Be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Manuel Rivero Zambrano. Thank you, and please go ahead. Thanks. Good morning, everyone. Thank you for joining today's call. I sincerely hope you and your families are well. We're pleased to report strong first quarter results for Regional, highlighting continued progress towards strategic objectives. Consolidated net income reached MXN 1,628 million, reflecting stable growth and underscoring a disciplined approach to managing profitability. Our ROE stood firm at 20.58%, demonstrating an underlying strength of our business. On margins, although the net interest margin decreased slightly versus the last quarter, the decline was much less than the cut in the benchmark rate, demonstrating the resilience of our portfolio and funding strategy. The NIM remained healthy at 6.55, and we continue to focus on defending profitability through a better loan mix and a strong deposit base. Our efficiency ratio rose slightly to 40.4%, reflecting ongoing investments, aimed at enhancing operational capabilities and strengthening our market positioning. Net interest expense has been stable over the last four quarters, considering a 4.6% inflation rate. Administrative expenses increased versus first quarter 2024, primarily due to network branch expansion and sales-related costs, including higher investments in advertising, increased transaction activity in the acquiring business, and the addition of 200 new ATMs and 20 branches. This category increase is also explained by technology projects and software-related costs aimed to improve customer experience and customer security. These expenses will stabilize during the next quarters at the current levels. Other taxes, mainly VAT, rose because of higher expanding and higher investment. Rent and depreciation expenses, as well as personnel expenses, went up due to the branch network as we opened 20 branches during the last 12 months. Total net interest expenses are expected to stabilize between MXN 1,800 million and MXN 1,900 million per quarter, supporting growth while maintaining efficiency levels. Our loan portfolio and leasing segments continue to perform robustly, growing 12% year-on-year, driven by a 16% expansion in business lending. Core deposits increased steadily by 13%, fueled by a 40% rise in term deposits and a 10% increase in checking accounts, reflecting strong customer trust and market confidence. Non-financial income also showed solid momentum, growing 14% year-on-year. Key contributors included TPVs, insurance, and foreign exchange fees. Notably, payment-related fees surged 45%. Insurance income rose 31%, and market-related revenues increased 21%. These results reinforce our success of our diversification strategy and our ability to scale complementary business lines and strengthen revenue resilience beyond traditional banking. Looking ahead, we're optimistic of our ability to sustain growth, drive operational efficiency, and deliver long-term value to our shareholders. Now, turning to Banregio, while we continue to see a strong trajectory reflecting both strategic expansion and operational excellence, our branch expansion strategy is progressing well, with particularly favorable responses in key regions such as Nuevo León, Jalisco, and Mexico City, a statement of our targeted market optimization efforts. Additionally, we upgraded the digital platform of Banregio, the same as Hey Banco's technology, that continues to drive engagement and satisfaction and will drive cross-selling strategies that will enhance our portfolio mix. Operational excellence remains central to Banregio's strategy. Our efficiency ratio stood at 38.9% this quarter, highlighting effective management and prudent expense control. Meanwhile, SME and retail segments continue to show sustained growth, reinforcing our commitment to support business and individuals alike. Loan growth was particularly strong in the wholesale segment, with corporate loans 13% increase and medium-sized growing 10%. Personal loans also 12%, demonstrating a diversified approach of growth. On the funding side, checking accounts grew 10% and term deposits by 14%, further strengthening the stability of our funding base. Risk management remains proactive. The cost of risk and non-performing loans ratio stayed within target levels, reflecting sound asset quality and effective controls. The comprehensive cost of risk remained near 1%, primarily driven by specific corporate mid-sized cases transitioning to stage three. Most of these cases are isolated and are expected to resolve over the medium term, reaffirming our robust risk management framework. Meanwhile, mass market portfolios, auto, SMEs, and consumer segments are showing notable improvements. Our capital coverage ratio also remains strong, providing a solid buffer to safeguard financial stability. Customer satisfaction continues to be high, reflecting constantly strong net promoter scores, underscoring our commitment to delivering exceptional services and building long-term relationships. In summary, Banregio remains well-positioned to capitalize on future growth opportunities, maintaining stable profitability and enhancing our shareholder value. Moving to Hey Banco, we continue to see strong strategic execution and positive momentum. Net income reached MXN 47 million this quarter, making a significant milestone for Hey Banco as we achieve break-even ahead of expectations. This achievement reflects the positive shift in our trajectory, driven by a 32% increase in financial margin, a 21% rise in non-financial income. Growth was particularly strong in Hey Pago, 43%, and insurance products, 26%, highlighting our ability to diversify revenues and maintain disciplined spend control, while operating costs rising just 9%, well below revenue growth. Our loan portfolio expanded by 4%, powered by a 27% surge in business loans, reinforcing our leadership in the SME segment. Importantly, the credit portfolio mix improved significantly, shifting towards high-quality and higher-lending segments, which not only enhances profitability but also strengthens our long-term risk profile of the bank. Additionally, the credit quality improved as evidenced by a 38% reduction in provisions, while the cost of risk remains well-controlled and within our strategic targets, further reinforcing our profitability and risk management capabilities. Our funding base remains stable, with traditional deposits showing resilient performance, supporting our asset growth and liquidity position. Customer loyalty continues to deepen with a net promoter score of 64, reflecting a strong emotional connection with our customer base and robust brand positioning. Operational efficiency improved as well, reflecting our continued focus on disciplined growth and sustainable profitability. Our operating leverage strengthened, the expense growth showing a slower pace than revenues, which bodes well for future net income resilience. On the payment side, Hey Pago continues to deliver great results, total billing rising 31% year-on-year. Importantly, our customer acquisition and cost-to-serve metrics remain well below industry average, reflecting the strength and efficiency of our business model. This favorable position provides ample room to continue investing in customer growth initiatives while maintaining healthy profitability ratios. Looking ahead, we see significant opportunities to continue scaling Hey Banco Hey Pago further, enhancing operating leverage and continuing our structurally profitable growth platform. In addition, we are preparing for the upcoming migration of customers currently served under Banregio to Hey Banco, which we expect to materialize during the next quarter. This transition will further accelerate the growth of Hey Banco's active customer base and strengthen the brand positioning. In summary, the performance of Hey Banco reflects our disciplined execution, customer-centric focus, and operational strength. We are confident that this momentum will position us to continue growth and long-term profitability. Looking for a broader picture, we reiterate our full-year guidance, expecting solid and sustainable growth across key metrics through the remainder of 2025. We anticipate continued strong momentum in our wholesale segment at Banregio, driven by healthy corporate and mid-sized business demand, as well as ongoing strategic initiatives to capture new opportunities in target industries. We remain confident that our disciplined growth strategy and robust risk management will support steady performance and position us to deliver on our financial objectives of the year. In closing, we are confidently positioned to capture future growth opportunities and deliver sustainable value to our shareholders. Our disciplined management, sound risk practices, and clear strategic vision place us in an excellent position to navigate the evolving landscape and capitalize on emerging opportunities. Thank you for your continued trust and support. We now are opening the call for questions. Ladies and gentlemen, to ask a question, you will need to press the raise hand button. To withdraw your question, press the lower hand button. Please stand by while we compile our Q&A roster. Our first question comes from Brian Flores with Citi. Hi, team. Thank you for the opportunity to ask questions. I have two on my side. The first one is, if you could elaborate a bit on the asset quality trends. You mentioned the cases are isolated, so I just wanted to understand, what are you seeing into April? You mentioned there are no pressures in the 2025 guidance, but would it be reasonable to expect, maybe, if conditions are not the best, to see a trade-off between growth and asset quality if necessary? The second point is, we just saw what happened with BINEO and Banorte, right? I think on slide seven here on your presentation, you show LTV, CAC, and LTV measures for both Hey and Banregio. It is very interesting because both are very similar. I just wanted to understand, why does it still make sense for you to keep them separate as brands and not maybe just lever the infrastructure efforts you have made to maybe merge them both, as I know you're migrating from one to another? That would be very interesting. Thank you. Hello, Brian. Thank you for your questions. I will start with the asset quality. Yes. As you can see in the conference call presentation, most of the deterioration came from the wholesale segment. In the wholesale segment, there are two large cases and some medium-sized cases that are fully identified. We have collaterals. We have real estate collaterals on them. We do not see this as a trend. We have identified one more to ask about April. When you see CNBV data from April, you will see one more medium-large customer, not as big as the two original ones. That is the reason we do not see the deterioration. Obviously, as the cost of risk is a 12-month accumulated, we expect around 0.9%. That is the upper range of the cost of risk. If you have seen the relevant figures, the slide is mainly on Banregio, not this year on Hey Banco. I don't know if I answered the trend quality and the asset quality. Yes. Just maybe a quick follow-up because it was the final part of the question, is if you see still some pressures, maybe, as you say, in April, the rest of the second quarter, would it be reasonable to expect maybe a lower growth to balance with asset quality? No. In terms of growth in both, we see positive the reduction of the policy rate. We could see it negative for NIM pressure, for margin pressure, but we see it very positive for the easing for some customers in their monthly payments. As they have indexed variable rate, it will be reduced. Also for growth, that is your question, we see positive. If the rate goes down, it will be reflected in our rates. We have already reduced rates for leasing, and the variable is automatically. We expect some growth with the easing of the rates. In short, we will maintain our guidance, all of our guidance, but specifically talking about loan growth, the 10%-15%. Right now, it is 13%. Obviously, some of this guidance will go to the lower end. No, super clear. Thank you. Maybe on just the Digital Strategy, it would be very interesting. Thank you. The information we gave you at Banregio, it's wrong. It's completely wrong. The information you're saying, it's not true. Your statement, it's not valid in terms of cost of acquisition. Sadly, we didn't incorporate most of the costs in Banregio. Okay. Maybe from a, let's say, a bird's-eye view, maybe more strategic, should we understand that the offer you're making in Hey Banco is complementary to the offer you're doing at Banregio? Maybe no cannibalization, so maybe a two-strategy, sorry, a two-side strategy in terms of attacking different segments. Is this what we should understand? Yeah. As you know, Banregio is well-positioned for a more robust clientele, obviously higher-income families, businesses, et cetera. Hey Banco is much more slower. Although we're not on the base of the pyramid like Nu or Compartamos, right, or Banco Azteca or Coppel, we are targeting a medium-low income, which is, I think, very—I mean, it's not served correctly. The NPS in other banks is quite low. The cross-selling index in those clients, even inside of Banregio that we have some of them, it's pretty low. What we're doing in Hey Banco is producing great results in terms of the NPS and in terms of customers buying more products very easily. In that sense, we're very positive of how the middle-income families are evolving in Mexico. We are very positive on that trend as income continues to rise on those families, and we see that they're buying more and more products. I think being digital or not, I mean, it's secondary to how the offer is positioned, right? As we're not obviously having branches, that allows us to create a better pricing for customers, and that's allowing us to sustain growth, right? Right now, our focus is to continue growth on credit. We have MXN 3,000 million-MXN 4,000 million able to continue growing. That's our main source of—will drive income further, obviously. Will drive ROE further, obviously. We are focusing more on business lending or auto lending and those types of things that have a more robust NPL ratios, obviously much better quality, right? Because we're looking ahead in terms of 10 years, right? We're managing the bank because we know that there are going to be harsh economic conditions, and we don't want to be overexposed to consumer lending, right? I think that's pretty dangerous. We are diversifying a lot, and we are having a lot of great growth in terms of business lending, as you can see. We are very happy for the growth. It's completely different segments on Banregio. We're even more exposed in Mexico City, which is great for us. In that sense, we think that we're still very well-positioned to continue growing as we're focusing on our net income, as we're focusing on having a leverage that continues adding to the NIM. We're very happy with the NPL ratios that we have. We're very happy with how things are going operationally. As we said, I mean, we, as you know, are very—we like to manage our capital pretty well, and we like to have dividends as well, and we want to continue Banregio growing as well. In that sense, making profitable the operation of Hey Banco was very important at this moment. In that sense, we're very happy with our results. We're very patient with things, and things are going well. The brand was well-positioned. It has a lot of strength. It has a lot of engagement through social media and through the events that we have. It's gathering a lot of momentum. I think it's pretty good. Even the authorities are very happy for how things are going. In that sense, we can't speak with other institutions because of their—I don't know what they're thinking and what their main objectives are. In that sense, for us, it's very complementary. Banregio's clients and Hey Banco's are particularly very different. As Banregio is very small compared to the others, I think that's the main difference that we have, right? The other thing is that we learned so much in Hey Banco, so, so much. Now that we are translating that technology to Banregio, it's going to produce great results in terms of security, in terms of cross-selling index. It's going to be, I think, amazing. In that sense, we're very happy to be able to really make sure that we have innovation and even sustain an NPS that's much better than the average of the industry. Obviously, those customers are even worse than the average. You can imagine that we are delivering a very good service to clientele that were not served correctly, right? In that sense, we think that Banregio will flourish in terms of cross-selling, in terms of fraud, in terms of security, which are our main objectives at the moment in Banregio, right? I think in the digital strategy overall, we're very happy how things are going. In terms of expenses, we stopped acquiring new developers two years ago. Expenses will, I think, seed at the beginning of next year. We will continue seeing a small hike in technology, but very small. I think we're going to go in terms of we should go even a bit lower next year because of the ramp-up that we had in terms of the investment made in doing Hey Banco, right? The trend will continue to go downward because most of the technology has already been made, right? The bulk of the—we're not going to do a new app. We're not going to do a new web. We're not going to do that. We're just bettering it and making sure that we continue to make a better experience, right? In that sense, we're very happy. The other thing is that technology allows us to create experiences that we are not able, right? In terms of most of customers in Hey Banco have a low literacy rate. How we can make the technology better for them to take more credit and take more value out of the platform. That's what we're working on. I think as we worked very hard on making the product convenient and making the product to be able to buy it digitally, I think that's the first step. The next step is how can we evolve the experience in making sure that clients have more confidence in buying more credit and more value out of the platform? Because much of the clientele, and even the smaller, the medium-income families, they have a good income, but sadly, they are not confident enough to further their relationship with any bank, right? That is the main issue that I think we should address in the next 18 months, right? I think it is going pretty well. We are very happy with how things are evolving. We are clearly very ahead of the rest, very, very well ahead of the rest. We are happy about that. Yeah. No, super helpful, Ale, Enrique. This is me, Manuel. Yes, thank you very much. Next question. Our next question comes from Ernesto Gabilondo from Bank of America. Thank you. Hi, good morning, Manuel, Enrique, and Alej. Thanks for the opportunity. I have three questions from my side. The first one will be on your NIM expectations. For that, what will be the level of interest rates that you're assuming for the end of 2025 and 2026? What would that imply for your NIM? Should we think that the loan portfolio growth should be at a higher pace when compared to the NII growth? For my second question, it's related to OPEX. As you mentioned, OPEX came at a high pace during the quarter. You have already mentioned some depreciation cost and the opening of some branches. However, considering the expected economic slowdown, is there room to control OPEX? In your remarks, you were expecting OPEX between MXN 1.8 billion-MXN 1.9 billion per quarter. I believe that is around 10% growth for the year. I just want to double-check that. If you see there is an opportunity to reduce OPEX growth. For my last question, it is on Hey. Congrats that you have reached the break-even point. I want two questions, actually, on that. First, just to clarify if the CAC of Banregio is the only data that is wrong in your presentation or if there is something else. My second question is if we can expect an ROE target or how much could Hey be contributing of the consolidated earnings in the future. Thank you. I would start with OPEX, with expenses. Thanks for the congratulations. It took a lot of effort. Yes. As Manuel mentioned in the message, we expect it to stabilize. If you see the, and sadly, in the table, there are only two quarters or three quarters. In the quarterly report, in page 37, 38, you see the next quarters or the past quarters that are 1.7, 1.7, and 1.9. With all what we have done, mainly on the personnel-related expenses, we have controlled the increase of new employees, and we could see even some reductions along the year. In the rest of the items, as Manuel mentioned, it will not grow anymore, but it will not go down. All in all, you are right. We expect between 10% and 12% growth of total expenses. The room that we have is mainly non-related to sales or to transactionality expenses. I don't know if that answers the OPEX and expenses question. Just a question in terms of your branch opening. How many did you open in this first quarter, and how many did you expect to open throughout the year? Sorry, that was an update because we have an update in the summaries. It looks like we opened 20 in this quarter. No, we opened 20 in the last 12 months. In this specific quarter, we opened three, or at least we registered them to the CMBB. We are planning the 20 that we mentioned at the beginning of the year. We already have started seven, and we are doing contracts and all the process for the other 10. We opened three, and we are working on seven for the next quarter, and then another 10 on the second quarter. There will be 20 more or 17 more. Regardless of a potential economic slowdown, you continue to open branches? Yes, until we have a more clear path. Because as long as we maintain our break-even between 12 and 18 months and the payback between 30 and 36 months, then we see them as part of a longer strategy than just this year strategy. Perfect. In terms of NIM, I will move to the first question. We have seen that the NIM has behaved as we expected and as we have been guiding. The contraction of these 150 basis points of reduction in the policy rate led to 20 basis points total NIM reduction and 23 basis points reductions in loans NIM. We expect further reductions than initially our budget. For that reason, also part of the NIM guidance, we are done considering the final policy rate to be 8.25 or the TA 8.5. Right now, we believe it will go below that levels, but the sensibility stays. We expect a good second half in terms of investment securities portfolio. That is MXN 46 billion right now, along with leasing and mortgage that are an outro that are all of our fixed rate that will be maintained at least for one year, the securities investment rate. The other ones are longer term. That will help to hedge or defend the NIM at least in the second half of the year. Olin, how should we expect about the correlation of the NII growth when compared to the loan growth? It should be lower as we have seen right now, but we haven't done the calculation. We will do it. We have the sensibility in terms of basis points, but we can do it very quickly and share with you. I don't have a number right now with me in terms of the growth of the net interest income versus the growth of loan portfolio. Okay. Okay. No, but understood. Okay. Finally, in terms of the data that is wrong in the quarterly on the conference call presentation, it's also the LTV. We will review all the data because we change. Only on that slide. Only on that slide. Yeah. The review is going to be only that slide, Ernesto. Yes. Yes, yes. It's that slide. Okay. Okay. On your Hey potential targets in terms of ROE or how much could be contributing to your consolidated earnings? I think if we continue growing at the pace we are, I mean, as I said, if we grow the MXN 3,000 million that we still have or MXN 4,000 million, and we have a NIM of loans at 7% or 8%, more rich, I mean, it's like 8%. You cannot imagine how things are going to be evolved. We think we're expecting more income. I think we should stand, I think, at around an ROE of 15% probably at the end of the year, if things move ahead as we continue to ramp up. I mean, we continue investing in some areas and in advertising, etc. In terms of the percentage, I think in the short term, it will be evolving at 10%, I guess, around. Okay. Permanently? No, I mean, I will say in the next three years, right? It is evolving, right? We are really happy with how things are evolving. I think if things remain stable as we are right now, as we expect it, I think in that sense, we will continue to drive the profitability even further. When do you expect Hey's profitability to be at the same level of Banregio or even to be above Banregio's profitability, I don't know, in five years? What will be the timeline for that? Yeah, I think it would be in the midst, I mean, three to five years. Okay. Okay. Perfect. Thank you so much. Thank you. Our next question comes from Olavo Arthuzo with UBS. Hi, guys. Thank you very much for taking my question. Actually, it's just a follow-up on Brian's question because a couple of macroeconomists and recently the IMF, they are now considering a recession in the country. Last week, some of your competitors did not change the guidance and same today as Regional. Thinking about your large portion of commercial loans and the balance sheet, in case considering also the possibility of policy rate going down around three percentage points this year to something around 7%. What am I missing here that would explain why the bank hasn't revised some metrics of the guidance this quarter? If you could just share with us if the bank, Regional, is assessing possible guidance revisions for the next quarter, that would be also very helpful to all of us. Thank you very much, guys. We're definitely open. We talked about it at the board meeting. At the moment, we are not seeing any weaknesses. In that sense, we're talking with our customers, and still they're optimistic about how things are panning out. I think you have to see about the consumer economics, which are driving most of the growth, right? One sense is the rhetoric, and the other is how things are panning out. In that sense, we're very on the lookout. As you know, we're always very prudent in that manner. If things change, we definitely would do it. At the moment, we think it's responsible to do so as things are evolving at the moment. Yeah. Okay. That's great. Thank you very much, guys. Our next question comes from Tito Labarta with Goldman Sachs. Hello. Thank you for the call and taking my question. Excuse me. I had a follow-up, I guess, on your outlook for asset quality and also, I guess, provisioning to some extent. I mean, you mentioned there's two specific cases, and I think you have collateral. Just given a little some of the uncertainty related to tariffs, also on the prior question with the slowdown in Mexico, I mean, could there be some deterioration later on in the year? Also asking because, I mean, the provisioning levels did come down a little bit. If you look at your coverage ratio, it fell to around 150%. What gives you comfort that there shouldn't be any issues in asset quality, particularly given all the uncertainty in Mexico globally? What gives you comfort to be reducing your coverage in this environment? What is the right level of coverage, or how do you think about it just to understand what the outlook could be and any potential risks from an asset quality perspective? Thank you. Yes, Tito. We do not see a general deterioration. In fact, if you see in the slides of the quarterly, no, in the conference call, sorry, I opened the wrong one. In the conference call presentation, in the slides of Banregio, that is the larger portfolio, in terms of NPLs of the small businesses and auto and consumer and mortgage versus December or fourth quarter, there is a slight deterioration. Versus the same year, the same quarter of last year, most of them present improvement except for the consumer, that is the credit cards mainly, that has shown some deterioration from 2.6% to 3%. We feel comfortable in all this portfolio that is MXN 42 billion, all the ones that are included on our retail banking. In the wholesale, we present this aggregated. It is where you can see the highest deterioration for these two large and some medium. In fact, we're more worried about some of these medium because sometimes we lose visibility for their size until they are deteriorated. The large ones, obviously, there is a committee for work out, and there is a collections department for large customers. There is a lot of following and a lot of security in terms of collaterals. That's the reason we don't see a pressure generalized in all the segments for the second quarter and neither for the last part of the year. As Manuel mentioned in the answer to Olavo, we have to consider also our relative size and that we have been very good selecting customers and the share repeating that we can still do because our size is not the same being the 3% of the market to grow 10% with good asset quality than being the 15 or BBVA, that is the 30% of the market. We can still manage to do so. Also, we need to remember that 1.4% NPL, it's lower than the historical average for Banregio Regional. That number usually is around 1.6-1.7. Even with this increase, we're still in pretty good shape. Remember, we used to guide less than 1.8% or even less than 2%. Obviously, that makes uncomfortable some people because if right now is 1.4%, less than 2% sounds like there is a lot of room to deterioration. That is why we decided to move the guidance lower. The short answer will be, yes, we expect a little bit more deterioration, but not something drastic above 1.5% or 1.6%. No, we do not see it either with specific cases or in the retail segment. Okay. Makes sense. I mean, just thinking on the coverage ratio, it's lower, but if I do look a little bit further back, I mean, you've operated around 130, maybe 140 in the past. Is that maybe the right level to think about in terms of where you feel comfortable with the coverage ratio? Yes. Obviously, we would love to have more. As the provision methodology that we follow is the one that is defined by the regulator, by the CNBV, we do not have room to do additional provisions than the ones that are specified in the methodology. It is not an indicator that we can manage or control. Obviously, the higher, the better, but we do not feel uncomfortable with this 1.5 of this quarter. Okay. Makes sense. Thank you very much. Thank you. Our next question comes from Juan Dominguez. Hi, guys. Can you hear me? Yes, Juan. Yes, Juan. Thank you so much for the call. I just have a follow-up on me. I understand that you have a sensitivity to rates, and there are also some effects to mix rates. Your wholesale grew a lot more than your retail, and your time deposits grew more than demand deposits. I am just wondering, how are you seeing competition, right? Especially in your floating book for wholesale and SMEs, how are competitors behaving at the margin? Are you seeing a more benign environment for spreads, or on the opposite, you see more competition for the best clients out there, given the turmoil? Are we talking about loans? Yeah, exactly. About the spreads to T on your credit book. Yeah. No, in wholesale, there has been a lot of competition in the last two to three years. We haven't seen any specific bank to be more aggressive than the other ones. Usually, BBVA and Banamex have lower rates comparatively, and that has happened historically around 25 basis points, in some cases above, in some cases below. We haven't seen a change on dynamic. There is competition. There is always when there are new loans or new projects, it is difficult to find ourselves alone. Usually, the customers, they require at least three or four banks to price the new loan. We don't see any change yet. Obviously, if the loan in the system doesn't grow as we expect, 5%, 6%, 7% at least, that competition will be for the same customers. Maybe at the end of the year, we could see a pressure on price. Right now, we haven't seen it either on price or either on reduction of the loan book. The prepayments that we have seen are more customers that have liquidity that are postponing their new projects for the uncertainty, and they prefer to prepare the loans. It's not because they are moving to another bank. It's just because they have liquidity, excess of liquidity, and they prefer to prepay. Thank you. Just kind of a quick follow-up. In previous periods where you have a lot of volatility in the macro environment, what normally happens in those cases? You see a spread enhancement or a spread decrease pretty much? I'm just wondering, right? There is more risk, so you would think that the spreads should go up. Also, everybody's after the same clients, so spreads should go down. Just trying to understand what's the equilibrium between these two forces. I mean, for many years, though. That's something new. They maintain very stable. What we have seen in the last two periods, that is, eight and COVID, is that some of banks, they changed their policies, their acceptance policies. There is less competition in that sense. We try not to move up or down our price unless there are specific cases, very specific cases, customers that have been with us many years. For us, it's very stable. At least we haven't changed that since 2016, that it was the last time that we did some changes when the first Trump's period. Since then, we decided not to do a drastic change thinking on the environment. We maintain the same policies and basically the same pricing on the variable side. That is more than half of our loan portfolio, 62%, as Alejandro said. Perfect. Thank you. Our next question comes from Pablo Ordóñez from GBM. Yes. Hi, good morning, Manuel, Enrique, and Alejandro. Congratulations on your results and for reaching this important milestone at Hey Banco. My question is regarding your retail banking portfolio. Can you comment on what should we expect ahead for this loan portfolio? What are the growth drivers? It seems like the auto loans growing at 16% year- over- year continue to grow very fast. Do you think that these strong rates are sustainable ahead? We have seen several quarters with auto loans at the industry level outperforming the rest of the industry. Also for your SME portfolio, what dynamics are you observing here? What type of growth rates should we expect? Do you think that this segment could be more sensitive to a potential economic stimulus? Yes. In terms of the auto and consumer portfolio, we expect it to continue growing. As we mentioned or Manuel mentioned in the note, we have already implemented the technology that we developed in Hey Banco. We implemented in Banregio. We expect additional cross-selling through the app and through the technology in general. It's not only the app. The app is the face to the customer, but there are also the AI models, the data analytics behind it. We expect these, especially consumer loans, both credit cards as well as personal loans and auto, to continue growing at these levels, mid-teens, that is above market, but again, relative size matters. In the SMEs plus leasing, that is the small business portfolio. We would love to go back to 15%. It's part of the answer that I didn't provide to Ernesto. The branch network expansion is based on more bankers, both for the preferred segment or the affluent segment, but as well as small businesses. That is the main driver in small businesses. In auto and consumer, we are open. It is cross-selling through bankers, cross-selling through technology, and it is new customers that are attracted to the branches through all the below-the-line or any type of advertising that we do around the new and existing branches, not only the new ones. Mortgage is the one that we see with lower growth. We feel comfortable with the 10%-11% as we are not willing to go down in rates right now. We maintain the rates mainly stable even with all the increase of the rate. We will try to maintain them even with all the decrease of the rate. Thank you very much, Enrique. That was very helpful. A quick second question. On your funding side, deposits continue also to grow at the mid-teens level. Do you expect any type of slowdown ahead? Are your customers more price-sensitive to rates, or what type of dynamics should we expect ahead for your core deposits? Thank you. For the core deposits, specifically on the preferred banking and in general, we are growing, as you said, 14%-16% in time deposits. We do not see this reducing as we have been paying for many years, not only Hey, but also Banregio. In the preferred banking, very good rates compared to traditional banks and even to some of the new neobanks. Close to the tier, then it is a very attractive rate for preferred banking and with all the service and the advice of our bankers, private and preferred bankers that we have. That is the main driver for the growth there. Perfect. Thank you very much, Enrique. Our next question comes from Alejandro Lavín. Hi, good morning. Thank you for taking my question. I have a follow-up question on expenses. First of all, you already mentioned, right, that you have, I mean, sort of invested upfront in early 2025, right, in the OPEX line, non-interest expense line with a jump of 17% year- on- year, right? The rest of the year should be relatively stable in peso terms. You mentioned the range, right? Just sort of recapping, right? Because if the loan growth remains resilient and margins remain resilient and asset quality remain resilient, if you can contain OPEX for the rest of the year, you can still reach your guidance, right? I just want to make sure what your thoughts are on this sense, right? Let's say you maintain stable OPEX the rest of the year between MXN 1.8 billion-MXN 1.9 billion, right? Then the year-on-year growth begins to decline from 17% to maybe 10% to maybe high single digit by the end of the year, right? In that case, you could be in a good position to still reach guidance. My second question is on other operating expenses. It is a small line, but still everything counts, right? We also saw a jump of over 20% year on year and sequentially in other operating expense. I also want to take a look at what your thoughts are on this, if this can remain stable or maybe even decline the rest of the year. Thank you. Can you repeat the second one? Which other line? Yeah. It's other operating income, which in this case is other operating expense of around MXN 300 million. Yes. No, no. Yes. No, no. 307. Thank you for the clarification. I am moving just. In fact, it's exactly the same page. Exactly. All right. In terms of expenses, you are right. In this page, that is the eight. It does not show. First quarter is MXN 1.5 billion in first quarter 2024. If you see second and third, it is where the real increase started, this investment and increase on investment that we talk. It was mainly on third quarter that is shown in full in fourth quarter. That is why we are confident that we can maintain between MXN 1.8 billion and MXN 1.9 billion for the next three quarters. There are parts that are variable, mainly for the end of the year, all the transactional-related costs. The ones that are not transactional-related, like the investments, both in technology or branches or assets that are depreciating or amortizing, that is the ones that are not going to change. If you see the line of taxes that is VAT, mainly in Mexico, VAT, it is very low the first quarter, also 62. The next quarters are 97 or I do not have with me the four quarters together, but it is above 100. That should be around the level. We are not doing new big or larger investments than we did last year. That is why we are confident that should be maintaining that range. I will move to the up. I do not know if I was clear with non-interest expenses. Yes, understood. Thanks. Yes, to say 10% or 12%, we prefer to see 12%. Either way, we still can achieve the 10% lower range of profit or profitability increase in the guidance. I have seen some reports with 11%-16%. I want to clarify that it is 10%-15%. We consider very achievable the 10% at least, and we are aiming obviously higher. The other line is important also. There are two changes that we did. The main one is that the line that is called asset sales is all the foreclosed assets, but we are presenting it net. Last year was only the income from the sale. It was a very positive number on the asset sales and very negative in the last line, that other income expenses. We netted it. I do not know if you know. If not, I will explain quickly. When you foreclose an asset and you maintain it in your books one year, you have to adjust the value 10% every year. In the fifth year, you have to fully depreciate it or adjust to zero. The negatives that you see there is this 10% that every year we have to adjust to these assets. When you see a positive, that means that we sold a specific asset or assets or a collection of assets that in the sum is higher than their value in books and higher than the adjustment. Say that that's a very you will see a more regular number. The other one in the last line that is, IPAB moves with the traditional with the core deposits, sorry. In Spanish, it's Captación Tradicional. With core deposits, then it's 14% year on year and 2%. It will grow as we grow. We already talked that we expect similar numbers of 14%, around 12%-14% of growth in deposits, in core deposits. The one below, that aggregates a lot of items, but the largest one in this quarter is the CBA and DBA and the credit expected risk for our derivatives and investment securities portfolio used to be in the intermediation section. As we change the presentation just to show the FX fees on the intermediation section, these valuations, and more than a valuation, it is the risk adjustment with the volatility and the reduction of the rates. They are valuated, it is like a provision, not like. It is a provision of risk for derivatives and investment securities. Once we sell the security or the security reaches maturity, it is reversed. Or if the conditions in the market change. What I am trying to say in short is it should reverse that negative provision. Great. Thanks a lot. It's around MXN 60 million in this quarter. Got it. Thanks. Very thorough explanation. Thanks a lot. Thank you. Our next question comes from Andrés Soto with Santander. Good morning, Manuel, Enrique, Alejandro. Thank you for the opportunity to ask questions. My question is regarding your capitalization level and your dividend outlook. You have traditionally distributed a second dividend in the second half of the year based on your loan growth and capitalization level evolution. When I look at your capital ratio, it is right now at 14%. It used to be 15% a year ago. I was just wondering how likely it is for you to distribute this dividend. More generally speaking, where do you want to be in terms of capital considering the uncertain macro and outlook for Mexico? Thank you. Yes. Andrés. We will have today we will hold a general assembly today in the afternoon where we will propose and we hope they will approve the shareholders will approve a dividend. It is MXN 4.6 per share. That is around MXN 1.5 billion total amount of the dividend. That is, as you mentioned, that is the first half of the dividend as we did the last two years. We do not know what is going to happen. We will have to wait for October to decide if we are in position both on capitalization index or loan growth, all the variables that we have to consider. This first part, we will pay it. The capitalization index will move to 13%. There is a large but or consideration is that we capitalized it in the fourth quarter of 2014, MXN 1.4 billion to Hey Banco. In fact, if you check, Hey Banco already appears on the CMBB data. It only has MXN 1.462 million. And it's everything in securities right now as we are waiting for the migration of the customers. Once we do the migration of the customers, there are around MXN 9 billion of loans. The Banco Regional Capitalization Index will increase 1% back. It will be 14% around June or July, depending on the approvals to do the migration. That is a level that we feel very comfortable even with all the uncertainty. 14% is 2% above our risk. How do you say, [Foreign language] Our internal risk level metric or goal is about 12%. The regulatory one or compulsory one is 10.5%. With the 14%, we feel very comfortable. Even though you will see a 13 temporarily as long as we migrate the loans from Hey Banco to the Hey Banco subsidiary that is already active. That's very useful. Thank you, Enrique. Thank you, Andrés. Our next question comes from Neha from HSBC. Hi. Just a quick one. Could you tell us the exposure you have to the agricultural sector and real estate sector? On the demand for SME loans, with the uncertainty in the macro and the tariffs, do you see any how is the demand for loans? How do you see that evolving in the next six to nine months? Thank you so much. Congratulations on the results. Hi, Neha. Agrobusiness is around 14% of the commercial loans. That would be like 10%. Like 10% of the total loans, yes. Obviously, it's a very diversified agro. Larger companies. Yeah. Yes. It's many companies. We are not going to the primary sector. It's mainly agrobusiness or industrial agro, both for local consumption as well as export. Export, yeah. We have not seen a reduction on demand in any segment. We have not seen an increase either. What we have done is we have reinforced our specialized department. We had a very good department for real estate, and we are building a similar very good department for agro specialties in different regions of the country. We are generating our own demand through these special bankers focused on agrobusiness. If you remember, we have talked about diversifying the portfolio. Agrobusiness is one of the lines that we want to increase our participation in, plus to recover what we used to have in manufacturing and maintaining services and real estate that are our main sectors. Perfect. Thank you so much. Thank you to you, Neha. Since there are no more questions on behalf of our senior management, I would like to thank everyone for joining the call. We look forward to speaking with many of you in the coming weeks. If additional questions arise, please do not hesitate to reach out to Alejandro and our investor relations team. Thank you for your interest in Regional and have a good day. Thank you, everyone. Thank you for participating. Thank you.