Banco Bradesco S.A. (BBDC4) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, thank you for waiting. We would like to welcome everyone to Bradesco's conference call about the impacts, adopted measures related to the COVID-19. This call is being broadcast through the Internet, and the link is at www.banco.bradesco/ir, where you can find the presentation for download. [Operator Instructions] Before proceeding, we would like to mention that topics related to the first quarter earnings will be discussed on April 30 conference call and that forward-looking statements are based on the beliefs and assumptions of Bradesco -- Banco Bradesco's management and information currently available to the company. They involve risks, uncertainties and assumptions as they relate to future events, and therefore, they depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors may affect the Q2 results of Banco Bradesco and may cause results to differ materially from those expressed in such forward-looking statements. Now we would like to turn the floor over to Mr. Leandro Miranda, IR.

Ladies and gentlemen, good morning. On behalf of Bradesco, we would like to welcome you all to our call, during which we will share the measures adopters to help overcome the crisis brought about by COVID-19 pandemic and the effect on the economy and Brazil as a whole by means of measures, aiming at preserving the health of our people who service to our clients, protection of our shareholder value and support to society. I would like to mention that we are seeing an unprecedented situation and the information come to us that every single moment and this could lead to a different positioning on the part of our organization. So what we have today is that we will be presenting to you today is based on the best information we have at our disposal right now. At the end of the presentation, there will be a Q&A session. [Operator Instructions] During today's conference, we have the presence of Mr. Octavio de Lazari, CEO of Bradesco; André Cano, Vice President of Technology, Human Resources, Finances and Operations; Marcelo Noronha, Executive VP of Wholesale; Cassiano Scarpelli, Executive VP of High Income and Treasury; Eurico Fabri, Executive VP, Retail and Credit; Vinicius Albernaz, Bradesco Seguros CEO; and myself; Fernando Honorato, Director and Chief Economist; and Carlos Firetti, Market Relations Director. Now I would like to give the floor to our CEO, Mr. Octavio de Lazari.

Thank you very much, Leandro. Good morning, my friends. And I hope everybody is okay, and I hope you have all had a very good Easter. Thank you very much for accepting our invitation for this call, during which we will be sharing the measures we have adopted to help overcome the crisis brought about by the COVID-19 pandemic, and then we will have a question-and-answer session. Needless to say, the moment we are living today is unique as well as the magnitude of this crisis that is evolving the crisis, as we said before, was not generated by the banks, but certainly, the banks are an important part of the solution. And you may rest assured that we are doing our share. To begin with, we have a strong, sound and liquid banking system, which is totally necessary in any economy. Our people have been working tirelessly to keep the bank up and running and serving our clients through our branches and digital channels as well. And we have made our best endeavors, and very quickly, we were able to give our clients access, both through contract extensions and new payroll loans. When the magnitude of the crisis became evident, we focused our endeavors on a few basic objectives. First, we put measures in place to take good care of our workforce, ensuring their well-being and giving them all the necessary conditions to work in safety, besides looking after everyone's health. We made our best endeavors to continue delivering services to society, and we can say that our objectives have been reached. Above all, our objective is to help overcome the crisis. And as I said, we know that we are part of the solution. Nevertheless, we must mention that the bank being capitalized and liquid is fundamental so that we may really contribute to boost the country's recovery. Now going to Page #3. This crisis -- when the crisis first hit, our immediate and foremost concern was with the safety of our people in Bradesco. We have 81 confirmed cases of coronavirus, and thank God, most of them are very well. We only have 4 cases that are in a situation that requires ICU. And in the other cases, the people are at home, and they are recovering from the coronavirus. And the first thing that we had was to immediately guarantee the job for the at-risk people, and we have the pregnant women and the trainees and apprentices. We were doing preliminary work at the bank, but the crisis required us to be very quick. Just to give an idea, we have 90% of our office people, exceptionally to the branches, 90% of the people. And the strategy at the branch, we have half of the branch is working for 1 week. And then on Friday, we have a very in-depth cleaning of the branches. And on Monday, the other team comes to work, and those who will work eventually are going to work on a remote basis so that all our branches in Brazil may be open and serving our clients. We have the commitment of not laying off anybody, and we have already paid 50% of the 13th salary. And we made available a very important service here at the bank, an open line, which is part of the Viva Bem program, by means of which we have over 70 doctors that guide our employees and their families in case of a suspicion of COVID-19. On Page #4, we show you very quickly the measures implemented to serve our clients. And together with Safra Bank and the Central Bank since the first signs of the crisis, we sought measures to help our clients cope with the scenario. We understood the unique features of this moment, and we adopted strong measures accordingly. The first one was the rollover of the short-term maturity debt. First, we granted a 60-day extension. In April, May and afterwards, for clients who need it, we would probably have to grant further extensions. Just to give an idea of figures, in these seven first days of extension, maybe 10 days, we have had 1,100,000 requests by clients to extend their contracts. And the measure has a very broad reach and it encompasses both individuals and legal entities. And for SMEs, with annual revenues between BRL 350,000 and BRL 10 million, we created a new credit facility backed by the government at very attractive rates and conditions, new key interest rates, 36 months maturity and 6 months grace period. And this is new money so that companies may pay their payroll expenses. And the government will take 85% of the risk and the bank, 15%. Credit will be assigned based on our models for clients who have their payroll with us. The ones that are already preapproved in this program jointly with the government, they have an additional 10% have already resorted to this line. And we have already preapproved over 125,000 companies for this credit. They have already been -- they are already available and involving 1,700,000 people for the employees of these companies. In the large corporation segment, we see clients mostly in good financial conditions. This is characteristic of resilient companies. And on the first days of the crisis, 10 days ago, there was a huge increase in the demand for working capital as companies saw some kind of insurance for working capital. And on some days, we had huge requests for liquidity by these companies. Just to give you an idea, the average ticket or adding all the tickets that we receive daily at the corporate desk, we had BRL 1.5 billion, BRL 2 billion per day before. And this number reached BRL 20 billion compared to what we had before the crisis. And this became diluted over time so that we could not only cater to very large corporations, but also SMEs and individuals as well. So we have already overcome this problem, going back to BRL 2 billion per day on average. One important point. A lot was said about liquidity. On the part of the banks, the Central Bank from March 7 through today released reserve requirement of BRL 26.4 billion during this same period that they could contract BRL 32,000,800,000 in new credit operations. So we do not have this situation regarding liquidity. We have even more liberation of reserve requirement by the Central Bank. So this situation is totally back to normal. We only had 3 days of the huge demand for credit, but now it has already stabilized. And we will continue to serve individuals, SMEs, large corporations such as we have always done during the history of the bank. Besides other measures for investors in all segments, we implemented conference calls and daily live broadcast, advising them on their investments and also discussing the recently announced regulations and measures. Now going to Slide #5. We adapted the bank governance and policy to the situation we are living. And 30 days ago, we established a Crisis Committee for the bank with all the VPs and CEO to analyze the whole picture of coronavirus in terms of human resources, technology, contact centers, wholesale, retail, high income, all the aspects that involve the moment that we are living today and a daily meeting with our Board of Directors that have been supporting us every single day, receiving information and supporting us on the decisions that we must make on a timely basis in order to continue to serve our clients. All our committees are functioning as usual by video conference and changing the habits of our meetings, of course. And the branches are open to help especially those who need our help the most, and the digital channels allow our clients to have practically all their banking services need met. And we believe that the current situation will lead to an increased use of these digital channels. Now going to Slide #6. We see some examples of actions put in place. In the last few weeks for the benefit of society together with other banks, we have donated 5 million rapid tests, 15 million masks, 30 CT scanners besides other equipment in partnership with other private banks, Itaú and Santander. We support domestic production of ventilators and other items that we will be donating to the Ministry of Health and donation by Bradesco Seguros jointly with other companies to build a shared hospital in Rio with 200 beds, being 100 of these beds ICU, and monitors to be distributed to the public network -- health network so that we may give support to these hospitals that will see a higher demand in the next few days and months. Now going to Slide #7, let's talk about the Bradesco Seguros. We have fully adopted our activities to this new environment. 90% of our group -- most of our employees are working from home, management, commercial and service team, both our own and outsourced. We are giving special attention to supporting the 3.6 million beneficiaries of the Bradesco Saúde to a phone that is dedicated to COVID information and hotline with question and answer. In the Meu Doutor Novamed network, we established an exclusive program for COVID-19 suspected cases. And we have extended the working hours to every day of the week and no need for scheduled appointments. We believe that we are truly giving our client a differentiated service. Slide #8. Our digital channels play a fundamental role in our client service, and we see a growing number of clients using digital channels for their banking activities and also a significant increase in the number of transactions through our app. We focus on communication, explaining to our clients how to use it, and we quickly give the message to the joint measures put in place by the government, Central Bank and the banks. And we have been quite agile as well. The functionality for the extension of contracts was made available on March 30 through Internet banking; on April 2, on mobile; and the new payroll financing was already available to clients on Net Empresas on April 6, totally preapproved and digital. And in a few days, the clients -- well, the first -- it will take on the first business day after the official regulation was published. Now Page #9. As I said before, our digital channels play a vital role for our clients. 96% of transactions are currently carried out by means of self-service. And besides working out the branches, our business managers have corporate mobile phones with access to most of the tools that they would have on their desk, and they offer consultancy via conference call or video conference. Our clients' finances are being tracked, and those facing cash flow difficulties are being supported either with credit or debt extension. Our branches, as I said before, are functioning 100% in allowed locations and not in shopping malls that are close to the public. Then we are -- we have special opening hours from 10 a.m. to 2 p.m. And from 9 to 10 a.m., we have this slot for at-risk groups only. We are operating, reduced teams at the branches and with weekly rotations so as to preserve the health of our people. And we -- since the beginning of the quarantine, we have been organizing lines outside the branches with mandatory distancing between clients and prioritizing services according to different equation, force in each location. And we allow a limited number of clients inside the branches with safe distance between them in all branches. Now Slide #10, regarding our credit policies. Right now, our focus is to give support to our clients. We have mapped exposures to more fragile industries and companies, and we have a permanent line of communication with them by means of our relationship teams. Our credit recovery teams are 100% active, seeking solutions for clients in need. And we have included the new variables in our credit model so as to have a more precise assessment of the situation of each client. In the interest rates, differently from what was published by some communication vehicles, importantly, the interest rates have not undergone changes. And on Friday, we set the basis through the Central Bank proving that interest rates are being maintained in whatever portfolio they are being kept exactly the same in the last 3 weeks rates, so the maintenance of the rates, and in some cases, even a decrease in these interest rates. So there is no attitude whatsoever on the part of the bank or any intention to increase interest rates charged from our clients, and they are being maintained at the levels that we had before everything that is happening right now. Now Slide #11, and extremely important point in crisis management, our governance and risk management policies. Our capacity to help clients is related to the maintenance of our health as a bank. They got into this scenario with a strong capital base and adequate liquidity margin to meet our clients' needs. Besides, the Central Bank has been communicating with banks on an ongoing basis, promoting measures that drive an even higher liquidity and solvency to the system. We are consistently monitoring the risk appetite and operating cap, reviewing them whenever needed. In order to conclude, I would like to emphasize that we are fully aware of the magnitude of the scenario's challenges, and this is our responsibility to help solve the problem, together with the society at large. As I said before, we see the economy falling something about 4% in 2020. Nevertheless, there could be a strong recovery with coordinated efforts between society and government banks and companies so that we may leave the situation behind as quickly as possible. We want to help a quick recovery of the economy with preservation of companies as well as the highest possible number of jobs. Now we are available to answer any questions that you might have. [Operator Instructions] Thank you very much for your attention.

Now we will start the Q&A session. [Operator Instructions]

Good morning. This is Firetti. I will coordinate the Q&A session. [Operator Instructions] I have 2 questions here from [indiscernible]. How many requests for debt renegotiations have you received so far? And are you going to increase the grace period that you are granting? Are you going to increase your donations to fight the coronavirus situation?

[indiscernible], this is Octavio. Thank you for the question. Regarding the extension or the renegotiation, the extension of the installment, we have reached 1,200,000 requests. And the contract has not been changed in terms of the values in terms of the rate. So this is done for clients that find themselves in more biased rate. And the extension, because of the COVID situation, we might have to extend them further. So we're already discussing them at the bank. And as April, May have already been solved, as of the end of April, if the problem continues, then we believe it will continue based on everything that we hear about it. We believe that, not only Bradesco but all the other banks as well will take the necessary measures to give an additional 90 days to these clients so that they may reorganize their financial life and go back to pay their installments on a timely basis as soon as the situation is solved. Regarding the donations, the bank has already been doing this donations to the Ministry of Health, and we will continue to make our donations according to our priorities, whatever is more -- a bigger emergency, the purchase of equipment and the test and respirators, ventilators, monitors because sometimes, it's useless for you to put money. You have really to give them the equipment in order to meet their -- these hospitals' needs. And I would like to congratulate Itaú for what they announced today in terms of donation. We are very proud to have other members of the banking community helping and doing an important job, and more than that, a structuring job for Brazilian society. And this is something that Fundacao Bradesco, the Bradesco Foundation, has been doing since 1956, with thousands of schools scattered throughout Brazil, investing BRL 7 billion in the last few years only through Bradesco Foundation for needy children. We are investing BRL 618 million through Fundacao Bradesco to look after these children. So all these companies that are working and helping the sector, all of that is extremely valuable. And I think it deserves our praise. But I believe this should happen on an ongoing basis. This should perpetuate itself so that we may really overcome these fragilities of society. So it's a great initiative, and we would like to congratulate every company, every bank that is doing this.

We have 2 additional questions here from Marcos Assumpção from Itaú BBA. What is the worst moment of delinquency? And could this be reached and exceeded? What is the percent of contracts that are being renegotiated for 60 days? Is there a room for a further extension of these renegotiations?

Marcos, I believe that the crisis of 2008 and 2011 are the big parameters that we have. But certainly, if you see the extension of the COVID, this is going to be even worse than the previous crisis. And our models are being worked on so that we may put an even bigger forecast. In the COVID scenario, we might have the worst delinquency. We hope it does not materialize. However, we have to consider the worst-case scenario in our forecast. About your second question, they represent about 15% of the installments that we were receiving in April and May, and what was done so far represents about 15%. And as I said before, I believe that all the banks will be willing and will be obliged, in fact. It will be the obligation on the part of banks to extend to May and June and give an additional 60 days so that people may have more breathing space so that after we overcome this moment, they may go back to paying their obligations.

Geoff Elliott from Autonomous. Along the line of credit renegotiations and for us to give the proportion of clients in each one of the segments and that are applying for this rollover for debt?

Basically, the 60-day extension, we are talking about individuals and SMEs and micro companies as well. The micro and small companies are resulting to this more than the others. In the large corporations, the situation is different. We have been supporting them, but it is the bank's risk. And the mega companies, the mega corporations, they are more capitalized and the condition is different in terms of borrowing from the banks. And from now on, I believe that work what will be done if we have to find specific solutions for each one of the sectors. The airline sector, for instance, we have to find a more specific solution and a solution which is tailor-made for each one of the sectors, for each of auto sector. We have to find a specific solution for the auto production and the supply chain as well. And we are going to have a meeting with the Central Bank, and we are going to tackle these subjects more specifically. And from now on, we will have specific treatments given to specific sectors. We will have to have more specific solutions for each one of these segments.

[ Marcos ] from Bloomberg. What is the level of capital you intend to work with from now on? Have you been acquiring assets from institutional investors? And there are other questions here. What about the dividend payout policy considering the regulation of the Central Bank?

I would like to give the floor now to our Treasury VP.

Regarding assets of institutional investors, we see some moves on the part of clients trying to do this in the secondary market. And this group is working there, and we have been making some isolated acquisitions. Nothing different from business as usual, but we have a slightly higher than the average, but nothing that may mean a problem regarding the funds and the funds' health. And we are adopting reserve requirements on these operations. So the dynamics are still healthy and we plan -- coming from reserve requirements, but nothing that draws our attention in terms of volume on the part of asset managers as a whole.

Could you talk about capital and dividend?

We intend to continue working with the same levels of capital that we had so far, nothing different. These are profitable levels, and that should be maintained. Regarding dividends the Central Bank established, our bylaws say that we must pay dividends of 30% on the net income and this will be maintained.

[indiscernible] I would like to know if you confirm the information that you are acquiring a stake in a bank?

This is Octavio. Thank you, [indiscernible]. Well, you have known Bradesco for a long time, and you know very well that we are always looking for good opportunities in the market. And last year, we acquired the bank in the United States because this was very important for our strategy of growth and high income, but there is no other bank or fintech that is in our radar screen right now. This whole situation that we see and the impacts of the crisis that will come, there is nothing on the table that we are studying. Some fintechs could be less capitalized because of the difficult situation, but we don't see anything right now. We are not studying any acquisition. We will continue to look for good opportunities, but not right now.

[ Jorg Friedemann ]. Although the bank does not work with expected losses, you have always been conservative. After the tax credit in the fourth quarter, you reached 245. Could we expect an increase in the coverage of the first quarter?

In fact, Bradesco has always been very careful regarding our positions and our coverage ratios. And certainly, we are within a picture now that we don't really know what will happen in the future. So we are studying our balance sheet right now. And undoubtedly, it's possible, we will be making additional provisions because these scenarios were not designed either for Bradesco or for any other organization. This was not expected. And due to the fact that we have always been very conservative and very concerned with the capacity of the bank and the capital structure of the bank, so we are going to dive in depth in our balance sheet now. And if the opportunity arises, we will be -- there will be additional provisions in order to tackle the expected losses scenario that we have ahead of us depending on the levels of delinquency in the third and the fourth quarter.

Thiago Batista from UBS. In relation to Bradesco Saúde, if you talk about Bradesco Saúde cancellation of selective proceeding -- procedures and does it offset? A question about delinquency. What kind of delinquency do you expect there? And could we reach a peak of delinquency? Could we reach 6% or is it a level that you do not expect? Do you know where your allowance for doubtful debt, your ADD, will be for 2020? And what about the level of negotiations -- renegotiations you expect?

Thank you, Thiago, for the questions. I will give the floor to Vinicius to answer about Saúde Bradesco, and then I will give the floor to our Vice President of Retail.

Thiago, everybody, what we see right now is a significant loss in selective procedures related to health and auto insurance loss. And regarding health, we expect a gradual substitution of this loss because of the increasing emergency procedures and hospitalizations. I think it's a little bit too soon for us to have a clear picture of this movement, so to say. We have been very much engaged with our service providers, and we have been refining our models in order to understand the progression of this, vis-à-vis COVID-19 and the time for treatment. So it's a little bit too soon for us to see a clear picture. And I think it's worth mentioning that in spite of the drop in elective surgeries, may -- a major part of them will be rescheduled. And very probably, we will have this inventory, so to say, or this backlog that will come back. So I don't think it's valid to say a replacement substitution because, in the future, there will be a rescheduling of the backlog, and we have been tracking this so as to have a more clear picture. Regarding the impact in 2021, based on the extension of installments that the market is doing as well as Bradesco, we believe that some impact could exist for provisions in 2021. And of course, this depends on the extension and the depth of the crisis and the duration of the crisis, so as to have any predictability vis-à-vis the next year. Right now, we are focused on understanding the current impact, the impact for this year, but we expect something to happen in 2021 results.

Just to add, Thiago. If we look at health today, of course, the procedures that should happen were canceled, the ones that were not emergency. And we consider these cancellations that are not really cancellations, but they are, in fact, postponements. We know that this is a one-off situation, but in the snapshot, this will happen in the second half of the year or the first half of next year. So this is something that is happening right now. We have already seen this in other situations not as serious as this one, but we know that this is going to happen, and it has to be considered in our provisions.

[indiscernible] a new magazine. Risk analysis and the pandemic, what about the impact? How are you assessing and dealing with that?

Your question is very good. Well, let's start with a new scenario addressed by Honorato, our Chief Economist, so that we could assess which are the segments that will suffer the biggest impact of the coronavirus.

How long the sectors take to get to a recovery and trying to imagine how long the tail of coronavirus will be, will be in May, in June. So new variables, new indicators were included in our credit models developed by our Department of Economics and based on what we are hearing from other sources and based on the experience that we had in the past as well with things that happened. So the credit analysis is more vigorous, I would say. So [Audio Gap] money. People will be [Audio Gap] to borrow -- or try to borrow beyond the limit or the caps that were already established because people have to guarantee a higher liquidity so that they may pay their payroll and their suppliers in order to resume a normal life after the crisis. It is very important for contracts to be complied with, and everybody has to pay their obligations because if somebody does not pay, somebody will not be paid, and we create a chaos in the economy as a whole should this happen. So with the models of credit analysis, we are considering all the variables that were smaller in the past, and now they are becoming more important in terms of credit assignment.

[indiscernible] Capital. I would like to know if payroll that already has 20% requests, it should reach 100%? Would you answer, please, anything?

In our network, Octavio has already given a figure for contracts -- payroll contract, which is important to emphasize 125,000 clients that we have preapproved to have a payroll product. This brings a major opportunity. Many clients were preapproved, but they didn't have the product yet. So we placed our network in order to contract these clients so that the product may be put on file so that we make bigger strides in this direction because it's important for the economy and for the people that will have the salaries guaranteed. So we are working very hard in order to use these preapproved wages and extend the program, whether it's going to reach the -- well, it could be more extensive. And I believe that the government might want to extend this and use this for a few months, and this could lead to a full use of the line by the client.

Just adding. This is an important line for the companies as there is no spread. What we see is that Brazilian entrepreneurs, as I said at the beginning, they try to cover their needs without borrowing. So we saw 20% of the lines already drawn on. And as we have made this available on mobile phones, et cetera, we have already told the clients that the line is available. But a major part of clients will only resort to define in May and some other clients might even not use the line because they have some kind of reserve in order to cope with this moment of bigger difficulties. Now regarding the large corporations, the companies wanted to preserve their own cash, right, Marcelo?

Thank you, Octavio. Exactly, Octavio. And I think you referred to that during your presentation. Some large corporations have more liquidity, and this is a prophylactic measure on their part. And on the other hand, in commerce, well, they really need to extend their debt so that they may pay their suppliers. So the prepayments of suppliers depends on some extensions. And this is one characteristics that, as of 1st of January, it has higher investments because of the natural seasonality involved. Companies have been taking risks in the period from March 20 and April 10, as you said yourself, Octavio, in order to build a buffer of liquidity to cope with COVID-19.

[ Carlos Macedo ] from Eleven Financial. Are the companies being successful in the court regarding the amounts that were lost by the banks?

Thank you very much for the question. At Bradesco, I have not seen any case whatsoever of a client, for instance, asking us to release the receivables. I only saw one case, but it was not of our bank, it was with another bank that was with credit cards, but it was a one-off, an isolated case. As I said before, Brazilian society has to be aware of the fact that they should not provoke a chaos due to opportunistic reasons. I saw some big change saying that they would no longer pay their rent, but I think this has to be rethought. I have been talking with many companies, and I don't believe that this is a trend, 99.99% of people do not want to do that and continue to building chaos in the country. Somebody who does not pay means somebody will not be paid, so you have to pay your suppliers, your employees. You have to pay your obligations. So we have to be extremely careful at a moment like this. If you have the money to pay, you must pay mandatory. You have to pay. You have to pay your obligations. If the client cannot pay the rent, you try to renegotiate and tackle the financial solution of this client. And -- but overall, people have to be aware of the fact that they should not be opportunistic and try to take advantage of this situation. This would be an evidence of a very bad character. Contracts have to be respected, and law and order have to be respected and complied with so that we may emerge from this crisis more quickly and more effectively. Otherwise, we would really drag this into the future. So the country has to be covered and people have to be responsible.

[ Carolina from Reuters ]. What is the volume that [indiscernible]?

Thank you for the question. Yes, we are waiting for all instructions regarding -- or from the Central Bank regarding the secured credit and having a reference. And we have to understand liquidity. As Octavio said, the liquidity of the bank is going very well with a very good quality. The liquidity indicators are very high, and we will be analyzing this. And we intend to have a spreadsheet for the next few days, but we are thinking, but the trend is slightly higher cost than the current funding that institutions are carrying out now.

[ Marcelo ] from [indiscernible]. How do you see the scenario for 2020 and '21?

Marcelo, thank you for the question. I will give the floor to our Chief Economist. He is the best person to answer your questions. Fernando?

Well, we disclose once a month, and the next one will be in 2 or 3 weeks. And you will have an important update, our first estimate was a drop of 1% in the GDP, and it is lagging behind. As Octavio has already said, we are thinking about minus 3, minus 4 today. And we have been tracking in our surveys, our proprietary surveys, the daily behavior of the economy. And what we can say is that Brazil has a similar behavior as other countries for 2020. So the GDP should be around 3% to 4% negative. For 2021, we don't know how much debt will be left from the government and from companies to be paid in 2021. We are talking about delinquency and -- but I'm more bullish about 2021. I believe that once the crisis is left behind, we should accelerate our growth, especially if congress and the government limit public expenditures for 2021 or during the existence of the pandemic because then you can leave this behind in good conditions.

Unfortunately, we do not have any time left for -- to answer any additional questions, then we will try to get in contact with you.

Thank you very much for your attention. This is Octavio speaking. And I hope we have been able to clarify a few points to you. But Firetti, Fernando and the investor relations area will be available to you as usual and with the same degree of transparency and -- so that we may clarify any further doubts that you might have. And now we're working, of course, you know that on the 30th, we will have our conference call about our results. And please take care, please stay safe, and we wish you a very good week. And we hope we can overcome as quickly as possible this crisis, this pandemic. And a virtual big hug to all of you.

Our call has reached an end. We wish you all a very good week. Thank you.

Thank you very much. The Bradesco conference call has come to an end. We thank you very much for participating and wish you a good day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]