I don’t like the index to look to the healthy of the corporate portfolio. We have to remember that the middle market is in the SME index, so we are talking here basically about large, ultra large clients in this NPL. So our view is that the level of provision of that we have in balance sheet is very high. That’s why we have this level of coverage through NPL in the wholesale portfolio, because you can name by name in the credit committees, and you apply a rating, you attribute a rating for each client. And this rating defines the level of provision that we have to make. So in most of the cases, you will see clients that we have 70% of provision. Let me give you a good example, America and us which is a public in name. We have 100% provisions, has not gone through NPL.
But we have 100% provision. So part of that whenever if it happens and goes through NPL, then you will have a concern, important conception on the coverage that we have today. So the portfolio is very well covered, we look named by name. And we have all the single names provisions, and also the generic provisions, we have allocate the level of provisions that we believe are necessary to the most risks clients to every single client that we need to have additional provision. So the balance sheet is very covered. We are very confident about the level of provisions we have, we are not seeing a credit crunch. But we are seeing specific names coming. So far, we’ve been able to go very positive throughout that scenario. And next year, if the interest rate keeps going down, the macro gets a little bit better, the environment gets better.
We might not see a relevant normalization, but some normalization is to happen. And we still believe that this level of NPL should increase in the coming months may be increased. But remember, we have the provisions for what we see now of course, we have the necessary provision, so you might see some changes in the NPL, you will see some relevant change in the P&L of the bank.
Renato Lulia : Now there are two questions to finish. Next, in big Henrique Navarro from Santander.
Henrique Navarro : Thank you for the opportunity. Well, it’s great to talk to you guys. My question, from what I understand of the conversation itself, Itau starts a cycle of accelerating the credit origination, that origination doesn’t appear in the numbers of the fourth — first quarter, because there’s still a process of derisking of some portfolios, specifically open ocean. Okay, looking at ahead, where do you get that credit growth? Because of all the participants in the market that we talk, it seems that all everyone is avoiding the open ocean, everybody is reducing the open ocean. In the existing clients the indebtedness of the family is still dropping, but it’s so high. But where do you get the growth from? Well, maybe the high income, there’s a lot of bank saying that are going to grow in the high income, we see that their high income is with the violence of credit.
We cannot just depend on the high income per se to have the growth. So I want to hear from you, where are you going go grow that growth.
Milton Filho: Thank you, Henrique. [Indiscernible]. First we are talking about wholesale — retail, sorry, where the individuals. We’ve grown consistently and also we’re the companies with the derisking was done with this process in the company’s retail with great results. So we’ve worked with the companies that have a higher invoice. We didn’t focus on the base of the procurement, or makes it different from the market this explains a great deal on the performance that we’ve done that we’ve obtained. We still have — see a great opportunity and a lot of space for growth. And Bu for the company, and we have grown with accelerated high levels. The portfolio of SME had a great acceleration also, and we see a great increase with the middle market and middle market retail.
In the individuals we’ve gained share with our clients, which is very important. These are well known clients that we have grown, I agree that we cannot imagine that other growth is going to be an income because it’s not. And it’s not just high income, but our portfolio management personnel has an important role. Our credit card 120 billion two thirds is not a high income. And we’ve still managed to do business with profitability, all the crops that were produced in the quarters, with great quality, in all segments that we’ve managed to grow. But there’s still some adjustment in the portfolio. And I mentioned, the delinquency and vehicles and credit cards dropping. So you have an inertia of a risk, high risk portfolio that is reducing importantly, renegotiated stable, and the portfolio with the better quality growing.
This is a combination that makes our growth being less than what we observed in previous years. But still, we’ve managed to do a positive margin and making a capital profitable, this is our, what we’re seeking. In my opinion, where I go back to the discussion of One Itau in the retail individuals, we have millions of clients that we have great relationship mono product. So the capacity to the cross sell and having a whole bank offer is what’s going to make the retail improving the individuals still being built. I don’t want to anticipate what we haven’t delivered, there is still a lot of challenges in house, but I am convinced we are convinced that in the moment that we do this, this is going to open an avenue for growth in our segments that are very important.
We have another Uniclass within our bank, we have a fraction of the Personnalité in the bank and other businesses in a relationship that is mono product with this client. So there’s still going to be a great growth here. And in the lower income, it’s a play of credit risk management and efficiency. Now we’re going to continue to deep — deepen in the banks. So for every public, there is a logic, the more efficient the more appetite. And on the other hand, that capacity for cross sell for the public that we have in house certainly will be a great driver for growth looking up ahead. We are very optimistic with a project. Let’s hear from next year onwards, we can show you more data on the advances. And on the other while retail companies, great opportunities there is the use outside the market in the middle market.
The same we’ve managed to grow with quality. So growth is not the — this is not a concern to me. Great opportunities, we’re still going to deliver growth with quality, sustainable without the volatility of the balance sheet, which is what we’re seeking on the long term.
