thank you, guys, everybody, for this opportunity to clarify a little bit about the result of Banco do Brasil in the second quarter, of course, and the first semester also. I like to say that this kind of result is great. It's a record in terms of results of Banco do Brasil, it was just possible because we have a capillarity, we have strong people working together in order to guarantee that the goals will be achieved. I hope that these explanations here helped you guys to understand a little bit better how was the results of the Banco do Brasil. I hope too that everybody was clear with the explanations that we did before. I hope to see you guys at the next meeting in the third quarter of this year. Thank you very much for this opportunity. See you. Bye-bye. That does conclude Banco do Brasil conference call for today. As a reminder, the material used in this conference call is available on Banco do Brasil investor relations website. Thank you very much for your participation, and have a nice day. You may now disconnect.