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

Good morning, everyone. My name is Carlos Marinelli, I am the CEO for Bradesco Saude. And here we are at the headquarters of Bradesco Seguros in Sao Paulo, Avenida Paulista. And we are here today to share with you some very good news. Bradesco is consolidating the most encompassing health care service in the country, combining leadership, profitability and knowledge. Maybe earlier on today, you might have been impacted by our press release and the material fact. But I would like to highlight a sentence from Luiz Trabuco, the Chairman of the Board. By consolidating Bradesco health care operations into a single listed company, we are building the most encompassing health care ecosystem in the country, thought to expand access, quality and efficiency and also supporting value creation to all, combining Bradesco health care management and Odontoprev. We are then creating Bradesco Saude, who, from its inception, combines sustainable profitability, health care, dental and everything supported by excellence and access, all of that to create a very open and complete ecosystem. Bradesco Saude starts being big with unmatched scale, BRL 52 billion in revenue, BRL 3.6 billion in net income and ROAE of approximately 24%. Bradesco Saude starts off with more than 13 million beneficiaries in private health care insurance, more than 3 million beneficiaries in Bradesco Saude and more than 9 million people who benefit from Odontoprev dental plan. In addition, there are many other services like Atlantica Hospitals with more than 3,600 beds, and we have a stake in one of the largest diagnostic medicine company with more than 600 labs and Meu Doutor with more than 1.5 million patients every month. Orizon, a company that combines technology with AI and also data to have sustainable services. Mediservice is a dental company, a very complete one. And many other initiatives like our participation in Croma technology, Kortex Ventures and everything that adds up to this new company, bringing about new opportunities with national coverage with a differential in Bradesco's distribution. This company starts with a very sound capital structure for focus on growth and strategic diversification and consistent dividend distribution. We start as leaders with Bradesco Saude and almost its 12% market share. We are leaders in dental plan Odontoprev with more than 28% market share. We are very big in hospitals with Atlantica Hospitals and more than 3,600 beds. And we have an equity stake with Fleury, a diagnostic medicine leader with more than 8.8 -- I mean, more than BRL 8.8 billion in revenue. We have scale, capillarity and proved presence. We offer investors multiple opportunities to create value. We also address the market with more than BRL 435 billion. We grow with profitability. In the 4 past years alone, the average growth of this ecosystem surpassed 50%. And we already start listed at B3, generating right pricing and also access to the capital markets. The mission of Bradesco Saude is to ensure maximization of value to all the company's stakeholders, and we will do that through growth, sustained profitability, a very robust capital structure, relevant investments and recurring distribution of dividend. We will optimize the portfolio for our companies and also the products in the ecosystem. We will expand our maturing business units to allow for sustained profitability, and we'll also build new businesses integrating these businesses to provide top quality services. In addition, we will have easier access to the capital market, attracting new investment, M&A and the development of new business. Let me call Elsen Carvalho, CEO of Odontoprev, to speak about this transaction structure.

Thank you, Marinelli. Good morning, everyone. Next, I'll show you the transaction summary. Now looking at the Opinion 35 of CVM and the bylaws of Odontoprev, we have set up an independent committee to represent minority shareholders. Based on expert opinions and assessments, the committee has recommended approval of this transaction. And now with the exchange ratio defined, the Odontoprev shareholders will hold 8.65% of the shares of the new company. That applied to the results of 2025 and the whole Bradesco ecosystem, it brings a 20% gain per share. The company remains listed in Novo Mercado by B3. Now it's important to remember, this transaction is still subject to the approval of ANS, the National Healthcare Agency. We are announcing the transaction now in February, then we will have the general shareholders' meetings in March and April. And after we have the approvals, then we will have the merger of shares and the consolidation of the new ecosystem in B3 Stock Exchange. So this was my presentation. We will now open a Q&A session. Thank you, all.

Thank you, Marinelli, and good morning, everyone. Joining us today are Vinicius Cruz, CFO for Bradesco Seguros; and Andre Carvalho, Head of Investor Relations at Bradesco Bank. We now initiate the Q&A session of this video conference related to the creation of Bradesco Saude. [Operator Instructions] First question comes from Vinicius Figueiredo with Itau BBA.

Great. I think this is a very material fact, especially in the health care ecosystem. And I wish you all the best and great success in this new endeavor. I would just like to have a better understanding because certainly, you will be now, in the context of Novo Mercado, starting with a free float slightly below the threshold of CBM. Obviously, I know that this would lead to -- I mean, if you go forward a few months, this will lead to a possible capital increase. Not only I'm referring to capital raise, but the cash of the company, the company is fully capitalized. What would be the focus if we think outside the day-to-day operations, but mostly in regards to new investments? I think that maybe -- I believe you will continue to have a very good performance in terms of what has been already settled. You have now Einstein, Rede D'Or, there is also a minority stake at Grupo Santa. I would just like to understand whether your main capital allocation going forward would also fit into this JV format or whether eventually there is any other avenue that you may pursue going forward. I just want to get a better picture of the new context of the company and what the priorities are in terms of this capital.

Thank you for your question, Vinicius. I will start with my first comment related to listing Bradesco Saude and Novo Mercado, where Odontoprev is already listed for over 20 years. I mean, this free float is only 8.65% of free float. But in due time and according to the investment projects of the company, this will be further expanded.

Thank you, Vinicius, also for your question. You mentioned this new sector, but this is a sector that has been listed for quite some time. Look at Odontoprev, they have been listed for quite some time. This industry is evolving. And today, we are happy to announce Bradesco Saude, a new ecosystem that in our view is one of the most encompassing ones in the market, most complete one in the market. Our track record already shows our discipline when it comes to investments. We are talking about a company that started back in the 1980s in the days of Golden Cross that created Bradesco Saude. So we're talking about 4 decades, a company that invested in dental care with Odontoprev. We're also talking about a company that invested in diagnostic medicine with Fleury Group. And more recently, we enter hospital services with Atlantica Hospitals. And that means that we have a diversification of partners. And in the past, this was not possible, but we did it. And today, we have other investments like Orizon, a technology company that combines data, technology and AI to provide more sustainability to the industry. And there are also other initiatives. All these investments just makes this even more comfortable because we acquired a lot of experience, and that experience allows us to continue to invest. Of course, the focus is to grow our current business. They will continue to work, and they are working quite well, but we are certainly identifying new opportunities. I'm certain that the market trusts all of the companies that are part of this ecosystem, and we will be bringing about new opportunities to work together with Bradesco Saude.

Thank you, Marinelli. Our next question is from Mauricio Cepeda with Morgan Stanley.

My first question is, what do you think this moment will do for your strategy? I understand that you made some strategic decisions in the past. I mean you had hospitals through joint ventures, you decided to remain with diagnostic medicine. Also on the oncology side, you engaged in another JV. So do you think now is the time for you to revisit your strategy? We are also getting questions from clients about your previous moves. And I would like to also add the issue of a potential follow-on, do you think you would need to do the use of proceeds in this case?

Cepeda, thank you for your question. I will start with Marinelli for the more strategic part of the question, and then Vinicius will add on the financial side.

Well, thank you for the question. It's a pleasure to see you again. In terms of revisiting our strategy, I believe that we got this far at this time introducing Bradesco Saude. We got here through a very strategic discipline to grow to be profitable, a strategic discipline to seek for best opportunities, always bearing in mind our beneficiaries, both in terms of dental and health care. And more recently, as you mentioned yourself, there are the hospitals. We join players that are a reference when it comes to hospital care. And this makes a great difference in what we are doing. I'll tell you that now, it has come the time for us to continue pursuing and developing the same strategy. We will continue to improve on our strategy. And this is what we will do, starting with Bradesco Saude. It's a new moment. Companies will continue to operate business as usual. Today is February 27, the last business day of the month. So we still have a lot of dental plan and health care plans to sell. We have to keep an eye on our sales map. We have to look at our operations, understand how they are performing. We have to be mindful of our clients that are being certified new doctor, Meu Doutor. We have to look at new partners to seek for business synergies, meaning after all that we will enhance, improve our strategy, and we will develop it further. Now the question about the potential follow-on.

Thank you, Mauricio. We don't have visibility, and it's not now the time to think about follow-on. We are just launching this partnership and this opportunity, thinking that after the necessary approvals, we will have to comply with the minimum requirements for Novo Mercado. Our balance sheet is very robust, so we will be able to follow the same strategy mentioned by Marinelli. We will continue to expand our share in this value proposition in terms of the risks, best projects, best geography, trying to mitigate execution risks. And we will continue to be a profitable company, a company that pays out dividends. And the use of proceeds, of course, we will use it when we see new opportunities and new projects to be evaluated with the same guidelines, sustainability and results, looking at dividends and the strength of our balance sheet.

Thank you, Vinicius. Our next question comes from Samuel Alves from BTG.

I have a few questions. First, about the management. Has that been defined? Is Marinelli going to be the project leader? And that's the first question. The second would be about Bradesco, would like to understand if you see any impact in capital indicators after the transaction, for example, BIS? And next, if I may, I'd like to understand if you have a long-term distribution agreement between the new company and Bradesco? And how often do you plan to reassess the current agreement? So congratulations on the transaction.

Thank you, Samuel, for the question. Let me ask Marinelli to answer about the management, and then we will respond to the other points.

Thank you, [ Pacheco ]. So thank you, Samuel, for the question. It's a pleasure to see you. Yes, I will be leading the project. I'm highly honored to have this responsibility. It's a new moment for our health care business with Bradesco Saude. We will have Elsen Carvalho as the Head of Dental Plans, Dental division. That is, again, a very strategic role that makes a big difference in the new company we have just set up. We'll have Vinicius Cruz as the CFO of the new company. And our dear friend Pacheco, you all know him, will be our officer in charge of Investor Relations. So right now, this is the management team that we introduced to the market as the team who will interact with you. About the impact on the bank capital structure, maybe Andre would like to answer that.

Yes. Thank you for the question about the impact on the bank capital structure, well, the main impact will be in terms of unleashing or releasing value. Our health care assets, I mean, most of them are not listed. And now we will have a single company, a single listed company consolidating all the assets and opening up new investment opportunities. This is good for all the stakeholders, especially to the shareholders of the bank. So we have a positive impact on the capital structure. And this morning, we released a material fact letter where we are explaining this impact. And we will be providing further detail after Bradesco Saude is operating, and then we'll be able to measure the impact more accurately. Samuel was also asking about a potential agreement in terms of distribution between Bradesco and the new company. Vinicius, what would you say?

We already have a distribution agreement established between the new company and Bradesco. This is valid, and it follows the best market practices. So we do not envisage there will be any impact or interruption in terms of the distribution and the commercial synergies we will further capture with Bradesco Saude.

Thank you, Vinicius. The next question comes from Mario Pierry from Bank of America.

Congratulations on the transaction. I'd like to focus on Bradesco view. Andre, you mentioned that this is going to be good for Bradesco capital structure. So I'd like to understand how that could help in terms of DTAs consumption of Bradesco after the transaction? As you said, this is going to unleash more value because these are a number of assets that are not appreciated by the market because they're not listed. And that's on the health care side. But I was just thinking if you could perhaps do something beyond health care in terms of insurance in the bank.

Andre, please?

Well, let me begin by talking about tax credit consumption or DTA consumption. Now we are aiming at consolidating Bradesco health care assets in a single listed company, so -- and that will unleash value and that will provide investment opportunities. In terms of tax credit consumption or DTA consumption, as I said 3 weeks ago, while we were talking about the bank Q4 results, we believe at the end of 2026, our stock of tax credit will be very close to the number we had at the end of 2025, that is that will be kept steady even after the announcement of this transaction. So it's a positive impact in the capital structure. We can stabilize our inventory of DTAs or tax credit. And the third question about new moves in terms of listings other types of insurance. So far, we do not have any plans to do that.

Thank you, Andre. Next question from Flavio Yoshida with Bank of America.

This transaction is quite interesting. My question relates to your strategy. You briefly said that this would be just a continuity of the ongoing strategy. But should we expect anything different? Because today, when we look at the health care ecosystem in the country, it is being consolidated. So I think this transaction just reflects that. And when you look at your own ecosystem, which is now very robust, what is -- what portion of it will probably merit more attention or more investment? I would just like to understand the driving force behind it and what we could expect. Also, I could -- I just want to understand the moment of the announcement. What led you to do the transaction at this particular moment?

Flavio, thank you for your question. The question allows us to elaborate further, both in terms of the bank itself and Bradesco Saude or the insurance company. So Andre, maybe you can mention some previous facts announced by the bank, and then we can export that to the reality of Bradesco Saude.

You are asking me about growth opportunities and what this asset consolidation is bringing to that bank. I would draw your attention to the SME segment because this is a highlight of the bank. We said that the loan portfolio grew 25% in this segment. Bradesco is a leader. We have a lot of market share, and we increased our market share in the past years. We are very far from the other competitors. And I would like to highlight some important points. It's the synergy between offering our products. Last year, we launched the new app. So you can find many products and services all being offered in the same place, the same channel like [ acquiring ] with Cielo, Pronampe. And we will soon provide insurance services, meaning that the bank is very much focused on this segment. And this will be another highlight for 2026, and it's also important for the other insurance operations of the bank.

How do you see that opportunities for SMEs?

Well, Flavio, certainly, this is something that unite us all. These 3 parts are important for SMEs. SME is a category that really moves the country forward with its capacity to generate jobs, invest and also create new things and move the work environment. It's an important driving force, both for health care and dental care and health care in general. And this is something that is making a difference to the bank. This makes a difference at Bradesco Saude and also at Odontoprev. And then when we refer to the strategy that I mentioned before, saying that we will evolve the strategy, develop it further, and I'm saying this because this new ecosystem gives room to many opportunities. And when we talk about Bradesco Saude, Bradesco Saude is starting already as a leader in many segments. And in other areas where we are not leaders yet, we are very robust and have a good breadth for investments. This market with over BRL 435 billion of opportunities, we are talking about something that we will look for new opportunities. We will identify opportunities. We will carry out all necessary studies. We will mature our ideas. And if time permits, we will make new investments. Whenever we talk about a complete ecosystem, it's because it connects all the dots and it gives the possibility to replicate things. We have more than 1 million beneficiaries as part of the private health care universe. I mean, you asked us why we are doing it now. It's just a matter of opportunity. It's not an idea that came up yesterday or a day before. Four decades ago, we decided to invest in the market of private health care insurance. And we just evolved. We invested in dental care, in diagnostic medicine. We invested in technology and hospitals, primary care and technology, of course. So all of that combined allowed us to arrive at this day with a good breadth to develop a new path in health care. So I'm certain that not only this ecosystem starts big and replicable, but it always comes with great attractiveness, and we can also incorporate other businesses that can make this one be even bigger. And certainly, the core of our purpose is quality of life of people.

Still talking about SME, we just released a performance record among SMEs. How do you address that opportunity?

In the last calls -- and I mean, both of us, we've been talking about the company's focus on SME. Odontoprev is growing every year. We are already very big in the Corporate segment. I mean the Corporate segment of Odontoprev has 6.5 million lives. This alone makes us bigger than any competitor. Odontoprev has leadership in the Corporate segment. We always grew, but we have been changing the profile of the company for a customer base that is more turned into mass retail. And about 10 years ago, 75% of the company's revenue came from the Corporate segment and only 25% from the Mass Retail segment. Today, this ratio is half and half. And the leadership is being pushed by SMEs. And today, with this new alignment, speaking about the bank, health care and dental care, and now with this new format, when we now have an ecosystem of synergic companies, we will be able to boost results and also boost growth.

I would only add that in order to reinforce the point about the strategy, this entire trajectory of movements and expansion in private health care, we will have more visibility on the market because this asset will be listed with more information, and we will be more capable of understanding its value. And we expect -- we hope the market to be able to price all of the assets that are now being presented in a more integrated fashion through Bradesco Saude.

Thank you, Vinicius. Next question from Pedro Leduc from Itau BBA.

Pacheco, it's a pleasure to see you again. And certainly, the health care asset of Bradesco that was already going through a turnaround, having you as an executive talking to the market will certainly help. Congratulations to you all. My question goes to Andre. Now it's more of an accounting question. I mean, this asset in your balance sheet had a value of BRL 15 billion and the transaction was above BRL 30 billion. Now since this is a corporate event, will it trigger an activation, let's say, of this asset? And the second question, impact on the capital structure. I believe you are going to give us more color on that in the release of Q1. But I'd like to understand this impact on the capital structure. I mean, if we're going to have a reassessment, if maybe RWA, I mean, with different weights, I just wanted to understand what's in your mind. We don't really need numbers, but at least the drivers. Of course, if you want to give us the numbers, of course, that would be welcome.

Thank you for the question, Leduc. Now the impact on the capital structure, as I said, it is positive. So it's important to keep it in mind. Secondly, yesterday, we published Bradesco Saude earnings. They are available in Bradesco Seguros website. And there, you can see these assets, they are priced according to the accounting level, PE of BRL 15 billion. And as Mr. Trabuco, our Chairman of the Board, explained earlier this morning to the media, one thing is the accounting value. Something different is a price as it is marked by the market. That's why we said the transaction will unleash value. We've only just announced the transaction. Our focus will now be in the extraordinary shareholders' meeting of both Bradesco and Odontoprev and then wait for the approvals by the authorities. With that and all of the official opinions, then we will see the new value of this asset, which will be the basis for us to calculate the impact on the capital structure. So we still have to go through a few more steps to get to an accurate number. We still cannot announce the number. But as soon as we announce our earnings of Q1 2026, we will certainly have more information about that.

That's great. So the asset is going to be revalued?

Well, the impact will probably be seen in our reference net worth. So because it is no longer going to be this accounting value, it's going to be a market priced value.

Thank you, Andre. The next question comes from Gustavo Miele from Goldman Sachs.

Congratulations on the transaction. It is great to see this transformation in health care, which is the area we cover. I have 2 questions, one more about strategy, the other one more financial. I'd like to hear from you about the commercial implications the transaction may have in the portfolio of the group's health care plans. I mean, we have seen recent moves by Bradesco, so investing in health care providers. And when we look at your capital allocation, we may see a bit more growth in this segment. I'd like to understand if you expect a more verticalization, that is, you would be bringing more products in your own assets, I mean, as a restricted benefit? I mean, actually, this is something we have seen in the last few quarters. So I'd like to understand how your product is going to be redesigned in the next few years, commercially speaking? Now the second question, I mean, whenever we see these new [ codes ], we always have a discussion on the buy side about what would be the fair multiple of the new code that is just being set up. So a question on this would be for us to try to break down the pro forma profit of BRL 3.6 billion that you've shown. So let's think about BRL 3 billion, adjusting by Odontoprev. So what would be the contribution of health care plans, I mean, in this BRL 3 billion profit? What would be a breakdown of this profit you've announced? That would be helpful. And again, congratulations on the deal.

Thank you, Gustavo, for the questions. Let's begin with Marinelli talking about the commercial side of your question, and then Vinicius will respond about the financial question.

Thank you, Vinicius, for the question. I'd like to begin highlighting our focus is not to have more vertical operations. We don't work as a vertical operator. We are, as we said, an ecosystem. We are an open ecosystem. So there will be business opportunities in this ecosystem, and these opportunities will be open actually also to all service providers, all players on the market, including Bradesco Saude. So the design, I mean, our strategy in terms of product design, the investment we made in Meu Doutor Novamed clinics or Atlantica Hospitals, these assets, they have as patients or as customers coming from other health care plan operators. I mean, so we want these businesses to operate at the highest level of competence. Not only for us, not only for Bradesco Saude, which is also a relevant player, a relevant customer, but also providing services to the whole society through other health care plan operators. We want to be an open ecosystem. So I would say that, again, we are reinforcing this role we've had. We've just mentioned about SMEs. We want to design products that will respond and provide more access to these clients to SME and but also having a commercial design whereby we can optimize a few assets. We did that recently. I mean, last year, we launched a regional product for the city of [ Goiania ]. So that is an economic growth engine in the country. So we now have a more efficient network of service providers in that city. And the pricing is adequate for our customers in that region, mainly SMEs. And all of that backed by our strategy, backed by our branch network, our capillarity and the way we care for our beneficiaries. We did the same thing with [indiscernible] product in the capital city. We're now leaders in health care plans there. And so we launched this program last year also in Porto Alegre City. So what the company has been doing and only in Q3 and Q4 at Bradesco Saude, we've attained additional 140,000 or 150,000 lives that is nearing 4 million lives in our portfolio. So we have to look at how the industry is evolving, focusing on maintaining our differentiated service level because we have a lot of respect for the beneficiaries and we want to protect our reputation so that our health care product is an aspiration by our own beneficiaries and by beneficiaries of other health care plans who would like to have access to our services. So our strategy is maturing and evolving in this sense. All of these elements, they help us look at our portfolio, thinking about the new opportunities, but we will maintain our growth curve. We want to maintain our differentiator. That is, we have a top level reputation. We provide high-level services. And -- but also we want to tap market opportunities with more efficiency, competitive pricing, which helps us have more access to the addressable market. That is why we've said this ecosystem, I mean, by merging Odontoprev and Bradesco Saude, we already have more than 13 million lives.

Thank you, Marinelli. Would you like to talk about the BRL 6.3 billion profit?

Yes. Well, looking at Bradesco Saude, I'm sure the market will be able to price the new company as more information will become available to the market, and we will be able to identify the level of maturity of each one of the deals that help set up Bradesco Saude. We have mature companies that have a well-known level of profitability, but we are complementing this offer with more emerging businesses, which are now growing and expanding their operations. Beyond all that, we also have a few initiatives that will help us gain efficiency gains in technology and also a few initiatives in terms of venture capital because they will help us gain more efficiency in the whole ecosystem under Bradesco Saude. So we're speaking about a number of initiatives that have a different time line, a different movement of bringing results, but all of them have a great potential to open up new opportunities which we do not yet see, but we'll be able to tap them in time. The example Marinelli gave us of having a specific network of service providers in a limited region is something we can do more, activating different possibilities because we already have a critical mass. And we want to open more opportunities to our partner hospitals, trying to combine the best possible solutions and profitability. So with subscriptions, earnings to all stakeholders and benefits to the beneficiaries. These are the motivations we have to expand Bradesco Saude.

Our last question comes from Caio Moscardini with Santander Bank.

Marinelli, when you look at the company in the midterm, what would be, I mean, the ratio between the insurance company and other businesses, particularly in regards to profit. Where do you see the greatest growth potential? Would it be on the side of the insurance company or the other providers like hospitals, diagnostic medicine clinics, et cetera? So that we can have an idea of the multiple of the company and how that will evolve since the businesses vary a lot in terms of their valuation.

Thank you, Caio, for your question. It's good to see you again. We are talking about assets that -- clearly, we see that they have different sizes. So whenever we talk about profit sharing and net income, we can look at it on the relative side and on the absolute side. At Bradesco Saude, net income is very important if you look on absolute terms. But now in relative terms in regards to growth, there are many initiatives that have great growth potential. So the relative participation may not be so big. But the beauty of this ecosystem is that we can bring with it lots of possibilities. With Bradesco Saude, we have an open and complete ecosystem. And with that, we have the possibility to deliver best-in-class services while at the same time, we can work with new opportunities that will merit investment and care so that in the future, they can grow and become even bigger. When you look at the portfolio of companies that are part of the ecosystem, you will always see leading companies, companies that post significant net income. But they have different maturity stages, and there will be different avenues of growth in terms of absolute and relative growth. When we look at the midterm, certainly, growth is the buzzword, but growth with sustainability and profitability. And this will come in different forms in the portfolio. As an example, there is Orizon. Orizon is a tech company. They work with data and AI to provide sustainability to the system. And their portfolio today has more than 160 different clients, but this could grow even more. And we will boost Orizon to help them grow, to support our ecosystem. We have Meu Doutor Novamed. This past year, they served 1.2 million people. But throughout its track record of about 3 years, they served 3 million people. You already -- you can already envision the growth that can come from Novamed. We are talking about the growth of the Fleury Group. They are proving that they can really grow in diagnostic medicine. We have Atlantica Hospitals, [indiscernible] a company that in less than 5 years, they are already seen as an isolated company with more than 3,000 hospitals, and they would certainly be the fourth largest hospital company in the country. Our capacity to start big and to have applicable scale in the midterm, we will be able to nurture business, this business in a different way so much so as to bring growth, and we will be able to post impressive results and dividends.

Thank you, Marinelli. We just have one last question from Andre Salles with UBS.

First of all, congratulations on this transaction. I think your focus on SME is very clear. This is a topic that was extensively discussed at Odontoprev. And in order to help us understand and elaborating on my previous colleagues friend, I just want to see how these moving parts evolve in time. Can you give me some color on the penetration potential of the dental care product? Within SME portfolio, Bradesco, how do you see this opportunity and whether you have any particular objectives that we could use in our future modeling?

Well, that's a great point, Andre. In fact, SME accounts for an even bigger addressable market when compared to the corporate portfolio. But how do you see our excitement with SME? We've been talking about that for quite some time. And we mentioned that in our previous answer. I mean, contrary to the corporate market, this is still a blue ocean, I mean, referring to BMS -- SMEs. Curiously enough, it's not a matter of competition, but penetration in our customer base. We have a strategy that the competitors cannot replicate. We find competitors, but we have a very specific channel that serves a gigantic customer base. They are scattered all over the place, and we have the channel that serves these clients. So the strategy is not applicable by the competition. So it's more a matter of execution than penetration. But when you talk about market, and speaking about Bradesco customer base, we have a good combination in the Corporate segment because we deal with large accounts. So every major account or large account is an important account. And then you have a combined tactics when you want to operate with corporate accounts. But in the segment of SMEs, we have a huge potential because we can work systematically with this segment, with KPIs, with governance, with mapping, just like we do with sales when we talk about penetration in the customer base and utilization. I think our challenge is to retain clients, how can a dental care product can help us also in the health care segment. There is a myriad of topics that we could talk about. So today, we are already doing it, but I think we will be able to do it much better with KPIs and governance. We see a huge potential. I mean, we get a lot of provocation all the time. We are introducing an ecosystem of companies that share a lot of synergies. We will even be more integrated and certainly, we will be able to post even more robust results. I would also like to mention the bank's ambition to expand the SME customer base. We want to reach 2 million to 2.5 million SMEs. And we announced that when we released our transformation plan back in 2024, we -- the 3 of us are aligned together working at Brad Seguros, we will operate in a much more enforceful way.

Well, before moving to our final remarks, I would like to turn the floor to Marinelli and the colleagues for their final remarks.

Well, first, if we want to talk about history, this is a landmark in the capital market, in the health care market. And I feel highly excited because right now, in this moment, we can see we have the capacity to do more and better than we've been doing in terms of developing new business, designing new products and especially building new journeys for our main stakeholders. Our customers, our beneficiaries, our customers in HR, brokers who are also really important for us. So now because everyone has been integrated in the same ecosystem of companies that share lots of synergies, that's going to help us move forward much faster than now. Odontoprev is a leader in dental care products. Bradesco Saude is a reference in health care plans. So as I look at the future, I feel highly confident.

I would say that enthusiasm or excitement is the word that defines this moment. I mean, in this announcement, all of us have had this feeling from the first moment we discussed about this idea and then tracking all the evolution up to the moment when we closed the transaction because our industry unites us all. I mean, health care is something we all need, all of us, all of us here, all of you, we want to take care of our health, our health and the health of those we love. I mean, we're always concerned about the health of people we love. So now as we launch Bradesco Saude, as we announce this new ecosystem, we feel highly excited because we'll be able to do more and better and more efficiently and providing more access to health care, attracting more people to our ecosystem so that they can also receive these benefits. If not all, at least some. This is our commitment to provide access to health care. And the final point, we have this team -- I mean, this team of executives working at the bank, [ Odontocare ] and now Bradesco Saude. But also, we have thousands of people working behind the scenes as we speak to bring these products to more people, that is, to provide these services, these top quality services to more people. And these are the people who make the difference. These are the people who have helped us come this far. These are the people who have made this happen. And these are the people who have allowed for us to be here announcing Bradesco Saude and feeling excited about the future. Our company is made of people, for people. And caring for people and providing better health care is part of this commitment, our commitment and the commitment of thousands of people who work with us every day. Thank you.

Thank you, Marinelli. Thank you, Andre. Thank you, Elsen. Thank you, Vinicius. We're now closing this Q&A session. The questions we were not able to answer, our IR team will reply them later on. In our Investor Relations website, you will find a copy of this presentation and more information about the setting up of Bradesco Saude. In addition to further information, we wish you all a great Friday, and have a good weekend. [Statements in English on this transcript were spoken by an interpreter present on the live call.]