So there is the increase in the funding structure or funding. We have the real estate credit, there is a dynamic of the price of the asset and the liability, the savings, the treasury against the credit. So, we also have the competition. And we see pressure in the spread in a few products, specifically those that have a regulatory cap. Now, on the other hand, since we are a full bank and we have penetration for the €“ relationship with the clients that is very relevant, we have all the cross sale that also affects the margin, whether if it’s several products or transactionality of treasury or cash management products and deposits, and the volume of capture throughout the bank, that generates a lot of returns. In part, also the interest rates that are higher, we also benefit.
And I would say on the short term, specifically with better results, not only in our deposit structure saving, but also the working capital that has also benefited. The impact is not immediate. We do the hedging, whether if it’s of deposits and capital, and several vertices looking up ahead, but we also see in 2023, given the interest rate levels, a potential positive effect that comes from the deposits in our working capital. Now, in the wholesale, because we are a full bank €“ and once again, we can capture several treasury products and we have penetration of cash management that is relevant, we have the outstanding balances in the deposits that affects, importantly. But the wholesale is not just Itaú BBA. It’s asset with a performance fee and the growth and results has also affected that when we look at the wholesale as a whole.
And there is the operations for LatAm that has had a better profitability for 2023. We’ve had substantial growth in all countries of LatAm and with a profitability level that is much better than what we had operated in the previous years. All of that adds to €“ the challenges, of course, are big. But the interest rates in the short term also has some positive impacts. And I like to say that structurally, we rather work with the interest rates that are lower, so that the bank can expand the business and increase the risk appetite, so that the companies can, in fact, have a quality of credit and capacity for growth that is much more healthy than in a scenario of risk of interest rates that are much higher for a long period of time. So, when the interest rates go back to the lower €“ then we’re going to lose some revenues on the short term.
But on the other hand, we’re going to recover the capacity for growth and growing much stronger. And part of the math is the cost of credit.
Renato Lulia: We have with us Carlos Gomez from HSBC.
Carlos Gomez-Lopez: I would like to go back to the capital. First, could you quantify the impact of increased operational risk weighted assets whenever it is applied? As you mentioned, earlier could be January of 2024. It could be later. Second, has your risk appetite changed? You mentioned a lot caution, uncertainty. Do you want to operate with a different level of capital? What will be your current capital level at which you are aspiring for your CET1? And finally, related to that, could that affect your investment in XP? And is that something that you’re going to keep? Or you might sell at some point also to reduce your risk?
