Marcelo Noronha: Yes, Judy, that’s what Casciano said. We ran all projections with the expected growth levels, and we have sufficient capital to do it, and we’re comfortable with that. In terms of Celano, you asked two questions. So first, whether there’s going to be a correction. That’s not the information we have. That’s not what we have in mind for the time being. We don’t have that perspective about this direction [indiscernible], and the second is about Cateno, there is no discussion about separation from Cateno at this time. We are offering these stocks to the markets, the public acquisition offering because there are some important strategic points that I mentioned in our plan. And on Banco do Brasil’s size, they also have good penetration on legal entities.
And for both of them, the strategic aspect is essential because then that gives us greater strategic freedom to review our value proposition here for SMEs and even for larger companies since Cielo can also penetrate larger companies in their acquiring business. And on Banco do Brasil, we won’t get into their strategic decisions that they don’t get into ours, but we’ll have the liberty to do that. There are already separate commercial teams in the company, but it’s a closed capital company that effectively allows us to move faster, make faster decisions because we need to do that now. And then a question that may originate from your question, and I’d like to add here is that so if it’s a closed capital firm, are you going to be able to have the governance to do that?
The answer is yes. And it is, yes, because we have other partnerships with Paco Brasil, ALL Livelo. And there, they are all delisted companies. And we have this view of one and the other, and we have very good management, each one of us driving our channels and making the business development. It’s not going to be any different in Cielo’s case. Thank you, Yuri, for your question. Next question by Pedro Leduc with Itau.
Pedro Leduc: Thank you, Firetti. Welcome, [indiscernible], I wish you a longer of success in this new chapter of your lines. That’s a quick question. Just to clarify regarding the outlook for efficiency. We see the EMA and OpEx of this year running above inflation. Well, this is a period of investments and other costs that come with the transformation. I guess we could imagine as G&A growing then inflation in 2025, 2026? Or should we think that the efficiency ratio would improve because of revenues, while investments are kind of multiannual in a sense?
Marcelo Noronha: Obviously, we want to grow revenues a lot but the adjustments that we will be making in terms of reducing the cost to serve in our structure will be implemented partly along 2024, and flat should start giving us higher effects in 2025 in terms of reaping the panned, improving the efficiency and evolving those line items. Now when we look at our expenses for 2024, administrative and personnel expenses will grow basically in line with inflation in our projections. There’s slightly more pressure on the line item others because of provisions for civil claims and other provisions that are part of that line item. But in administrative and personnel line items, we already have a good level of control for 2025, we’ll start capturing benefits. So this is summarized. Revenues are important. But of course, the biggest capture will come from reduced expenses.
Pedro Leduc: If I may ask a question about SMEs. We’re discussing its strategy to assume growth in retail. And I know that SMEs are a relevant segment for Bradesco. It’s a profitable portfolio. So what is the turnaround strategy integrated with the recent announcement of Cielo if you could elaborate for SMEs, it would be welcome.
Marcelo Noronha: As I mentioned, Pedro, I’ve been dividing SMEs into three segments: Tier 1, €550 million. We’re having new platforms that are being opened in the main cities of Brazil, we’ll expand the radius of those eventually. So we are locating the sales force with more prepared people. We are training people. We started opening these platforms in the end of last year, and we’ll continue these openings in 2020. We expect to deliver 122 new platforms with a much more focused and established management. Like I said, with a new management model, including portfolio [indiscernible], not just in a centralized way, but also decentralized and a better customer experience for our clients. We’re also changing the value proposition and increasing the sales force in the SMEs 0 to 3 million because these are more decentralized in the branches in Brazil and also for micro-entrepreneurs with remote service and digital servers.
Naturally, we expect to improve the value proposition and it’s linked to this OPA, the Cielo OPA or OPA is the public acquisition offering and other strategies are going to the market. If I may add neuron. Also, the use of transactional information. That’s the best use we can put our CRM for. We have been working a lot on this. And the product verticals looking more and more to this niche. The new cash platform that we are introducing. So we had CRM, the transactions database are in new products and the new account loading, all subdivisions of SMEs with all that, I believe that we are well positioned to have growth in this new segment. But let me add something. We’ve accelerated credit grading to small companies in Q4. That was the inflection point.
What we see is that now that we have this monetary easing in Brazil, that’s a tailwind that will benefit small companies and low-income segments or small companies, as Marcelo mentioned, they have the account for 15% of the banking value to be captured in the market. As this will double in five years, these 15 can become 25%, and here’s where we can create value and growth. That’s why we will increase from 1.7 million to 2.5 million clients, showing clearly that we want to gain market share in this segment. Pedro, I can tell you all incumbent banks are here fighting for this market. This is what we see, and I’ll tell you, we’ll be in this but will be competing because we don’t want to give up the leading role that we play in this segment. Now we are moving to the last question from Paulo Gomes with HSBC.
Paulo Gomez: Again, good luck in this new stage and really good to see Andrea back, [indiscernible]. I had two questions. The first one goes back to capital. Could you give us the potential impact of the proposed tax reform on your capital ratio in the sense that the DTAs will probably be impaired it is passes it is now, what would happen to your capital where would that 11.7% Tier 1 go? And also related to that, what — I mean, you said you have an adequate level of capital, but what is the level that you want to maintain in the coming years? And my second question is more generic. I mean, in your new strategic plan, one of the assumptions is that you are going to broad market share. That’s unusual for a large bank like yours, what makes you think that Bradesco can significantly increase its size in a very competitive market?
Marcelo Noronha: Okay. Thank you for the question. So from the standpoint of capital, the impact of tax credit is about 0.8 to 1 percentage point starting in 2025 in terms of tax-credit operations. This is what we’ve seen. Now obviously, we’ll still have a year, the Central Bank of resell. But looking at this as a whole. So there might be some changes in terms of the capital, some buyers in terms of capital. If there are no specific assessments for the banks, the impact should be between 0.8 to 1 percentage point. One had to that, there are a number of changes underway. There’s resolution 29. It changes the capital requirement for operational risks. That’s the impact of 0.8 percentage points on capital. There’s also the IVA reform.
It will be implemented very, very gradually. It will have a little impact on capital. And there is a third front here, which is the income tax reform. This has not been submitted yet. It will probably be submitted in March and then we’ll be able to do our assessment. Having got the details on the table to evaluate this. So this impact is for deferred taxes or for recovery is 0.8% to 1% percentage point, it’s differed. And this regards the market share gain. I think that I’d like to remember that in this past year, because of a reduction in risk appetite to control delinquency, we ended up losing some market share in some markets where we can play an important role. So in resuming credit origination coupled with our initiatives and our strategic plan, we see room to regain this market share that was lost that happened because we reduced our risk appetite.
And also, the strategic plan brings some initiatives that will increase our competitiveness in the credit market by integrating the credit process or through those initiatives for SMEs, for example, and the whole positioning that we are reviewing in our retail operations. We believe that this resumption and market share increase will come naturally, given our positioning at this moment. Let me add to what you said regarding the affluent segment, high net worth clients that Marcelo mentioned in the strategic plan. It’s very important. We have 1.7 million clients a very important potential share of wallet. We believe that by doing all this reformation of delivery of content in relationship building with Apple, we have the possibility of expanding our share of wallet and naturally get a market share of these high net worth client.
