So we are very comfortable with the level of provisions. We have BRL59 billion, almost BRL60 billion in provisions, an excellent percentage of provisions for those operations that are 100% provisioned for, adequate provisioning above 90 days, delinquency rates dropping not as much as we would have liked. But when we observe short-term delinquency, these rates are falling in a robust fashion. And of course that will have a reflection in 90-day NPL. So everything that we are observing points to good direction, we don’t have a magic number, a target to give you. There should be no more or no increase in ALL. The ALL, we have, there is a provision that we have, gives us confidence that we have the correct coverage for the portfolio that we have today.
And this reflects the growth of the loan book. We are going to see an increase in the loan book. This will bring an increase in ALL. It’s good ALL because it’s good operations that are coming in. But with the IFRS, this aspect will change, which is the expected loss. It is with this model that we are working to define the provisions that we can make, to increase or even reduce ALL.
Carlos Firetti: And one specific comment, we are one of the few banks that are treating specific clients as delinquency. If it went for this effect and the additional part of credit that is considered delinquent in Q3, if it weren’t for that, the coverage ratio would have stayed stable. And the point that Octavio mentioned regarding the origination of new loans, this is what is going to lead to an improvement in the coverage ratio as we originate new loans that are performing well with no delinquency, we’ll rebuild the coverage ratio during the cycle.
Bernardo Guttmann: Thank you. It’s clear. Thank you very much.
Carlos Firetti: Our next question is from Eduardo Rosman with BTG. Good morning, Rosman, you may proceed.
Eduardo Rosman: Good morning. Good morning, everyone. I have two questions. My first question is about dividend payout. The bank has maintained a very high dividend payout close to 70%. But assuming that the bank intends to expedite growth next year and profitability is still below anticipated levels. I mean you’re not building a lot of new capital. So what could we expect in terms of the payout next year? This would be my first question. I would just like to understand these payout dynamics or whether you wouldn’t be worth it to do some buyback. And the second question is about cost of capital. We’ve been talking a lot about cost of capital. I think one of your competitors usually publishes how much they believe their cost of capital is. So in your view, what is Bradesco cost of capital today, considering the dynamics of interest rates going forward?
Octavio de Lazari: Thank you. In terms of dividend payout, this year we already provisioned for that. And I think the buyback is an important alternative, so much so that we just renewed our buyback program. That was just about a week ago. So that could be a good alternative. Even considering the value of the shares. So that buyback program is ready and renewed when the time comes. And for next year, even with lower results in comparison to what we would like to have, we will certainly try to remunerate our shareholders with a reasonable and adequate payout. Therefore, as I was saying, it does make sense to resort to buyback. In terms of cost of capital, maybe Firetti, you can say something.
Carlos Firetti: Our cost of capital is very similar to what the analysts calculate, something ranging between 14% and 15%.
Eduardo Rosman: I just have another follow-up question now. Thinking about next year, do you think that the payout would be along the same levels? Do you think that you will remain having this high payout to have an additional benefit because I think this also has an impact on the tax rate?
Octavio de Lazari: Okay. If the benefit remains, continues, I think so. We would probably try to use it and then have the full benefit because this would serve our shareholders well. But there are still some steps that are necessary until we see what will happen. There was an important change in terms of interest on capital that was being discussed at the Senate level. And that was an important adjustment that happened because with that shareholders will be more comfortable. But regardless of what may happen, our intention is always to make full use of interest on capital. I understand that the minimum would be 30% according to the bylaws, right?
Eduardo Rosman: Yes. Thank you.
Carlos Firetti: Our next question is from Yuri Fernandes with JPMorgan. Good morning, Yuri. The floor is yours.
Yuri Fernandes: Good morning, Firetti. Good morning, Octavio. I have a question related to your NII. Looking at liabilities, on the liability side, things were performing well. I mean you had good funding in the quarter. But don’t you think this was a pushback in your margin? I mean, demand deposits were down. Savings deposits also down in this scenario of high interest rates. But I just want to look at that liability line, whether this does not affect NII. And in terms of SME, you’re constantly talking about this mix that the company is working at that very closely, but there was a drop of 1% when NII was down by 5%. So the mix of SMI is very, very tight. Could you share with us something related to that segment of companies below BRL30 million? And I think that the mix of SMI should be a little bit different.
