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    Kaio Prato • UBS Group AG

    Kaio Prato's questions to MercadoLibre Inc (MELI) leadership

    Kaio Prato's questions to MercadoLibre Inc (MELI) leadership • Q2 2025

    Question

    Kaio Prato of UBS Group asked for details on the credit portfolio's growth in Argentina, its asset quality amid worsening market NPLs, and the impact of new reserve requirements on money market funds.

    Answer

    Fintech President Osvaldo Giménez confirmed significant portfolio growth from a very small base in Argentina. He noted their asset quality has not worsened like the broader market, attributing this to the 'principality' of Mercado Pago in users' daily lives. He also stated the new reserve requirements would have a roughly 2-percentage-point impact on the annual rate paid to users in their investment accounts.

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    Kaio Prato's questions to MercadoLibre Inc (MELI) leadership • Q1 2025

    Question

    Kaio Prato asked about the company's current credit appetite, the effects of reducing micro card issuance, the go-forward strategy by region, and a noted change in the funding structure for the credit portfolio in Brazil.

    Answer

    Osvaldo Giménez, EVP of Fintech, stated that NPLs remain healthy and that recent credit card cohorts in Brazil show record-low defaults. He confirmed a slightly more conservative stance on lower-credit-score customers but described the tightening as minor. Martin de Los Santos, CFO, clarified that the funding strategy remains unchanged and that the observed shift in Brazil was a temporary, tactical adjustment to optimize funding costs.

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