And our expectation is that by the end of the year, we’ll have about 250,000 clients already targeted and allocated here. And after that expanding our radius of action for SMEs and ensure that we are going to have a lot of traction here. Looking forward, what are our expected deliveries until 2020? Looking at this timeline, then your efforts will continue to hire for technology and digital channels. We will have the footprint provision, as I mentioned, and we’ll expand Bradesco Expresso. And here, I’d like to comment on another [indiscernible]. That is a differential about Bradesco, Bradesco has about 38,000 merchants losing Bradesco Expresso. You can use this to sell banking products and services and also to have transactions with Bradesco Expresso.
So, we delivered a new platform, as you can see here in this photograph into what — we already rolled out this to about 1,000 merchants. And these were heavily a totally different experience. I mentioned in the prior quarter that this is something that we’re developing and preparing. So, the moment that the merchants identify with their tax payer number, automatically our CRM engine uses intelligence. And even if they are not an checking account holder, the system identifies what we can sell to these consumers, what we can offer them according to their profile and risk [indiscernible] decent to grow significantly here. Bradesco Expresso has a 100% presence in Brazilian municipalities. And this quarter, look at insurance sales versus Q1 ’23, up 89% on this channel and origination of payroll deductible loans, 361% increase.
So, we expect to give a lot more traction to Expresso. But there’s another detail here, which is a game changer. We have four providers of these solutions. Go to the merchants with the traditional POS machines and some functionalities in the futures in these machines. We’re unifying all that. Two have left and by the end of the year, we’ll have just one platform with a lot more versatility and the ability to deliver functionalities and features to operate with these merchants. So basically, let me move to [indiscernible] run the bank and change the bank. So, I’d like to just reinforce improvement of ALL in retail and wholesale. Expresso control and the robust credit growth in all segments in addition to the results of the disasurists and in change.
The bank, I highlight our external hires. I’ve just mentioned one of the names. This was the first delivery and then the reinforcement of the credit BU with revision of processes. In the opening of the rentals for companies for SMEs, this has been delivered. Footprint revision, that’s strongly on the way and expansion of the distribution process I’ve just mentioned. So, we have deliveries. We are following the plan step-by-step so that we’ll offer better and better earnings every quarter. I thank you for your attention. And I now have my colleagues, Cassiano Scarpelli, our CFO and Andre Carvalho, our new IR officer, taking over from up to ready, and we’ll start the Q&A. Andre, over to you.
A – Andre Carvalho : I think I already said a lot. Good morning, everyone. I would like to inform all participants that Ivan Gontijo, the CEO of our insurance company is also joining us during this Q&A session, and he’s with us remotely. But if you want to send in your questions, you can send them either in Portuguese or English. And please do so using our email, investors like, you see in the screen [indiscernible] or using the WhatsApp number. The information appears on the screen. The first question comes from Renato Meloni from Autonomous.
Renato Meloni: I have two questions. The first question is about your transformation plan. Now that three months have gone by and since the official launch of the program and you have more visibility, what is different when compared to the original plan? And given your current visibility, whether there has been any changes in terms of delivering ROE above the cost of capital, and you said that you would do that throughout 2026? My second question relates to the guidance. To reach the NII guidance, this means that you have to have better origination, better margin because I think this will come with the mix and this will improve provisioning. So how do you see these three levers performing throughout the year and what is the pace and where do you see the risk of not delivering what you expect, not delivering to plan?
Unidentified Company Representative: Well, thank you for your questions. I will ask Cassiano to start and then I will add, not only Cassiano is the CFO, but he’s the CPO. So Cassiano is the best person to talk about the KPIs of our transformation plan.
Cassiano Scarpelli: Thank you, Renato. Thank you for your question. Our transformation plan I mean, what we did, we ratified what we envisioned in the diagnosis of our transformation process. As Marcelo put it quite well, we have over 800 people engaged, 2,600 initiatives and the KPIs are very apparent. I mean starting with the footprint all the way to the Rand the Bank and credit segments also that involves recovery, risk, hiring new people, technology, et cetera. So, we launched the plan on February 19. That’s when our new office started operating. But looking back today, we can say that this whole, the mapping was very important and we found more things which was quite interesting. We found other things that can lead us to have to us having a more agile bank, a more digital bank even more than what we are, rendering even better customer experience.
It’s not way ahead in the future, but it’s throughout the journey. And I am certain that the plan is well structured and the deliveries are well in schedule, and we will improve performance.
Unidentified Company Representative: Just to add to what he said, in fact, we reinstate that number. You might call that I talk about the total number. You may have some small adjustments to the calendar. Okay, this was expected for December, but it may be earlier or later. I thought that SME would help, but would perform better further on, but we were able to deliver the numbers before schedule. So, we still have that expectation in terms of the numbers. You might recall that if our CAGR for loan book would materialize, if CAGR would be 1% a year growth, our loan portfolio total growth for the expanded portfolio will be BRL3.3 trillion in 5 years. I mean, we want to capture part of it and the expectation remains form and we see contraction that we do have the capacity to get.
