Because today there is a delinquency level that is very high with the credit card, because there is — well those of you when you hired a credit card, when you requested the product you had the comparison of the rates, you see the programs, and you’ll see the experience of the product. And you’ll see if the limit is adequate. So when you get into the credit card product, the client doesn’t expect you sell finance, because this is not the product, that this is not the way that the product was designed. And our defense is based on that, how do we transform the credit card that has a penetration of 40% with a platform, turning it into a platform that our finances, they use, expanding the offering and making the most vulnerable products that get into the — into the higher rates to actually pay their credit cards.
This is the regulator, they’re going to make the decision and the commitment here is when FX is with the consumer. And they might — they might have finance with less competitive conditions. And we are making this credit card platform with more efficiency. This is why just Brazil — Brazil is the only country that is different. This is an anomaly where the revolving credit and we have to deal with it. So we have to — we have the understanding the diagnosis, and we hear once again FX is non-negotiable, so we’re not — we would like a technical correct discussion that is well done. And this is what we are supporting. Federal Bank is the leader of this debate for the institutions as a whole, financial institutions, of course.
Renato Lulia: Thank you, Renato. Second question, we have Bernando Goodman [ph] from XP. Good morning. Thank you. The floor is yours.
Unidentified Analyst: Good morning, everyone. Thank you for the opportunity. I wanted to understand more on the retail segment. The bank has de-risking very objective derisking. And now you have the result with the delinquency that stabilized. You talked about the high income and bank is very well positioned in that segment. However, on the other hand, some competitors already have results, pointing out with more appetite, releasing the strains on the retail. And while, you didn’t get hurt out of the cycle, would it be — would it make sense to expand the composition of the portfolio? Looking at the segments that are the base of the pyramid that are focused by mainly by the FinTechs? Thank you for the question, Renato. But thank you for your time.
Milton Filho: Okay, let me give you an opinion over here, we are very much convinced about the decision. Well looking back, the derisking decision of portfolio was a very correct decision not only derisking, but we often all these orders, we have grown in our target segments. Since our portfolio is very large, you’ll have the credit card portfolio 120-127 very and whereas big numbers within that portfolio, we have the high engagement clients. With the profitability and risk levels that are adequate, you have a big portfolio that we call it, the open ocean, not only the clients that we acquire digitally, but the finance and the association that we have. This is a very big portfolio. And we’ve done, well credit card is one of the products vehicles, we’ve also had to do adjustments.
And just to give you a few numbers that really stand out to me. This is the first quarter consecutive that we have the reduction of the NPL of credit cards. So the market, there is the first inflection, the system as a whole, we are in the second quarter with a relevant reduction in vehicles. We’re in the third quarter consecutively doing the inflection of the long delinquency, with expressive drops in delinquency and the equation of risk and return. If we look at all the production to return all of our models, and while we expect to have profitability through the cycle. And we’ve been playing implemented the portfolio management that was very efficient on the wholesale, we implemented that on retail. So we balanced the portfolios. We have worked with all the publics.
It’s not that we don’t work with lower income, we’ve worked with a lower income with the correct product with the correct client in a correct way, with an adequate rate. So we can through the cycle, have more recently entered products. We doubled down the high medium income. And we have grown expressively year-on-year that has strengthened our position our leadership in that segment, we believe in the importance, and we invest in that. But there is a segment which has a lower income that is still very relevant in our portfolio, regardless of the derisking that it was 35% of the portfolio is still 20 very relevant. But again, with the right product with the adequate profitability with a resilient product client, so we can work with the public.
In my opinion, the big drivers of ahead so we can grow with more efficiency and quality in those publics are. First the platform, the Itaú platform. The capacity to deliver a bank that is a full bank. One Itaú, for all the clients of the organization doesn’t matter if they come through real estate, or the payroll loans, we want to deliver a full bank experience for the client. And here in the bank, just if we just look at the amount of clients that we have on the suite of notion [phon], we have the millions of clients that have a record with us we have a relationship with, that we do not have we could not deliver because of the technology issue of their bank offer. And this is what we’re going to work on in the future. And we can accelerate through that through growth in those — in those clients.
