Bernardo Guttmann

Bernardo Guttmann from XP inquired about Itaú Unibanco's future efficiency levers, specifically asking if the low non-interest expense guidance for 2026, considering temporary negative items, indicates a significant cost base change that will drive operational leverage into 2027.

Answer

Milton Maluhy Filho, CEO of Itaú Unibanco, confirmed that the bank is indeed capturing the benefits of past technology investments, productivity increases, and digitalization efforts. He emphasized that efficiency gains are driven by a deep review of investments and operational scalability, particularly in Retail segments, with expense growth projected below banking inflation. Maluhy Filho highlighted the long-term view of sustainable growth, increased productivity, and operational scalability, with continued investment in platforms and new business models.

Bernardo Guttmann from XP asked about the future levers for Itaú Unibanco's efficiency, specifically regarding the low non-interest expense guidance for 2026. He sought to confirm if this implies a significant change in the cost base, leading to a cleaner, more efficient structure by 2027, and thus driving future operational leverage.

Answer

Milton Maluhy Filho, CEO of Itaú Unibanco, confirmed that the bank is indeed capturing the benefits of prior years' investments in technology, productivity, and digitalization. He highlighted that efficiency gains are primarily from scalable segments (retail, SMEs) and that the projected 3.5% expense growth (midpoint for 2026) is below banking inflation, while still allowing for significant long-term investments in platforms and business expansion. Gabriel, leading the efficiency front, was also mentioned as driving this multidisciplinary effort.

Bernardo Guttmann from XP Inc. asked about the reversal in profitability where the retail segment's ROE surpassed the wholesale segment's, seeking to understand the key drivers such as spread, efficiency, or risk profile improvements.

Answer

President & CEO Milton Maluhy Filho explained that the retail ROE improvement was a result of a multi-faceted effort, not a 'silver bullet'. Key drivers included a derisking of the portfolio, expansion of net financial margin from products like financed credit cards, and a nominal drop in the cost of credit. He emphasized the sustainability of this new profitability level for retail while noting that wholesale continues to deliver solid results, showcasing the advantage of a diversified universal bank.

Bernardo Guttmann from XP Inc. asked about the client NII growth guidance, seeking to understand which segments offer the best opportunities for spread expansion given the competitive market dynamics.

Answer

CEO Milton Maluhy Filho stated the bank is well-prepared for any scenario and highlighted that the average portfolio's growth boosts the margin more than the end-of-period figure suggests. He identified growth opportunities across all businesses, with a particular focus on the resilient mid-to-high income segments where the bank is gaining share, and noted the significant, unquantified potential from the 'One Itau' platform.

Bernardo Guttmann inquired about the bank's strategy for the payroll loan segment, its appetite for growth given the INSS interest rate cap, and its approach to competing with aggressive digital players.

Answer

CEO Milton Maluhy Filho explained that the INSS cap impacted the market, leading Itaú to shift production from external correspondents to more profitable internal channels. A key strategic priority is to enhance the digital channel offering for payroll loans, which is a focus of the bank's increased technology investments, to improve competitiveness and client experience.

Bernardo Guttmann of XP Inc. inquired about the outlook for lease expenses and the potential synergies from the FiBrazil stake acquisition, as well as Vivo's broader M&A strategy.

Answer

CEO Christian Gebara explained that the FiBrazil acquisition, pending approval, will unlock synergies by integrating the network's operations, citing FiBrazil's BRL 282 million EBITDA in 2024 as a capture opportunity. He noted Vivo's M&A strategy focuses on non-overlapping fiber assets with similar technical standards. CFO David Melcon Sanchez-Friera added that while lease payments show volatility, the Q2 amount was the lowest in four quarters, reflecting successful renegotiations and efficiency initiatives that are expected to keep costs under control despite 5G expansion.

Bernardo Guttmann inquired about the sustainability of Vivo's margin expansion, asking about key efficiency levers, and sought clarity on the significant drop in prepaid revenue, questioning if it was due to migration or lower recharge volumes.

Answer

Executive Christian Gebara explained that the drop in prepaid revenue is primarily driven by the successful and aggressive migration of higher-value customers to hybrid plans. Regarding margins, he attributed the 8.1% EBITDA growth to strong revenue performance combined with cost reductions from digitalization, particularly through the increased use of the Vivo app for sales and customer care, and growth in lower-CapEx new businesses.

Bernardo Guttmann from XP Inc. asked about the margin outlook for the upcoming year, excluding one-offs, and the expected timeline for selling assets like copper and real estate following the concession regime change.

Answer

Executive Christian Gebara outlined a four-year plan for asset monetization, including migrating 1.2 million copper customers, selling 120,000 tons of copper cables, and freeing up about 50% of nearly 2,000 properties. Executive David Sanchez-Friera addressed margins, noting full-year EBITDA grew 9% with a margin above 40% (ex-one-offs). He expressed optimism for improving trends in EBITDA after leases and CapEx, stating recent costs were preparatory for concession benefits that will soon turn cash-flow positive.

Bernardo Guttmann asked about potential competitive threats from irrational offerings by regional mobile players and requested details on the expected economic benefits and timeline for the concession-to-authorization migration.

Answer

Executive Christian Gebara responded that while the mobile market is highly competitive, Vivo's strategy is centered on its unique national value proposition and bundled services, which drives strong results. Regarding the concession migration, he outlined the regulatory steps, suggesting a potential agreement by October. He noted that specific economic benefits related to OpEx, CapEx, and real estate would be detailed post-approval.

Bernardo Guttmann requested more details on the retail funding strategy, its potential for further cost improvements, and how Bradesco is managing its marginal cost of funding amid aggressive competition from newer digital banks.

Answer

An executive attributed the bank's low funding costs to superior liquidity management and, most importantly, deepening customer relationships to achieve 'principality' (being the main bank). This strategy, applied across all income segments, helps keep funding costs down. He expressed confidence that as they continue to execute their plan to enhance these primary relationships, they can maintain an optimal funding cost level throughout the year, despite competitive pressures.

Bernardo Guttmann asked how Bradesco is strategically advancing into the competitive high-income segment and using digital platforms to improve its client and product mix.

Answer

Executive Marcelo de Noronha confirmed a strategic shift, noting that while the low-income credit card portfolio is not a growth focus, the high-income portfolio grew 12% year-over-year. He highlighted growth in lower-risk products like payroll loans, demonstrating a careful approach to the mass market while successfully expanding in more affluent segments.

Bernardo Guttmann of XP Inc. asked how Bradesco is strategically advancing into the more competitive high-income client segment following its de-risking efforts. He sought details on the initiatives, including digital platforms and financial advisory, being used to improve the client mix.

Answer

Executive Marcelo de Noronha confirmed a strategic focus on affluent clients, highlighting 12% year-over-year growth in the high-income portfolio. He contrasted this with a more conservative stance on low-income, non-account holder credit cards. Noronha noted growth across all audiences but with a clear emphasis on lower-risk products like payroll loans and a more careful approach to the mass market.

Bernardo Guttmann asked about the contrasting performance between the resilient postpaid segment and the underperforming prepaid segment, seeking details on improvement levers. He also inquired about the primary efficiency strategies for margin improvement amid inflation.

Answer

CEO Alberto Griselli addressed the prepaid segment, outlining a three-part plan focusing on offers, communication, and channel tactics to improve loyalty and capture a larger share of market churn, while noting the overall market for recharges is shrinking. CFO Andrea Viegas stated that while their efficiency program includes AI and digitalization, the main cost pressure comes from inflation on leases, which they are actively mitigating through negotiations and other initiatives.

Bernardo Guttmann from XP asked about the sustainability of the stable CapEx guidance, seeking details on efficiency levers and exposure to exchange rate fluctuations. He also questioned the company's appetite for its fiber operations, including the possibility of a sale.

Answer

CEO Alberto Griselli detailed that CapEx efficiency stems from competitive TCO negotiations with network providers and a targeted 'AAA approach' to capital allocation. CFO Andrea Viegas added that most contracts have an exchange rate band, minimizing FX exposure. On fiber, Griselli described the market as highly competitive and the business as dilutive to cash flow, confirming they are open to all options, from consolidation to a sale, pending the right opportunity.

Bernardo Guttmann asked about the primary drivers of TIM's consistent margin expansion on the cost side and sought views on the potential competitive threat from new MVNO entrants like Nubank.

Answer

CEO Alberto Griselli stated that the competitive environment remains rational and focused on quality over price, and the impact of new MVNOs is yet to be determined as they have historically targeted niche segments. Both CEO Alberto Griselli and CFO Andrea Viegas attributed margin strength to ongoing productivity initiatives, digitalization, and a strategic review of their 'make versus buy' approach.

Bernardo Guttmann from XP Inc. inquired about the sustainability of the stable CapEx guidance, asking for details on efficiency levers and the impact of exchange rates. He also questioned the company's appetite for its fiber operations, including the possibility of a sale.

Answer

CEO Alberto Griselli detailed several CapEx efficiency levers, including competitive tenders with network providers that lowered the total cost of ownership (TCO) and a data-driven approach to capital allocation. CFO Andrea Viegas added that most contracts have an exchange rate band, minimizing FX exposure. On fiber, Griselli described the market as highly competitive and the business as dilutive to free cash flow, confirming they are open to all options, from consolidation to a sale.

Inquired about the increased guidance for Allowance for Loan Losses (ALLL), asking which segments would require more provisions and for an outlook on demand and delinquency in the agricultural sector.

Answer

The bank stated that the primary pressure for the revised ALLL guidance comes from the agribusiness market, where farmers have delayed payments. They are leveraging the new crop plan's funding to encourage debt settlement and normalize NPL rates. Provisions from individual and corporate portfolios are considered stable or 'good cholesterol' from credit expansion.

Bernardo Guttmann of Xavier Research inquired about the primary drivers of TIM's consistent margin expansion on the cost side and sought views on the competitive landscape, particularly concerning the potential entry of Nubank as an MVNO.

Answer

CEO Alberto Griselli addressed competition, stating the market remains rational and focused on quality over price, and that the impact of a new MVNO remains to be seen. CFO Andrea Viegas and CEO Alberto Griselli explained that margin expansion is driven by productivity, digitalization, an accretive more-for-more revenue strategy, and a re-evaluation of their 'make versus buy' approach for certain activities.