If you take a look at our financial statements in the very last page, you’re going to see that the capital ratios of our financial institutions is above 20%, the financial — the capital ratios of our payment institutions above 20% as well. So, I think that’s my attempt to address your first question. On your second question, no, I don’t think that the payroll loans should be dilutive to our overall ROE. We are assuming that we’re going to have levels of return on equity and return on tangible equity that are in line or higher with the return on equity that we posted in the fourth quarter of 2022. But I’m not sure if question those two things.
Thiago Batista: Very clear. Don’t need.
Jorg Friedemann: And our next question comes from the line of Neha Agarwala from HSBC.
Neha Agarwala: Congratulations on the results. I’d like to talk about asset quality a bit. Could you give us a sense of what would be the asset quality, the NPL ratio in today? With the older methodology, if that’s possible. And we’ve seen the early delinquencies come down during this quarter, which is a good sign. Does this mean you’re feeling a bit more comfortable regarding asset quality? Or are there pockets of valuability that you continue to remain cautious about? And how do you see that impacting originations in the coming quarter? In 2022, you’re very clear that you would probably like to maintain originations at a level of 5 billion every quarter. Should we expect that to be accelerated in 2023? And what do you see the risks regarding that acceleration?
Youssef Lahrech: So let me address first your question on the impact of the write-off methodology change we did at the end of the second quarter of last year on NPLs. As we’ve reported in past quarters, you should think about the impact of 90-plus NPL as a reduction of 220 basis points in the quarter. So it’s pretty consistent with past quarters on that. Now with respect to NPL trends, as you pointed out, there’s been question 215 to 90. Some of that was seasonality. Some of that was the improvements we drove throughout the year in our underwriting particularly with respect to personal loans. As we mentioned in past quarters, we took a bit more of a cautious stance given the uncertainty throughout the year, and we’ve seen very positive results from that both in terms of the re-pricing we’ve done on the top line as well as NPLs. And so all in all, we feel pretty good about what we’re seeing from a risk-return standpoint and that drove the sequential increase in originations, as Lago pointed out, of around 10% in personal loans itself.
And so, we’re pretty encouraged by these trends. Again, it’s hard for me to give you very precise guidance on a going forward basis, but we’re — so far, we’re kind of comforted about what we’re seeing on those.
Neha Agarwala: Sorry, I did not get the 90-day NPL ratio under the old methodology, what would the number be approximately? Do we have that?
Youssef Lahrech: Yes. Yes. So just to refresh on how the new methodology works. So — and it affects primarily personal loans, whereby the timing of write-off moves from 360 days to 120 days. This is per IFRS principles on expectation of recovery. So when you’re moving the write-offs, you’re basically moving whatever was from 120 days to 360 days of delinquency to write off. So that tends to decrease 90-plus NPLs. And as I indicated, that decrease is around 220 basis points of decrease between — moving from the old to the new methodology. And that’s been consistent across quarters since we made that change. I don’t know if that was clear.
