Welcome to Davivienda's fourth quarter of 2022 earnings conference call. My name is Karen, and I'll be your operator for today's call. Today's presentation is for investors and analysts only. Therefore, questions from the media will not be taken. Today, joining us from Bogotá, Colombia, is Mr. Javier Suárez, Chief Executive Officer, and Mr. Ricardo León Otero, Chief Risk Officer. During the call, they'll be discussing in depth the quarterly results released. If you have not yet received a copy of the earnings report and presentation, please visit our investor's kit or the financial information section at ir.davivienda.com. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded. Afterwards, management will be available for a question-and-answer session. Before proceeding, let me mention that any looking-forward statements are being made under the safe harbor provided by the Securities Litigation Reform Act of 1995. Actual performance could differ materially from anticipated in any forward-looking statements due to macroeconomic conditions, market risks, and other factors beyond our control. I'm pleased to turn the call over to Mr. Javier Suárez, Chief Executive Officer. Mr. Suárez, the floor is yours. Good morning and welcome to Davivienda's fourth quarter of 2022 earnings conference call. Thank you very much for joining us today. Before we start, I would like to mention that the second half of the year turned out to be even more challenging than we anticipated, with rapidly changing conditions that impacted our financial results. Despite this environment, we continued to consolidate our strategy, working hard in our digital transformation initiatives and reaching relevant goals on the ESG front. We see this landscape as a source of opportunities to work in different ways to continue building a profitable and sustainable business. At the beginning of 2022, the World Bank expected the global economy to grow at a 4.1% rate, but later had to revise its expectations to 2.9%. This deterioration in global growth forecast was related to higher-than-expected inflation, which led to more restrictive monetary policies in the majority of countries, coupled with the Russia-Ukraine conflict and oil scarcity. In light of this scenario, Colombia's GDP growth during the fourth quarter closed at 2.9%, reaching a 7.5% average growth for 2022, below market expectations. In the same way, as shown on the top right, confidence deteriorated during the year. Colombia ended with a 13.12% inflation, the highest in the last 23 years, considerably impacted by pressures in the food basket and non-alcoholic beverages, which contributed to over 1/3 of total annual inflation. Restaurant and hotel prices also showed upward pressures, and the Colombian peso depreciation also generated an impact on new and used car prices, electricity, flights, home appliances, among others. Facing this situation, the Colombian Central Bank accelerated the normalization cycle, increasing the monetary policy rate by eight times during the year, taking it to 12% in December, 900 basis points over the one of December 2021, and in levels not seen since 1999. As of today, the rate stands at 12.75%. In addition to the central bank rate increases, funding costs were also impacted by the new Net Stable Funding Ratio requirements that have been phased in during the previous years, accounting for more than 400 basis points. The Colombian peso depreciated by 21% over the year, explained by the dollar appreciation worldwide and uncertainty about the local political environment. This behavior had an important impact on our results, as we will explain later. All of these situations led us to remain cautious about the evolution of the macro environment for this year. We are expecting GDP to grow around 1%, a monetary policy rate of 8.5% by year-end, and inflation of around 9.5%. Moving on to Central America on slide 4. The region's economy decelerated in 2022, mainly impacted by external conditions such as global interruptions on international commerce, higher oil and agricultural input prices, and lower growth of Central America's main trading partners. El Salvador, Honduras, and Panama took measures to control price increases, such as subsidies and lower taxes, which led inflation to reach its peak around mid-year. In terms of monetary policy, Costa Rica's central bank took its intervention rate to 9%, while Honduras' rate remained at 3% throughout the year. The Costa Rican colon appreciated by 7% during the year and 14% since its peak in June, supported by tourism recovery, higher foreign investment inflows, and a better perception of country risk. We expect the region's GDP to grow around 3% and inflation to keep its normalization path in the different countries. Regarding the situation of El Salvador, the risk of a credit event in the short term has decreased as the country complied with its 2023 international bond payment. The next external payment schedule will be in 2025, which gives the country the opportunity to stabilize its income sources and improve its debt profile. Additionally, during 2022, the government was able to gradually reduce its fiscal deficit through limited expenditure and measures to control tax evasion. In light of these events, Moody's changed El Salvador credit outlook from negative to stable at the beginning of February. We continue to feel comfortable with our operation in the country, as we have seen healthy asset quality, stable margins, and low cost of risk. We continue to monitor the evolution of the economy and anticipate potential side effects in our results. Moving on to the main results of our business on slide 5, we reached accumulated profits of COP 1.62 trillion, increasing 28% over the year. This translates into a 10.7% return on average equity below our expectations due to an even more challenging economic environment than anticipated and a materialization of a complex credit cycle, as mentioned before. One relevant component of this result corresponds to the exchange rate effects that we record in the Other Comprehensive Income instead of passing them through the P&L. Remember that this is a particular strategy we use to immunize our CET1 ratio towards FX volatility. This accounts for almost COP 700 billion that are not recognized in total net profit. With such a result, our return on average equity would have been close to 16%. On the other hand, our CET1 ratio would have been between 20 to 30 basis points lower and would have shown higher volatility during the year. Our loan portfolio grew around 22% on an annual basis, with moderated dynamics during the quarter in line with our risk appetite. Our CET1 closed at 11.07%, supporting business growth during the year. In terms of margins, we were able to provide stability to our NIM during the year, despite the higher-than-expected increase in interest rates and our liability-sensitive structure. Cost of risk reached 2.38%, mainly due to impacts on our consumer portfolio derived from the turn of the credit cycle, showing some pressure on PDLs, write-offs, and provisions. We have reached 50 years in which we have been able to reach more people and companies by strengthening our value proposition, thereby delivering sustainable growth and supporting progress in the places where we operate. During 2022, our loan portfolio in retail and commercial banking reached double-digit growth with healthy dynamics also in the international operation. The incorporation of ESG issues and the development of digital capabilities are a comprehensive part of each business line, as you can observe on the results presented. We have doubled the number of customers in four years, reaching 21.8 million by the end of 2022. We are very excited for the future that waits upon us, where we want to keep leveraging on technology, being more responsible with the planet and the people, and supporting innovation and youth entrepreneurship. Please move on to our ESG results on slide 6. Conscious of our ability to mobilize resources on the role we play as engine of economic development, we are committed to promoting actions aimed at positive social impact, climate change mitigation and adaptation. In this sense, we have been growing our sustainable loan portfolio at a 19% rate during the last two years, thereby reaching COP 14.8 trillion, representing around 10% of our total loan portfolio. We were included in the S&P Dow Jones 2022 Sustainability Yearbook and the corresponding index, as we continue to be considered among the top performers in the sector in terms of sustainable business practices. Additionally, we are strengthening our climate strategy and actively managing our footprint, as shown by our most recent verifications of renewable energy use and carbon neutrality. These verifications mean that 100% of the electric energy used in our operations came from renewable sources and that our Scope 2 net emissions are 0 tons. The implementation of energy efficiency projects, generation of clean energy, compensation actions, and promotion of a sustainability culture across the organization allowed us to reach these goals. We have been working on evaluating climate risk associated with our loan and investment portfolio by measuring our Scope 3 emissions, levers in the Partnership for Carbon Accounting Financials, and incorporating the Paris Agreement Capital Transition Assessment. We expect to disclose this information in our TCFD report this year. We will also continue participating in the transformation towards a more responsible, inclusive financial system. By 2030, 30% of our loan portfolio is expected to have social or environmental purposes. On slide 7, we present the evolution of the bank's digital transformation and direct platform. Generally speaking, our digital transformation continues to deliver positive results. In Colombia, digital sales and transactions continue to gain space compared to physical ones. Our digital loan portfolio grew almost 100% on a compounded basis over the past two years, while deposits grew 44%. More than 90% of our customers are considered to be digital. In the case of Central America, we have been dedicating efforts to increase our digital capabilities, and even though it lacks obvious results, we are starting to see positive trends in terms of digital sales and customers. We continue in the process of exploring and adapting most of our digital assets so that we can accelerate this transformation. DaviPlata continued to advance with interesting results. With the customer base increasing 16% over the past 2 years, the average of low amount deposits increasing 46%, and the transactional income excluding subsidies, distribution fees growing 35% on a compounded basis. Going forward, we want to keep increasing our recurrency in the platform, active customers and service levels. With the capabilities of our DaviPlata platform and its team, with the synergies created with our commercial network, we see opportunities to keep positioning DaviPlata as the way to move money seamlessly for all. We're preparing to make DaviPlata the best option for people to pay and for businesses to receive payments. We will continue enhancing our credit offering, focusing on low amount credits using previous customer knowledge of their transactional habits. These results show that we are on the right track. We expect to continue delivering good results and finding opportunities to do so, as we will discuss on the following slide. To end my presentation, please turn to slide 8, as I would like to share with you the main strategic focuses in which we will be working on in the coming years to continue improving our results. First is related to loan portfolio management, where we are working to enhance our credit business by improving our underwriting decisions. Our analytics capabilities are now allowing us to make more informed decisions based on an integrated view of customer, product and channel. In this way, by better knowing and understanding our customers, we will be able to build the adequate offer and successfully reach them through the right channel. As part of this approach, we will leverage on analytics and choose strategic segments up to gradually adjust our loan mix in line with our appetite, aiming to increase our margins. As part of our efficiency efforts, we will continue working to simplify and optimize processes and structures to become a more agile organization. We want to work toward end-to-end digitalization and be able to offer our customers a 100% digital journey in which they are not only able to access a complete product offering through digital channels, but they are also able to manage the full flow of products associated services. By serving their needs this way, we will be able to better target our commercial staff efforts, increasing productivity and business dynamics through our branch network, which has been proven to be essential in pursuing growth and market share. By putting these tactics in place, we will continue capitalizing on our digital transformation efforts, improving our efficiency. The tools mentioned before will be key for our next strategy, which is to increase our presence in the physical and digital monetized transactions of people and companies. We have been developing different transactional solutions as Mi Comercio and Mi Negocio that help us reach entrepreneurs and small businesses, and we also have DaviPlata to be an active player in the payment and transfer ecosystem for all as I mentioned before. Through these and other means, we will be working to reach and deepen relationships with employees, retirees, and Colombians with remittances needs. As well as developing specialized tailored offerings for businesses, corporates and our allies, better integrating our solutions into their systems and even offering them improved cash management advisory services. Another exciting work front is being more than a bank by going beyond the financial world. This is built over a deep understanding of the context in which our customers live, to be able to develop strategic alliances that leverage the connection to different ecosystems in which we can create new digital experiences that solve their needs while delivering high service standards. In the end, our goal is that people can rely on Davivienda as a means to reach their dreams through either Banking as a Service or banking as a channel strategies, and by being part of the different ecosystems in which they live their lives. A key element of Davivienda's value offer is customer service. In this matter, our goal is to offer a world-class service experience supported by a customer relationship model based both on our branch network and digital capabilities. Proactive help that anticipates customer requirements with memorable resolution, self-management tools based on end-to-end digitalization and platform availability. We will continue to strengthen our operations in Central America, working specifically on three initiatives, focusing on SMEs aiming to be their preferred bank, serving regional companies with presence in the countries in which we operate, offering them centralized and differentiated service to their transversal needs, and enhance our insurance business through digital efforts and ecosystem development. The second part of last year posted a very complex environment that inevitably impacted our business. 2023 also seems challenging with significant uncertainties out of the year. However, every difficult environment is full of opportunities, and we will do our best to seize them, leveraging on human talent, analytics and technology. Let me turn the call over to Mr. Ricardo León, our Risk Executive Vice President, to continue with the presentation. Thank you, Javier. Good morning, everyone. Please move on to slide 9, where we analyze the evolution of assets. Our assets grew at a pace of around 4% over the quarter. Close to 21% over year, reaching a total asset balance of COP 184 trillion. As mentioned before, the Colombian peso depreciation of 5% during the quarter and 21% during the year had a considerable impact on our results. In this sense, excluding this effect, our assets would have grown 2.6% over the quarter and around 13% annually. Overall, the main driver for assets growth were the loan book dynamics, the increase in our investment portfolio in line with our liquidity management policies and according to our financial structure, and derivatives and accounts receivables. In addition, our loan loss reserves increased due to our provisioning effort to manage credit risk. When looking at each of our operations, Colombia's assets grew at a 15.5% rate and Central Americas at an 11.7 rate in dollars. Please move on to slide 10. Our gross loan portfolio grew by 22% on an annual basis, slightly higher than our expectation for the year. The depreciation of our currency accounted for around 740 basis point of the total loan book annual growth. Given the still strong credit demand despite evolution of macroeconomic conditions, we adjusted our origination policies to contain disbursements and improve the quality of new loans during the year. As a result, the consumer portfolio grew by around 28% annually, showing signs of deceleration during the quarter. Regarding the commercial portfolio, we observed credit demand dynamics mainly in industrial and services sector. Finally, mortgage continued to grow at a good pace in the different segments, mainly in Colombia, mostly driven by our participation in low-income housing. In the international operation, the loan portfolio continued growing at a good pace, increasing by 12.4% annually, mainly explained by the commercial and consumer segments in Honduras and Panama. During the year, we continued working to complement our service offering for commercial customer, providing them with more digital solution that supported business dynamics. In the case of the consumer portfolio, we have seen significant demand for payroll loans and credit cards. When analyzing the evolution of our loan mix, we see that it remained stable during the quarter, with retail banking accounting for 55.5% of the book and the commercial portfolio representing the remaining 44.5%. We will continue actively managing our credit business to target strategic segment, which will help us to increase our margins aligned with our risk appetite and strategy. Moving on to slide 11, we present an update of our PDLs and cover ratios. As you can see on the top graph, total PDLs over 90 days increased over the quarter as we have anticipated. The higher-than-expected inflation during the year and the accelerated increase in interest rates started to impact the portfolio, especially the consumer book. The increase in inflation and interest rates put more pressure on our customers' existing indebtedness levels and the payment capacity of previously acquired obligations. Despite the credit policy adjustment made during the year to control the profile and quality of new disbursements, the vintage of 2022 are higher than expected, pressing asset quality and provision even for 2023. PDL for commercial and mortgage portfolio presented slightly increases during the quarter, which was expected given the credit cycle. Total cover ratio closed around 140%, decreasing over the quarter in line with the higher past due loans. However, compared with 2021 levels, coverage has increased in line with our provisioning effort, mainly in the consumer segment. The mortgage and commercial portfolios saw lower coverage levels as we released some provisions in the commercial segment due to improved risk profiles and optimized provision for some of our mortgage loans with higher collaterals. However, we feel comfortable with these levels, and we'll keep monitoring customers' condition to anticipate additional needs. Please move on to slide 12, where we can see the evolution of cost of risk, provision expenses, and loans by stage. The annualized quarter cost of risk closed at 3.66%. The twelve months cost of risk reached 2.38%, in the higher end of our expectation. The results from the materialization of more challenging economic condition during the second half of 2022 reflected not only in the advanced models parameter, but also in the forward-looking component, recognizing the effect of macro variables. We expect the Cost of risk to continue having pressure into 2023. Looking at our loans by stages, we observed some stability during the quarter. Stage one increase is certainly due to portfolio growth. Stage two increase in absolute terms in the consumer segment due to the mentioned conditions. As for the stage three loans, the share decreased due to the improved commercial risk profile and consumer write-off during the year. Now please move on to slide number 13. Liabilities increased by around 21% over the years, supporting asset growth and contributing to maintaining an adequate balance sheet structure. General deposits increased by around 6% during the quarter, 52% on an annual basis, in line with the demand for this kind of product and due to the stable funding requirement for the financial system. Bonds decreased 11.4% over the year, mainly due to the maturity of two of our international issues and some others at the local level. Credits with entities grew around 53% annually, mainly explained by FX impact and resources acquired with the multilaterals and corresponding banks. We have been adjusting our funding structure during the last two years to support business growth and comply with the stable funding requirements, and we feel comfortable with our current liquidity position. Please continue to slide 14, where you will see our capital structure. We remain among the best capitalized banks in the region. As you can see, we have adequate and sufficient capital levels over the regulatory minimums to support expected growth. Our core equity to one ratio closed at 11.07%, remaining relatively stable over the quarter, mainly explained by lower risk with assets growth in line with the loan portfolio deceleration. The total capital adequacy ratio increased over the quarter due to FX impact, despite the maturity of our international old-style Tier 2 subsidiary bonds in July. Looking at the capital ratios evolution over the year, we observe a reduction mainly due to credit and operational risk weight assets, dividend distribution, and lower levels of subordinated debt. Please take into account that we anticipate this behavior and put in place a capital management strategy to proactively maintain our capital structure by issuing new AT1 through issuing between 2019 and 2021 and the AT1 notes in 2021. Finally, as Javier mentioned at the beginning of the call, due to our CET1 hedging strategy, an important portion of the FX depreciation is recorded in the Other Comprehensive Income in equity. This helps us stabilize the CET1 ratio, giving our exposure to assets in dollars. In a year with significant depreciation, the equity grows correspondingly instead of having higher profit results. This year, COP 1 trillion were recognized in the OCI. If you were to recognize this as an income in the P&L net of taxes, we would have approximately COP 2.3 trillion in profits. In this sense, our return on average equity would have been 15.9% for 2022. The flip side is that our core equity to one ratio will be more volatile and 22 basis points lower at the end of the year. Due to our hedging strategy, our core equity to one ratio remain close to neutral to changes in the FX during the year. Please move to slide 15, where we present our margins. The gross financial margin increased by 18% on an accumulated basis, mainly due to loan repricing to higher interest rates and a recovery in our investment income. These results are still offset by financial expenses, considering higher than expected interest rate and pressure in cost of funding due to the implementation of the Net Stable Funding Ratio. Our NIM closed at 6.04% at a lower end of our guidance for 2022. FX hedges and derivative had a loss during the quarter, mainly explained by our hedging strategy in Central America. The Costa Rican colon continued depreciating against the US dollar. This represents a loss in our PNL compensated by an increase in the OCI within the equity. There could be a potential expansion for our NIM, depending on when the interest rates start to decrease. There is still some uncertainty regarding the path of inflation and interest rate for this year. Please continue to slide number 16. Non-financial income increased around 18% on an accumulated basis within our guidance. This behavior is mainly due to credit and debt card commissions, transaction fees, as well as a base effect due to the goodwill impairment in El Salvador last year. On an accumulated basis, OpEx increased by around 17%, mainly explained by the increase in wages and benefits to employees, commercial staff incentive, and other operational expenses. This growth was slightly above our expectation, mainly because of inflation and the depreciation of the Colombian peso. However, real OpEx growth was around 3.5%, taking into account year-on-year inflation of 13.1%. We are working to optimize our cost structure by implementing new strategies, aiming to improve our efficiency ratios. Please move on to slide 17 to analyze the bank's profits. Net profit increased during the quarter, reaching COP 48 billion. This behavior is explained by higher provisions and operational expenses, as well as a reduction in exchange and derivative income. On an accumulated basis, net profit closed around COP 1.6 trillion, increasing 28% compared to last year. Considering what we explained before regarding our hedging strategy, our 12 months return on average equity closed at 10.74%. To finish the presentation, please move on to slide 18 to comment on our updated guidance for 2023. Considering Colombia's GDP is expected to grow around 1% and interest rates remain at higher levels, we expect our consolidated loan book to grow between 8%-10%. We are expecting growth of 8%-10% in the commercial and consumer portfolios and 9%-10% in the mortgage portfolio. Regarding asset quality, we still expect some further impact of macroeconomic conditions with total PDL closing between 2.9%-3.3%. Our NIM should grow between 6%-6.3%, with some expansion room due to asset repricing, depending on when the central bank starts to decrease interest rates. We are expecting one last increase of 25 basis points in the intervention rate in March. As long as inflation is controlled, the rate should gradually decrease to 8.5% by year end. Our cost of risk closed around 2.3%-2.6%, as we anticipate a more challenging credit cycle. Non-financial income should grow between 9%-11% in line with portfolio activity. We expect an OpEx growth from 11%-13%, aligned with expected inflation levels, the Colombian peso depreciation, and business growth. Finally, our return on average equity should close between 11%-14%. We will continue monitoring the evolution of macro and business dynamics for any potential updates to our guidance through the year. Thank you for your attention. At this time, we can move on to the question and answer session. Thank you. With that, we will initiate our Q&A session. We will first take the questions from the phone call, and then we will read the webcast questions. If you have a question on your phone line, please dial nine four one on your touch tone phone. If you wish to be removed from the queue, please dial the pound sign or hash key. If you're using a speakerphone, you may need to pick up your handset before dialing the numbers on your phone. Once again, please dial nine four one on your touch tone phone if you have any questions. Regarding the webcast participants, please click the button with the question mark at the bottom of the webcast screen. We're standing by for questions. Once again, if you're using a speakerphone, please dial nine four one on your touch tone phone. If you wish to be removed from the queue, please dial the pound sign or hash key. One more time. If you are on the phone, please dial 941 if you wish to ask any questions. We're standing by for your questions. Moving on to our webcast questions. At this point, we will take the questions from the webcast. The first question comes from Jitendra Singh from HSBC. Her question is: In the worst case scenario with no economic growth, 0% GDP growth, how do you think that will have an impact on your credit growth, asset quality, and profitability of the bank? Will ROE reach the level that we have seen during the pandemic? This is Ricardo Leon, Vice President. Thank you for your question. In your first question, in this scenario, credit growth may decrease a little bit. Asset quality could increase toward the higher end of our guidance, and profitability could be slightly affected. It's important to mention that we have been a more adverse scenario incorporated in our forward-looking estimations. We include adverse scenario in our forward-looking estimation periods. Okay. Related to your second... No? Thank you. Thank you very much. Thank you. Our second question. Related in, to the second question. Sorry. In the second question, will growth reach the level that we have seen during the pandemic? Actually, we are not foreseeing such a scenario at the time. For the moment, we expect it to grow between 11%-14% in terms of ROE. Thank you. Thank you very much. Our second question comes from Fiorella Lastreto from AFP Integra. What are the strategies that you are going to apply in order to create a balance between growth of loans and the Cost of risk in a context of high inflation and low growth of GDP? Good morning, Fiorella. This is Javier Suárez. Regarding your question, we're definitely seeing a change in the cycle since the second, third quarter of last year, and we are adjusting to that. Our underwriting standards have been tightening, so we're expecting to see lower growth on our loan portfolio. As mentioned by Ricardo in our guidance, we're aiming to close to single-digit growth in the loan portfolio, basically because we see a changing macroeconomic scenario, and that will imply being more selective on the type of loans that we will be dispersing. Definitely we will move towards lower growth and better quality of our loan portfolio due to the macro conditions. Thank you very much. Our third question comes from Manuel Amora from Compass Group. Could you please give us more color on why provisions increased so much? Did your models in the last update didn't incorporate the macroeconomic outlook for 2023? Could this continue throughout the year? Manuel, thank you for your question. During the fourth quarter, we saw an increase in the provision expenses in the essentially due to three main effects. The first, almost half of provisions are due to remuneration and deterioration, similar to what we saw in the third quarter. 55 of the provision is due to parameters that we changed, update parameters, which take into account the increase in risk profile and increase the provision level for the rest of the performing portfolio. Finally, 10% is due to forward-looking components, reflecting a challenging economic environment going forward. Only looking forward-looking advice, it represents around 70 basis points for our analyzed credit cost of risk and around 20 basis points of our 12 months cost of risk. Thank you. Thanks a lot. Now, our fourth question comes from Maria Jose- Sorry, related to the second question. I'm sorry. The second question. I'm sorry. Related to the models, and that if the models incorporate or not the macroeconomic outlook. The macroeconomic direction or figure are incorporated in the macroeconomic forward-looking estimation. The model are also going to incorporate the new trends of the retreat of the portfolio, and obviously, the inflation that we are expecting for this year. Another element that in all moments we have testing to estimate or borrow figure for the next 12 months. Actually, there are more variables incorporated, but maybe the are the most important variables. Thank you. Thanks a lot. Our fourth question comes from María José Quiñones from Seminario & Cía. S.A.B. For such higher provisions for this quarter, do you expect a higher increase of NPLs during 2023? María Jose, thank you for your question. At the end of 2022, we observed some deterioration in the top NPLs related to the heavier in the consumer portfolio. As we anticipated, we saw some impact in our customers' spending capacity, partly due to high interest rate and household indebtedness levels, which have been affected due to the current inflation. For 2023, we are expecting PBL ratio navigate around 2.9%-3.3%. Of course, in commercial portfolio, we are expecting 2.2% in this ratio, consumer around 3% and more or less around three and a half or 34%. Thank you. Thank you very much. Now, our fifth question comes from Daniel Mora from Credicorp Capital. Can you provide additional comments regarding the consumer segment deterioration? This increase in NPLs is explained by past loans or the new disbursements in quarters of 2022. I'd like to understand if growing in this challenging year knowing a material deterioration of asset quality indicators in 2023 was a good strategy. What is the outlook for the 2023 consumer segment NPLs, and the strategy to control the NPLs formation? Daniel, this is Javier Suarez. Thank you for your question. Regarding your first question on consumer segment deterioration, we saw an increase in our consumer loan book at the beginning of last year, especially in the first half of last year. During the third and fourth quarter of the year, we saw a slight decrease, and we started a downward trend in terms of new loans disbursements. That happened because of the way we were tightening our underwriting policies. We by mid of last year, we started tightening those underwriting policies, so we started to see a flow of business that was decreasing. It's something that is happening more clearly during the end of last year. Coming into 2023, we're definitely seeing a level of new disbursement that is significantly lower than the 1 year before. In terms of your question on whether growing in this challenging year is a central strategy, we are coming from more than 20% growth for the end of 2022. For 2023, as we saw during the guidance presentation that Ricardo went through, our expectation is growth on 8%-10%. If you take into account the inflation that we're expecting, we're actually in real terms, our loan portfolio will be decreasing. Definitely we're prioritizing quality over growth on the strategy for 2023. In terms of the outlook for 2023, consumer segment NPLs and the strategy to control the NPL formation, as I mentioned before, we, during the second half of last year, in several times we've been tightening the underwriting standards for new loans. Of course, the macroeconomic environment has been changing, and that's definitely something that has impacted our results. As conditions have deteriorated, we have been tightening the standards in terms of credit scorings, in terms of segments, in terms of collaterals that we're looking for in some lines of loans. Definitely, we're seeing a significant change in the way we're originating loans since the second half of last year. It takes some time for the loans that have been originated before that to go through a process of payment and NPL formation, and we're in the, right in the middle of that process. That I would say is like a recap of what we're doing. We're definitely focusing on quality over growth. That has been the case for many months, for the last two quarters already. Thank you very much. Our next question comes from Adriana Arismendi from Bancolombia. Could you please repeat the reasons on why the provisions increased so much? The sound quality wasn't the best, and it was hard to understand. Thank you. Camilla, thank you for your question. just to clarify, our fourth quarter provisions were COP 1.3 trillion, and more than half of that number comes from forward-looking adjustments as well as parameter adjustments. we're definitely including in this quarter a forward-looking view that is consistent with our macroeconomic view of the environment and the way that the portfolio has been performing. We had updated these numbers in by the June quarter of last year, so the adjustment now for this quarter takes into account what happened during the last 6 months. Definitely there's a significant amount of provisions that we're incorporating due to forward-looking views. That's more than half of the provisions that we are taking into consideration for the quarter. We believe that's a sensible approach as economic conditions have tightened. We believe that it is the best way to go, is to for now be very consistent with our economic outlook and update the parameters. We might be going a little bit more than what we could in terms of adjustment of the parameters. We believe that given the uncertainties that we have in front of us, that the best approach. Thank you very much. Our next question comes from Andrés Rosso from Banco de Bogotá. Good morning. Thank you for your presentation. I have two questions. The first one is, what is your CET1 expectation for 2023? The second question is related to the dividends distribution. What is your dividend payout ratio expectation for this year? Andrea, thank you for your question. Related to the CET1 level, by the end of 2022, we are expecting an equity level to leverage business growth around 11%. For equity Tier 1, around 11%. For the total capital adequacy ratio, between 15%-16%. This is mainly explained by higher risk with assets due to the business expectation growth and lower weight of Tier 1 instruments in our financial statement. Thank you. In terms of dividends, the board of directors has recommended shareholders to distribute 40% of Colombia's profit, which corresponds to 1,010 Colombian pesos per share. In consolidated terms, this represents a distribution of around 28%. Thank you very much. There seem to be no further questions in our webcast, so we'll now turn to the I'm sorry, there is a new webcast. This question comes from Andrea Tuesta from Bancolombia. Good morning. Taking into account the bank's digital strategy, how do you expect digital transactions and sales to continue to behave in 2023? Is it possible to know how the number of clients has grown since the alliance with Rappi? How do you expect this alliance to continue contributing to the origination of new credits? Thank you, Andrea. In terms of the first question on the bank's digital strategy, we're fully committed to moving forward with our digital transformation. We expect digital transactions to keep growing and our sales will definitely move towards digital sales, especially on the retail banking side, in which the percentage of sales that we do through our digital platforms is dominating now. It's close to anywhere from 70% to 80% of new products are being opened through digital channels. In terms of digital transactions, just to give you a number, less than 10% of transactions are branch office transactions nowadays. We're definitely moving forward with the digital transformation and we will be deploying new capabilities for our clients in the next few months that will not only enable them to transact or to open new products, but also to have a full end-to-end service customer journey, so that the needs to go to a branch office are pretty much gone for retail customers that will be able to self-serve within the app for close to 95% of the services that are being performed at branch offices. With regard to the Rappi alliance, we are not incorporating the numbers of Rappi within the Davivienda financials as we don't consolidate that operation. I can tell you that the number of customers that are already using the platform and one of the products is close to 1 million in one of the products and more than 500,000 debit cards that have been issued. On the credit card business, there's also good numbers, more than 200,000 new credit cards that are part of the Rappi operation in terms of credit card business. We're seeing traction there. Of course, it's also subject to the same macroeconomic conditions that we already mentioned before. We know that, probably growth will not be as fast as we were expecting the year before because of also tightening underwriting conditions for credit card and new businesses. Thanks a lot. There seem to be no further questions on our webcast at the moment, so we will now move on to the phone line. If you have any questions, please dial 941 on your touchtone phone. If you wish to be removed from the queue, please dial the pound sign or hash key. If you're using a speakerphone, you may need to pick up your handset before dialing the numbers on your phone. Once again, please dial 941 on your touchtone phone if you have any questions. At the moment, there is a question on our phone line. We will now open your microphone, and please introduce yourself with your full name and the company you're calling us from. Thank you. Hello. Can you hear me? Yes, we can hear you. Please go ahead. The floor is yours. Thank you very much. Hi, good morning. This is Sebastian Gallego from Ashmore. Thank you for the presentation and your time. I have three questions today. The first one is on the FX strategy and the overall hedge that you mentioned during the presentation regarding the capital position and the overall hedging strategy. Could you comment on the rationale on why should you keep this strategy going forward? The reason I'm asking is because as you mentioned during the presentation, there was a negative effect on profitability. On the other hand, the potential effect on capital would have been just 20-30 basis points on CET1 ratio. And you have one of the highest capital position in the local industry. I'm just wondering why do you keep this strategy. The second question is related to probably follow up on cost of risk provision and asset quality. Just wondering, again, the rationale of management decision here is when you see the credit cycle of 2019 leading to the pandemic, you were growing very fast on consumer, and obviously nobody expected the pandemic. When you go to 2022, there were already signs that 2023 it was going to be very challenging, particularly after the presidential election and the overall economic slowdown. My specific question here is why didn't you tighten before your credit and origination policies so that there was a further prevention to what we're seeing today? I would ask those two questions, and then I would ask a final one after the answers. Thank you. Sebastian, thank you for your questions. Regarding the FX strategy, that's a strategy that has been in place for many years, many years in which we were, as you were mentioning, we were, somehow, prioritizing our capital position. The growth of the bank at during the last few years has been very significant, so we needed to have room to support our strategy, our growth strategy. That had, that came out very well over the last five or six years, including the years pre-pandemic. Conditions changed rapidly. As, as we all know, last year, exchange rates changed dramatically due to several reasons. Definitely there's an impact on our P&L. We're looking into that strategy into the future to see if there's any adjustment that we should go through. Because as you mentioned, there's a volatility on the P&L that at the time due to the conditions of credit cycle is something that we are addressing. Just to summarize, we're. This strategy has been there for many years, and we're looking into it because of the change in the current conditions. Regarding the speed at which we've been tightening our underwriting policies for the consumer loans, we started making adjustments by June of last year. It's something that beginning at the end of last year. The adjustment were gradual adjustments, and we were monitoring the... how the disbursement were moving. As we saw that the growth of the portfolio was still a large, a significant growth, we kept tightening our underwriting standards, during the every month of the second half of last year. It takes some time for that to go through the pipeline in terms of applying those new criteria to new loans. As we are seeing that the... If we look at the loans that were being originated by September, October have. Those have definitely a very different behavior to the ones that we had during the first half of last year. Even though we're seeing the impact of the duration of the loan portfolio, and now especially in the last quarter of last year, that doesn't mean that the corrections were not in place during a significant part of the year. It means that it takes some time for us to understand the effect of each one of those changes in adjustments, in underwriting standards, as well as how they go through a cycle with our clients. We are aware, we were aware by the second half of last year, by the beginning of the second half of last year, that we needed to slow down in the consumer loan portfolio, and we actually took action in that sense. We will see that in the coming months in terms of the growth of the consumer portfolio. The impact of those changes in standards will be felt in during these coming quarters in terms of much lower growth. Thanks a lot. We have just received a new question through our webcast. This question comes from John Wright from Gramercy. Can you comment on cost of funding given higher for longer interest rate environment? Thank you for your question. Maybe I can explain that in term of net interest margin. For 2023, we are expecting our NIM to grow between 6%-6.3%. There could be an expansion compared to 2022, depending on when the interest rates start to decrease. The inflation and monetary policy rate pathway in 2023 is still uncertain. However, we are expecting last 25 at this point increase in interest rates, in the rate on March. As long as inflation is being controlled, the road to gradually decrease to 8.5% by at the end of the year. In this scenario, we could been seeing some improvement in our NIM as our multiple pricing may be close to its end and our rates will still have some room for repricing. In this context, our NIM may expand as the gap between financial income and expenses widens. Thank you. Thank you. Let's move on to our phone line, where Sebastian seemed to have a further question. Sebastian Gallego, do you have any other questions? Sebastian Gallego from Ashmore. Thank you. The microphone is open. Yeah. I'm sorry. Thank you. Please proceed. Perfect. Thank you very much. Can you hear me? Yes, we can. The floor is yours. Okay. Okay. Thank you, and sorry for the confusion. Yeah. Thanks for the previous answers. I just had 1 final question, and it is regarding if you could comment on the competition in the local market, particularly on the acquiring business, and how are you seeing your capabilities and your opportunities compare to other participants or to other competitors? Yeah, if you could comment a little bit of the competitive landscape within the acquiring business. Thank you, Sebastian. We're seeing a very active landscape in terms of the acquiring business in general, in terms of all the payments systems are full of innovation, new players, new entrants, new business models. We're definitely believe that we have a very good opportunity there. We already have a significant market share on the acquiring business, and we're working in different strategies to improve our position there. One that I mentioned during the initial remarks was, we are working very hard in small businesses, small businesses acquiring and through different strategies that complement each other. One is Mi Comercio, which is the opportunity to enroll a small business within our app, our retail Davivienda App as a merchant. That's a strategy that we're working hard on it. We believe that it makes sense, it makes a lot of sense for us to give very easy to use digital capabilities for a small merchant to open an acquiring account. That has been a strategy that we've been preparing for many months. It's already out in the market and we are actually with our sales force working hard on it with very good results. The second one is Mi Negocio, which goes to a lower end of the pyramid to very small mom-and-pop shops that can actually accept digital payments through DaviPlata. Eventually we'll open that to other platforms, but for now it's through DaviPlata, through close to 16 million customers that DaviPlata has will be able to pay in very small with very small merchants. We're close to 1.8 million merchants that we didn't have two years ago. That's definitely a competitive position in which we want to be part of. With regard to traditional segments of the market, which are more oriented towards digital sales and e-commerce, we also have a very good presence. Actually, we are a net winner during the last couple of years in terms of our market share on e-commerce. That's part of our strategy, and we will be working also. We have some products on the pipeline that will definitely be part of it. The acquiring business and the overall payments business is something that we're very invested and we're actually very committed to keep growing our market share on those markets. Thanks a lot. There seem to be no further questions at this time. With that, I'd like to turn the floor back to Mr. Suárez for any closing remarks. Mr. Suárez, the floor is yours. Thank you very much for to everybody for being here this morning. For us, it's a pleasure to share with you our results for last year. We understand that it's a challenging environment, that some of our results are below our expectations. We believe that the challenging macro conditions will be here for this year, for some time during this year, and we're prepared for that. Our capital ratios and our capital numbers are give us the ability to manage these difficult macro times, especially for our loan portfolio, the consumer loan portfolio. We're definitely expecting to see improving conditions during the second half of this year. During the first half, we'll still see that we will have to go through part of the cycle, the credit cycle that we are going through. The, the provisions that we are incorporating into the numbers include forward-looking views, as I mentioned before, that in our view is a sensible approach in terms of making sure that, that we incorporate the expectations for the macro conditions. In terms of of new strategies and new businesses, we're very excited. We're very excited with all the developments on the, on the digital platforms of the bank, both DaviPlata and Davivienda. The pipeline is full of new releases that will help us get closer to our customers in terms of ease of use and a complete portfolio of digital products. We'll definitely reap the benefits of this strategy in the coming months. This will also have an impact on our efficiency numbers that should also improve as compared to this quarter for the next coming quarters. We are optimistic even though the conditions are challenging and we are optimistic in terms of the results for the coming months. Thank you very much to everyone for being here with us, and we look forward to see you again at the end of the next quarter. Thank you very much, Mr. Suarez. Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.