Mario Pierry: Good morning, folks. Thank you for the opportunity. I have two questions. Number one. Looking at the new guidance of expansion. it is implicit that expenses will remain flat in the second half compared to the first half. So any new measures taken by the bank to contain expenses? Where do you see this improvement in the guidance? Second question, I’d like you to elaborate, because you mentioned that you’re going to be issuing credit cards for Amazon, and I’d like to understand the economics of this project. If the credit risk is on you. And if you could elaborate on that, it would be very appreciated? Thank you.
Octavio de Lazari: Good morning, Mario. Thank you for the first question. Well, the second question, I won’t be able to elaborate a lot, but I’ll tell you whatever I can. Regarding the guidance of expenses, I would like Cassiano to speak a little bit about this and then I’ll add if necessary.
Cassiano Scarpelli: Thank you, Mario, for the question. Good morning. Well, the guidance of expenses, let’s remember what we have been systematically reporting to the market, and it’s a strong cost control of the organization, and this continues. Expense lines, both administrative expenses and personnel expenses, well, that’s all under control because of the work that we’ve been doing. This has to do with our cost to serve so that we can have a good control of expenses, even considering our collective agreement in September, still, we have expenses under control. Operating expenses, in other words that are making some difference, but in the second half, they are coming down to the normal range. So we are convinced that when we change the guidance, we are right in the middle of the guidance.
And we’ll know that our expenses are always under control. We don’t see a lot of variation. We understand that we are on the right path of maintaining expenses flat or stable in the second half of the year.
Octavio de Lazari: Yes. And Mario, let me add to what Cassiano said. Of course, we are continuously making adjustments in our network of branches. You will see that it’s not that we closed down branches, but we changed the branches. Either we merged some that were very physically close or we turned a conventional branch that has a lot more costs, guards, security, guards, revolving doors, et cetera we turned them into a branch that has a lot less fixed costs and fixed expenses. Since last year, this work has been starting. In 2021, 2022, we started doing that. In 2023, in the second half, there’s about 100 or 150 branches that will be transformed. We will continue on that path. There is also the progress of Bradesco Expresso with 41,000 points.
So we can ensure our presence in the cities, but it’s all based on variable costs. So we don’t have that problem of cost increase. If we have a cost increase, it’s because we have a much higher additional revenue flowing in. So this gives us a lot of comfort, a lot of peace of mind to adapt the expense guidance and to say that our expense should be in the middle, in the mid-range of the guidance. And as for the Amazon card, Mario, you will forgive me, but we cannot say anything. But what I can tell you is that the credit risk is our risk, but with total autonomy of Bradesco. Now the other aspects of the business, you will forgive me, but this will be launched on August 8th with the presence of the Amazon board and our Bradesco people as well.
