Carlos Gomez: That is clear. Thank you very much. If I can go back to the corporate default in Panama, is this a company specific issue or should you worry about other developers in Panama?
Juan Carlos Mora: No, it’s a company specific issue. It’s a client that, it has been with us for some time now. So it’s very specific. It is related with that particular client. It’s not something to worry about Panama in general, Carlos.
Carlos Gomez: That’s okay. Thank you very much for your answers.
Juan Carlos Mora: Thank you.
Operator: Our next question comes from Julian Ausique of Davivienda. Please go ahead.
Julian Ausique: Hi, everyone. Thanks for taking my question, I would like to go back one more time about the additional ROE for 2023, there was questions regarding the tax reform regarding the change, that the tax reform have of the operation of the, the Columbian company . I don’t know if you have, if there is an impact from the operation in Panama Panama, Guatemala, Honduras regarding this tax reform in Columbia. And the other one is do you have any expectations in money in how much you will be, have to pay additional due to the increasingly in the tax reform in Colombia. Thank you.
Juan Carlos Mora: Thank you, Julian. Let me see, if I get your questions right, because the quality of the sound wasn’t very good. So you ask what is going to be the impact of the tax reform from the income that we get from the operations outside Colombia and, we don’t see any particular impact. The impact is going to be as we mentioned and the surcharge of 5% on income tax in Columbia. So that’s why we have, since we have an statutory rate of 40% for zero, beginning 2023, our effective tax rate is going to be around 35% because we, on a consolidated basis, we have there the operations of other geographies. I don’t know Jose, if you have any additional comments regarding Julian’s question.
Jose Humberto Acosta: Yes. The return on equity for 2023 that you ask Julian is, we potentially, we are going to reach €“ return on equity around 19%, meaning that we will be above cost of equity and cost of equity this year is around 15%. So potentially cost of equity will increase next year. So at the end of the day, we will be above cost of equity in 2023.
Julian Ausique: Okay. CapEx the expectation for 2023 in the NIM.
Juan Carlos Mora: As we mentioned before, the NIM, we expect the NIM to expand a little bit more during the beginning of the year first quarter probably and probably into the first semester, and then it will contract, we expect the end 2023 with a NIM of around 6.5%.
Julian Ausique: Okay. Thank you very much.
Juan Carlos Mora: Thank you.
Operator: Our next question comes from Yuri Fernandes of JPMorgan. Please go ahead.
Yuri Fernandes: Hey guys. Sorry, can you hear me?
Juan Carlos Mora: Hey, Yuri, go ahead.
Yuri Fernandes: Hi guys. Congrats on the results. I had one question regarding the like the capital structure dividend. I guess the Tier 1 is likely, lower now and you have been re-compounding this, but my question is can you keep that level of payout? Can you refresh us here regarding the minimal Tier 1 for the bank, how you see dividends for 2023? Thank you.
Juan Carlos Mora: Thank you, Yuri. As we mentioned before, we have our dividend policy based on our core Tier 1 target. That target is around 11%. So that will allow us to proposed a dividend that will be, I mean, we don’t know the amount yet, but it’s going to be a dividend. That will be, I think first will meet that, that criteria of the 11% and will allow us to have, the capital structure that, that we are looking for and also have a payout that is good for the market. I don’t know Jose, if you want to compliment these answers?
