Cesar Rivera: Yes. With an instant adjustment, I think our sensibility is around 25 basis points, the first year of the adjustment, a little bit higher than we mentioned probably a couple of years ago when the interest rates start to rise because the portfolio has shortened. And our expectation is that we can maintain a margin — a NIM similar to the actual one with a combination of reduced rates and a change in the profile of the portfolio that moves towards a more retail products of the increase in retail banking in BCP and a more accelerated growth in Mibanco.
Tito Labarta: Okay. So the stablish NIM, but you meant 25 bps, that’s for about 100 bps cut in rates. Is that the right sensitivity? And also if you can comment on the risk-adjusted NIM also, particularly as you go in retail.
Cesar Rivera: Yes. And I will emphasize you is because it’s around we are not talking about signed decimals.
Tito Labarta: Sure. Okay. And on the risk-adjusted NIM and any comments, particularly as you grow in retail?
Cesar Rivera: Yes. The risk-adjusted NIM should improve the short-term level when we adjust accordingly the cost of risk down the road. But this is not a precise guidance. This is a trend, what I have mentioned at this point.
Tito Labarta: Okay. Yes. So asset quality normalize as you can see some improvements, but a bit more medium term, it sounds.
Cesar Rivera: Yes.
Operator: Our next question will come from Carlos Gomez with HSBC. You may now go ahead
Carlos Gomez: Good morning. First of all, thanks again for your improved disclosure on capital and on the digital initiatives. You started last quarter, but I mean, it continues to improve and we really appreciate [indiscernible] gives us the taintight about how things are going — two questions. One, one is different from what you want to hear. You emphasized your detachment from the macro, but we would like to know what you think that growth can be in Peru in the long term and your credit growth can be in Peru in the long term? And the second one is on the digital initiatives. If you can tell us more about tempo and EO at this point.
Gianfranco Ferrari: Sure. Carlos, yes, as of today, and again, correct me Cesar if I’m wrong. Our chief economies expect Peru to grow 2.5% 2024. Is that correct?
Cesar Rivera: At this point, I think it’s more around 2.1% because we are considering a basic scenario with the combination of weak and moderate El Nino at the beginning of the year. The number of events and mention is more representative without the impact of the.
Gianfranco Ferrari: So anything between 2% to 2.5% growth Carlos. Just a quick comment on that. Peru needs to grow much faster. This comment goes beyond the impact on our business. If the level of property in Peru was reduced dramatically over the last 20 years until COVID — went back, we went back like in a couple of years, like 10 years in terms of that ratio. And we — to go back, we need to grow as a country at least 4%. So that’s a challenge we have — again, this goes beyond our business. Regarding Tempo, let me start with EO. EO is actually in our friends and family proof of concept with very good results, and we’re going to launch it, I believe, in a couple of weeks. So we could talk much more about initial results in next call, but the initial results are quite good.
