Marcelo Noronha: Tiago, thank you for the question. It is a pleasure to be speaking with you. So first ambition is not to deliver just the cost of capital, this is an indication of ER, so we have a number of indicators, ambitious indicators. Some things we haven’t spoken about here, we are not going to be talking about to the market. But we want to deliver — our main goals to deliver superior profitability and return. And we want to grow step by step, quarter after quarter. But in a five-year time frame, we want to be in a different game level. I don’t want to promise. I prefer to surprise you rather than promise and not the liver. One expectation we have is that naturally follow along the quarters of 2026 perhaps on one of these quarters, we will be surpassing the cost of capital.
We have a high ambition regarding operating efficiency, and we will make this happen. We have growth, particularly reevaluating our footprint. To me, operating efficiencies cross-cutting, it is in our strategic plan. And perhaps this is the biggest lever for operating efficiency gain. As for retail, what we have seen with the consulting firm, and I’m not going to get into too many details is that we have clusters. In some clusters, we are profitable. We have a significant share of wallet I spoke about our incapacity. The secret here lies in the cost to serve. That’s why we want to review our footprint. We tend to reduce it, but it’s not binary 100% physical under percentage No, of course, will migrate to digital. I have to know in which channel to operate, at least remembering, Vitesco Espresso.
We have one department which is B2B2C. And I said, we implemented a new system with tablets to our merchants. They serve clients. They do business, providing customer credit, selling cards, opening checking accounts and having transactions as well. So they have the ability to serve clients. So we do enjoy some advantages that I don’t see in other competitors. They have other advantages that we might not have. I respect competition a lot. I think we have very competent people in Brazil, both in the incumbent banks and in the new commerce in stages. But we have the largest correspond banking system in Brazil with more than 38,000 points of service, and we can compete very well in the low-income segment. In addition to the cost to serve, we have the credit risk.
We are monitoring this closely with good credit modeling to capture what is necessary and to be profitable in most of these clusters. There might be a cluster here and there that we don’t want to work with. Okay, Tiago. That’s the rationale, but we can compete. This is what we proved in our own internal diagnosis. It’s really important that we mention it is. And over time, we will be delivering these results. Thank you, Thiago. Our next question, Daniel Vaz from Santander.
Daniel Vaz: Thank you, Firetti. [indiscernible] as the new CEO of the bank coming in with a good challenge of putting the strategic plan into place. Good luck, Firetti and Andre, I’d like to explore the culture and targets for the high levels, C-suite for the bank and others with this kind of control, more agile, more efficient, and we see experiences outside of Brazil or throughout Brazil that this target for C level is essential. So if you can talk about the changes that you’re working on or outlining for this. Thank you.
Marcelo Noronha: Thank you, Daniel. During the presentation, I said that we’ve been working on a new plan for human resources that will be discussed in February and delivered in March. That takes into account this new structure precisely. And I talked to all of the bank’s leadership team showing the new plan, those who work directly with us at every step of the way, had already seen it, that we are going to deliver a new performance assessment methodology, depending on the level, the weights are different, and we are going to recognize and compensate that that’s in the run the bank and the team that’s going to change the bank as well. We’re taking excellent people to change the bank because that’s crucial to us. We are going to deliver a new payment scheme for the executives of the bank.
We have that already in many departments, and we’re going to replicate it to the entire organization with a greater flexibility for some positions that somehow were kind of socialized when we were to hire or pay those variable income, and we’re changing all of that. This is all well based. We are going to make progress, and you will be able to see that over time. But our expectation is to approve this quarter so that we can implement it after that with our team. Moving on to the next question, [indiscernible].
Unidentified Analyst: My first question is about the credit quality. NPL is dropping, but that’s based a lot on write-offs. So starting 2024, how do you see the credit quality of the new vintages and how is that translating into originations, especially for no income. And second, it’s more strategic. What are you thinking about in terms of the team you want to attract for the stage this phase for the company? I know it’s the perspective. What do you think will Help you succeed?
Marcelo Noronha: First, we are monitoring very closely all of the new vintages. We’re working with much better ratings for individual loans and for SMEs as well. So all of the VPs are involved. We didn’t focus only on the credit people and the segment people, but everybody is involved, and we are monitoring this very closely. We’re seeing good vintages. We still need to improve some lines to improve our mix and help us in this growth of NII, client NII, it’s step by step, but it is going to happen. You can be certain in this last quarter, I saw the inflection point of this curve, both for individuals and micro, small and midsized companies. And we are working on during the year, we’ll maintain traction to grow during 2024 with controlled vintages.
So I think that here, we also have an important quick win in this new credit structure that we can capture value for other initiatives that we’re implementing as well. Now the team that we want to attract, and we have a headhunter doing the election for us in discussing debating. We had an assessment process in our team since starting in December. So we’ve been working, creating development plans for our leadership colleagues who will remain with us either unchanged or on run. So [indiscernible], we will attract people with different skills from what we already have people with flexibility, with an easy relationship and person that can deliver digital skills with our colleagues at Next, Bradesco and Dico as well, and who can also bring more knowledge.
