Eurobank S.A. (EUROB) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by. I'm Costantino, your Chorus Call operator. Welcome, and thank you for joining Eurobank conference call to present and discuss the first quarter 2020 financial results. [Operator Instructions] And the conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Fokion Karavias, CEO. Mr. Karavias, you may now proceed.

Ladies and gentlemen, good afternoon, and welcome to the Eurobank First Quarter 2020 Results Presentation. Together with me is our CFO, Harris Kokologiannis; and the Investor Relations team. I will proceed to an overview of recent developments before we present our first quarter results. Let me start from the pandemic overview, a global crisis that has affected all aspects of our lives. As shown on Slide 5, it is fair to say that overall, our 3 core markets, Greece, Bulgaria and Cyprus, are among the least affected from the hygienic standpoint due to the early government measures. Lockdown is currently gradually relaxed and should be completely removed in June. In particular, travel and tourism should be partially restored during the summer period. For 2020, the economic impact will be severe. Visibility is still rather limited as the depth and duration of the crisis depends on the pandemic evolution, the consumer behavior and the effect of policy measures, which, together with liquidity support, aim to smooth economic challenges. All current forecasts point to a deep recession in Greece, with the shape of the recovery, most likely being and completely due, resulting at a level of economic output at the end of 2021 around 2% lower than precrisis. A similar pattern should most likely be the case for the economies of Cyprus and Bulgaria. The potential positive impact of the new generation in new proportion has not been included in these estimates yet. In such an environment, our key priorities have changed to, first, protect the health and safety of our employees and ensure business continuity, support our clients with payment moratoria and especially businesses with new loans. Our employees have been at the center of our attention from the first moment as almost immediately, we enabled work at home for the majority of our people. However, all branches have remained open throughout the period, taking at the same time all protective measures for our staff and clients. We capitalized on the higher viability of our digital channels. And clients have been highly responsive to transact electronically and engage remotely. At the same time, the central government has taken decisive measures towards digital. As such, it is evident that the digital information progress in the past 3 months is higher than that of the past few years, both at the banks and government level. We will further invest in digital transformation and exploit the lessons learned during the lockdown period in an effort to enhance productivity further. Supporting our customers has been our top priority. In Greece, from the early days of the outbreak, we initiated private moratoria for both households and businesses, as shown on Slides 8 and 9. The demand for such programs is moderate so far, with more than 20% of corporate and household eligible clients opting in and almost 50% of small businesses. In addition to moratoria, for outstanding mortgages, the specific terms of a state-sponsored subsidy program should be announced quite soon. In Bulgaria, Cyprus and Serbia, public payment moratoria has been legislated, as shown on Slide 10. Additionally, we have provided fresh liquidity by underwriting new loans to businesses. The months of March and April have been quite strong, with business loan balances growing by EUR 0.7 billion. Demand remains quite strong as programs for interest-subsidized and state-guaranteed new loans become available. And as a result, we expect loan balances to increase by EUR 2 billion in 2020 from the previous year level. In parallel to the above, a high priority of this period has been to close the Cairo and the FPS transactions with doValue. On this point, all outstanding matters have been concluded. This week, the APS guarantee for Cairo SPV1 and 2 was approved, and the Bank of Greece clearance for the FPS acquisition by doValue was granted. As such, the formal closing of the transactions will take place in the next few days. As a result, Eurobank will have the lowest NPE ratio increase at 16.6% (sic) [ 15.6% ], NPE stock at EUR 6.1 billion, covered 60% by cash provisions, as shown on Slide 12. Let me now focus on the business update on Slide 13. In the previous quarterly call, we presented a 3-year plan prepared before the coronavirus outbreak. Although the situation remains highly volatile, our estimates for 2020 profitability, that is core PPI and cost of risk, have been updated. Overall, our operating model is quite resilient, with core PPI expected to be only mildly affected by the pandemic in 2020, remaining roughly at par with our expectations prior to the lockdown measures. On loan provisions, visibility is still limited, and our conviction is lower. Our best estimate for 2020 cost of risk ranges between 140 to 160 basis points or more than 60% higher than the previously expected level of 90 basis points. This estimate is based on a macro scenario that assumes cumulative GDP reduction of 2.5% between 2020 and 2021, which is in line with an EU commission forecasting decline of 1.8% for the same period. So in summary, after a period of turmoil, economic activity appears to start normalizing. And our dearest balance sheet post the Cairo transaction will be the base for above par profitability. The combination of resilient PPI and the completion of our NPE reduction plan makes us stronger to deal with the current serious challenges. At this point, I would like to ask our CFO, Mr. Harris Kokologiannis, to present our first quarter results before opening the Q&A session.

Thank you, Fokion. Let's now provide some more insight on the first quarter results and the outlook of the year. Starting from funding and liquidity on Slide 20. As seen on the left part of the page, the bank is making already use of a total of EUR 7.3 billion LTRO and TLTRO. This translates to benefit on our net interest income for the next 3 years of approximately EUR 130 million, a major part of which should be recognized in 2021. At the right part of the page, group deposits increased in the first quarter by EUR 500 million coming in full from Greece. Net loans deposit ratio remained stable in the first quarter at 83%. Moving on Page 23 and on the lending growth. During the first quarter, performing loans increased by EUR 500 million due to a great corporate portfolio. The strong demand should continue for the rest of the year as programs for interest-subsidized and state-guaranteed loans become available. As a result, a further EUR 1.5 billion of loan balances increase is expected. On Page 26, net interest income for the group decreased quarter-on-quarter by EUR 8 million or by 2.1% to EUR 339 million. Part of this decrease is due to the days effect, while lower income from [ NPV unwinding ], great corporate recoveries in international activities and also a negative contribution. These drivers were partly offset by lower funding costs due to repos volume and customer deposits rates. On a year-on-year basis, net interest income is lower by 0.9%. On Page 27, net commission income increased year-on-year by 40%, mainly due to the merger with Grivalia, capital markets and bancassurance's fees. Compared with the previous quarter, lending, network and bancassurance fees were lower due to seasonality and the lockdown in the second half of March. Higher capital market fees are related with investment banking and treasury sales activity as well as with higher equity program fees. On Page 28, operating expenses quarter-on-quarter are lower by EUR 17 million or by 7% due to lower personnel, administrative and advertising costs. On a year-on-year basis, costs are higher by 1.7% due to the merger with Grivalia and the acquisition of Piraeus Bulgaria. In Greece, costs are lower by 2.8% and specifically staff costs by 8.8% driven by the decrease of staff by approximately 500 people. Further on pre-provision income and on Page 16. On the top left of the page, core PPI is stable compared to the previous quarter of EUR 212 million as a result of lower operating expenses, which offset lower NII and commission income. On a year-on-year basis, core PPI is higher by 10.3%. Pre-provision income decreased to EUR 214 million due to lower other income. Moving on asset quality and on Page 17. As shown on the top left of the page, NPE formation was almost flat in the quarter as the positive formation of the business portfolio was offset by the good performance of household. NPE ratio remained stable in the first quarter at 29%, while pro forma with Cairo completion, it decreases to 15.6%. Cost of risk over net loans amounted, in the first quarter, to 1.3% and loan provisions to EUR 126 million. Finally, on this page, provision coverage at the end of March amounted to 55.6%, while pro forma with Cairo completion, it increases to circa 60%. Moving on to capital position and on Page 18. In the first quarter, the fully loaded CET1 ratio decreased to 13.7% as a result of investment securities mark-to-market, mainly corporate and foreign sovereign, and the increase of RWAs by EUR 1.6 billion, mainly related with balance sheet growth but also with higher market risk due to market volatility. The above has been partly offset by the quarterly profitability of circa EUR 60 million. Total capital ratio amounted, at the end of March, to 17.8%, including the IFRS 9 transition impact for the full year 2020. Moving on Page 19. Our capital position pro forma with Cairo and the FPS transactions is shown. The impact from the transactions amount to 340 basis points, which is circa 30 basis points lower than our previous estimate. The difference is mainly due to the risk weighting of Cairo senior notes, now at 0%, and the crystallization of Cairo loss at EUR 1.57 billion or EUR 25 million lower following the rating completion for SPV3. As a result, total capital ratio, pro forma with Cairo and FPS, amounts to 14.4%. Following the closing of Cairo and FPS in the next few days, the impact of the transactions to the financials of the bank will be reflected in the second quarter. Before we open the floor to your questions, I would like to give you more details on the 2020 outlook. On Page 13, we present the evolution of the main P&L drivers in 2020 pre and post COVID as a percentage of 2019 core PPI. Furthermore, the net interest income, fees and operating expenses 2020 estimates compared to 2019 are as follows: Net interest income is expected to decline by a low single-digit rate in 2020 versus 2019. This compares to a mid-single-digit decline previously expected and reflects a stronger loan growth, higher bonds income, reduced funding costs and higher LTRO, TLTRO utilization. On the other hand, we still expect fees and commissions income to increase year-on-year but at the low single-digit pace versus a high-teen percentage previously expected. This is due to the impact of the lockdown and the lower client activity in the region for the rest of the year. Regarding operating expenses, we are intensifying our efforts to reduce them both in Greece and in core countries. As a result, we expect group operating expense to decrease by a low single-digit rate in 2020 versus 2019 instead of a low single-digit growth previously. Overall, and based on the available data, our core pre-provision income is expected to be only slightly affected by the pandemic in 2020 and amounts to circa EUR 840 million compared to EUR 860 million previously. This is at par with 2019 levels. As regards cost of risk, our best estimate ranges between 140 and 160 basis points or more than 60% higher from the previously expected level of 90 basis points. This estimate is based on a macroeconomic scenario that assumes cumulative GDP reduction of 2.5% in 2020 and 2021, which is in line with an EU commission forecast decline of 1.8% for the same period. This completes my presentation. And we may now open the floor for your questions.

[Operator Instructions] The first question is from the line of Floriani Jonas with Axia Ventures.

First of all, congratulations for the conclusion of Cairo, remarkable transaction. Now a few small questions from my side. First of all, Harris, could you please expand a bit on the difference on the Cairo hit? Previously, the expectation was for EUR 1.590 billion, and then it closed at EUR 1.567 billion. So if you could just expand a bit on what drove that. And if you're already in a position to expand a bit on the servicing contract, if there was any changes to the agreement with the value as well. Secondly, on capital, am I right to assume that there was a small decrease in your capital requirement from 11.5% to 11% as you show in Slide 19? And then thirdly, still on capital. I was wondering what is your expectation for the CRR changes on your capital, what kind of basis point benefit you expect to benefit if this goes ahead.

Thank you for all. So coming on the transaction, let me again summarize the time line to be clear on that, and then we'll come on the impact of the transaction regarding your points. On the time line, we have completed the hive down at the end of March. On Cairo, we have received DBRS for all 3 SPVs, SPV1, 2 and 3. We have applied for Hercules for all SPVs, again, and we have received approval for SPV1 and 2, while for SPV3, we expect approval soon within the month. As of -- in the first quarter, we have also received approval for SRT from SSM. Now these are the major milestones on Cairo in 2020 year-to-date. On FPS, we have received the approval from Antitrust Committee. We have received approval from Bank of Greece regarding the acquisition of FPS from doValue. And also the carve-out has been completed in the previous 2 months. So on Monday, we have our final Board to approve the final terms of the transaction, and we expect closing with doValue on Cairo and FPS within next few days. The final milestone is the distribution of part of mezzanine in June to shareholders as it was our initial plan in -- within the third quarter. So as I said, we are going to decrease our NPEs and account for the loss of Cairo in the second quarter. Now regarding the impact, first of all, you should say that there is no -- any change in the total consideration. And on Slide 19, we show the impact of the transaction on the capital, where, as I mentioned, it is actually slightly lower than what we believe was shown in the previous quarterly call. More specifically, compared to what we presented in March, there is a small decrease of loss from EUR 1.590 billion to EUR 1.567 billion as we now have the exact tranching of SPV3 as well following the rating completion by DBRS. And furthermore, compared to March presentation, single tranche will be weighted at 0% and not 25% that was our assumption at that time. So again, both -- mainly the lower [ EBITDA ] from overall savings in capital of circa 30 basis points versus our previous estimate. Apart from the above, there are some slight modification on SLA modalities, which we are going to communicate in the form of closing. Now regarding the capital requirement on that, we have not any change. It remains as it used to be. What the ECB has stipulated is that temporarily, all European banks may make full use of all available buffers in order to withstand the stress and provide liquidity to the economy. So the total capital requirement without all these buffers amounts to 11%. This does not imply yet that our new pricing is up, but this is the level without the buffers that may be used to address the COVID outbreak. Coming to your last question, on the proposed CRR amendments. We are talking about mainly a flexibility on IFRS 9 without any major impact from a [ press reading ]. And then we are talking about the lending application capability, mostly deduct from CET1 [ prudently ] by software assets and any application associated with an RWA discount on SME loans. So mainly the 2 latest issues, the SME is [ compact ] on the software, mainly a positive impact of up to 60, 65 basis points, which have not been reflected in this presentation. But still, we should wait from the technical standards from EBA in order to, let's say, conclude on the final impact.

Okay. And just a follow-up on cost of risk. I mean just trying to understand your strategy behind not going for like, let's say, a one-off charge in Q1 but keeping an elevated cost of risk guidance for the rest of the year. I think the difference between the -- the difference in euros to your extra elevated cost of risk is something like EUR 250 million, which you could have booked as well in Q1. So just trying to understand why you decided to go for the impact over the next 3 quarters instead of taking a higher impairment in Q1 similar to the other banks, not only in Greece but in Europe as well.

Actually, different banks have designed to adopt a different strategy on that, as you said very correctly. Some banks decided to book in the first quarter the full effect. Others have decided to smoothen base over the course of the year. We decided to adopt the latter, at least at the moment, because we would like to have more visibility about how the cost of risk will evolve over time. And based on the input that we may have during the second and third quarter, we may adjust our strategy accordingly.

The next question is from the line of Bairaktari, Angeliki with Autonomous Research.

Three questions on my side, please. First of all, on your NPEs, which haven't moved much, and you show that NPE formation is almost 0 this quarter. I was just wondering whether there is a reason why you didn't take any actions in the first quarter of the year. We've seen 2 of your peers have reported yesterday they have -- they still have negative formation despite the lockdown which started in March. So I was just wondering whether that was a decision for management not to do any auction, liquidations, write-offs in light of the Cairo transaction or whether you have seen any underlying trend with regards to formation. And if you could also give us your expectation with regards to how the book is going to progress in the next 2 quarters based on the discussions that you have with corporates and households regarding the restructuring of bad loans, et cetera. My second question is -- has to do with the increase in fees. I appreciate that you've got the Grivalia effects in the first quarter of this year, which was not in the first quarter of last year, but still that would imply that the underlying fees at Grivalia are not massively down. Isn't that a bit too optimistic? One of your peers guided for fees in Greece down by double-digit percentage this year. And last question on NII. The increase on performing loans by around EUR 2 billion this year, which you're guiding for, should we expect the interest rate on these loans to be lower than the interest rate on the front book at the moment because they will be supported by the government?

Okay. Angeliki, thank you for your questions. I will take the first one, and then Harris will comment about fee and commission income and net interest income. So in terms of the NPE formation in the first quarter, let me clarify that there was no management action. It was the numbers that we observed. The formation was flat for the quarter. And the second part of March, which is the important month -- the important part for the month, was definitely affected by the lockdown. And as you can see on Slide 31, there was a positive corporate formation of about EUR 80 million, which includes 3 relatively large corporate cases, classified as NPEs. Now there is a technical issue here. Two of them are part of the Cairo securitization. Therefore, they're going to be off our books in the second quarter. Now moving into the second quarter, we still expect to see a rather flattish formation. Looking ahead due to the existence of the moratoria, we should have a clear picture about the clients' longer-term ability to serve these term loans either in the fourth quarter of 2020 or in the first quarter of 2021. However, we should keep in mind that the impact of the recession, which definitely will weigh negatively on formation going forward, to some extent will be balanced by a number of credit positive items as follows. I mentioned in my introductory speech that we expect the government to announce the exact terms of state-sponsored subsidy program for mortgages. The exact terms would be clarified over the next couple of weeks. But we know already that the subsidy duration will be for 9 months. That means from the third quarter of 2020 until the end of the first quarter of 2021, the amount of subsidy will decrease gradually per quarter. Obviously, the amount of subsidy will also depend on clients' income and total wealth. But overall, this is a program that will support the mortgage portfolio. It is also credit positive. But as you can see on Pages 8 and 9, the percentage of customers who have opt in for the moratoria that we have announced so far is quite lower than initially expected. In our view, this confirms that the payment capture has not deteriorated this time. It is also credit positive. The availability of the EUR 7 billion state guarantee scheme that is going to be launched next week for new lending to businesses, to corporates and SMEs, this is also going to be positive for the asset quality of this segment. So overall, I think it is, in our view, early to draw any definite conclusions about the base of NPE formation for the rest of 2020 as the overall scale of the deterioration in asset quality will largely depend on the depth and the length of the recession from one side, but on the other side, from the success of the several support programs.

Now on Europe, second and third question, Angeliki, as I said, we expected growth to be suppressed versus our previous estimate by low client activity. So fee and commission income should still rise but at a low single-digit pace year-on-year versus a high-teens percentage growth previously expected. Now this mid-single-digit growth, of course, includes the full phasing of Grivalia investment property income compared to last year. Without that, we should expect a low -- so on a like-for-like basis, we should expect a low single-digit decline, both in Greece and international. More specifically, we expect lending and capital market fees to be mostly at par with the previous year, or in some cases, some categories is slightly higher. And almost all the other categories, i.e., bancassurance and funds under management, network, acquiring, issuing to be done. So this translates to a -- excluding Grivalia investment property income, a low single-digit decline and including the phasing of investment property income and mid-single-digit growth. Now going to net interest income, as I said, is now expected to decline by a low single-digit rate in 2020 versus a mid-single-digit decline previously, helped by stronger loan growth, higher volumes, higher bonds income due to -- again, to volume, reduced funding costs on deposits and repos and higher TLTRO utilization. Now on your specific question regarding the government -- the loans provided under the government -- the guarantee scheme. As state guarantee, at least 80%, these loans are 0 risk weights and ECB [ listed ] for liquidity purposes. Now due to the 0 risk weight, we have to pass part of this benefit to the customer. So on a like-for-like basis -- let's assume 2 clients with a similar credit solvency level. The spread should be lower in case of loan with government guarantee scheme. But of course, obviously, the amount of spread depends on the credit worthiness analysis of its specific customer.

If I may just follow up on the formation. Could you give us an indication on what you've seen in terms of NPE formation in the second quarter? Have you seen anything? Or is it still flat in May because there are no auctions, et cetera?

Activity, based on what we have seen so far, we expect a flattish NPE formation for the second quarter.

Next question is from the line of Abad, José with Goldman Sachs.

I have 2 quick questions. The first one is that you are increasingly -- looking at your guidance actually for cost of risk this year, 140 to 160, this is actually an add-on of between 50 and 70 bps versus the previous guidance. So the first question is whether we should expect the same add-on for next year. So this is actually a guidance for 2 years, or this is just a guidance for 2020? And if this is not guidance for 2021, what should we expect for 2021? The second question is, so you assume here a net GDP contraction over a 2-year period of 2.5%. This obviously leads actually to this 50 to 70 add-on. So in the case that we -- that the net GDP contraction was twice as large, let's assume actually 5%, should we then incorporate our numbers, actually, an add-on twice as large as well, between 100 and 140 bps?

On the first part of your question, I think it would be too early to provide any sort of guidance for cost of risk in 2021. We should see how things evolve over the next couple of quarters before we make an assessment for 2021. Now on the second part of your question, because the line was not that great, are you kind enough to repeat your question, please?

Yes, yes, of course. So you -- for the calculation of your guidance, so you are using -- or you're assuming actually a net GDP contraction of 2.5% over 2020, 2021. My question was that in the case that, for example, we had a contraction which was larger, let's assume twice as large, so this would be a net negative contraction of around 5% over the next 2 years, whether we should also assume an add-on twice as large, which would be actually between 100 and 140 bps. And if not, what is the sensitivity that we should have in mind?

Yes. Yes. Okay. Now it's clear. Roughly, for every 1% in terms of additional contraction, the effect should be about 10 to 20 basis points in terms of cost of risk.

The next question is from the line of Boulougouris, Alexandros with Wood & Company.

Just a quick question. I'm not sure if you covered it in the presentation before. But from this guidance of 140 to 160 bps cost of risk, could you elaborate how much is the IFRS 9 change of macroeconomic assumptions that...

The estimate is based on our IFRS models, taking into account the macro scenario that we have already described.

The next question is a follow-up question from the line of Bairaktari, Angeliki with Autonomous Research.

Just one follow-up on TLTRO, please. Can you confirm that the EUR 7.3 billion is going to be the maximum amount you can draw? And then would you consider putting on carry trade, investing part of that liquidity into Greek government bond to have a pickup in yield on your NII? Or is that included in your -- the number that you provided before of EUR 130 million, which, if I understood correctly, the EUR 130 million is -- we should divide that by 3, right, because it applies to 3 years. So if you could also confirm that.

Thank you, Angeliki. And the picture on TLTRO is as follows: The current LTRO is EUR 5.4 billion at a range currently at minus 0.5%. And the current TLTRO of EUR 1.9 billion is currently at 0. LTRO will be rolled over to TLTRO 3 borrowing in June. So in total, we are going to reach a level of approximately EUR 8 billion at minus 100 basis points rate for 1 year, so between June '20 and June 2021, subject to no loan decrease in this perimeter, excluding mortgage amortizations during the period, end of January 2020, end of March 2021. And after the year that, as I said, expires in June 2021, we come back to minus 50 basis points again. So the maximum take is expected at approximately EUR 8 billion, and the expected total benefit until 2022, as I said, we expect to be at the area of EUR 170 million, noting that it is not evenly distributed. Close to 50% is expected to -- of that is expected to be in 2021, and regarding the other 50%, more objective than the allocated to 2020 and 2022. So the major part will be in 2021. So it's not divided by 3.

The next question is from the line of Sevim Mehmet with JPMorgan.

Just a quick follow-up on the Cairo transaction, please. Can you share with us any more details on the distribution of the mezzanine and junior notes to shareholders? For example, what will happen between the closing of the deal in the first half of June through the third quarter '20 that you are guiding? Do you have also any closer date for now that you can share with us? And given this is treated as a dividend in kind, is there anything that could prevent this from happening given the regulatory restrictions, et cetera?

So what we are going to distribute is 75% of mezzanine of all Cairo SPVs and 50% of junior. Now the next steps are as follows. Before that, not to forget, we have received the SSM approval on the distribution, so we don't expect any regulatory approval on that. It's just a procedural governance issue related to the bank's processes. So next step, on mid-June, our Board will resolve on the transfer of Cairo mezzanine and single notes to the [ CPO ] SPV. And the annual general assembly that will take place in mid-July, if I remember correctly, on 17th of July, will resolve upon the distribution of Cairo -- of these SPV shares to their shareholders. There is a lapse period of 40 days. So by end of August or early September, the shareholders will be credited with the shares of the new SPV. This is the time line so far. And again, we don't expect any external approvals in order to proceed on that. It's a matter of internal bodies approval.

The next question is from the line of Manolopoulos, Konstantinos with Optima bank.

Well done and congratulations. Actually, I have a question on the payment moratoria schemes on Pages 8 and 9 where you present the -- how many customers have opted into this scheme. So in my eyes at least, it's weird and definitely very positive the fact that only 22% of eligible clients have opted in on the household products and slightly similar levels in corporate and significantly higher on small business loans. So the question is, how come the rates are so low? I mean one would expect that given the moratoria, more people would have opted in rather than not opting. So what's your understanding on that? I mean is it because of the whole process is slow and more applications should follow in the coming weeks and months? Or is it because clients wait for the numerous government initiatives, the ones, for instance, that you referred or the new liquidity schemes, et cetera? Or is it indeed completely improved payment behavior from all parts, i.e., households and corporates?

Okay. That's a very good question. And actually, we raised this question with ourselves because our initial expectation was that a higher percentage of customers who would opt in for this moratoria. Now obviously, the process is not over. We keep calling customers, and then others may increase over time. But one explanation for the relatively low opt-in rate is that these customers are customers who have remained current throughout the 10-year crisis that we have in Greece because, as you know, we offer this moratoria only to current customers. So these people have been tested under very severe conditions during the last 4, 5, 6 years. They remain performing. Therefore, they have a payment culture which is quite strong. And this may be an explanation why some of them have decided to continue with the current payment schedule and not seek any moratoria.

Okay. So it's probably a changing behavior rather than anything else. That's very good.

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Karavias for any closing comments. Thank you.

Thank you. Let me thank you all for participating in this call for our first quarter results. Let me also thank you for your questions. They have been very helpful to elaborate some of -- basically related with our results. We will be available for any follow-up call during the next several weeks. Thank you. Have a nice weekend.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a pleasant evening.