We waited for a few quarters for delinquency to stabilize. We have seen delinquency stabilizing in the third quarter, but primarily in the fourth quarter. And if you take a look in the fourth quarter, we have already started to accelerate the originations of personal loans. It went from about BRL4.6 billion to BRL5 billion, so no more or less 10% growth. all else constant, by which I mean if we continue to see no losses and delinquencies playing out as per our expectations, you should expect to see ourselves growing a bit more the originations of personal loans throughout 2023. Now in 2023, you should also expect to see our launching secured personal loans, mostly public payroll loans, which should be an additional growth engine for our loan book throughout 2023 and 2024.
But Youssef, I’m not sure if you have anything to add to Jamie’s questions.
Youssef Lahrech: Yes. Jamie, just to add a couple of things to that in terms of how we think about the credit box and tightening or loosening, I mean, we operate always working backwards from booking every loan, every credit grants to be NPV positive throughout the life of the loan and to pass fairly strict conservative resilience requirements. So typically, we want every cohort of customers to be able to sustain a doubling of risk and still be above hurdle returns. And so that’s what we work backwards from and we kind of observed in our monitoring, the latest behavior of our latest cohorts and kind of adjust accordingly. So it’s unusual that we make their wholesale changes to our underwriting scorecard at any given point in time.
It tends to be much more dynamic, much more gradual, much more tweaking around edges unless there are extraordinary events. So I think you’re seeing a little bit of that in the fourth quarter with the increase in personal loan volume. And again, if performance continues to come in for our expectations, that trend should continue. The other thing to think about is beyond tightening, loosening of the credit box, what impacts our underwriting or our origination is the quantity of customers we have been able to us to underwrite, and in particular, the quantity of customers for whom we have a lot of data. So if they’re already PBA customers, primary banking account of customers, that gives us a lot more confidence and a lot more certainty in terms of being able to underwrite them for credit card or higher limits or for personal loans.
Jorg Friedemann: And our next question comes from the line of Eugene Simuni at MoffettNathanson.
Eugene Simuni: I actually wanted to ask a question on your 2023 priorities. Specifically, it was very helpful to hear, I think, David, in the beginning of the call, you got called out a couple, I think, strategic areas that you’re looking to focus on in 2023, including secured loans, affluent segment. Obviously, Mexico and Korea, I wanted to ask from a product angle, some new product launches or maybe the products that are early in their development that you’re focusing on for 2023? What’s the top two, three products there that we really should be watching this year?
Jag Duggal: This is Jag Duggal. I’m the Chief Product Officer at Nubank. And let me take a swing of your question and complement what David said and reinforce some elements of it. There are a series of launches that we are really happy with that either recently happened or are pending. First, I’ll reinforce a couple that both David and Lago have mentioned. We are excited at Nubank year-by-year to go after the largest profit pools in the markets that we operate. So we started with credit card and moved over the last couple of years into unsecured lending. And now we’re excited to move into secured lending, which is the third largest profit pool in the country, starting with a big focus on loan secured via public payroll. We also have investment backed loans, which we’ve recently launched and looking to build out our secured loan portfolio.
