Milton Filho: Yes, sure. Thank you, Nicolas. Thank you for coming. It’s a pleasure to see you here again. So let me start talking about the dividend policy. So in general, you are right in the direction. So your calculation is precise. So when you’re taking consideration the R$ 11 billion, the impact we’re going to have in the set one. It’s true. We might see something around 100 basis point. We see that some volatility in the available for sale, securities that we have in the balance sheet, so the way we measure and the way we make our positions, we might see some consumption in the beginning of the year. So when you look one quarter, we’re going to have the profits that we made in the next quarter. We might see, we will see the impact of this dividend and some volatility coming from available for sale that might consume a little bit, maybe 20 basis points in our capital ratio.
So this is what you should see. And when you look in the long term, 12% is a good level. 1.5 on the 81 is where we are and where we have the policies very well established inside the bank. And having and looking forward 12 month or 18 months, depending on the level of information or uncertainty that we have, we’re going to be calibrating to define where is the best level of distribution that we should do. So this is roughly 12% is where you have to keep your eyes on. The uses and the sources are something that you have to keep the eyes on, especially when you have some tax reform on capital, when you have discussions coming from the regulatory perspective, coming from Basel on the operational side or credit side. So we are always looking the certainty and also things that can happen.
That’s why we always keep above the unknown that we don’t know, of course. So that’s why we keep some buffer on that. So this is basically that. So you are correct to look the way you are. So we don’t want to retain the excess of capital having the opportunity. Next year, we’re going to deliver another extraordinary dividend. So this is how we’re going to be achieving. It’s very difficult to exact define a payout, but the concept behind it, it’s very clear. And this is how we’re going to be pursuing. So this is the first topic. On the perpetual side, you’re right, I saw the BCI 81 coming to the market, the level of prices, and the idea we have is that when you go to a new issue, as opposed as in considering the new issue premium that we might have for a perpetual bond, we believe that today if we have to assess the market, the level of prices would be much higher of the level of prices embedded in the coupon today that we have.
So that’s why we haven’t exercised the call, and why is that, because we’ve been telling the market in advance that we wouldn’t exercise the call, that we would have a very economic view and approach, and then we have to consider all the alternatives we have to assess market, international and locally, how to keep a curve in the international market, and what would be the new coupon and the new yield if we go to a new issuance, and it would be much, much higher than where we see, so we don’t plan, this is not in our radar now to exercise the call, and if there is any change in that sense, we’re going to, with anticipation, to provide clear information to the market, but as far as we see, and if the market keeps the way we are seeing today, it can change tomorrow or the day after, with the information we have today, we are not expecting to exercise this call, so this is something that we’re going to keep talking to the market, to all the investors, very close.
Renato Lulia: We’re getting towards the end of our call. We have one last question in our list, in English, again, and it comes from Carlos Gomez from HSBC.
Carlos Gomez: Thank you for having us. Congratulations, like everybody else, for the results and for the dividend, and thank you for making this a long call and allowing a lot of time for questions from the analysts. So, two things for one, you gave us the estimate about the impact of [Pac-03] which is 42 basis points, as you calculate today. Could you also give us the impact of the tax reform, as you said, as it is described today, what would the impairment of DTA’s do to your capital today? And secondly, in the past, you have told us what your estimate for your cost of equity would be. If I recall correctly, it was around 15%, I could be wrong. Would you tell us where do you think it is today? Thank you.
Milton Filho: Okay, Carlos, thank you for your words. And thank you for coming. It’s always a pleasure to see you here. And we will take always the time to talk to the investor, a very relevant stockholder for us, and we’ll take and invest a lot of time with you as always. So coming about your first question here. About impacts on the DTA, let me talk the DTA first, which is important. When we talk about 42 basis points, it’s important to say that this has two elements, okay. The first one is the operational risk. The operational risk for us, we expect 100 basis points, but we have a phase in four years. So 25 basis points per year in the coming years, this is what we expect. So when we add to that on the credit side, there is some changes in the weighted assets.
So this together may impact 42 basis points, but on the operational risk, we’re talking about 100 basis points, 25 basis points per year in the coming years. This is what we are seeing. And the second element, which is important is, as if the reform was approved exactly the way we see, so it’s seven plus [inaudible], corporate tax rate and social contribution, we would see something like 60 basis points in capital if we had to do an impairment. So this would be the size if we have a reform approved exactly the way the reform that is posted today in the Congress. So if there was this major reduction in the corporate tax and also the social contribution, we could see an impact on the DTA impairment around 60 basis points.
Carlos Gomez: And the second was the cost of equity?
Milton Filho: Just to follow up, there’s a second question about the cost of equity. Just to give you the number, we are running the bank, the last quarter. Last month, we were seeing something around 14%, but looking now at the number of costs of equity that we approved in the board and that we are managing the bank is R$ 13.75. And this will be the cost of equity that you will observe, especially from February on. So you will have, in this quarter, a month with 14% of cost of equity and two months at R$ 13.75. So on the average, you will see something around R$ 13.80, R$ 13.85 in terms of cost of equity for the first quarter. This is the cost of equity that we will observe. We look, of course, to our model. We look to the south side, we talk to the buy side, and we make our own discussions in the committees to get to this level, so this is where we are now, Carlos.
Renato Lulia: Thank you, Alexsandro. Thank you, Milton. Well, with that, we will close the Q&A. Remember that we received several questions, Milton and Alexsandro, via WhatsApp. We are going to answer them all through the IR team, and with that, I wanted to give you the floor for the last message for the investors and analysts.
Milton Filho: Thank you, Renato. Thank you, Alexsandro for the partnership in these discussions. Once again, we close this year that started with important difficulties, January 8th, 11th, January 11th, then there is the event of the other corporate that went through other issues. And we imagine that with all the changes that happened in the country at the beginning of ‘23, it was difficult to imagine how ‘23 would come up. I’m very happy to talk about these numbers and having this conversation with you with solid results, recurring results, consistent results, with good quality, and the important thing is what’s inside the result. The result is a consequence of everything that we do in the bank. All the digital transformation, cultural transformation, proximity, client centricity has allowed us to deliver consistent results through long periods.
