If it doesn’t match what we’re expecting, we just won’t do it. We’re very safe about what we are doing, what we are delivering qualitatively dependency AI is not the main tool. The main tool is machine learning. And this is [indiscernible] for the meeting. Yes, I think is to be mentioned, the choice is very important. The concept of the municipality having the clients with us a lot of traction. We can see that and those cards that is [indiscernible]. And it is in our DNA. We know how to do this [indiscernible] and we have new [indiscernible] credit department. So, these all from mental pieces [indiscernible]. These will positive, with the positive changes. These were adjustment for it. I think credit card for non-checking account holders, that’s a modality where we are more restrictive.
For high income clients, we have grown credit cards almost 12%. So, the open sea cards offer a little more risk today. But we have modeling to that. So, we have some piece of kind regarding where we’re doing one of the segments. We’re not working with just one segment. This is about [indiscernible] highly income, income is overall sizes including because of [indiscernible].
Unidentified Analyst : I’d like to ask a question about [indiscernible]. You showed a third origination for mass, companies mass market. Still a couple way from the other [indiscernible]. How [indiscernible] this get up? We have across 90-day [indiscernible] but why his origination are at the same level of [indiscernible] maintain is it a supply or demand issue? When should we expect this to grow? Number one.
Unidentified Company Representative : It’s about risk appetite. This is the highest risk segment. The t lily for those companies is zero to three. But in three to 50, I spoke about managing a living portfolio. So, there’s a management model that is being implemented in this segment. And that some house to flow on a living portfolio and act all [indiscernible]. It is automated, but at the same time, it counts on our colleagues, the managers, the regional managers to enter specific to use this. So, we’ll improve the holiday to treat effectly and there are but until BRL3 million. There is effectively more risk because the Brazilian market is like that for SMEs. So, I have a little appetite to get back. But we believe that we have started and we will continue to grow origination.
And another reason to believe in that is that we totally change our offering, what we offer to our sales force for preapproved the way to approach clients with a commercial tool. It’s all changed. And it started now in the month of April with a different setup, different comp gearing. In our opinion, in the opinion of the colleagues responsible for that segment, this will give a lot more traction to have a better credit quality, better credit analysis, more specialists working that segment, a new commercial tool. I’m a sign new tool. It’s a new commercial format for this segment. In this new segment, BRL3 million to BRL50 million that we’ve verticalized, there’s a different traction compared to the segment of segment of up to BRL3 million year-over-year.
So, it will increase loan origination with the right controls and, I’m sorry. In to it, when we look at the track record of delinquency, historical series shows that individuals drop first and then SMEs and then at small enterprises. So small enterprises are having their inflection, no, that’s the market risk Marcelo. That’s why on a appetite and only step-by-step was safety. And in the future, it should accelerate and in the segment of smaller companies that will require more provisions, but the margin will more than offset that. And the credit policy will be adjusted. We will commit all the time.
Operator: Now Mario Pierry with Bank of America.
Mario Pierry: I have two questions. First question, when we look at the bank’s coverage ratio, we calculate a ratio close to 162%. I mean, it’s lower than your peers. But we also look at your complementary provision close to BRL6.2 billion and historically used to be around BRL89 billion. Do you intend to revisit those reserves? How do you feel the reserve level stands today? And the second question is about capital. There was a decline in your CTO ratio, a drop quarter-on-quarter. So how do you see this CET ratio impacting your dividend policy or even your capacity to grow?
Unidentified Company Representative: In terms of coverage ratio, we do not have a target for that coverage ratio, because it fluctuates according to the credit cycle. So, if the cycle aggravates delinquency as well. I mean, because we increase the amount of provisions. I mean, we provision for a 100% of our clients as the credit cycle begins to change when we saw that happening in the first quarter of the year. Certainly, the coverage ratio increases, because we originate credit that naturally at the beginning comes with higher provisions than delinquency coverage increases. Therefore, this is a very cyclical KPI. We are not very much concerned with it. We think it’s very adequate for the current moment and certainly it has a natural recovery.
Now in terms of CET1, I mean, we continue to say that capital is well in place and in terms of the capacity to do all the traction that Marcelo talked about, we can say that it grew vis-a-vis the quarter three of ’23. There was a slight drop in this first quarter basically focused on mark-to-market bonds, but this also has to do with IOC. And so, we understand that it develops naturally. We don’t anticipate any changes in this capital throughout the year. It will be very close to what you see today and we believe that this could be a possible leverage to our credit increase. Therefore, our capital, it’s in a very comfortable position right now. Well, first of all, you know that we project capital going forward. Also, we project it for following years.
We see capital standing flat even though the portfolio is growing. No problems here. Secondly, I don’t think this will be a limiting factor for growth or even the distribution, I mean interest on capital. And the coverage ratio, I think I told you in the first quarter I refer to how comfortable we are in terms of the wholesale banking. Our total coverage ratio is very good. And in particularly, in terms of the wholesale bank, because I was asked this question by journalist during our press conference. It is very much under control and I talk about that last quarter our coverage ratio is ideal. And even we have some room for other cases related to expected losses before, no problem at all in terms of our coverage ratio.
Operator: Now we have Thiago Batista from UBS.
