Yuri Fernandes : Thanks Gianfranco, Milagros. I had a question with regard– just a follow-up on efficiency. When we look to your guidance, the margins are very strong, right, like you have structural loans growing 6% to 10%, meaning extending the midpoint of 90 bps. And when we plug this to your NII, this imply, I don’t know, like more than 20% NII growth, if you assume interest earning assets will grow at the same pace as low, right? So it’s a very solid top line, but looking to your efficiency guidance, they are kind of flat versus this year, right? And this year, I guess, we had about 11%, 12% expenses growth, BCP leading and it’s totally clear. It’s the digital information. I think we’re doing a good job. But given your main revenue line, NII should grow those 20%, assuming our calculation here is correct.
What’s going to happen to expenses? Like are you calling for such an increase in expenses? Like should we see expenses are approaching those 20% levels or no, it’s a combination of fees as we were discussing previously? I’m just curious a little bit here to understand these expenses because I get it, you have this investment plan. But given the revenue that should be so strong, I’m not getting like if we should consider G&A accelerating as much? Thank you.
Cesar Rivera: Yeah, Yuri. I think it’s a very sensible question. I think it’s a very reasonable one. I just try to explain this way. Think in the P&L, we have the net interest margin. As you mentioned, driven by the NIM and the volumes is going to have an important increase, the combination with volume and higher average NIMs through the year. The second source of income is fees. And for the reason that I explained previously, the fee income is going to grow at a slower pace than before, more attached to the volume of a number of specific clients that this significant rebound that we experienced at the beginning of last year and also in FX although we continue to deploy significant capabilities. Last year, we have a number of specific volatility events that we capitalized on that we cannot project that are going to cure again.
So summarizing the income part, very solid in terms of margins and a slower growth in terms of fees, okay? This is part of the explanation. The second part relates to expenses. As you point out, we plan to continue investing heavily in developing capabilities inside the business units and in the disruptive ones. Inside the business units, the growth is going to be in line with the expansion of a client transactional activity and so on. And in terms of the disruptive initiatives, what is going to happen is that although the income of these initiatives are going to grow at a faster pace than the previous year and starting to see significant contribution, the cost base are also going to increase, and the relative weight of the disruptive initiatives are going to be bigger than the previous year lets us a very simple example and the figures are not exact at all.
If I have an efficiency ratio of the disruptive initiative of 150% to say something because we still lose money. But the total size is 100 impact less than when we have 110% efficiency ratio that is a significant improvement but relative size have been double. Do you — I am clear? So the combination of these four quarters explains why we’re having a significant increase in net interest margin, we still expect to have an efficiency ratio that if you see the margins are not very different from the 2022 actual figures.
