Well, with this margin of one percentage point of mistake, plus or minus, the idea is to deliver a strong result in wholesale. We have a natural rebalancing of profitability, which is healthy for the portfolio as a whole, so we are very positive with that expansion that is happening.
Renato Lulia: Next question is from Rosamund, BTG. He couldn’t connect but he submitted the question. Yes, WhatsApp. I’m going to ask you, Rosamund, your question. He submitted the WhatsApp and congratulations. Yes. Well, Rosamund asks the credit spread. It ended up at the end, higher than the average and the working capital is 9.5%. And the bank always guided that we should confer it for so they’ve given the vertices that we use. In that sense, can we say that the guidance is conservative for the NII, the credit portfolio is strong. So margin and guess.
Milton Filho: Rosamund, thank you very much for the question. Certainly, you will see the recording later. But the main message for you is the portfolio, as I told you, we have to look at the mix of the growth. We have to look at the average balance of the growth and that’s what has an impact in our line. Our vision is that the NIN will continue to be stable. The portfolio of companies tends to pull the NIN for a lower threshold. On the other hand, we have the working capital and the liabilities very well worked out. The volumes are strong. On the overall, we have an NIN that is stable with a small expansion and the adjusted line to credit. So portfolio and the average growing eight. So if we have an opportunity and we understand that it makes sense in a cycle of long-term, once again, without adventures, we will grow the portfolio so we will not lose the opportunities and we have certainly appetite and capital funding, human capital to continue very close to our clients.
And growing in those segments that we’ve really focused, we do not, but we want to grow above two digits. When you improve the profile of your portfolio, you go to a mix that is less risk, which has less NIN. But the NIN adjusted to risk is better. That’s what we observed to the market. That’s our dynamic, if we can expand the NIN, the NIA in regards to the portfolio growing more, we will work diligently for that. But as long as the opportunities are clear, with a clear vision of portfolio management, client, and focusing on the clients.
Renato Lulia: Next question. Going back, now Daniel Vaz.
Daniel Vaz: Well, thank you, Renato. Good morning, everyone. Congratulations on the results. I wanted to go back to the credit card. Well, in the release, we saw a reduction of 3 million of plastics to 38 of credit. So it seems clear the preference for the more engaged clients and Personalite, Uniclass. I wanted to explore more the strategy for ‘24 in the mass channel and the retail partnerships. The bank understands that the client is stressed. Is there just a transfer of risk to the other players or the system has reduced the credit for this client and is there space in your perception to increase exposure in these clients and increase the consumption in this product.
Milton Filho: Well, thank you for the question. First, our expectation is that credit card portfolio will grow in this year. It’s inevitable, there is the TPV, the invoicing growing, the growth of the market changing on the mix. That always happens when we look at the data, we see that the business is growing. Our business, we try to subdivide it in three big groups. There are the ones that have the bank, where we have a big penetration in all the segments, above all the higher income, the check-ins segments, not only in the existing clients, but in the acquisition of new checking accounts. So a big deal of our business is achieving new clients and increasing principality and engagement. Second point is that with the super-app, we will have an offering that is easier, more integrated, simpler for our clients that do not have an offering of full bank who have an access to the basis of clients that can be relevant.
Mono liners, maybe they have a product and they don’t have the credit card for the product. We have the capacity for offering with unique experience and the right clients, we know them, they have a credit record and they have a good modeling for the offering. But we always call the open ocean, we reduced in a very relevant way, because we still see the compromise, very big compromise of the income of the families, an over indebtment in the product. So in the end of the day, there is an over offering over the years, the number of plastics per CPF in Brazil is increasing and more than doubled in the short term. So with the credit card that today is a product that doesn’t have a cost to be in a portfolio or in the app, you end up having access to several products with a digital experience where you do the quick onboarding, you don’t pay [inaudible] fees and you leave from 2.2, 2.3 and you have three, four credit cards per CPF on average and there are some CPFs were more, with more products.
So we have to be careful There’s a metadata if the client has the degree of financial education as difficulties receives a lot of offering and they have problems. Our role is to help our basis of clients to go through this challenging cycle but we reduce over 90% of the offering for the open ocean where we get these clients without any records, any knowledge and the partnerships, we continue with the level of appetite that I would say adequate for the cycle, we always look at the value proposition for when it’s not good and the offering as a whole, the trend is a decline will only go after the product because of these and not the value proposition. And we want to get a better value proposition to increase the principality and the engagement and the super-app will help us in the integration.
These are the main components of our credit card offering and you’re talking about partnerships and you mentioned co-branded. An important information over the last few months, we did a review of our portfolio and we closed with our partners. We finished a lot of partnerships that did not have an adequate value proposition for our clients and they generated cost of management. It was a small portfolio that had to be followed with a point program that didn’t make any sense. So there was a relevant restructuring and we are focusing on what is relevant priority. We prioritize very well and these are high level talks with our home branding partners and we understand that the product lost its value proposition so it wouldn’t make sense to us and either the partner should keep those co-branded and we kept some co-branded that are very relevant to default brands of air companies and the other proposition is very robust and in these we renew some partnerships we renewed with Azul Airlines which is a product that works very well with co-branded and we are excited with the potential of the product.
Renato Lulia: From Jorge Kuri from Morgan Stanley.
Jorge Kuri: Can you hear me now? Oh, sorry. Thanks for that. Congrats on the [inaudible]. I wanted to maybe shift gears. I think you’ve explained in detail the results of the guidance. Maybe shift a little bit to the credit card regulation. Apparently, the 100% cap interest statement printed well kicked in January. And it doesn’t seem to me that prices for revolving interest rates from cards are going to change at all, as a respond to that. I wanted to get your view on what the impact is on the business of this major kicking in. Also, what is the risk that the sponsors of the bill, six months from today, a year from today, look at prices and say, well, nothing happened, and the prices are exactly the same. And we did this precisely to lower prices.
And what is the risk that happens, and then we go against the more round and potentially more aggressive caps for being implemented in order to really deal with that? And what is the industry doing to try to avoid that? Thanks.
Milton Filho: Yes, well, thank you, Jorge. Good to see you. Thank you for your compliments. So just to go through, first of all, to give you a little update about the changing law that we saw at the end of last year. We spend and I’ve been telling for a long period, I would say almost a very dedicated as an industry, having conversations with all the possible stakeholders in the market, so this active, the Central Bank, the retailers, all the associations. We’ve been to the Congress, talking to a lot of senators and deputies, so we had a lot of discussions about this topic, and we had a very clear and simple diagnostic about what we saw as the main forces that were producing this level of anomalies and asymmetries in the credit card market, so as I was standing a little bit before here in this conference call, I was saying that we have R$ 135 billion as in portfolio, in credit cards, out of R$ 115 that there’s no interest, so that is just to give you an idea how relevant it is buy now and pay later in Brazil, so it’s very relevant, so our view is the following.
