Luis Felipe Castellanos: Hi, Daniel. I’ll answer your question and talk also about guidance and ROE for next year and where our stock is trading now. We’re always looking at ways to enhance shareholder value. The first is executing our strategy and making sure based on core strategic pillars, that’s what we’re doing. Then in terms of extraordinary dividend or buyback, we’re always analyzing that. We have €“ we’re not €“ we have not taken any decision. It’s obviously under when we see where the stock trades and the opportunities that that brings. Obviously, you have to go by the book things, but not so far, that’s not under discussion or review, although we usually take a look at different alternatives.
Rafael Borja: The next question is coming from Fabrizio Enrique Lavalle from Profuturo AFP. Given the Central Bank recently stopped hiking rates, how much time do you expect NIM to still be increasing? And how much lag is there between rate hikes and NIM expansion?
Luis Felipe Castellanos: Okay. Let me take a crack and then maybe Michela can complement. Remember that one of the reasons NIM is expanding is because of the switch in the mix. Again, COVID hit us very hard in terms of the evolution of our consumer book, and that’s growing nicely, and we expect that to continue. That will have a toll in our NIM composition. And then the other part will be the increase in rates. We really don’t know if this post that Michela mentioned where it will take the Central Bank. It might really pause or it could regain in terms of traction for further rates. All depends on how inflation happens or not. But let me pass it on to Michela to see if she has a little bit more color in terms of the timing.
Michela Casassa: Fabrizio, I mean, first of all, have in mind that what we’re expecting for 2023 is that rates will continue to be high at least in the first half of the year. And at some point, they will start to decrease, depending on which estimates you see. It can be the third quarter or it can be in the fourth quarter. What we have seen in the past €“ and you can see it in the evolution of NIM. NIM has improved, I mean, substantially during last year, but it is just a fraction of the increase in rates that you’ve seen. We’ve had during 2022, more than 500 basis points increase in soles and also a very big number in dollars. And the increase in NIM is just a fraction of that. Why is that? It’s because, of course, you can reprice a portion of the portfolio with the new disbursement, but not the stock.
And the same happens with the liability side, where the repricing actually it’s a little bit faster. So, for 2023, we are expecting still NIM to improve because the full-year effect of what has taken place in the increasing rates in 2022 will become or will materialize in the numbers during 2023. And that is a very big number. And then if we have the decreases in rates in the second half of the year, we will start to see some impacts, first, in the cost of funds because of the portion of institutional deposits, and then just after that in the asset side. Maybe a little bit faster on the commercial banking side, but it will take some more time for the rates on the retail banking to go down with the reference rate. I hope that helps.
Rafael Borja: The last question comes from Daniel Mora from Credicorp Capital. What would be the strategy of loan growth in 2023 considering the uncertainty and economic deceleration? Do you expect to continue growing strongly in credit cards despite the risk of higher NPLs? What is the guidance of credit card loan growth in 2023 and expectations of NPLs in this year? And the next question is, can you provide further details regarding the contraction in annuities during the quarter? And what could be the outlook for the different insurance products in 2023?
