Youssef Lahrech: Yes. Pedro, this is Youssef. Thank you for the question. So taking your question in parts. So with respect to provision expense, I would point you to the appendix of our earnings presentation, Page 48, I believe, kind of breaks down the drivers of that. And as in past quarters, it’s driven predominantly by growth, about 90% of it is driven by growth. Now when you look at credit quality and NPLs beyond what I provided in the earlier remarks, I think it’s important to kind of distinguish the dynamic of NPL 15 to 90, the early indicator, short-term delinquencies from 90 plus. So 15 to 90 decreased sequentially. That’s very much in line with seasonal patterns. 90-plus increase — 90-plus as a stock metric, right, it accumulates for credit cards all the way up to a year after entering delinquency buckets.
And so we’ve seen kind of the behavior on these two metrics pretty much following expectations. So going forward, it’s hard for me to give you very precise guidance given that the pattern of delinquencies will depend on several factors. Part of that is the quantity and mix of our own originations. Part of that is more macro drivers, but — what I can tell you is from a seasonal perspective, we expect, as usual, Q1 to be a seasonal peak in delinquencies following the trough in Q4 and then Q2, Q3 tend to be more normal. So that’s what I expect the seasonal pattern to look
Pedro Leduc: Sorry, if I may follow up, the outlook for provision expenses vis-Ã -vis loan book growth on a relative basis for 2023, exactly coming down gradually as the year goes? How are you guys seeing that?
Youssef Lahrech: Yes. Peter, I expect the — what we’ve seen in past quarters and in Q4 to continue, which is provision expense will primarily be driven by the growth in the book, the bulk of it as you’ve seen on Page 4 is driving back growth. And again, it’s the quantity of growth, but also the mix. So there’s slightly different dynamics between credit cards, unsecured lending and we want to introduce security will change the mix a little bit as well over time.
Jorg Friedemann: And our next question comes from the line of Thiago Batista at UBS.
Thiago Batista: Congratulations on the results. I have a question about the amazing 40% ROE that you provided for the inoperation. If — or do you know what would be the profitability if bank rules regarding capital were already implemented. So, what would be the ROE with, let’s say, the fully loaded of the capital requirement in Brazil? And as a follow-up, if the payroll loan business should be diluted or not for those ROE?
Guilherme Lago: Thiago, this is Lago. Thanks so much for your question. The ROE numbers should not change much in the new regulation because as of the end of 2022, we were already operating at an all-in basal already looking at the conglomerate between 9% and 10%. So it should be — this should increase gradually from 2023 throughout 2025, but we are not operating with a much lower capital base than auto financial institutions would have been had they opted for the prior regulation. So, we can certainly work with you after the call on trying to fine-tuning from 9.5% to 10.5%, but it should directionally not change much, the levels of returns that we are getting as of today, largely because we are massively overcapitalize in Brazil.
