Jagpreet Duggal: So listen, we remain incredibly excited about Mexico. This is potentially as big of an opportunity as we have in Brazil, it’s a very large market with an 11% credit card penetration. And we’ve seen very good product market fit since we launched about 3 years ago. I think on the credit side, what you will see us doing forward and what you might have seen us doing historically is growing a credit product is never a straight line into the upper right. You will accelerate at times. You will deaccelerate at times as we include new data sources, as we knew, put models into production, as we evolve our methodology, as we look at our test data. I would say, for the past couple of months, we are in a phase in Mexico where we are increasing significantly the capabilities of our models, and we’re reading a bit the kind of the data that’s coming out of our models after having gone from 0 to one of the largest credit card issuers in the country in about 3 years.
So that’s why you might see a bit of acceleration on the growth on the credit card side. I would expect us to continue growing as we get we’re comfortable in certain areas that we read better data, especially around the bank population, which is the challenge as well as the opportunity that we see in Mexico is bank arising 89% of the of the country. So on the credit side, I think we continue to grow fast, but I would say we are in a bit of a let’s invest more and reaccelerate over the next few months. On the debit side and Cuenta has been a phenomenal success. We’re super happy with the initial, receivable of the product, which happened over a couple of months. We opened over 2.4 million accounts, over $150 million in deposits in a couple of weeks.
We even decided to increase the yields or that we’re offering in the Nu Cuenta in Mexico to double down on the market opportunity that we’re seeing there in making sure that we really position Nu Cuenta as the undisputable best savings product in the country. I think we’ll win this move on the U.S. side, we are doing that. So we’re very focused on winning this market and that’s why we’re willing to invest. U.S. alluded to, breakeven next year. We won’t breakeven next year in Mexico. We want to continue investing. As we see this opportunity of growth, we’ll invest even more. We’re in an opportunity where we have a very valuable and earnings generating Brazilian pesos that can fund our growth into new geos. And so that’s the playbook that we expect to executing Mexico and in Colombia.
And so, just generally, we’re really excited about what we’re seeing, but, we’ll it will not necessarily be a full straight line. We will accelerate at times. We’ll take different speeds. We’ll go in one direction. We’ll go in a bit of that direction. Ultimately, trying to become the leading the top banking franchise in the country.
Operator: And our next question comes from the line of Mario Pierry at Bank of America.
Mario Pierry : Let me ask two questions as well and they’re kind of follow ups to the questions that have been asked. When I look at your slide on Page 14, your loan book this quarter expanded by about $600 million. Huawei had expanded by $2 billion in the previous quarter. And then when we look on page 16, you show that your origination jumped to 8.9 billion from 7.3 billion. So I’m wondering why if you’re originating so much more this quarter, why your loan book wouldn’t have expanded at a faster pace? So I don’t know if there’s any accounting issues there. So that’s question number 1. Question number 2 is related to your slide on page 26, the NPL trends. You clearly show that you have lower NPLs then the industry. But in some of these charts, we see that the industry seems to have, that NPLs have peaked for the industry.
But when I look at your numbers, they’re still rising. Like, especially when I look at the 1 to 2 months of minimum wage, the 2 to 3 months. And also now you’re seeing higher NPLs in the higher income brackets than the industry. So I would just like to hear your views here like, the industry seems to be peaking, you’re not peaking yet. What could explain that and why are you seeing higher delinquencies in the higher income segments?
David Velez: Mario, thank you so much for your questions. Let me try to take the first one and Youssef can eventually address the second one. So I think the choose lies that you mentioned, the main difference that justifies the magnitude of growth is the facts. So this line is 16. If you take a look at the title, it is denominated in local Brazilian real currency. And when you look on slides, you get one to slide 14, that is eliminated in borrowers. So if you take a look at the growth of our, loan book, it would have gone grown by only 4% in nominal dollar terms. But once you do effects neutral adjustment, it goes to between 9% and 10% just because of the FX movements in the quarter. So we do believe that most of the potential discrepancy in growth base is a result of the FX depreciation of the Brazilian currency.
Guilherme Lago: And Mario, with respect to your second question on the NPL trends compared to the industry, you’re correct in your observation, but, that in some of these segments, the industry seems to have deep and it’s coming down. With respect to our trends, I’d go back to what I said, a few minutes earlier, which is, the net impact of older cohorts maturing and more growth being put on the book with higher levels of NPLs, that’s the result of that dynamic. We actually expect that dynamic if anything to continue into the future as we see opportunities to expect. And then lastly on the highest income band, two things I’d say there is, historically, we haven’t had a big delta either way up or down versus the industry. And where it actually matters the most is where you have a higher risk content. So the lower income buckets is where we tend to have, a much bigger advantage in terms of, sort of apples to apples NPL comparisons.
