Good morning, and welcome to the second quarter of 2026 results conference call of Banco BTG Pactual. With us here today we have Roberto Sallouti, Renato Cohn, and Julia Rocha. We would like to inform you that this event is being recorded, and all participants will be in a listen-only mode during the bank's presentation. After Banco BTG Pactual's remarks, there will be a question- and- answer session for investors and analysts when further instructions will be given. Should any participant need assistance during this call, please press star one to reach the operator. Today, we have a simultaneous webcast that may be accessed through the website www.btgpactual.com/ir in the platform. There will be a replay facility for this call from today. Before proceeding, let me mention that this call may contain forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to the growth prospects of Banco BTG Pactual. These are merely projections and as such, are based exclusively on the expectations of Banco BTG Pactual's management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banco BTG Pactual's filed disclosure documents and are therefore subject to change without prior notice. Now, I'll turn the floor to Mr. Roberto Sallouti, who will begin the presentation. Mr. Sallouti, please go ahead. Thank you very much. Welcome, everybody. Thank you for joining our Q2 results call. If you could please turn to page three, where we talk a bit about the highlights of this quarter. Once again, we were able to finish the quarter with record revenues and delivering record results, a record net income, benefiting from the efficiency gains of the integrated business now with Banco PAN, resulting in a return on equity of 26.7%. Once again, I think this highlights our ability to capture opportunities across different macro cycles and different environments. Moving to the second bullet point, corporate lending and business banking had another record quarter, increasing 19% year-over-year in revenues, keeping healthy spreads and disciplined on asset origination. I think here, once again, we are reaping the benefits of our disciplined capital allocation strategy, which is not based on market share or share wallet, but is based on making sure that the spreads, in our view, are correctly priced for the unit of risk, and also benefiting from our continued increase in geographical diversification and segment diversification as we continue to penetrate the new segments that we have been building out over the last few years. Moving to the third bullet point, in sales and trading, we were able to deliver consistent performance despite the very challenging macro environment in the second quarter, different than what happened in the first two months of the year, where we were able to offset slower software client activity with very efficient capital allocation in the balance sheet. Moving to the fourth point, asset and wealth management continue to scale. We had BRL 59 billion in net new money in the quarter and pushing our combined AUM and wealth under management to BRL 2.7 trillion. Finally, the fifth bullet point, our consumer finance and banking division grew 37% year-over-year. This was mainly driven by the results from Banco PAN, but also we had contributions from our partnership with meutudo. Here in Banco PAN, we are benefiting from the integration of the back office and controls, thus not only with efficiency gains, but what we believe is a 100% BTG Pactual culture now in our consumer finance business, as we are also reaping the benefits from the change in strategy and leadership that we did within the consumer finance business in the last, if I am not mistaken, 18 - 24 months. Moving to page four, we talk a bit about the highlight about the numbers. We had total revenues reaching BRL 10.4 billion. This is a 16% growth year-over-year. Net income reaching BRL 5.1 billion, 23% growth year-over-year, once again, showing our efficiency gains and operating leverage in the platform. We finished the quarter with a return on equity of 26.7%. Turning to page five, once again, as mentioned previously, we had BRL 59 billion in net new money, roughly half asset management, half wealth management. Our assets and wealth management grew 24% to BRL 1.314 billion, and our assets and asset management grew 25% to BRL 1.361 billion. Moving to page six, our unsecured funding grew 32% year-over-year, reaching BRL 405 billion. Very conservative capital ratio of 16%, and net equity reaching BRL 80 billion at the end of the quarter. Finally, our credit portfolio grew 24% year-over-year, reaching BRL 367 billion, 288 in the corporate and SME segment, and 78 billion in the consumer finance segment. In page seven, we show the numbers in a traditional manner that we have always done for the last, I do not know, over a decade. Total revenues reached BRL 10.4 billion, adjusted net income of 5.14, net income per unit of 1.33. Cost income ratio moving down to 37.1% from 38.5% at the end of last year, showing the improvement in operating leverage. Total assets reached BRL 925 billion, for equity of 180 billion, and had an average VaR for the quarter of 22 basis points. On page eight, we show the results for the first half of the year, where we had an increase in the net income year-over-year of 31%. Net income for the first six months of the year was BRL 20.3 billion. Net income of roughly BRL 10 billion. Return on equity 26.6%, and net income per unit of BRL 2.58. Once again, a similar cost income ratio, 37.6%, and a slightly higher VaR of 27 basis points for the first half of the year. On page nine, last quarter, we showed Q1 versus Q1, now we show first half versus first half, the revenue breakdown of the different business units. Here we are basically, in investment banking, we see the tougher markets. In the first half of the year, 10% reduction from the first half of last year. Corporate lending and business banking, a very healthy growth of 20% year-over-year. The same for sales and trading, 16% growth despite a tougher quarter this quarter. Asset management growing 16%, wealth management a very strong 30%, and consumer finance and banking, an extremely healthy 58%. Interest and other continuing to grow 35%, which is a reflection of the very solid balance sheets that we have, and the very high interest rate environment that we are currently living. When you see the breakdown per business unit, we continue to see increased diversification and a very healthy distribution across what we can call corporate and investment banking with roughly 29%, sales and trading or markets related 18%, investment management 23%, and consumer finance 13%. Probably over the next few years, we will probably continue to see a growth in investment management as a percentage of total businesses, and a growth in consumer finance as a percentage of the total businesses. With that, I will pass the floor to Cohn, and then we can go to Q&A. Thank you, Roberto, and good morning everyone. Starting with our specific business lines on page 11, we see our investment bank where we had resilient performance despite the challenging DCM environment with ECM and M&A delivering positive contributions across Brazil and Latin America. Here we recorded revenues of BRL 421 million during the quarter. That is a decrease when we compare to the previous quarter, mostly, again, as a consequence of softer DCM activity throughout the quarter. As you know, by the end of the first quarter of 2026, we saw a widening of credit spreads in the secondary market, which caused some redemptions in some credit-related fixed income funds, and consequently, little appetite for new placements in DCM markets. By the middle of the second quarter, we saw credit spreads stabilizing and, in some cases, started to tighten. We see redemptions normalizing and by the end of second quarter, we started to see an improvement of issuances, pointing to a stronger pipeline for the third quarter of 2026. Both ECM and M&A remained as active contributors, in similar amounts as previous quarters with transactions executed both in Brazil and in Latin America. During the quarter, we acted as the sole Latin America underwriter in SpaceX landmark IPO, which was the largest equity offering in history, reinforcing BTG's standing as the leading Latin America partner for global transactions. Moving now to corporate lending and business banking on page 12, we see that we had record results with 19% revenue growth, maintaining healthy spreads and disciplined asset origination. Revenues reached BRL 2.5 billion, which is a 7.2% increase when we compare to the previous quarter. Again, 19% when we compare to the second quarter of 2025. As we continue to expand our portfolio, in different segments, different geographies, we continue to expand our international portfolio, maintaining healthy spreads, showing once again the strength of our business and also improved funding structure. Total corporate portfolio grew 2.6% during the quarter and 21% when we compare to the second quarter of 2025, reaching a total of BRL 288.5 billion. Large corporate and corporate book grew 5.5%, while SME portfolio contracted, reflecting a more disciplined risk-adjusted capital allocation across all corporate lending segments. For the third year in a row, we were recognized by Euromoney as the best bank for SMEs in Brazil, reflecting the quality and strength of our digital banking platform for entrepreneurs and businesses. If we go now to page 13, we see our sales and trading business line, where we showed once again resilient performance despite the challenging macroeconomic environment with a more efficient risk allocation offsetting softer client activity. Revenues reach BRL 1.858 billion, mostly stable when we compare to the previous quarter. That came again as a consequence of slower client activity, reflecting still high uncertainties and volatility related to the geopolitical and macroeconomic scenario. As we mentioned, despite the lower client activity, we managed to keep similar revenues as previous quarter with an improved risk allocation, which can be seen by the significant reduction in the average VaR from the previous quarter when it was 32 basis points. We see here that the average VaR during the second quarter was 22 basis points. So a significant reduction here. Overall, this was our best first half, with revenues reaching BRL 3.7 billion. That is a 16% increase when compared to the first half of 2025, as we continue the process of expanding our client base and widening the range of products and services that we offer to our client base. During the quarter, we were voted once again best research, sales, trading, and corporate access in Latin America, and best research and trading house in Brazil for institutional investors. Moving now to page 14, we look at our asset management business line, where we can see that we had also resilient net inflows with consistently growing management fee revenues. Revenues reached BRL 794 million, which is a 1.3% increase during the quarter and a 27% increase when we compare to the second quarter of 2025, as management fees revenues continue to grow alongside the expansion of assets under management and administration. Assets under management and administration reached BRL 1.361 trillion, which represents a 3.5% increase during the quarter and a 25% growth when we compare to the second quarter of 2025. We recorded positive net new money of BRL 29.4 billion during the quarter. That is a good number, especially considering the challenging environment that the asset management industry is experiencing in recent quarters, with the fund industry experiencing net redemptions during this quarter. We recorded positive inflows in both our asset servicing and in our managed fund businesses as we continue to gain market share. If we go now to our wealth management and personal banking business line on page 15, we see that our total wealth under management passed the BRL 1.3 trillion mark, with strong net inflows during the quarter. We recorded revenues of BRL 1.447 trillion, which is a 4.5% decrease when we compare to the previous quarter, which was marked by a very strong levels of client activity. When we compare to the second quarter of 2025, we see a 17% increase in revenues, with revenues growing alongside portfolio expansion. As mentioned, wealth under management passed the BRL 1.3 trillion mark, reaching BRL 1.314 trillion, which represents a 3% increase during the quarter and 24% increase when we compare to the second quarter of last year. Net new money came at BRL 29.1 billion during the quarter, showing once again, very consistent net inflows generation and the strength of our distribution network. For the third consecutive year, we are voted best private bank in Brazil and in Latin America by Euromoney, and this year, best private bank for family office services across Latin America. If we look now at our consumer finance and banking business line, on page 16, we saw strong performance driven by portfolio expansion, improved spreads, and the inclusion of revenue contribution from our partnership with meut udo. So credit portfolio reached BRL 78 billion. That is a 6% increase during the quarter and a 35% increase when compared to the second quarter of 2025, with most of the quarterly growth coming from the expansion of our private payroll loan portfolios. Auto loan portfolios increased 3% during the quarter, and 24% when we compare to the second quarter of 2025. While payroll loans portfolio grew 11% during the quarter, and 61% when compared to the second quarter of last year, as we continue to privilege collateralized loans and those type of loans that have some sort of guarantees, and more recently, the private payroll loans instruments. Following the closing of our partnership with meutudo in April, we began recognizing our proportional share of 48% revenues costs and the portfolio exposure in our consumer business lines. Total revenues reach BRL 1. 546 billion, with consumer credit revenues reaching BRL 1. 395 billion, which is a 46% increase when we compare to the previous quarter. This strong growth came from different factors, right? Most importantly, and the majority of the growth came for improvements with Banco PAN business. Here we saw we had better auto loans contribution from a larger portfolio and lower provisioning after a one-off adjustment that we did in the first quarter of 2026. Also, we had higher private payroll loans revenues in line with the portfolio expansions. The third is the inclusion of the proportional revenues of meutudo. Also important to know is that we are recording six months of meutudo revenues, but obviously after the partnership with meutudo, the portfolio expanded throughout this first half, so the run rate by the end of the first half is much higher than the average run rate throughout these six months. So expect these revenues to continue to improve. Too Seguros' revenues reached BRL 152 million, reflecting a normalized run rate after the first quarter one-off regulatory impact. If we go now to page 18, we look at our expenses and main ratios, and we see that our cost-to-income ratio continues to improve on the back of positive operating leverage. Total operating expenses increased 1.2% during the quarter, driven by disciplined cost management and favorable revenue mix. When we compare the second quarter of last year, we see that total expenses increased by 13%. Salaries and benefits increased by 3% during the quarter, mainly impacted by the inclusion of our proportional stake in meutudo costs. Administrative and others increased by 8.9%, again, mostly impacted by inclusion of meutudo. Goodwill amortization remained flat despite the impact of meutudo as we continue to amortize the recent acquisition. Tax charges decreased as a consequence of revenues geography. As mentioned, adjusted cost-to-income ratio decreased 1% during the quarter, reaching 37%. Our effective income tax rate remains stable at 19.5%. We look at our balance sheet on page 20. We see that total assets remained somewhat stable as a proportion of our equity, with total assets representing 10 x our equity. We continue to maintain strong liquidity levels with more than BRL 100 billion of cash and cash equivalents, resulting in a stable LCR ratio of 160%. Our unsecured funding increased strongly during the quarter with a 7.2% growth, while our on-balance sheet portfolio grew 2.6%, resulting in an expansion of our coverage ratio, which reached 142%. Our total credit portfolio represents now 4.6 x our equity. That is a reduction from the previous quarter when it was 4.8 x. You see that despite the strong portfolio growth in both corporate lending and in consumer finance, the high profitability and especially the strong capital generation continues to support the expansion of all our business lines. Looking at our unsecured funding base on page 21, as mentioned in the previous slide, our total funding grew 7% during the quarter and 32% when we compare to the second quarter of last year. Basically, we grew our total funding by BRL 100 billion during the last 12 months. Demand deposits also grew in line with total funding, so we kept our ratio of approximately 7% of demand deposits as a share of total funding. During the second quarter, we managed to secure a EUR 210 million syndicated loan for BTG Pactual Europe, our bank in Luxembourg, with banks participating across Europe and Asia, reinforcing our international presence and supporting the expansion of our European platform. Finally, when we look at our Basel ratio and VaR, we see that Basel ratio increased slightly to 16% with our core equity Tier 1 increasing 20 basis points to 11.6%. Showing a balanced approach to capital generation and capital usage. As mentioned before, VaR reduced to 22 basis points as geopolitical and macroeconomic uncertainties increased during the quarter. I think with that, we can go for questions. Thank you. The floor is now open for questions from investors and analysts. If you have a question, please press star one on your touch-tone phone at this time. If at any point your question is answered, you can remove yourself from the queue by pressing the hashtag key. Questions will be taken in the order that they are received. We would like you to please pick up your handset when you ask your question in order to ensure optimum sound quality. Please hold while we pull for questions. The first question comes from Yuri Fernandes with JP Morgan. Please go ahead. Hi, everybody. Congrats for another good quarter here, delivering ROAEs. I think the main question we have here is regarding the consumer finance unit, the sustainability. I think Cohn, Renato already mentioned a little bit of the moving pieces. I want to get a little bit of more color here. I think you mentioned, Renato, that the main driver was auto loans. If you can provide a little bit more color, what was this on Banco PAN? Just on meutudo, I think I heard you mentioning that you consolidated six months in the quarter. I want to ask if this is going to be the recognition, or now it is a quarterly basis, so in the third quarter, we should see this more normalized in the fourth quarter. I got you mentioned that the run rate should be healthy, right? Because you said meutudo was stronger by the end of the quarter than at the beginning of the quarter. I just would like to understand if the recognition here is going to be every six months, or this is going to be on a quarterly basis now. I have a second question regarding the SMEs. We note your SME portfolio down almost 20% quarter-over-quarter. I know this is an important pillar for growth for you, but I also understand there is a higher risk credit outlook in Brazil. If you can provide some comments on what is the strategy for SME, I would appreciate it. Thank you. Thank you, Yuri, for the question. For the first question regarding the improvement of consumer finance business line and revenues. The majority of the improvement comes from Banco PAN in general, right? Part of it comes from auto loans, where we had a larger portfolio, and lower impact from provisioning. You remember that in the first quarter, we did a revision of the 4966 rules on the expected loss. There was an impact, a one-off impact there in the first quarter, which was not present during the second quarter. That made an increase or an improvement in auto loans. The private payroll loans also contributed significantly with the growth of the business, right? They continue to increase portfolio originations within the private payroll loan segment, right? The majority part of the improvement comes from Banco PAN, and then we added meutudo. As I mentioned, and you correctly pointed that we added six months of revenues of meutudo, and from now on, we will add quarterly numbers. What I said is that because of the ramp-up of the portfolio of meutudo after establishing the partnership with BTG, is that the run rate by the end of the quarter is much higher. So we do not expect an impact of this difference between recording a quarter revenues in the third quarter with the half the first part, because the partnership was beginning at the beginning of the year, and now it is in a more significant run rate, right? Yeah, if I could just complement Coh n's answer. I think we saw a significant quarter-over-quarter improvement, which was a result of both the synergies. We are basically reaping the benefits and change in strategy and integration of Banco PAN and also of our partnership with meutudo. We expect to continue to grow from this level, but at a slower pace than what is quarter-over-quarter growth. We are very encouraged by what we see on both different franchises. Of course, we are as worried as everybody is worried with the level of indebtedness of individuals. So we are underwriting to very conservative standards, and in our view, the scenario will get worse before it gets better. That is why we are concentrated on lines which have collateral, are lower risks, and we have been underwriting, expecting deterioration already for, I would say, for quite a while. This deterioration has taken longer than what we expected to have happened, which has been very good. We are already encompassing this and already reducing exposures to, let us say, the segments of higher risk or products with higher risk. As I mentioned previously, we are always underwriting credit, be it in corporate, be it in consumer finance, in spread per unit of risk. Of course, the unit of risk encompasses the scenario which we expect in the SME portfolio. It was a small adjustment because since we are consistently reevaluating the spread per unit of risk, there were some lines which we thought the competition was a bit too intense, which we reduced at this moment, and we can go back to increasing if we expect the spreads to adjust, or that we do not see, unfortunately, in the short term, the risk improving. It is more related to the spreads than to the risk in this case. No, super clear. Thank you, Sallouti. Thank you, Cohn. Thank you. Thank you. The next question comes from Daniel Vaz with Safra. Please go ahead. Hi, everyone. Hello, Sallouti. Hello, Cohn. Congrats on the results. Maybe two questions on my side. First one on DCM, how does the pipeline look for the second half of the year, if you have any visibility on that? Maybe some comments also on the recent league tables with some other banks being more aggressive to win mandates. The second question is regarding a more recent debate that some economists have been bringing to the table of a possible recession in 2027. I would like to hear your opinion on how BTG is seeing this scenario. If the environment does deteriorate, in fact, how would you expect to be more opportunistic again on capital allocation, maybe including equity stakes in companies that you can be on very cheap valuations? Love to hear your comments on that. Thank you. Thank you, Daniel. Our perspectives on DCM is an improvement from Q2, maybe not to the level of Q1, but we are seeing marginally a bit of a better market. You are correct. We are seeing a competition for league tables where we think sometimes the underwritings or the firm underwritings are not, in our view, justifying the spread per unit of risk. We are fine giving up market share if we do not think that the risk-adjusted price is correct. As I mentioned previously, that is our philosophy, which also works for DCM. It is what it is. We have seen these cycles throughout the last decades since I have been here. Every once in a while, the market gets a bit irrational as people fight for league tables, but eventually economics prevails, especially, as you mentioned, in a tougher macroeconomic environment, which I think is becoming a consensus. I think it is consensus that the level of indebtedness of families is too high, the level of indebtedness of the government is too high, the level of interest rates are too high, and at some point, this will end up impacting the economy. As I mentioned, we are underwriting to this scenario. We think that it is a very probable scenario. If it does not happen, great. But our job here is always to, especially when underwriting the balance sheet, is to underwrite to the worst scenario expected. If there are going to be opportunities or not, let us say time will tell, but we will continue with the approach we have always had, which is to always pay attention to different market opportunities presented by the different scenarios. Thank you, Sallouti. The next question comes from Mario Pierry with Bank of America. Please go ahead. Hey, guys. Good morning. Congratulations on the results. Thank you for taking my question. Let me ask two questions as well. First one is on capital. Sallouti, you showed your common equity Tier 1 ratio 11.6%, but it is down from 12% one year ago, despite this 27% ROE. Can you talk a little bit about how you see capital evolving and what you think is a minimum common equity Tier 1 ratio that you would like to have? The second question is going back to the corporate loan book and this change in loan mix that we saw, right? Like the decline in SME loans. We didn't see an impact on your overall spreads. The number that you showed, the credit spread for the portfolio was 3.5% versus 3.4% in the first quarter. I'm just wondering, should we see this changing mix having a negative impact on your spreads, and thus it could mean slower revenue growth going forward? Thank you. Hi, Mario. Thank you for the question. First, in terms of capital ratios and capital usage, I think we are in a pretty balanced way. If you see, it has been somewhat stable with the 10 basis points increase or decrease quarter- over- quarter, as we add a lot of capital every quarter by the high level of profitability. As you know, our dividend policy is to pay interest on capital or 25% of the profit. That means we retain approximately 75% of the profits. With the existing 26.7% return on equity, that means that we are adding about 20% or a little bit more than that in capital every year, right? That supports the pace of growth for our business lines that do consume capital. Several of our business lines do not consume capital. The lines that consume capital mostly are exactly the corporate lending book and the consumer finance book. I think we are in a kind of a sweet spot in terms of capital generation and capital usage. Right? Regarding the average credit spreads related to the reduction of the SME portfolios, you might remember that most of our, or almost all of our SME portfolios are types of collateralized portfolios, so with an average spread that is similar to the large corporate spread of the book. There shouldn't be a major difference there. As Roberto mentioned, what we did is some sort of portfolio adjustments, right, where we reduce credit spreads for those that we thought that the level of spreads did not justify the risk we are taking despite being collateralized. Right? We shifted an increase more in the corporate and large corporate book, where we saw opportunities with higher spreads. We shouldn't expect a change in credit spreads. That's very clear. Can I ask just a third question here? It's more of a follow-up as well to what you said about the efficiency ratio improving. You are realizing some synergies from PAN, but also I think this improvement has to do with the revenue mix changing, right? You having more of a composition of this consumer finance and corporates. Is that a fair assessment that your efficiency ratio is better in these two segments than the other segments? Yes. Naturally, the businesses that use capital have a better ratio than the businesses that do not use capital. But I think it's a combination of various things, right? We're living a technological revolution with AI. We had the integration of PAN. We are growing, as you mentioned, consumer finance and corporate lending, but we're growing wealth management faster. It's also the fact that we have the J- curve of the various new market products and segments that we have been penetrating. So I've mentioned in the past, let's say, the high-income retail investment platform, the personal banking platform. This will be happening now in consumer banking. This will be happening in cash management. This will be happening in payments. This will be happening in acquiring. This will be happening in our wealth management offering of Europe and the U.S. So the truth, it's a combination of various things. But I would say, if you ask me personally, and sincerely, we've never mapped out what is what, I think the most important effect is the J- curve that we have of the significant investments that we dealt with over the last few years as we launch new products and penetrate new segments. Very clear. Thank you. The next question comes from Renato Meloni with Autonomous Research. Please go ahead. Hi, good morning, everyone. Congrats on the numbers, and thanks for taking my question here. First, if you could just expand a bit on your comments about the credit cycle. Do you expect loan growth to decelerate throughout the year, particularly in corporate lending, or you still think that you can maintain the same level, maybe via your international expansion? If you allow me for a second question here, I want a bit more clarity on the impact of meutudo in the numbers this quarter. Can you give us an order of magnitude if you're considering the revenues recognized and the expenses? What was the contribution to the pre-tax income? Then if you can talk more about meutudo, I'm assuming that given this high level of growth, the bottom line contribution is still dilutive to ROE. Can you give us a sense of where ROE will stabilize there and at what pace we should expect this to become a contributor? Thank you. On the credit cycle, there are many factors in play here. We talked about a weaker DCM market, and I think I mentioned this in our last call. Last year, we did not increase our large corporate portfolio in Brazil because the competition from that capital markets was too intense. This year, with slower debt capital markets, there is more opportunity for the corporate lending book. We continue to benefit from our penetration in the corporate and middle market segments, where we basically had zero presence a few years ago. We continue to benefit from our geographical diversification, and we are already underwriting to conservative macroeconomic environment. With that and where we see right now the market, we do expect that, yes, we can continue to grow, let's say to the between 15% and 20% growth for the year on the portfolio, with a healthy portfolio given all these different things that I mentioned. On meutudo, Cohn compliment me, but we're not ready to discuss any details at this moment. We have just basically started this partnership. They have been growing strongly. As you know, this is a business of scale, so we do expect profitability to increase as the portfolio grows. As you also, whenever you grow the portfolio, you always have to make initial provisions, which brings the profitability a bit more over time, which is why we're comfortable to say that we had, let's say, this good improvement this quarter in consumer finance, but we do expect to continue to improve and grow from these levels at a slower pace. All these factors that we mentioned, the improvement in PAN, the partnership with meutudo, the continuing credit portfolio, even in this, what we are seeing in the environment, we expect to continue to grow from these levels. Okay. That's great, guys. Thank you. The next question comes from Thiago Batista with UBS. Please go ahead. I have a follow-up question on the Stage 3 of the consumer lending. The level achieved almost 14%, and Sallouti mentioned that you guys are expecting some iteration ahead. My perception talking with investors is that this 14% was a little bit much higher than expected, and probably much higher than most of the peers that we look only as a comparison. Nubank, for instance, they have half of this level of Stage 3. I know that the mix is different. My question here is, can you provide any number to us, for instance, the level of delinquency rate of this portfolio to trying to see if this 14% has been a kind of conservative approach of BTG or if the quality of this loan is not really good. I'm trying to help investors to understand if this 14% is okay or is this a point that should worry the investors. I'm going to start commenting the last point. I don't think it should worry you. I think it's a very tough job for you to compare the different product types and the different moving pieces, the speed of write-off, if you sell NPLs, if you don't sell NPLs. There are many factors. For example, this quarter, we usually sell the NPLs of PAN. This quarter, we thought it was the right economic decision not to sell. This led to an increase in what you can call Stage 3. But sincerely, we thought it was the right economic decision. There are many moving pieces, and naturally, we understand your worry. We are discussing ways we can do to make you comfortable. We are very comfortable with the level of provisions. We are very comfortable with the results. But I agree with you that especially when you look at the accounting, the GAAP financials, this is very hard to read and very hard to compare. We are not worried, and we think we have very healthy provisions. Okay, got it. The next question comes from Pedro Leduc with Itaú BBA. Please go ahead. All right, guys. Thank you very much for the call and taking question. Just one quick follow-up on consumer finance. I recall last quarter, Sallouti gave an interview saying PAN historically 12% ROE, and it should converge to the consolidated group level by 2028. I am wondering where we are in that process. It seems like this quarter there was a material, and I am calling it PAN, but let us simplify it on consumer finance. What kind of ROE levels are you running there today already? The second question would be on corporate lending. Revenue is up 7%, loan book up 2.5%, even though SMEs fell, so the implied yield looks like to have gone up. If you can help us put it together, what drove it, maybe it was funding, maybe it was special sits, maybe lower cost of risk in corporate, just for us to understand a little bit what drove this slightly higher revenues the way you reported versus loan book in corporate. Thank you. Thanks, Leduc. On PAN, I think we are quite on track. We might be able to anticipate that goal by a few quarters, given how we are seeing things. Right now, we are still a bit below 20, but improving. So, pretty much, we continue with the same expectation. We might be able to be there maybe one or two quarters before than we had expected, given that we have been able to implement changes at a faster pace than we had imagined. I will let Cohn enter the corporate lending. I think you ask about the corporate lending credit spread, right? It was a little bit higher than previous quarter. I think many factors contributed. Cost of fund is one of them, as you mentioned, and also a little bit more revenues coming from special sits, which also, despite the recurrence that we see in special situations contribution, there is some volatility there, right? So a little bit of higher contribution also from special sits. But it is a combination of factors. So larger portfolio, lower or improved cost of funding, and also a little bit more of contribution from special situations. Thank you. Very useful, both. Thank you. Thank you. The next question comes from Brian Flores with Citi. Please go ahead. Hi, team. Thank you for the opportunity to ask questions. Just two quick ones here. I think, Sallouti, you mentioned back in February, right, that the origination pace of meutudo was around BRL 2.5 billion per month. Just wanted to check if we could assume this as a reasonable run rate given today's environment. And then also just wanted to check with you the importance of maybe the ex-Brazil post. As you mentioned, the current environment in Brazil is very challenging, but maybe the last time we had the opportunity to meet, you mentioned that growing the corporate portfolio outside Brazil was certainly a good opportunity and could help you maintain your very healthy pace in terms of growth. Just wanted to check with you if this is still the case, and how is the opportunity set ex-Brazil looking like for loans. Thank you. Can I ask you just to repeat the first question because it broke up for us and we couldn't really get it? Sure, Sallouti. It's about the BRL 2.5 billion origination pace for meutudo. If you think this is a reasonable run rate to assume in this environment, current conditions. Brian, for meutudo, I think that the origination is lower than that, especially after the portfolio gain. It's more robust, right? Now it's a larger size portfolio. We are growing, but not at this pace. Remember that we are growing not just in meutudo, we are growing at meutudo and PAN, right, both together in some months grew at this pace, or maybe at the quarterly rate, then we did some origination at that pace. Regarding the international exposure of the portfolio, ex-Brazil, we continue to improve or to grow. As we mentioned last year that we passed the 20% mark. I think obviously, there's some variations through time, but we are getting closer to the 25%. This will happen through time as we continue the expansion in international locations. We did the acquisition of the bank in Luxembourg three years ago. The bank now it's much more developed and growing. We concluded the acquisition of the bank in the U.S. at the end of last year, so this is developing, and we just concluded in July the acquisition of the bank in Uruguay. We are expanding, we are improving the infrastructure for that, and we expect this process to continue to improve. That was super clear. Thank you. The next question comes from Henrique Navarro with Santander. Please go ahead. Hi. Morning, guys. Congratulations for the results. Two questions. First one, there was a positive impact from the incorporation from the revenues from meutudo. My question is, I understand higher revenues, but also higher expenses with provisions and et cetera. My question is, what is the net impact of that incorporation? I understand you did not treat it as a non-recurring, but just for me to understand what would be, I would say, the net income if we adjusted for this net impact from the incorporation of meutudo. That's my first question. The second one is, for my evaluation model, if I look forward, do I need to change the structure from now on considering, I would say, more revenues coming from products that consume capital? How should I look forward in terms of the participation of loans as a contributor for the total revenues of the bank? That's it. Thank you. Hi, Navarro. First, the truth is, we have the revenues there. We have the cost-to-income ratio of our consumer finance consolidated to everything. It's very important that you always look at the thing as a whole, right? You can expect probably looking how to model this, you can expect some growth of consumer finance from the levels of this quarter, and we expect these to come from both of our PAN that we own 100% and the partnership we have with meutudo. If you should expect more capital, no. You should expect that we continue to allocate the capital that we accumulate through retained earnings, just as we have been doing in the past years. With that, we probably expect that the equilibrium of businesses that use capital and don't use capital will remain slightly stable given that we expect growth to come from across business lines. I mentioned here consumer finance will probably grow faster in the next six quarters, but wealth management will grow much stronger than corporate lending. When you put all of these things into consideration, I think it's fair to say that you can expect a similar mix of capital business, businesses that use capital and businesses that don't use capital, as we've had in the last few years. Okay. Thank you. Yes. I was wondering, for example, looking forward if BTG is going to be a bank that just like other banks, will start publishing in the main page, ratios like NPL, provisions, Stage 1, Stage 2, Stage 3 loans. Those kinds of ratios that are normally more concerned to banks that do lending in a more aggressive way. That's it. Hi, Navarro. I think as Roberto mentioned at the beginning of the presentation, that we would expect credit to become a more important part of the revenue mix of BTG as a whole, but not as dominant as what we see in the large incumbent banks, right? I think we will migrate to a more equilibrium in terms of revenues generation coming from credit segments. But they will not be as dominant as they are in the large incumbent banks. I think that's the difference, right? The truth is, the consumer finance credit just gave us a further exposure. We could continue growing just in corporate lending, but we decided to also diversify geographically. We decided to diversify in segments, and it's exactly the same thing with consumer finance. It's not really changing the mix of the businesses that use capital and don't use capital, which remain relatively stable, as can be seen by the growth in the different business lines, as can be seen by the capital ratio. But for us, it's very important to have this diversification so that we can continue with our alpha management of credit exposure. We don't want to be beta to the market. We think that, as can be seen by what's happening in the market, the results are there's a lot of alpha being generated in credit. But this does not mean that this will become commanding. As you can see, wealth management is growing 30%, our investment management contribution is roughly 25% of total revenues. So we don't expect a change in mix, but for us, having this diversification is crucial for us to have an alpha strategy in credits. Okay. Thank you. The next question comes from Marcelo Mizrahi with Bradesco BBI. Please go ahead. Hello, everyone. Thank you for the opportunity. My question is regarding the leverage, operational leverage. Assuming the fact that you guys are saying that the consumer banking revenues will grow next quarter, the revenues will grow, the portfolio will grow in a different pace, but will grow. Can we assume that the levels of efficiency ratio, comparing expenses and revenues, are the levels that we will see in the next quarter? Can I expect something around those levels, which is better than the levels that last quarter or even, the end of the last year looking forward? Thank you. Hi, Marcelo. I think there is a lot of embedded operating leverage into the overall business, right? We see that the revenues are twice as high as the cost, right? When we grow revenues at a faster pace than cost, the operating leverage, which is already embedded, as I said, will make the cost-to-income ratio to dilute over time. We expect this to continue to happen as we benefit from different sources of revenues. Overall, you see growth, and strong growth, in wealth management. You see growth in asset management. You see growth in the credit books, both consumer finance and in the corporate lending. Overall, the combination of revenue growing at a faster pace than what we see in costs, as Roberto said, we continue to benefit from the improvement of the J- curve from all the investments that we did in the past. It doesn't mean that we are not investing, we are still investing, but as a magnitude of the revenues, it's much smaller than what we did in the past. We are collecting now the benefits of advancing into the J- curve. Okay. Thank you. The next question comes from Jorge Kuri with Morgan Stanley. Please go ahead. Hi, everyone. Good morning. Thanks for the opportunity to ask questions and congrats on another great quarter. Sallouti, I wanted to follow up on something you mentioned. You talked about a complicated backdrop for credit risk given excessive consumer leverage, excessive government leverage and overall weak macro. At the same time, you mentioned that you had been expecting a correction for a while that hasn't really happened. I guess two questions. The first one is, why do you think it hasn't happened? What have been the factors that have been keeping things in check? Second, to what extent those factors may extend longer than you think, and maybe the backdrop for risk is not as negative as your position for. Thank you. Thanks, Jorge. In our view, this has not happened because the government expenditures have been growing more than what we expected, especially this year. They were growing at a slower pace towards the end of this year and the beginning of last year. This accelerated with the electoral cycle to very strong levels, which we don't believe are sustainable towards next year. That's why we think it's inevitable that at some point in time, this slowdown will happen and especially given the level of indebtedness of family, it can be a macro, a more complicated cycle. Nothing disastrous, but we just have to realize that we're living a very benign environment, very low unemployment, strong income levels. We're also living something interesting, and you can see that we are focusing on collateralized credits because we think there's also a lot of micro things happening in the consumer credit market. For example, we think this private payroll loan creation is something that changes drastically how you underline clean credit. For us, it's still not clear how to underwrite this. As you can see, we're not growing clean credit and consumer finance because we don't feel confident to what the future will be like, because we think the future is very different than the past. Because the past, you did not have these private payroll loans, for example. Even in private payroll, it's not a product that you underwrite generically. There's a lot of modeling that goes into the corporate risk, the employment risk, the re-employment risk, now the guarantees. So there's a lot of complexity here that also affects the scenario of credit underwriting, which is not only the macro. But just going back to your first point is, what we think has pushed this further or delayed what we saw as unexpected deterioration has been the increase in fiscal spending. Great. Thank you very much, everyone. Congrats again. Thank you. The next question comes from Marcelo Mizrahi. Please go ahead. Thank you. Another one regarding provisions on private payroll. We are seeing a lot of discussions regarding the right levels of provision or unexpected provisions on this product. Can you share with us the levels of delinquency of BTG on this portfolio and also the levels of provisions that you guys are doing right now? Thank you. Hi, Marcelo. I think we are adequately provided using Central Bank 4966 rules with the initial provision of expected loans that we do at the origination process and then following the process with the table when. If these products become delinquent. But I think we are adequately provided there. In terms of delinquency on this product, can you advise the portfolio is controlled or is becoming a more riskier portfolio or becoming better? Actually, the performance of the portfolio has been better than we expected, especially on the re-employment, which was something that we had not modeled initially. It has been happening, and faster than we expected. If anything, the performance of the portfolio has been better than what we had expected initially. Thank you. Thank you. Thank you all very much. That brings us to the end of the question- and- answer session. I will now return the floor to Mr. Roberto Sallouti for his closing remarks. Well, thank you very much for joining us for our quarterly call. We hope to see you all at the end of the third quarter. Thank you very much. Have a great week. Thank you. This concludes today's presentation. You may now disconnect your line at this time. Have a nice day.