Transcript - 4Q17 Earnings Conference Call

Transcription

1 February 20 th, 2018 Transcript - 4Q17 Earnings Conference Call Supervielle Fourth Quarter 2017 Earnings Call Opening Remarks Operator Good morning and welcome to the Grupo Supervielle Fourth Quarter 2017 earnings call. A slide presentation will accompany today's webcast, which is available in the Investor section of Grupo Supervielle s investor relations website, As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today s presentation. As a reminder, today's conference call is being recorded. At this time, I would like to turn the call over to Ana Bartesaghi, Treasurer and IRO. Please go ahead. Ana Bartesaghi Thank you. Good morning everyone and thank you for joining us today. Speaking during today s call will be Patricio Supervielle, our Chief Executive Officer and Chairman of the Board of Directors and Jorge Ramírez, Vice Chairman of the Board of Directors. Also joining us is Alejandra Naughton, Chief Financial Officer. All will be available for the Q&A session. Before we proceed, I would like to make the following Safe Harbor statement. Today s call will contain forward-looking statements and I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. I would now like to turn the call over to our CEO, Patricio Supervielle. Patricio Supervielle Thank you, Ana. Good morning everyone and thank you for joining us today. If you re following the presentation, please turn to Slide 3. 4Q17 was another good quarter for us. Key highlights include: improved efficiency ratios, strong deposit growth along with solid profitable loan growth. Our business continues to benefit from the strength of our franchise along with improved economic conditions in Argentina which is driving strong demand in corporate loans. Persistent inflation, however, is impacting the consumer finance business, although this higher risk is fully priced in. Overall, a solid quarter and we are encouraged with the opportunites we see ahead for us. 1

2 Turning to the macro environment on slide 4, we continue to see broad-based improvements in economic activity in Argentina. Construction, up almost 10% annually continues to lead growth, mainly fueled by public sector infrastructure works, followed by wholesale & retail sales along with agriculture and other primary activities. Consumer demand, however, continues to lag behind affected by persistent inflation and a soft job market. While inflation continues to slowly trend down, it has proven more persistent than originally targeted by the monetary authority. The Central Bank originally raised the monetary policy rate by 150 bps to 27.8% in October and another 100 bps to 28.8% in November. Monthly inflation increased sharply to 3.3% in December from 1.3% in November, reflecting higher utility tariffs. With annual inflation declining to 24.8% from 41.2% in 2016, but still far from the 5% target for 2019, at year-end the Government and the Central Bank postponed reaching the 5% inflation target by 2020, thus moderating the pace in the reduction of inflation. As a result of this realignement, the policy rate was later cut by 150 basis points to 27.25% in January and remains unchanged. Moving on to the Argentine financial sector, on slide 5, system loans to the private sector expanded by 52% year-onyear, and 14% sequentially above inflation. The latter was mainly driven by retail loans up 16% with growth in mortgages accelerating to an impressive 34%, reflecting healthier economic conditions. Actually, inflation-adjusted mortgages which were launched in the fourth quarter of 2016, have shown impressive growth in recent months reaching 42% of total mortgages at year-end. System corporate loans continued to post solid growth up 12% quarter-on-quarter. System deposits, in turn, were up 27% year-on-year and 12% sequentially, lagging behing loan growth rates. US$ denominated system deposits rose 10% sequentially, while peso-denominated deposits were up 13%. Overall, we are pleased with our performance, with year-over-year loan growth beating both the system as well as our guidance target, while Supervielle s deposit growth more than doubled industry growth. Turning to slide 6. Our business growth continues to reflect a recovering economy. Additionally, we have been deploying the funds from our latest equity offering. As of a result of these events, we delivered robust loan growth - expanding our loan book up 56% year-on-year. Sequentially, we posted loan growth of 13%, following a third quarter expansion of 20%. Net growth in the quarter amounted to 7 billion pesos. As you know, an important element of our strategy is to develop closer relationships with our corporate customers so that we become their principal bank. Our strategy is paying off as we are seeing strong growth. Importantly, corporate loans are gaining share of our total loans - up 200 basis points from the prior quarter and now account for 51%. Less than two years ago, corporate loans represented only 35% of our portfolio. SMEs & Middle Market keep pace representing a stable 65% share of our corporate loan book. As we continue to expand our customer base and build long-term client relationships with a focus on high-margin SMEs, this quarter we launched a new customized value proposition focused on serving the specific needs of transportation 2

3 companies. During the quarter we also opened two new branches in the city of Buenos Aires, in areas with large concentration of SMEs as we deepen our focus on this attractive segment. Moving on to slide 7, we delivered strong growth across all segments of our loan portfolio, posting double digit sequential growth in corporates and retail, further supported by consumer finance. Our corporate loans, remain the strongest growing segment - up 17% sequentially and 63% year-over-year. Growth was mainly driven by Factoring, our largest corporate loan product and the second largest overall. Retail loans, also performed well, increasing 11% sequentially and 46% year-on-year. Personal loans maintained the solid dynamics seen in previous quarters, while credit cards showed a seasonal pick-up in line with industry trends. Mortgage loans, in turn, posted an impressive performance up 132% sequentially - as we continue to build this business with the goal of becoming one of the market leaders in this new market for Argentina. Based on our internal estimates, we rank among the top five players with a 10% share within private sector banks. We are very optimistic about the growth potential of this product driving loyalty and cross selling. Consumer finance loans were up 8% sequentially, mainly driven by personal loans while credit cards remained soft. Taking into account the sale of a AR$571 million performing personal loan portfolio in 4Q17, as part of the funding strategy, consumer finance loans would have increased 17% sequentially. Profitability in this segment almost tripled to 180 million pesos in 2017, from 68 million pesos in 2016, as the higher risk we are seeing in consumer loans is priced in. I will now hand off the call to Jorge Ramírez, who will review our funding and P&L and afterwards I will discuss guidance. Please Jorge, go ahead. Jorge Ramírez, Vice Chairman of the Board Thank you Patricio, good day everyone. Moving on to funding on slide 8, growth in deposits accelerated to 20% sequentially and 57% year-on-year, almost doubling industry growth rates. Our loan to deposit ratio, in turn, declined to 104% returning to levels prior to the equity follow-on, reflecting the significant growth in deposit balances. In 3Q17 this ratio had increased to 109% as we began to apply the proceeds from the followon to fund loan growth. Please turn to slide 9. Our sizable retail franchise supports a highly atomized deposit base, with 54% of deposits coming from individuals. This, along with our focus on driving transactionality with the goal of becoming our clients primary bank results in 55% of our total deposits bearing either zero or low interest rates. Funding is further supported thorugh wholesale special checking account deposits. Our diversified and competitive retail-based deposits franchise has proved to be one of our key competitive advantages and a key element supporting our strategy going forward. 3

4 Moving on to the P&L on slide 10, gross financial margin for the quarter was up 23% sequentially and 50% year-on-year. Total NIM, increased 90 basis points sequentially to 19.4%, driven by a combination of factors: Repricing of AR$ denominated loans reflecting the higher interest rate environment, Lower cost of funds, despite the 170 bps increase in the Badlar rate, supported by the accelerated growth in retail deposits and funds from the follow-on which reduced the need to take additional interest-bearing deposits, and Higher investment portfolio NIM, reflecting a larger share of AR$-denominated loans. For the full year, NIM reached 19.1%, in the mid-range of our 18 to 20% target guidance. Moving on to slide 11, we saw a pick-up in net service fee income growth rates in the quarter, up 33% year-on-year, 830 basis points above inflation. The main drivers behind this growth were fee repricing, the good performance in bundled products as we continue to drive higher transactionality along with higher sales of non-financial services. Positive businesss dynamics in checking accounts as well as debit and credit cards, also contributed to this good performance. Income from insurance activity accelerated increasing 37% sequentially, as we continue to see good traction in gross written premiums of voluntary insurance products - up 43% QoQ and more than doubling YoY, more than offsetting the 27% decline in credit-related premiums. In terms of asset quality, on slide 12. While total NPLs remained stable at 2.8%, cost of risk increased 10 basis points sequentially to 4.5% in the quarter, as our consumer finance segment, which represents around 12% of the loan book, remains impacted by persistent inflation and soft job recovery, in line with what we are observing for this segment industrywide. On the two charts on the right-hand side of the slide we show how lagged delinquency in our consumer finance business continues to follow more or less the same trend of previous years, but at higher levels than last year. Note, this higher risk is fully priced in the interest rates we charge in this segment. Also note that the personal loans NPL ratio was negatively impacted by the sale of a perfoming portfolio that Patricio mentioned earlier. Excluding this, personal loans NPL ratio would have been 18.8%, instead of the reported 21.4% and total NPL for consumer finance would have been 14.3% similar to the level posted as of September By contrast, NPL ratios improved in retail banking and remained stable at low levels in corporate loans. As anticipated, coverage increased to 91.8% from 88.9% in the previous quarter. For fiscal year 2017 cost of risk reached 4.2%, up 20 basis points from 2016 levels and in the high end of our guidance for the year. 4

5 Now moving on to expenses, on slide 13, we continued to benefit from operating leverage as the business grows. As a result, the efficiency ratio improved by 170 basis points sequentially and 430 basis points year-over-year to 60.2% in the quarter. This higher efficiency was achieved despite the 16% sequential increase in administrative expenses that resulted from: Wage increases to catch up with higher inflation, A 7% increase in our headcount, mainly sales force in indirect commercial channels to drive growth, and An 18% increase in non-personnel expenses reflecting higher turnover tax, advertising and publicity expenses. For the full year, the efficiency ratio stood at 63.3%, in the low end of our target range of 63 66%. Please turn to slide 14 to review profitability. For almost two years, since we first began holding these quarterly calls and discussing our strategy, we have been successfully executing on what we laid out. And last quarter, was no exception as net income increased 60% year-on-year and 36% sequentially On a comparable basis, when excluding a non-recurring gain from the sale of a real estate trust in 4Q16, net income almost doubled. ROAA was up 60 bps quarter-on-quarter to 4.1%, while ROAE was impacted by the temporary dilution resulting from the recent equity offering which increased equity by almost 70%. Note that 3Q17 included 15 days of dilution while 4Q17 was fully impacted by the higher capital base. Moving on to capitalization on slide 15, our consolidated pro-forma TIER1 Capital ratio declined to 18.4% at year-end, from with 19.5% at the close of 3Q17 which reflected proceeds of US$342 million from the September 2017 equity followon. Funds at the Holdco reached 4.3 billion pesos and are available for further capital injections in subsidiaries. These funds are currently invested in low-risk, mutual funds and central bank notes and also allow us to take advantage of tax losses carried forward at the Holdco. In the fourth quarter we made capital injections for 2.6 billion pesos in Banco Supervielle and CCF. Turning to slide 16. Summing up, we are very pleased to have delivered another good year of financial results that met or exceeded our 2017 guidance. 5

6 Our singular focus and objective is to create and enhance the value of our Company for the benefit of shareholders. We achieved significant results on a number of fronts in 2017 and are encouraged by the attractive opportunities we see ahead for us. Now, let me turn the call back to Patricio who will go over our guidance for 2018 and then we ll open the call for questions. Patricio Supervielle, Chairman & CEO Thank you, Jorge. Let me now share with you our guidance for 2018 and some of the underlying assumptions, which you can see on Slide 17. The market expectation and ours is for GDP to grow by 3% this year, with annual inflation trending down to 19.4%, and the average BADLAR reaching an average of 21% in December. Based on these macro assumptions and our focus on executing on our growth strategy, we anticipate sustained loan growth in the range of 45 to 50%. In addition to organic growth, we are always assessing attractive inorganic opportunities to complement our product offering, geographic coverage or our digitalization strategy and will continue to do so in the future. Our view is that this Administration will succeed in further bringing down inflation over the next two years. This presents an opportunity to position ourselves ahead of a stabilized macroeconomic environment and capture market share. In the near term, the consumer finance segment remains affected by persistent inflation and soft job recovery resulting in higher cost of risk, which is fully priced in. At the same time, we expect asset quality indicators to remain stable across our other business segments as we closely monitor our portfolio to assure healthy loan growth. The combination of these factors along with our goal of progresively increasing coverage is expected to result in cost of risk of between 4.1 to 4.5% in Despite declining inflation, we anticipate NIM to remain in the 18 to 20% range for this year. Our guidance also calls for additional operating leverage with the efficiency ratio reaching levels of between 55 to 59% for the full year. As we continue to deliver on our profitable loan growth strategy, we expect net income to increase between 64 to 76%, reaching between $4 to $4.3 billion pesos in This represents an implicit return in average equity of between 25% and 27%. Our Tier 1 ratio is anticipated to range between 14% and 15% at year-end as we continue to deploy the capital from the recent equity follow-on, increasing our risk weighted assets. This includes the 120 basis point decrease in the Tier 1 ratio, reflecting the impact on equity following the adoption of IFRS. We are now ready to take questions please. Operator, please open the line for questions. Thank you. At this time we ll be conducting a question-and-answer session. If you would like to ask a question, please press star, one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press 6

7 star, two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question is from Mario Pierry from Bank of America Merrill Lynch. Please go ahead. Mario Pierry: Good morning everybody and congratulations on the results. I have a question related to your loan growth guidance for 18. It represents a modest slowdown from what you delivered in 17, so I was wondering here if this slowdown is because you re seeing slower growth in the industry or are you on purpose going to turn a little bit more cautious as inflation has remained high? Also, if you could provide us with a breakdown of your expectations for loan growth in terms of the corporate, consumer finance and retail segments. Then I ll ask a second question later. Good morning, Mario. No, I don t think I mean I think you have to focus on it in terms of real terms growth. Real term growth is more or less the same or even slightly above that. So, again, as inflation continues to come down nominal growth rates will also tend to come down, but I would focus more on the real growth rate that we re guiding. Second question? Male Speaker: The breakdown. Mario Pierry: The second part of the question was related to the growth that you expect for the industry, so are you gaining market share or do you expect to maintain market share in 18? If you can breakdown the growth between what are you expecting for the corporate segment, consumer finance and retail segment. In terms of market share, we expect to continue gaining market share. We are expecting that our growth will continue to be above industry growth, more in the line between 40% to 45% for the industry and for the year, so we re expecting to grow above that. And breakdown, we re not giving we re more or less maintaining the breakdown that we currently have. Mario Pierry: Okay. On your release, you mentioned that you had 10% market share of all mortgages originated by the private sector. Can you just give us a little bit more details on what kind of interest rates and loan-to-value that you are offering? In terms of loan-to-value, we are giving between 70% to 75%. The average is around 70%. In terms of interest rates, we re currently charging closer to 7% above UVA. Mario Pierry: Seven percent above inflation. Yeah, and above that. I mean that s for people who get their payroll with us. Mario Pierry: Okay. All right, thank you very much. 7

8 Pleasure. Our next question is from Nicolas Riva from Citi. Please go ahead. Nicolas Riva: Thanks, Patricio and Jorge for taking my questions. My first question is on taxes. You had a quite low effective income tax rate this quarter. You mentioned in the press release that you used some tax loss carryforwards at the holding company. My question is if you expect to use more of these tax loss carryforwards this year and what s your outlook for the effective income tax rate this year, considering the tax reform. Then I will have a second question. Thank you. Yes. It s Alejandra speaking. As we mentioned, the temporary investment of the proceeds from the equity offering allowed us to accelerate the use of our tax loss carryforwards, and as a consequence we were able to post a decline of income effective tax. Those loss carryforwards are about to expire during 2018 so as a combination of this situation plus the decline of the corporate tax coming from the last reform, our effective tax for the current year is expected to be still slightly below 30%. Nicolas Riva: Okay. Slightly below 30%, okay, great. Then my second question is on the net interest margins. If I look at you guidance, at the upper part of the guidance that implies an expansion in the net interest margin of about 90 basis points this year. My question there is what makes you think that margins could widen this year despite the scenario of lower interest rates? If you can discuss a bit competition among banks really in terms of spreads really for this year. Thanks. It s a combination of things. It s Jorge speaking. It s a combination of things. One is we re expecting a lowering in the interest rate for funding for the second half of the year as inflation continues to come down. Remember that one of the things that differentiates us from the bulk of our publicly listed competitors is the proportion of personal loans that we have on our balance sheet, and those are long-term fixed rate. So, repricing of funding has a very big impact for us in NIM, okay? So as that comes down, that helps. The other thing is the impact of proceeds of the follow-on that provide funding at 0% interest rate, essentially. All those impacts combined explains this implied expansion. Nicolas Riva: Thanks, Jorge. Our next question is from Frederic De Mariz from UBS. Please go ahead. Frederic De Mariz: Good morning everyone. Thank you for the opportunity. I have a couple of questions. The first also has to do with the loan growth, but I wanted to focus more on the liability side. You mentioned that you were expecting a Tier 1 ratio around 14, 15 for the end of this year, 14%, 15%. I wanted to get your latest thoughts on what would be a comfortable level of capital and at what level you would be expecting to come back to the markets? We saw that the depletion in capital is obviously quite fast considering the good growth that you have been posting. 8

9 Together with this, not so much on the capital but on the funding side, what are you seeing in terms of market dynamics? Are you sensing more competition for deposits from the peers, from the other banks? Are you seeing any pressure for the time deposits? I wanted to get your thoughts and some flavor on the local market for the funding side. Then I ll get back please my second question. Okay. Regarding capitalization, our comfort levels are between 11% to 12% for Tier 1 capital. We are not expecting to have to raise capital again or go back to the market unless we do a sizeable acquisition, we always say that, or if we re growing at a much faster rate than we had originally projected. Those are always the two underlying reasons under which we would consider going back to the market, and believe me, if that s the case we will go back to the market for the right reasons and we expect a warm welcome from our investors as has been the case in the past follow-on. In terms of funding, what we re starting to see with these changes and realignment of central bank s monetary policy is that the interest rates for the Lebacs is starting to convert towards the Badlar rate. We have not seen significant growth in the Badlar rate; it has remained more or less stable while the Lebac rate has been slowly coming down, compressing the spread there. In terms of competition, we re not seeing a wide competition for funding. As we commented in the script, this year we doubled our growth rate in deposits compared to the rest of the market, so for us our funding base, especially having such a diversified retail deposit base at very low cost, we believe it s one of our key competitive advantages as a bank, and enables us to compete against the larger banks despite being smaller in size, but we re not yet seeing high pressure on competition for funding. In any event, one of the things that we are always considering is funding ourselves in the international capital markets, so that s always a possibility that will complement our funding strategy. Frederic De Mariz: That s great. Let me follow up with asset quality as well. You mentioned your guidance for this year for cost of risk at 4.1% through 4.5%. I was more curious to hear your thoughts in the long term. When you think of the profile, the risk profile and the appetite that you have for growth and considering your type of client base, where do you think a fair cost of risk would be? What kind of appetite for risk do you have? In the long term, one of the things that we expect is that cost of risk for the consumer finance segment should tend to stabilize. Especially as disposable income comes up, interest rates will come down, so the full combo should result in an expanded loan growth plus a much more stable and lower income. The other thing is, remember that we re still below 100% in coverage, for the next two years we will reach 100% coverage, we re increasing coverage and that also has an impact on our guidance of cost of risk because to do that we need to increase provisions. So, going forward it should stabilize around the 4% mark and probably ranging between the 3.5% to 4% mark. Frederic De Mariz: That s great. Thank you very much. Our next question is from Ernesto Gabilondo from Bank of America Merrill Lynch. Please go ahead. Ernesto Gabilondo: Hi. Good morning, Patricio, Jorge, and good morning to all your team. Thanks for taking questions. Three questions from my side. To recap, strong loan growth between 45% and 50%, but how should we think about the net interest income growth. Secondly, net fees expanded nicely, 42% in What are you expecting for this line in 2018? 9

10 Finally, in insurance activities, we notice they fell in 2017 due to the new regulation, but what are you expecting for this line in 2018? Thank you. Ernesto, it s Alejandra speaking. Regarding margins, as you know what we have ahead is the leverage play that implies important relevant increases in margins and as well as having positive increases in administration expenses, and this is shown clearly in our guidance of efficiency. To your point Ernesto Gabilondo: Sorry to interrupt you, Alejandra. Just in terms of the correlation that we should expect about the loan growth and the net interest income growth, not really talking about the margins but the net interest income growth. How should we think about it? Yes, where I was heading I think is to your point regarding that our net income is expected to grow significantly in similar patterns like the one that you observed during Even though I cannot give you guidance regarding margins, instead what I give you is efficiency is a good proxy to imagine that our margins, they will be growing between high 50s to 60s percent. Ernesto Gabilondo: Okay. In terms of fees, the answer is similar. We are expecting to post increasing fees by low 30s. Ernesto Gabilondo: Okay, perfect. About the insurance activities? I don t know if you have any Male Speaker: Insurance activities. Insurance activity was implied the number that I mentioned regarding fees. Ernesto Gabilondo: Low 30s also. Those two were combined, fee income plus income from insurance activities because as part of the regulation, the fade-off of the credit-related portfolio ends in 2018, early 2019, okay? So you re still going to see some impact in terms of some revenue being lost from that part of our business, which will be more than compensated by the growth in the voluntary insurance business. 10

11 Ernesto Gabilondo: Perfect. Thank you very much, Alejandra and Jorge. Pleasure. Our next question is from Rafael Frade from Bradesco. Please go ahead. Rafael Frade: Hi. Good morning everyone. It s just a follow up from previous questions regarding your funding strategy. As you showed, you did very well in terms of funding, especially compared with the industry in the quarter. I only would like to understand why you securitized part of your portfolio, again, given that you are doing so well in terms of funding. What s the strategy here going forward and how easy is it to eventually securitize other portfolios if you have some pressure in terms of funding? Morning, Rafael. The securitization has to do with remember that we operate our consumer finance business through a separate legal entity that does not raise retail deposits, so securitization is a way for us to secure funding for that part of the business. That is something that we are always measuring, whether we do it if it s more convenient from a cost of funding perspective as opposed to issuing a medium term note or taking deposits from institution investors. Rafael Frade: Okay. That s perfect, thank you. Once again, if you d like to ask a question is it star, one. Our next question is from Yuri Fernandes from JP Morgan. Please go ahead. Yuri Fernandes: Thank you gentlemen and congratulations for the results and the strong guidance for this year. My first question is regarding IFRS. Can you explain what s the main difference between the 4Q estimates impact versus the previous one? Just to put some numbers here, I guess now you re anticipating kind of 5% impacts your equity. This was kind of 2% in the third quarter, so what has changed here? My second question is regarding M&A. You just commented on M&A potentially driving further capital increase; I guess that was just a comment. But are you seeing any potential target in Argentina for sale? Is that something that Supervielle is interested on doing? Like growing not organically but through M&A. That s it. Thank you. Okay. I go with the IFRS question. Yes, as mentioned, the numbers of IFRS adjusted our shareholder equity. By December it is 4.9. It s above the one that we were estimating as of September. We were reporting every single quarter during the year the adjustments. As a consequence of the activity that the Company has, the adjustments changed. In this particular case, the increase quarter-over-quarter has to do with, firstly, higher termination benefits on human resources, so some retirement plans that we had in the quarter during the last quarter and we didn t have as of the third quarter of Plus, the deferral of income from the sales of financial assets we recorded that we mentioned when we commented on consumer finance. These two elements increased the effect on the equity regarding IFRS. On the other hand, the positive adjustments that could have increased, could help compensate at some point this higher increase has to do with the sale of real estate property. The point here is as of September we had properties that we assumed to update at market value in our shareholder equity, but during the last quarter we sold that property so we don t 11

12 have anymore that property to consider because the profit of that sale is implied in the income of the fourth quarter. I would say that these two elements are the ones that are to change the landscape between one quarter and the other quarter. Anyway, I would like to highlight that all the guidance provided for 2018 has already incorporated all the changes in the accounting policies for adoption of IFRS. Yuri Fernandes: Okay. Thank you, Alejandra. Patricio Supervielle: Okay. Yuri Fernandes: And regarding M&A? Patricio Supervielle: Yes. This is Patricio. Regarding M&A, basically we view ourselves as consolidators and in terms of inorganic opportunities, I mean the core of strategy we stated that it is organic growth and we continue to believe that it will continue to be organic growth because of such a low penetration of the credit in the economy. However, we re always looking to opportunities to complement, let s say for instance our product offerings, or let s say complement the value chain that we have in our franchise, or maybe expanding to new geographic areas. This is something that we look into it, and we always do, and it might be possible that at one point there will be an acquisition. Yuri Fernandes: Thank you. Thank you, Patricio. Once again, if you d like to ask a question, it is star, one. If there are no further questions, I d like to turn the floor back over to Ms Bartesaghi. Ana Bartesaghi: Thank you for joining us today, and we appreciate your interest in our company. We look forward to meeting some of you over next month at the Investor Day that will be held in New York City and simultaneously in Buenos Aires. In the interim, we remain available to answer any questions that you may have. Thank you and enjoy the rest of your day. This concludes today's conference. Thank you again for your participation. You may disconnect your lines at this time. 12