So all in all, we think 2023 is another year of a healthy level of returns on equity, respected seasonality across the quarters in the long term, we believe that there is more profitability for us to extract from the model that we have seen so far in Brazil. And we also hope that Brazil is also a good showcase to what we can develop in other deals. So as we can see in the S curve that David showed, Mexico and Colombia are a few years behind Brazil, but we have no doubt that they will achieve profitability levels at the same ZIP code as the ones that we are achieving in Brazil in a few years.
David Velez: And just to add a bit on that, Lago, I think ultimately, if you take a step back and go back to the kind of first principles of the business model that we’ve always been espousing is the model of digital banking should provide much higher ROE in traditional banking because ultimately, you are operating with costs that are over 85% lower that incumbents. We don’t have branches in every corner. We don’t need hundreds of thousands of employees. We do need a lot of very expensive headquarters. All of that, we don’t need it to serve customers and even provide a better experience. So that has always been sort of the hypothesis. We’ve tried to prove it through unit economics when we show economics of the products that we have, the lining their upwards of 60% in credit card, they’re 100%.
But now we finally get to prove it to you with an actual geography like Brazil that is at a mature level and showing this level of ROE. And while there are some benefits of seasonality in Q4, as Lago mentioned, ultimately, that is the direction that I think model will converge towards in Brazil and in other geographies as well.
Jorg Friedemann: And our next question comes from the line of Mario Pierry of BofA.
Mario Pierry: Congratulations on the quarter. A quick question from me. When I look at your net interest margin evolution, you clearly benefited from lower funding costs. But we’re looking here the model. And we’re also seeing higher lending spreads on your products. Even though your mix is going against you, given you’re growing more in credit cards and personal loans. So my question is related to your ability to continue to be price, not only given the competitive environment, but the health of your clients, right? Like we know the economy in Brazil. It’s okay. It’s not doing great. We know that our consumers in Brazil are facing the effects of higher rates, higher inflation, disposable incomes. So I just wanted to understand here like if you see much more room for re-pricing your product.
And as a follow-up to that question, we have been hearing a lot of noise in Brazil of potential implementation of interest rate caps on credit card loans. If you could discuss that as well, that would be helpful.
Guilherme Lago: Mario, thank you so much for your question. Let me try to break them into first a little bit on net interest margin and then the second one on the cap. On the net interest margin, as you have seen, and I’ll draw your attention to Slide number 22 of our presentation, we have seen a fairly material expansion over the past four quarters. And we expect that this expansion will continue as a result largely of two factors. Number one, we do expect that the credit portfolio will outpace the growth of deposits, and therefore, we should see the loan-to-deposit ratio going up, and that should be, by and large, a big tailwind to net interest margins. Number two, we do expect that the continue of the lower cost of funding that should increase the margins that we have.
