TMBThanachart Bank Public Company Limited (TTB-R.BK) Earnings Call Transcript & Summary

Hello, good afternoon to you all, and we're pleased to welcome you to TTB Analyst Meeting for the second quarter and first half performance and today with us in this [ meeting ] we have Khun Piti, CEO; Khun Prapasiri, CFO; Khun Naris, Head of Strategy and TTB Spark. Last but not least, we have Khun Dararat, Head of IR joining us this time online. [Operator Instructions] First, Khun Piti will share with us the overview and the bank's targets. Khun Prapasiri will give more colors on the results and asset quality and Khun Naris will update on the strategy part. I think our attendees are all here, we go to start. So let me pass the session to Khun Piti.

Thank you. Again, thank you for your participation and for your time. I know it's a busy day for you guys. A lot of financial institutions just submitted the results today. First of all, the story that you will hear from us will be a bit boring because it will be very much the same that I chat with you last time. We believe that the crisis is still there. So our strategy on being very selective and being very conservative, remain the same. So we think that under this difficult time, this strategy start to pay off more and more. Our perseverance and discipline to do what we think is important and to stay away from things that we do not believe start to pay off well better and better. And the core is about making sure that we can grow revenue in a sustainable way. We manage expense and improve efficiency to make sure that we are leaner and leaner. But do not avoid investment that is necessary. And last and most important thing is to manage risk cost and asset quality in such a way that we do not need to worry about anything in the future, do not keep the [indiscernible] by the bullet, do things that we should do in a normal time even BOT allows us to do a lot of things under this forbearance period. So starting from loan growth. As we promised to you that we -- this year, we will resume the growth, but very selectively -- selective mean our reject rate is very high. Our approval rate in home loan is around 30%, 40%. And we focus on -- mainly on new home and first home, meaning that no speculation -- home for speculation. Personal loan that we want to resume growth, reject rate or approval rate for new customers that come through all live channels that we know them very little, approval rate is as low as 15%. When it comes to used car, the reject rate is about half. So we are still very prudent, meaning that the top line growth on loan will be there, but it will not be high. Even the demand for loan is coming back sharply and mainly from those who are desperate for cash, meaning that they would have a high chance of turning into NPL later if economic recovery is not there or inflation hit hard to the low-income group people. So we want to stay very conservative on our growth strategy. On deposit growth, it has become clearer and clearer that interest will rise, and it may rise even faster than we originally anticipated. So again, our strategy start to pay off because we prefund by locking in the amount of deposit. And of course, nothing comes for free, it will impact our NIM because if we prefund ourselves with 2 year step-up term deposit, our costs would rise, but we will get a sizable funding that we can lock in the rate. On this, it would impact on our net interest margin. Firstly, because of the pre-fund deposit that I mentioned. Secondly, once we have more liquidity than we need, we decide to park it in the short-term government promissory note 1 month to 3 months so that we can utilize it afterward. Thirdly, we see that the interest would rise. So we shortened the duration of our high-quality liquid asset portfolio mostly in almost entirely government bond with the duration of around 2 years where almost 85% of those bonds have duration of less than 1.5 years. What does it mean by that? It means that our short-term impact during the past year or 2 is quite severe because by having the asset in short duration, the interest income from liquidity will be very low. But once the interest starts to rise, the good thing is we can reprice very quickly because of the short duration nature of our liquid asset portfolio. On the fee on non-NII part, it is very difficult, but we can manage to grow quite nicely on bancassurance because we transform our business model. I think next time, we will share with you with more details because I think it's still too early to say that it's a full success, but it shows a very promising trend that we revamped everything from product proposition, sales service, the use of digital technology to improve our bancassurance business model. However, mutual fund is still extremely challenged because of the current market condition. On the cost/income, we manage well, but we don't want to become like Heathrow Airport that when business is back, they don't have enough staff to handle tourists that come to London, right? With the same analogy, in the past, we tightened up a lot because the sales volume come down because of COVID people cannot come out or go to see customer. So we keep our workforce below the should-be level. So now it's time to start building up, ramp up our capacity and also to continue to invest in IT people, technology people, tech and data guys which would start to impact a bit more on the cost side. But all in all, we believe that the cost/income ratio will still be very much manageable because of the rise of the revenue and good control on other part of the cost side. Last but not least, stage 3 ratio and credit cost. This is the players that I mentioned that it starts to pay off more and more, that we play conservative during the past few years. We shrink or derisk our SME portfolio. We see that the NPL formation in SME portfolio came down almost 4x from the peak, even we were faced with COVID and inflation and lot of prices that we are seeing now, but our SME -- the problem from SME portfolio came down a lot, right? And we do not grow high yield, low income portfolio. So that helped a lot in terms of NPL flow. And with good management, setup of our own asset management company and actively managed through write-off sale throughout the past 2 years, now our NPL come down to a very manageable level and likewise they are at the very decent level of 135 basis points, and we managed to push our loan loss reserve ratio a bit up about the same at 133%, where we believe that the quality of our Stage 3 portfolio is even better because we sell the low-quality, the part that has no collateral a lot. So the remaining part is something that's backed by collateral that when markets recover, we should be able to recover more from that part of the portfolio. So that is the story of what happened in a nutshell. So may I pass it to our CFO, to walk you through more details.

Thank you, CEO, and good afternoon, everyone. So let's get more color into the loan portfolio first. As CEO has mentioned that we continuously improve our sales and service model, and this gives the footing of loan growing as planned in the selected customers target. Retail loan, in the home loan acquisitions, credit card acquisitions, spending and the flash card acquisitions and spending has increased as planned. We are getting on the new high on a monthly basis. So that is because of the hard work that we have put in there. On the HP portfolio, also the New Car acquisition Q-on-Q may be flat. That was because in Q1 is the high peak of us having the motor show. Nevertheless, in terms of the used car and the CYC we have picked up the loan balance, the growth better than planned. And this is -- even though as CEO has mentioned that the rejection rate is high. So those have come in and we approved and put on our book is somewhat a good quality and we expand. And the yield that we got upon this HP portfolio has been in the momentum of increasing. In terms of the commercial portfolio, we are growing in the terms of the trade finance and the working capital to support in propelling economic conditions. And likewise, as CEO has mentioned, we put our excess liquidity in terms of the lending to the government in terms of the short-term PN. So that is the loan portfolio. Next, on the deposit, with the strategy that we have shared with you last quarter that we are seeing the rising interest rate. So we do that natural hit of this by putting -- increasing the term deposit portion. And as CEO has already given you color, the focus is on the up and up because the [ blended ]cost is still low and customer benefits on the increasing rate throughout the 24 months. We also introduced the new saving, we call it exclusive savings -- this is to go hand-in-hand to promote the BA customer who invests in the protection and so they can put money into this saving account. Our No-fixed, which is the flagship deposit accounts continue to grow. And we have also given new features, we are now starting in July, paying them the monthly interest as compared with the 6 monthly for a normal saving account, so the indiscernible] which is a zero rated accounts, but we give them the insurance benefits. We saw increase in terms of the new customer and also the balance per customer. It is our mission and purpose that we aim to maintain the position in this market as a deposit leader in terms of giving the customer the best product in town. Maybe we move on to the next slide. As we are continuing to be in the uncertainty period, liquidity is on a high priority. So you'll be seeing that the LDR, we managed to maintain at 100% and the LCR is 187%. So we may move on to the next slide. As combined with the deposit strategy that I have shared, we see that the cost of deposits increased 3 basis points Q-on-Q. The loan yield, I have to share that in the details, the yield from the new booking and the better mix of the portfolio increase on a month-by-month basis. But because of the excess liquidity that we put into the short-term loan, this collectively bring down the portfolio yield. But we believe that our continued effort in growing the loans for the selected target customer and in the interesting -- interest rate, increasing trend that the loan yield will be improving. And as a result, the NIM will be on a forward-looking in Q3 and Q4 will be level up according and should be able to meet our target guidance. Next slide, on the right-hand side, we also look into what was the series of the business strategy that we have planned. So during the full and partial lockdown, we were on the conservative mode. We did not grow the loan, we do balance sheet optimization and it is already in the anniversary on the fifth of July, where we have combined 2 legal entity, the system and everything is ready, the data is ready and platform for our customer service is ready. So we are seeing that Q4 loan growth is on the pathway as planned. Q1 of this year is slightly negative in terms of the aggregate portfolio. But as I've shared with you last quarter, the HP and home loan and the key lending product is still on the growing and Q2 is on the growing mode. So maybe next slide, please, on the non-NII. Total non-NII is increasing 3% Q-on-Q. The fee-based and service income also increased 7% Q-on-Q while the other Non-NII decreased. This is -- I would like to share with you one significant event that took place in this quarter. It is about closure of our branch in Laos. In fact, we initiated this branch closure 2 years ago with the view of seeing the economic situations and that it may be at risk. Nevertheless, the delay in law authorities to approve the process has been dragging and it was lucky enough for us that in April and May, we were able to get the approval and convert the Lao Kip into Thai baht. Nevertheless because the investment was made in 1992 and there is no market for hedging the Kip to Thai Baht, we suffered the FX loss of about THB 80 million, and we booked that into the other non-NII. So move on to the fee So what we have done well in this quarter is a BA fees, as CEO has shared, the sales and service model plus the change of the product mix, give us this uptick in terms of the fee trends and the momentum should continue in the second half of this year. The loan related fee also increased as we are growing the fee. LG fee is relatively flat Q-on-Q. Trade finance is on the rising trend, but the FX fee is on the negative side because of the international trade turbulence in terms of the geopolitical situations and also the zero-COVID in China. Mutual fund, least to say, are not performing well. But I think this is in line with the Thai sentiment and the global sentiment. Next slide, please. On this slide, maybe I focus on the operating expenses. As we have discussed, this Q2, the operating expense increased 4% Q-on-Q mainly came from first is the marketing expense that we used to fuel the growth in terms of the business. This is to support also the one -- the new Touch, our new mobile application, which was launched in May and also promote the card spending. And secondly, is the people cost. This is to reward our staff who has performed very well in bringing the new business. Lastly, it's a depreciation of the new mobile application that I have shared with you. It started in June. But in Q2, we have some saving that we terminated the services of the IBM, which was serving the legacy [ T-Bank system ]. So we ended that services in April. Forward-looking in Q3 and Q4, I think we would allow the human HR costs and marketing expenses to move up. This will be in line with the business growth and the depreciation may be picking up because there will be no further saving to [ shareholder ] as in Q2. So that is in terms of the cost wise. And so the cost/income ratio was 45%. I will skip also this slide and the next slide on the PPOP. Maybe we should discuss a little bit more in terms of the credit cost. I would like to share this way that we have been sharing that we are using the data analytics and using the strategic focus collection approach to offer support and advise our customers on how they manage their cash flow. As a result, we see lower flow to Stage 2 and Stage 3 in this quarter. Secondly, we front the load of provision you see from the graph that since Q3 of last year, we already front-loaded the provisions putting in management overlay for economic uncertainty. As a result, this quarter, low flow, we managed to put up a little bit more management overlay for the economic uncertainty, and that gave us in the aggregate of THB 4.4 billion risk cost compared with last quarter. So the net profit is THB 3.4 billion this quarter and has been on the upward trend since Q3 last year. In terms of capital, in April, after the dividend payments, we roll in profit. So the CAR ratio is currently 19.9%. This is a 50 basis point improving Q-on-Q. And with the stress test exercise that we need to submit the exercise result to BOT end of this month, it indicated that throughout the ICAAP stress test or regulatory stress test, our capital, it remains strong. Let's move on into the asset quality. As we had meeting with the rating agency who questions about what is the COVID relief that we presented in last quarter and what about the legacy portfolio, we decided now in Q2 that we combine the COVID relief and the legacy portfolio and call them collectively as a modified portfolio. As you see from the slide, the modified portfolio has reduced quarter-to-quarter, and in this quarter is 12%. The blue support is to support the customer that needs more heavy support. It -- as a result, we only support using the Blue scheme of 3% and Orange scheme of approximately 8%. This is not that we are not supporting them, but it's also indicates that the portfolio that we have, the customer only require the Orange scheme, not the blue scheme. And we are seeing the declining trend in all the sectors, whether it's a corporate or SME, it's HP portfolio, home loan portfolio and P loan portfolio. So this is what I want to share on this slide. We can move on to the next slide. In this, you'll be following us on the seven scheme and now in Q2, what we did is that we used the seven scheme to track our aggregate modified portfolio. In this quarter, we also revamped our system on the staging -- so if we compare this slide pack of this quarter compared with the previous quarter, you will observe that the modified terms, particularly in the Scheme 3 and 4. In last quarter, we reported mostly in Stage 1, almost 50% in Stage 2 or 3. Now in this, after the staging system and guidance that we used, Scheme 3 and 4 are now mostly Stage 2 and Stage 3 that used to be in Scheme 4, we pushed them to Stage 3, so that we can set up provision accordingly. Also in this quarter, we continue not to use [Audio Gap] for the staging failing or the policy increase, we decided that we take the road map of climbing the mountain and put more provision either by ways of ECL or management overlay. I also would like to share that the ECL model has been calibrated with key assumptions, the GDP, the unemployment rate, manufacturing index with the SICR is all already embedded and we get the independent model validator to come in, and they have completed the first part on the PD model and the LGD model will be completed in Q3. But in the nutshell, the result of the validation indicated that whatever that we have in the ECL and management only is sufficient. There is no extra requirement to put significant increase in the provision. Maybe we move to next slide. On this, we also -- because I had shared with you that we updated staging in the system, so we back-test our staging customer, maybe we look into the column of June. If you see that we're reporting 8.4% at Stage 2 in this staging exercise. But if we zoom in back and throughout the Q-on-Q, you will see that the customer DPD in the bucket 2 of DPD around of 31 to 90 days in the blue column there is only 3.7%. It means that even though they do not have the DPD, we qualitatively downgraded them and put them into the Stage 2, so that we can set up appropriate provisioning for them. And this is the internal management data whereby we exclude the interbank. So you are seeing here the Stage 2 of 8.4%. But if we flip over to the next slide, Stage 2 here is based on the financial reporting means that it includes the interbank. You'll see that Stage 2 is 7.4%, and our Stage 3 is 2.6% reduced from 2.8% of previous December and Q-on-Q, our Stage 3 also decreased, okay? Maybe we move on to the next slide. Our provisioning as of June quarter end is THB 55 billion. This is excluding the provision of the accrued interest of the Stage 3, which is presented net. In this THB 55 billion include ECL and management overlay and management overlay is somewhat 20% of the total provision. LLR ratio is 133%. But I need to reiterate here that in the words of IFRS 9, it is more important that the model -- ECL model configuration must be reliable and flexible to fine tune the forward looking assumption to ensure that we have sufficient ECL or provision. But as a local market, we still look into the LLR ratio. We continue to keep eye on this, and we picked at more to increase LLR from previous quarter. Last question on this slide that I would like to share, you may have questions on the coverage by the stages. The Stage 3 coverage ratio, it may seem that it's decreased from 47% to 44%. This is mainly because we have write-off THB 4.7 billion of principal. As a result, the corresponding provision has to go away. What is left into our Stage 3 is the loan with high collateralized. And we also track and trace the percent provision by product by state on a monthly basis. And it's -- the result the internal management is seeing is that the percent provision based on the net collateral is increasing Q-on-Q. Last slide that I would like to share is on the accrued interest. You'll see that the Orange, accrued interest of Stage 3 was eliminated since Q1, 100% provision has been put up there. And you may also observe that there is increase in the accrued interest of about THB 200 million. in this quarter-to-quarter. Let me assure you that this is mainly from the Stage 1. And we are applying this Stage 1 EIR on the home loan, which from our analysis and informal [ PS ] checking the assumption on expected life and prepayment assumption and the competition in the market, we are on the shorter [indiscernible] of expected life. Hence, the EIR has not been come up. For the Stage 2 accrued interest for the modified portfolio, we put somewhat 60% to 70% provision to cushions on the ability of the customer to pay. But we cannot present it net because that is the accounting principle. But let's assure you that we are not pumping in our P&L with the accrued interest that is not collectible. So may I pass this on to Khun Naris.

Thank you. So the next section is for the strategy update. So I think first, I'd like to just remind in terms of the strategic road map for TTB as we communicated earlier in the year for 2022, there would be key strategic focus of the bank. I think the first one is the continuation of our integration journey that we would like to focus on capturing the synergy values that we outlined as part of the rationale for the merger transaction. The second priority would be around revamping our business model and operating model to be more digital first. And lastly, we are also working on restructuring the group structure so that we can operate more strategically. So I think first, I'd like to just give you a quick update on the synergy realization. On the next page, this one, I think, hopefully, you get familiar with this slide already. I think overall, at the big picture level, I think things haven't changed much from the update in the last quarter. Overall, we are doing very well on cost synergy as well as the balance sheet synergy. The part that we are working on is around the capturing of the revenue synergy. But as we discussed last quarter, I think this is mainly driven by the external environment at the moment that caused us to be cautious. So rather than just trying to be aggressive in terms of growing our loan portfolio, cross-selling, we, at the same time, want to make sure that we grow the revenue sustainability -- sustainably. So -- but this doesn't mean we don't do anything as you will see the details later on. I think what we have been focusing on is around customer engagement. And I think the revamped digital platform that we launched in May, I think that really helped in terms of making sure that we have good engagement with the customer. And when the time is right, then we can try to be a little bit more aggressive in terms of growing our loan book, generating higher fee income. So with that, if we move on to the next page, just a quick recap in terms of our digital strategy road map. I think we set an aspiration to be the top 3 digital platform in Thailand. And I think to get there, we laid out our 4 milestones for us to get there. I think the first milestone for us is to use digital banking as a way to achieve a lower cost to serve and this part is mainly if we look at the cost to serve around different channel, different touch points. I think it's clearly that the cost to serve from the digital channel is an order of magnitude lower than other channels. And hence, we believe that we need to gradually migrate transaction from other channels to the digital channel. And on top, it's not just only cost to serve, but from the customer experience point of view, this channel hopefully still also offer a better customer experience and more fit towards the lifestyle of the younger generation. The next milestone is around deepening engagement and customer relationship. As I said earlier, I think for us, digital is not just around cost reduction, but at the same time, is an opportunity for us to build a better relationships, better engagement with our customer. So that, I think we also expect that, I think for better engagement with the customer, it also means that we have a chance to deepen the relationship, do more cross-selling with the customers so that we shift from a mono product bank to be the primary bank of the customer, whereby a customer holds multiple products with us. So that's the third milestone that we want to achieve. And on top, the last one is around new business development because when we think about the digital platform, I think based on the landscape in Thailand today, it is clear that remaining strictly in the financial service landscape is no longer competitive in this market. But at the same time, we also want to make sure that we are focused in terms of what we do best, our core competencies. So the way that we think about a new business opportunity or be on banking is more or less, we try to expand from the core. And in this case, I have an initial result from the auto ecosystem play that we launched together with the new mobile banking platform which is quite encouraging in terms of building engagement with the car owner customer group, which is a very big customer group in our portfolio. So with that, if I move on, I guess, the key update in quarter 2 for us is the launch of the new mobile banking platform. As we communicate to analysts in the last quarter or in the last few quarters, we've been working on this platform for quite some time. And -- and we successfully launched it in May, in past May. And I think what's going on this page is the initial result that the new platform achieved I think as a big picture, the way that we launched the new platform rather than going for the big bang launch, which means all the customers migrate over to the new platform, we decided to do the organic launch, meaning the customers' shoes are gradually migrated to the new platform to make sure that we can fine-tune the platform in parallel, and we achieve better performance and stability. So as of today about 2.8 million customer has migrated to the new platform. I think there are about 2 million left still on the old ttb Touch. And for this group of customers, we expect to be able to migrate them once we do the forced migration post update, which would happen sometime in August based on our [ current plan ]. And of the customer that has migrated, if we look at the key stats, we see that the engagement has gone up across all the metrics, this 2.8 million customer, 94% active on the new platform versus the stat of the old platform, which is around 72% active. And on top, if you look at the number of log-in, the number of log-in has gone up by 22%. On the second row, I think the key stat around the financial transactions has gone up about 30% across the board, again, in line with, I think, the log-in stats, our active rate that -- the new platform has successfully managed to deepen our relationship, our engagement with the customer. So moving on, I think for each of the milestones that I said earlier, I just want to share the key stats in terms of what the new mobile banking platform managed to achieve. On the left-hand side, I think this is what I have shown earlier, and the stats hasn't moved much, given that we are quite mature already. As of today, only 1% of the financial transaction is happening in the branch; the rest, 99% are happening through either the mobile banking application or our ATM and CDM machines. We are still working on this 1%, not get as strong. I think there are still pockets of opportunity that we can do in terms of migration but it will be gradual and a bit marginal in terms of the number of transactions. But on the right-hand side, I think this is where capability is, the nonfinancial service, meaning for the customer, they may want to, for example, request a financial statement from the bank, they want to inquire about the status of their application. This kind of transaction in the past was either served through the low [indiscernible] in branch or contact center and as I said earlier, these off-line channels have higher cost to serve compared to the digital platform. So what we did is we developed the functionality in the new mobile banking application to make sure that they can serve the customer around these nonfinancial service request. And as shown on the stats, I think each of these features have really received a large volume in terms of the service requests even during the first 2 months of the application launch and without much publicity really, so I think it's quite promising for us to really even double down on this and try to migrate the nonfinancial transaction from the off-line channel to the digital platform. And I think ultimately, this will mean also the lower cost base to the whole bank overall. So moving on, I think another big important feature for us is to build engagement through the personalization. If you recall, in our new mobile banking application, the top part will be dedicated for personalized message. This one, it means each of the customer would receive a set of message that is tailored to their personal lifestyle, product holding or past transactions. And I think what we try to achieve here is we try to communicate to each individual as a segment of one, which I think before the launch of our mobile banking application, the new version, it would be quite challenging to achieve through other channels because it means that each of the staff who interact with the customer will need to know the customer inside out in order to communicate to them as a segment of one. But with the beta version that we launched, I think within the first 2 months, we managed to target about 0.5 million customers. We generate about 200,000 cars or messages per day. And when we look at the [ click to rate ] the current version, we achieved 2x the [ click to rate ] versus what we upsell via the mobile messaging platform or social media which is very promising already. But again, we will not stop just by the launch of the new application. I think this is an ongoing work. Our team of data scientists is still working on sharpening the business logic to make sure that this engine is even more intelligent and can build a better engagement with our customer. Last, I came around deepening engagement. Another area that has been quite well received in our new mobile banking application is what we call My Benefit. I think the thinking is as a bank, we give away benefits, rewards, privilege to our customer a lot but oftentimes, the communication of these benefits or reward or privilege is really scattered around many channels, some came in through the post, some customer received via SMS, some via e-mail, some the customer only know when they are at point of sale that we have promotion together with that partner. I think the concept is to really centralize all of that in one place so that the customer knows exactly what is their benefit or privilege from being a customer of TTB. And as you can see on the set on the right-hand side, the adoption or the activity around point redemption has gone up 60% quarter-to-quarter. So quite successful and I think quite a promising sign in terms of building engagement through the launch of new application. Next, as I said earlier, I think higher engagement, more intelligent platform. I think ultimately, we want to make sure that it also means higher revenue streams because at the end of the day, we want to make sure that we can deepen the relationship, increase product holding of the customer. And as a sales channel, we hope that the digital channel will be increasingly important to the bank in terms of the contribution of the sales to -- from the overall P&L. I think we are still early in this journey, but as you can see from the stats on Page 32 I think we see promising size across the product category that the adoption of the digital sale has gone up significantly over the last quarter or the last year. And I guess, I think more and more, we can try to also share in terms of the financial contribution of those areas. But as I said earlier, I think this is 2 months' effort. And I think we are still working on fine tuning some of the performance or stability that I think has room for improvement. And also, there are quite a few backlogs that we want to add to the mobile banking application so that it can offer more and more sales journey to the customer better. Lastly, on the ecosystem play, as I said earlier, I think the way that TTB think about beyond banking or ecosystem is that we want to build from the core. We don't want to jump into an area that is foreign to us, area that we have no expertise in. Rather, we look and ask ourselves where we can differentiate, where we have really real value to add to the customer. And of course, one of the first area that we are quite confident that we have the expertise, we have the right set of partners and customers, have real pain point or unmet need is around auto ecosystem. I think the concept that we have launched is called My Car, I think in short, it all-in-one service point that allows a customer to manage his debt, operational burden, financing needs and even all the way to selling or buying car through this app. And I guess the initial feedback or adoption that we got, this is a new service that normally mobile banking wouldn't have, and we launched this without any marketing budget spend. As you can see, the stats on the right-hand side, I think the number of users, the activeness, the activity has been quite high along the dimensions and I think going forward, I think this is again an [ MBT ] version. We still have a bit to work on in terms of enhancing the feature. And at the end of the day, I think we need to work it back towards top-up auto loans, auto insurance sales, new car or used car sales or even new revenue stream that the bank never have before from buying or selling cars. So that's kind of the thinking in a nutshell. I think that's it in terms of the strategy update. I'll pass it back to [Audio Gap]

Thank you. [Audio Gap]