And we believe that the branch network the way that we reworked with our motto, the satellites and all the branches, and with the adequate footprint, very well coverage in the geography, we work in places that we still have played an important role. But just the One Itaú, the platform that we’re developing, it will certainly give us the firepower that is unprecedented. Because this is a kind of dedicated service where there is a death, there’s a deficit in the on site, I can make them digital and bring them in on the digital. This is the only way that we can make this client profitable. And the capacity of cross sell direct mentioned that we can do, because we have a full bank offering for these clients. This is our bet, this is a plenty of cost of play of efficiency, the agency has a very important role.
It has a compensation that is very relevant for our business model, then we believe in the physical model, and we believe adjustments in the branches are necessary. We’ve done an adjustment this year. And we are trying to maximize the efficiency. And in the end, the branch network will be the size of how our clients want. As long as we can add value with the branches, there will be an important an important place for the interaction with our clients, specifically, quite some products. We believe that we like in our model, and this is an adequate model.
Renato Lulia: Thank you, Milton. Fourth question from Rafael Frade from Citibank. Rafael, the floor is yours.
Rafael Frade : Good morning, everyone. Two questions. One, well, you commented on the issue of derisking of the retail portfolio, but it’s very surprising that in fact, when we look at it the last 12 months, the consolidated goes up regardless of all of the derisking. So the question is at which stage are we in looking up ahead, that is a last let’s just say when against us, and we have a more a better growth in the portfolio, we can have a marginal improvement on the portfolio. The second question is regarding the financial module with the clients that have had an expressive growth in the quarter, but what we subdivided between the retail and wholesale, actually more than half of that improvement on the current market comes from assets of corporations. So can you just understand what was the factor? How do you — how is this reflected on the others?
Milton Filho: Well, thank you Rafael. Let me start by the second question. And then I can answer your [Indiscernible] issue. Second question very simple. If you look at the financial margin in a way that we publish, we separate the working capital effect. So you can see that in the margin, there is no working capital associated to the market. But 95% is where the capital recommendation by the client because it’s credit risk and operational risk associated to the credit operations. So when you see that we exclude BRL2.9 billion in the last quarter in and it was BRL3 billion, you can see that in the consolidated the remuneration of the working capital is stable off, there is an increased NPL in a period, it’s already there, it’s a patrimony growth, and our rate continues to be positive, and the way that we do the hedge of the working capital.
So what we still have benefits, that is important information. How do we unfold this to the business? And this is why you see the difference. So if we look at quarter-on-quarter, there is a change in the regulatory working of the capital, how do we work with our models business models? I have the necessary capital that has to be allocated in the operations, since there was a reduction in the risk — for the credit risks, or the — for the risk of credit, for example for Basel layer three, for retail and wholesale, there was a reduction. What do we do with our business model, is we exclude that excess of capital that was still larger. And we like — we put it on a corporation, so I don’t leave it in business, the remuneration of the access of capital, it stays in a corporation.
So when I isolate 2.9, and a 3 in that slide, it’s already contained inside in there. Why? Because it’s the whole, that breakdown is just how I allocated between business. When you look at the financial margin, the BRL700 million, which is a core is the core growth. The other one is just a recalibration between the businesses of the working capital, the excess of the capital that I take to the corporation. So it’s just a way to represent the distribution of allocated capital. I hope that it make sense, because it’s the way that we work with our business models. So all of the access, clean access, I leave it in the corporation, that’s what you see the delta in a quarter of BRL100 million to BRL550 million in that line of the corporation in the margin with the client.
So it’s just a redistribution of the working capital within the businesses. Going back to your first point, on an NIM, we believe that the the core of the derisking are already happened. The negotiated portfolio is very well provision very well negotiated, we’ve seen an expansion in the line. We’ve managed and we’ve improved our mix. And the mix is not just the retail, wholesale is the mix. And we’ve improved the profitability and more so. Here is the engagement issue. The other relationships, other products, all the crossover is here. So liabilities is here. So we’ve managed to deepen the relationship with our clients, and improve the set of products that we serve as our clients. So the line adjusted to the risk is has two effects. So it’s the top-line effect, and then there is the derisk.
