Juan Carlos Mora: Thank you, Andres. 2023 €“ in 2023, we will benefit from a margin €“ a net interest margin that is going to benefit our results. And as I mentioned, the stock in the loan book is going to be higher. So we will have an income coming from interest rates that will benefit the results of the bank. And those income are going to grow probably more or in the same line of expenses. So we will benefit from that. Cost of risk is going to be normalized. So what we expect is to be above the cost of equity during 2023. And moving €“ or going forward the next year, we think that that trend is going to consolidate. Our efficiency will probably improve and the other income or fee income, for example, is going to have a significant impact and a positive impact.
And the results coming from the banks’ outside Columbia in the years come are going also to help, since we will consolidate our strategy on those countries. So we clearly expect to be above the cost of equity in the years to come. It’s important to highlight the cost of equity at this moment is pretty high, due to the macro environment and the geopolitical situation in general and higher interest rates. When that normalizes, we will also probably normalize the interest margin, and that will allow us to deliver an ROE above the cost of risk and risk.
Andres Soto: Thank you, Juan Carlos.
Juan Carlos Mora: Thank you.
Operator: Our next question comes from Ernesto Gabilondo of Bank of America. Please go ahead.
Ernesto Gabilondo: Hi, good morning. Juan Carlos and Jose Humberto. Good morning to everyone and thank you for your presentation. My first question is on the regulatory framework. I remember during Petro’s campaign, we heard some proposals about the democratization of the financial services on a more active role from state home banks. So just wondering if there is something new on these proposals? Or is there a potentially new proposal that could be related to the banking sector. And then my second question is on your expectation for fees, fees growth next year, considering that you’re expecting a software pace in long road. Thank you.
Juan Carlos Mora: Thank you, Ernesto. Regarding your first question and the regulatory environment or regulatory framework, and regarding the plans of the Petro government on the banking sector. There is no much additional information at this point. As you know, there have been three months after the inauguration, and what the Minister of Finance has said is that they are organizing what they call the holding of the public bank, in a way that they give the direction of the different banks to the different ministers. And I €“ what I expect is that the, those banks are going to play a role that is going to complement the commercial private banks. Meaning that they will probably focus more on financial inclusion. They have mentioned that they want to do more or give more access to credit to people in the rural areas of Colombia.
And that, I will, I think that will focus on that. At this point, what I see is more that, that, public banking or government banking is going to complement what we do on the private sector. Good to remember that we, and I am talking, the whole banking sector in Colombia has a very coverage. We have been doing a very good job on giving access to financial services to many Colombians. The banking penetration now in Colombia is close to 91% coming from 70%, and financial services are now available for any Columbian in a very easy way and in a way that access, that’s to basic financial products. Credit is other matter. And there are more room to the government banks to play a role. So at this point, that’s what I see, and I don’t see at this point, additional regulation for commercial banks in that regard.
