Banco Santander-Chile (BSAC) Q3 2021 Earnings Call Transcript – The Motley Fool

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Banco Santander-Chile (NYSE:BSAC)

Q3 2021 Earnings Call

Oct 29, 2021, 11: 00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. We would like to welcome you to the Banco Santander Chile Third Quarter 2021 Conference Call on the 29th of October 2021. [Operator Instructions] The format of today's reporting call will be a presentation by Banco Santander Chile management team, followed by a question-and-answer session. So without further ado, I would now like to pass the line to the CFO of the company, Mr. Emiliano Muratore. Emiliano, please, go ahead. The floor is yours.

Emiliano Muratore -- Chief Financial Officer

Good morning, everyone. [Technical Issues]. Okay. Sorry for that. Good morning, everyone. Welcome to Banco Santander Chile's Third Quarter 2021 Results Webcast and Conference Call. This is Emiliano Muratore, CFO and I'm joined today by Robert Moreno, Managing Director of Investor Relations; and Claudio Soto, Chief Economist from our research team. Thank you for attending today's. We hope you all continue to stay safe and healthy. Yet again the bank has achieved top results with a strong ROE and solid financial performance, thanks to the success of our digital strategy and other initiatives. But before we get into our results, Claudio will start with an update on the economy and macro scenario beginning on Slide 4.

Claudio Soto -- Chief Economist

Thank you, Emiliano. Since our last call sanitary conditions in Chile, have improved substantially. Despite the recent surge in daily COVID cases due to the delta variant, new infections remain relatively low and the mortality rate has receded. That has occurred in a context where more than 75% of the population have received the full immunization program and 25% have got the booster. As a result, the state of emergency that ended in September has not been renewed. And most of the sanitary restrictions have been lifted.

The economy has surpassed its pre-pandemic level and has reached its potential, although with some heterogeneity across sectors. Growth has been led by consumption, pushed by government cash transfers and pension fund withdrawals. Investment has also recovered but has not yet reached its trend. Employment continues subdued with a labor force that is still substantially below its pre-pandemic level. Going forward, we should see further progress in employment as the sanitary condition allow people to resume the participation in the labor market.

Overall, we have revised upward our growth estimate for the year from 8% to 11%. In 2022, growth will moderate to a range between 1% and 2% as the fiscal impulse fades away and base effects kick in. Inflation has accelerated in response to external cost per shocks and one-off hikes in prices of certain services. For the next few months, we should see further increases in inflation due to our buoyant demand, I depreciated currency and higher fuel prices. We forecast CPI inflation will close the year at 6.3% and next year will end up between 4% and 5% converging to the 3% target in 2023.

The Central Bank has accelerated the reduction of its monetary impose by increasing the monetary policy rate twice since our last call, one by 75 basis points and the other by 125 basis points. Thus the monetary policy rate has reached 2.75%, significantly above our initial estimate. For the last monetary policy meeting of the year, in December, we expect the Central Bank will increase the monetary policy rate by another 75 basis point so that it reaches its neutral level by the end of the year.

During next year, the monetary policy rate may rise further but the Central Bank will graduate the size of future monetary tightening, according to the evolution of domestic demand. Medium and long-term interest rates have also increased substantially, not only in response to expect a tighter monetary policy, but also because of the possibility of a fourth pension fund withdrawal and the uncertainty regarding the political process in Chile.

In this context, the peso has depreciated despite favorable copper prices. The government has begun the legislative procedure for the 2022 budget. It considers a significant reduction in expenditures, minus 22.5% to reach a public deficit of 2.8%. With this, gross public debt will remain below 40% by the end of next year.

The political situation in the country is challenging. In a few weeks, there will be presidential and parliamentarian elections. The results of the presidential election are still wide open. And government program of some candidates have been mutating in recent weeks. In parallel, the constitutional convention has approved its internal regulation ratifying the 2/3rd requirement to approve any article. This month, they have begun writing the content of the constitutional text which should be finished by June 2022.

Emiliano Muratore -- Chief Financial Officer

Thank you, Claudio. We will now move on to explain our strong balance sheet and results. Moving on to Slide 8. In the third quarter, our net operating income increased 1.2% Q-on-Q and 233.7% -- sorry 33.7% on a year-on-year basis. Quarterly net income in third Q totaled CLP176 billion, an increase of 68% compared to the same quarter of last year.

Compared to the second quarter net income decreased 5% mainly due to higher other operating expenses. Net operating income on the other hand, increased 1.2% Q-on-Q. Year-to-date net income increased 63%, with our ROE increasing from 12.5% as of September 2020 to 21.1% for September 2021. Strong client growth, higher net interest income, a strong growth of fee income, improvements in asset quality and cost control drove these results.

On Slide 9, we can see how the bank has significantly outperformed our peers in net interest margin, efficiency, and ultimately ROE, demonstrating that these impressive results are not just related to post-COVID reaction but also also due to the successful execution of our strategy, especially on the digital front. One of the most important drivers of our results was net interest income, as can be visualized on Slide 10.

Despite asset growth being focused on lower yielding and less risky assets, we still managed to obtain a 13.9% year-on-year increase and NII with a strong NIM of 4.1% in the quarter. UF inflation in the quarter reached 1.3%. This has triggered the Central Bank to increase the monetary policy rate as was mentioned by Claudio previously. Consequently, our cost of funds has started to rise and has lowered our NIMs by 10 basis points Q-on-Q. This was compensated in part by the acceleration of loan growth in the quarter.

Going forward, we expect the monetary policy rate to continue increase which should put downward pressure on our NIMs. On the other hand, and especially in the fourth quarter UF inflation should continue to accelerate reaching levels, greater than 2% for the next quarter. For this reason NIMs and 4Q should rebound from current levels and we forecast a NIM level of around 4% for the full year 2021.

As we can observe on Slide 11, total deposits grew 16.2% year-on-year and 1.3% Q-on-Q. In previous quarters we had seen a strong increase in non-interest bearing demand deposits leading to a 24.9% year-on-year increase. Time deposit growth accelerated in the quarter, growing 6.2% compared to June. With the increase in interest rates, making this product more attractive however, as we can see on slide 12. The interest rate we are paying on this product remains well below that of our peers. And far below that of the monetary policy rate, demonstrating our successful management of our cost of funds. Also on this slide, we show on the rights -- on the right hand side that while there has been a slowdown of demand deposits from our larger commercial clients, growth of retail demand deposits remained solid in the quarter.

On Slide 13, we review loan growth. Total loans increased 3.1% Q-on-Q and 2.5% year-on-year. As loan growth among large corporates started accelerating in the quarter as large corporate funding in the form of corporate loans as the bond market remain illiquid. Our middle market segment also sign -- saw signs of reactivation with loans growing 2.7% Q-on-Q, driven by the acceleration of economic activity in the quarter. Translate gains gains from the depreciation of the peso and the UF also added to lumber. Loans to individuals, increased 2.6% Q-on-Q and 7.4% year-over-year, driven by mortgage loans that continue to grow solidly at 3% Q-on-Q. And loans from outer lending subsidiary increased 17.5% as auto sales in Chile have shot upward.

In previous quarters, the SME loan book has seen strong growth due to the FOGAPE and FOGAPE Reactiva programs. In the third quarter, demand for this product continued to decelerate, leading to a contraction of lending to SMEs. As of September 2021, the bank had disbursed CLP892 billion to the FOGAPE Reactiva program, while the total FOGAPE loan book reached CLP2.4 trillion pesos. Regarding a grace periods payment holidays in general 99.5% of these grace periods are over and only 0.4% of all loans that previously had a grace period or payment holiday are impaired.

Moving on to asset quality in Slide 14. In this slide, we can see how the evolution of asset quality remains solid. The NPL and impaired loan ratio continue to show positive trends after the expiration of payment holidays. The coverage ratio of NPLs remain high at 259%. The NPL and impaired loan ratio decreased to 4.7% and 1.2% respectively. These positive trends were seeing across the different products as well. As we can see on Slide 15, these positive asset quality indicators led to a cost of credit of only 1.1% in the quarter.

On Slide 16, we take a quick look at non-interest income trends. Fee income had a standing quarter increasing 12% Q-on-Q and almost 20% year-over-year reflecting the fruits of our digital strategy and strong results from corporate banking. Fee growth was driven by the strong opening of checking accounts, thanks to the popularity of our Life and Superdigital product offering. Card fees increased 35% year-over-year due to greater card usage. While insurance brokerage also grew through our digital platform. Furthermore, Getnet our acquiring business that we launched in the first quarter of this year has already contributed more than CLP3 billion in fees since its launch.

Total income from financial transactions decreased 17% Q-on-Q.Client treasury activities continue to perform solidly, growing 5.8% Q-on-Q and 17% year-over-year. This was offset by a loss and non-client treasury income due to the execution of various liability management operation to improve NIMs going forward that resulted in initial loss mainly arising from the unwinding of interest rate hedges.

The rebound in revenues in the quarter was also accompanied by good cost control as shown on slide 17. Operating expenses decreased 1.4% year-over-year, despite higher inflation in the quarter. The year-on-year growth of administrative expenses is due to costs associated to the launch of Getnet and the advance of our digital initiatives in line with our CPL 250 million investment plan for the years 2021, 2023.

The depreciation of the Peso, and the rise in inflation has also negative -- negatively impacted our expenses despite this, the bank's efficiency ratio reached an impressive 7% year to date. Regarding capital ratios on slide 18, the bank finished the quarter with a core capital ratio of 9.6% and a total BIS ratio of 14.2%. At the same time in October, the bank became the first Chilean bank to issue an AT1 perpetual bond under the new Basel III regulations. The issuance was for USD700 million and with this AT1 instrument in October, our Tier 1 ratio will increase by 1.6 percentage points.

With our current profitability, we estimate a payout of 50% to 60% of 2021 earnings to be paid out in 2022, but do not rule out that we could pay this dividend in 2 tranches next year. With the share price and the forecast for loan growth and ROE, this would signify a current dividend yield of between 5% and 6% for the bank shares.

On Slide 19, we can see the requirement of the transition to Basel III year-by-year. The phase-in of Basel III has commenced. And we will be fully in place by December 2025. The inclusion of market and operational risk weighted assets will begin in December of this year. By the end of this year, we expect the minimum core capital ratio required for us will be 8.6% including an additional buffer set by our Board, with a total BIS ratio requirement of 12.8%. In the final portion of this presentation, starting on Slide 20, we will give an update on our most significant strategic and business initiatives.

Moving on to Slide 21. During the quarter, our key digital initiatives continue to advance with great success. This has led to improve, important improvements in profitability, client growth and satisfaction. On Slide 22, we show how Santander Life and Superdigital are still our heavy duty products, and bringing in new clients to the bank. Total Life clients increased 126% year-over-year and in 3Q '21, Life opened over 90,000 new checking accounts reaching a total of 822,000 clients.

Life clients also generated through September 2021 CLP49 billion in revenue, which shows how this product line not only has a high growth rate, but also a rapid monetization. Superdigital saw record client growth in the quarter held by alliances with companies such as Cornershop and Uber as a way of attracting new clients. At the end of the September 2021, we reached 215,000, a 95% year-over-year increase.

Further good news came from Getnet, our new acquiring business as shown on Slide 23. Getnet was officially launched in February and has already sold over 40,000 POS and we sold 19,000 just in the third quarter. An important fact to highlight is that 93% of the clients that are in Getnet are SMEs, our target clients. In just 8 months, Getnet, already has a market share greater than 15% in POS. Our NPS score for this product is also strong at 74 points helping to improve the overall NPS score of the SME segment. This product has been quick to monetize with already CLP3 billion in fees generated in fees since its launch.

On Slide 24, we show how our digital insurance brokerage platforms also had a positive quarter. Care continues to expand its product offer with 28,000 insurance policies sold in the third quarter. Coming soon a new cyclist, a new insurance product for cyclist. Autocompara also shines in the quarter. The sale of auto insurance policies in this platform increased 32% year-over-year.

On Slide 25, we show how the bank continues its process of transforming as branch network focusing on the work cafe model and closing less productive branches that have low client flow. The work cafe are beginning to reopen. And we recently opened a new work cafe in Porto Nodale, Patagonia. Another 8 work cafe's are set to open during the rest of 2021. With this change in our branch format coupled with our other digital initiatives, productivity continues to rise with volumes per branch increasing 16.6% year-over-year and volumes per employee rising 16.7% in the same period.

On Slide 26, we show the tangible results of our initiatives through the record amount of current account openings compared to our peers with the latest information available from the CMF, Santander has opened 630,000 net current accounts compared to only 403,000 accounts in the whole system combined without us. With this, we have been able to increase our market share by almost 7 percentage points in 12 months from 22% to 29%.

We also show how this improvement in our digital offer is pushing upward our net promoter score. The graph on this slide demonstrate how the banks' NPS has improved during the pandemic, as our clients have found high value in our digital product offering. We have overtaken, our peers are now solidly established as Number 1 for NPS in Chile with high points as well in product quality, contact center and our webpage.

On Slide 27, we show how these efforts are translating into record client growth. With the introduction of digital products coupled with higher NPS scores and expand a few months, we quickly surpassed the 4 million client mark. On Slide 28, we show that the year-on-year growth of clients has been driven across the board with total clients growing 14% year-on-year, digital clients, increasing 39% and total clients with a current account increasing 45% year-over-year.

On Slide 29, we get into our, some of the recent developments in the ESG world. Video just finished its annual review of the bank with a rating that puts us in the advanced category, with 62 points evolving from the last time we were overview by video, where we had, we were a qualified as robust. We have moved from robust to advance, this is important because today according to videos analysis and scoring system, we are Number 3 among all EM retail banks.

Regarding the ESG topics as well on Slide 30, we would like to remind you that you are all invited to our next ESG talk taking place on Tuesday,November 16 at 8: 50 New York Time AM where top management, including the CEO and the President of the Bank, together with other members of the Board and management will present the fascinating updates we have made in these themes and what is to come ahead. There will also be a live Q&A session. We hope to see you there virtually and make sure to sign up.

To conclude on the next slide, we update our guidance for 2021. The positive results achieved these last 3 quarters permits us to be more optimistic than we were previously and we have again revised upward our outlook for this year. As inflation in loan growth continued to gain momentum, we expect to finish 2021 with a NIM of 4.2% up from 4.1% expected previously. Cost of credit should remain in the range of 1% to 1.1%, we are increasing fee growth to greater than 15% for this year based on the strong client trends already mentioned. Cost growth should remain inflation and efficiency between 37%-38% is what we are now forecasting. Taking all of this into account, we are revising our guidance for ROE upwards to 21% for 2021.

At this time, we gladly will answer any questions you may have. Thank you.

Questions and Answers:

Operator

Thank you very much for the presentation. We will not be entering the Q&A part of the call. [Operator Instructions] Your first question comes from Mr. Marlon Nytida from JP Morgan. Please, go ahead sir, your line is open. Once again, the first question comes from Mr. Marlon Nytida from JP Morgan. Please, go ahead. Okay. We'll go to the next question. Next question is from Mr. Carlos Gomez from HSBC. Please, go ahead sir, your line is open.

Carlos Gomez -- HSBC -- Analyst

Hi, good morning and congratulations on the result. A couple of simple questions. The first one is at this point in time and given your experience, you had a cost of risk of about 1.1% in the last few quarters. Where do you think that with your current business mix is your normal cost of credit? And when do we get there, is that at 2022 event or does it come later? And second, and again I understand it's difficult to predict. Now, what do you think your loan growth is going to be for the next 2 years or 3 years? Thank you.

Emiliano Muratore -- Chief Financial Officer

Okay. Hi, Carlos, thank you. And regarding the cost of credit and obviously if you see in our asset quality has done very well. Our coverage is quite high. Now, we do expect more loan growth to slowly flow in. So, we think that a normalized cost of credit without considering any type of movements on additional provisions OK, we would like to keep that stock of voluntary provisions there for any large unexpected event in the future. So, our normalized cost of credit would probably be around 1%. And regarding loan growth so remember last year we had rather high loan growth during the pandemic, given the different programs especially SMEs this year since there has been a really high level of liquidity in companies and in households, households have gotten a lot of money from pension funds, from direct, the subsidies, from the government. So, that had kept loan growth subdued, as these programs come to an end, we think loan growth should slowly recover, OK.

And as we said in the last call and as you saw in the third quarter that loan growth should finish the year around 3% or 4% for the full year. And then going forward, I think slowly as the pandemic ends and we enter kind of like a normal economic cycle, loan growth should return to the normal multiplier level. So, in general, in Chile, if GDP loans to GDP grew around 1.5 times in real term and then if you add on inflation, you more or less, get the nominal rate, we're expecting the next 2, 3 years. So, if the economy grows in our 2%, 3% we should be getting roughly around 6% -- 5% to 7% nominal loan growth in normal years. Okay.

Carlos Gomez -- HSBC -- Analyst

Very clear. Thank you so much.

Operator

Thank you very much. We will just try to once again to open Marlon Medina's line from JPMorgan. Marlon, your line is once again open. Please, go ahead. Please make sure your phone is unmuted. We will come back to that one shortly again. Next question is from Mr. Ernesto Gabilondo from Bank of America. Please go ahead, sir.

Ernesto Gabilondo -- Bank of America -- Analyst

Hi, good morning Emiliano, Claudio and Robert and all your team. Thanks for your presentation and the opportunity. My first question is on the political landscape, do you think that the voting on the fourth pension withdrawal could be delayed after the elections? And can you provide, who are the candidates leading the polls on the presidential elections?

My second question is on your expectations for the net interest income in NIMs next quarter and next year. Considering your expectations on interest rates for the rest of the year, next year and also the ones for inflation, what do you see the NIM pressure next year? And when do you see them recovering after the repricing of the loan book? Is this something that we can see maybe at the end of 2022 or it should be likely more in 2023?

And then my third question is on your mid-term ROE expectations, considering that 21% this year, well above the pre-pandemic levels and that you will continue to see high dividend payments. Don't you think that the 2022-2023 ROE should be more around the 19%, 20%? Thank you.

Emiliano Muratore -- Chief Financial Officer

Claudio, can you want take the first one please?

Claudio Soto -- Chief Economist

Yes, sure. Can you hear me? Yes?

Emiliano Muratore -- Chief Financial Officer

Yes.

Claudio Soto -- Chief Economist

Okay. Regarding the first question whether the fourth pension fund withdrawal could be voted after the election, is not yet clear. Today, in a while we will know the schedule of the Senate for next week. At that moment we will know where it has been put on schedule to be voted next week. If that doesn't occur, there are high chance that it will be voted after the first round and given that the chances that it will not be approved are higher.

Candidates leading polls currently are to the left capital budget. And then on the center-right, it's cost, in some polls cost appears as the first one, but in other polls here it'll be second to capital budget. And just a number was they the candidate from the Presidential Democratic Party is currently in third place in most of the polls.

Emiliano Muratore -- Chief Financial Officer

And so, regarding your questions about NIM as you mentioned the they are the 2 main factors are inflation and also the short-term interest rates going up. So this last quarter for this year as Robert mentioned, we are expecting like the quarterly NIM to be maybe between 4.5% to 4.6%. I mean, considering the level of inflation we'll have in the quarter and that will take the full-year NIM around 4.2%. First quarter, next year should be let's say similar considering the place of expectations we are expecting for the first quarter, but it's also true that the interest rate will keep going up. The Central Bank, we expect them to hike another 75 basis points in December. And so, considering all that we do expect next year NIM to be lower than this year. I mean around like 4% and if inflation doesn't stay around the 4.5% -5% we get a slightly below that 4.7% for the full year.

And we do expect by 2023 to have the repricing on the asset side showing up. And also on being able to again build our NIM from 4% to the upward trajectory starting in 2023. And regarding our ROE expectations it connects a lot with the NIM issue and then we still expect,, we still see our long-term ROE range from 17% to 19%. And if next year because of the inflation scenario, we are able to sustain NIMs above 4%, it's let's say reasonable to have a slightly higher expectation to be in the upper part of that range as you mentioned, but it's going to be mainly related to what's happening on the NII front.

Ernesto Gabilondo -- Bank of America -- Analyst

Super helpful, Claudio and Emiliano. And just last question on the digital landscape. We have been following all your digital initiatives and we have been recently seen that Getnet in Brazil was listed. So, are you exploring something similar to happen in Chile? And on the other hand, we have seen that BCI is exploring to launch digital bank. So, is it in your plans to do something similar or do you stick to keep the digital transformation within the traditional bank? I'm just saying you this because investors tend to give different valuations to payment companies and to digital banks.

Emiliano Muratore -- Chief Financial Officer

Yeah, I mean we had a good net as you saw, I mean that the numbers are quite impressive. We are really happy with the speed, we have got in that business and there is no discussion yet regarding ownership of this thing, we are just focused on growing and growing faster, gaining market share and taking advantage of being the first mover you can say in entering that market after transplant and our priority there is to give growing fast and gaining like a share and in the future, if there is a new discussion regarding ownerships or listings then we will discuss it with you. But they're not present at this moment.

Ernesto Gabilondo -- Bank of America -- Analyst

And the digital?

Emiliano Muratore -- Chief Financial Officer

Okay. So yeah, in. So basically you're all familiar with our, with our digital initiatives. Obviously, I think that they have all been very, very successful. Santander Life is clearly the key here and Santander Life is slowly transforming itself into our digital bank inside the bank. So, basically today Santander Life has been very much focused on the middle income segment. It's growing very strongly. And I think, a really key thing about Santander Life unlike a lot of other digital banks that are just beginning, it has rapidly monetized. So, as we said before, already through September and Santander Life is generating income of almost CLP50 billion. Santander Life, unlike a lot of these other digital platforms in Chile digital debit cards already has checking account balances probably above $500 million, OK, which is probably all the other digital debit cards in Chile, including Superdigital combined. And Life also has a loan portfolio, which hasn't been very aggressive but it surely should slowly start to become, to grow more and more. Life is going to be launching new products, and so basically Life inside the bank is going to be expanding and is slowly transforming into our digital bank. But now it's not going to be a separate entity. It's going to be inside the bank very much integrated with the rest but clearly, taking over different products and segments.

Alonso Garcia -- Credit Suisse -- Analyst

Thank you very much, Emiliano and Robert.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Thank you.

Operator

Thank you very much. Our next question comes from Mr. Juan Recalde from Scotiabank. Please go ahead, sir.

Juan Recalde -- Scotiabank -- Analyst

Hi, thank you for taking my question. So my first question is related to Getnet. I think that the fees generated by this business were around CLP2 billion in this quarter. So, and the growth was pretty significant. So my question is what do you think is -- could be a more normalized level of fees for Getnet? Should we expect this CLP2 billion to continue or it will be much higher, what do you think about that?

And then, the second question related to the expenses, expenses look under control but I saw that the other operating expenses were up around 76% quarter-on-quarter. You mentioned that the drivers -- in the release that the drivers were provisions for non-credit contingency and also insurance related to cyber security-related to Santander Life. I was wondering where these -- the amount of our operating expenses that we saw in this quarter is going to stay at similar level? And also if you can quantify, what part of those are operating expenses are related to provisions of non-credit contingencies? And what part are related to the insurance -- cyber security insurance?

Emiliano Muratore -- Chief Financial Officer

Okay. Thank you for your question. And regarding Getnet, it's -- we are in the fast growth phase of the business and then we are growing fast in POS and also consider that the economy is also in the opening phase, I mean leaving lockdowns behind. So I think that we will stay, we will keep growing fast in that, it's not so easy to imagine what the stable level of fee will be, because as I said, we are targeting fast growth there. So you can expect fees from Getnet to keep growing as we grow in the number of client, POSs and also the amount of sales that the merchants are having in this opening phase of the economy. So you can expect growth to stay there for a while and I think we still have some let us say, quarters ahead before we can stay, we've got to talk about on this level of fees from Getnet.

Robert Moreno Heimlich -- Managing Director of Investor Relations

And just to add on to what Emiliano said, I think in our digital talk last year we mentioned that we're looking at around CLP20 million in fee income from Getnet. So, I don't know what the exchange rate we used, but let us say CLP16 billion. It would be more pesos are normal level versus. So we see a lot of growth and as you see in the figures are growing very quickly.

Regarding your other question, yeah the other operating expenses. There's a lot of things there, and I will explain that live. First of all, and yeah, there are provisions for non-credit contingency so given that there is still risk regarding the pandemic and other and not all -- the pandemic is not only credit risk so we set aside CLP7 billion there. On top of that in, remember last year there was like a cyber security fraud law. So before we were very active and selling different kinds of cyber security insurance for clients. A lot of that was prohibited or watered down. So, the bank has -- and the banks have to cover a lot, a larger percentage of that, so we have an insurance policy for that basically. The actual amounts of frauds have gone down per client, but the month -- but the kind of this insurance policy -- the price goes up because the amount of clients are rising. So unlike a fraud per-client basis and the actual number of fraud, it's coming down. But since the client base is growing so strongly, it is adding on to that cost. So it's kind of like an indirect costs because of --.

And then the other thing there, remember that we still own 25% of TransBank. And even though we discontinued this in 2019 as a discontinued operations given the losses Transbank has been recognizing, we decided to kind of like do a catch-up and a recognized some of the losses Transbank has been accumulating. So that was around CLP3 billion. The good news is that Transbank new fee schedule was approved, I think by the courts. So the most likely thing is that Transbank's profitability should again begin to turn around.

And finally, remember that auto lending is growing very strongly in Chile. So Santander Consumer Finance, our subsidy for auto loans has had a very large increase in net income. So inside Santander Consumers P&L, an important cost is what they pay the dealers. We have a, a very strong joint venture with one of Chile's largest car dealers which is SKBerge. So as their net interest income is rising, as their loan growth is rising also what we paid to SKBerge. Therefore, this joint venture is also rising and that's there as well.

So, but that is also included in Consumer Finances P&L. So, despite the increase in that cost, the earnings of Santander Consumer are growing very strongly. So those are the factors, what you expect going forward. I would say the Transbank thing, it shouldn't be repeated, the provisions for other contingencies around CLP10 billion, which shouldn't be repeated, but if we continue to grow strongly in auto loans and in client base, the rest should be recurring. But it has other benefits and other lines, obviously.

Juan Recalde -- Scotiabank -- Analyst

All right. That's helpful. Thank you.

Operator

Thank you very much. Our next question comes from Mr. Yuri Fernandes from JP Morgan. Please go ahead, sir.

Yuri Fernandes -- JP Morgan -- Analyst

Hi, everybody. Thank you. I hope you are hearing me because we had issues with connections.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Yes, we can hear you.

Yuri Fernandes -- JP Morgan -- Analyst

Hi. Hi, everybody. Good morning. I have a first question regarding the OCI like you're available for sale. The results, they were very good, but when we look to the shareholders that's like equity decreased in the quarter and I guess this is related to the sharply increase in interest rates in Chile like we looked at the 10-year, it was a massive run. So my question here is, what should we expect here going forward? I saw that there were some reclassification from your available for sale portfolio to hedge material. So can you explore the stock a little bit? I think that would be important for us, like what should happen in the second quarter? And I have a second question regarding payments, just some follow-ups, like in regarding Transbank if you have any update regarding the sale and regarding interchange fee caps, any updates on that topic? Thank you.

Emiliano Muratore -- Chief Financial Officer

Hello, Yuri. Thank you for your question. I mean, regarding OCI, as you mentioned, I mean the main driver of that has been the the sharp increase in interest rate, affect in the valuation of our ALCO portfolio. We actively manage our interest rate risk and mainly because of that we were able to sustain our NIMs above 4%. I mean, significantly higher than our peers during this last 12 to 18 months when the cycle was -- with rates very low and going down.

Now the cycle has changed and then changed quite dramatically in the timing, I mean it was very, very fast change with the Central Bank increase in the rates that I think that's part of the the monetary, the -- I would say the typical monetary cycle because also inflation is going up and that a positive for us. But maybe the different component this time has been the pension fund withdrawals that basically forced pension funds to dispose the all kind of assets, including domestic bonds and so that put a high pressure on rates and effective the value for the ALCO portfolio.

Going forward definitely to protect the potential further increase in long-term rates. It's difficult to see increases, similar to the ones we have seen so far. I mean because when you compare Chilean rates to other Latin American countries and other EM countries we are already, let's say, similar to countries with the much higher level of inflation, a much higher level of risk. So, I personally think that there is not much room yet to have rates going up, but also through that in the short run there is, there could be some temporary volatility coming from the pension funds withdrawals and in the fourth withdrawal is still to be decided.

The interest rates were, I don't know, 40, 50 basis point higher a few weeks ago, then they went down because now you can argue that the market is pricing at and also certain probability of the fourth withdrawal to be approved. And if it's not finally approved, I think we got to expect interest rates to go down a bit, so let's say, summing all that up, going forward that number will definitely tend to zero because the time will will pass at the end, we can -- you can see that as a kind of opportunity cost that even though we don't see that as any potential real loss, but it's showing that today, we could buy those assets at higher yields and that time value of money will be decreasing when time passes and that negative number will be going to a CEO basically having a positive OCI for the coming years.

Regarding the classification, as you saw in our numbers, there's a part of the portfolio that is roughly 25%, 30% of the portfolio that it's basically being used to fulfill their reserve requirement, the technical reserve requirements that it's liquidity requirement that every bank has when your demand deposits exceed 2.5x your total equity, including Tier 2. So in our case, considering how fast, how high we grew in demand deposits. We are having a, let's say, strong requirement of that case. So we need to fulfill that by having sovereign bonds.

And also, we did collateral for the Central Bank facilities that were implemented last year to provide liquidity to the system as part of the COVID-compensating measures. So that part of the portfolio that is definitely hold to maturity because we don't have an option either to let's say, take the collateral out of the Central Bank, neither to not fulfill the technical reserve requirements. We are having them to maturity. And basically, what we did was to reflect that new business model into the accounting treatment of that part of the portfolio basically changing those assets from available for sale to held to maturity and that's what you saw on the -- on our financials. And regarding payments? So we have no update on the sale of Transbank. So, what we do as we updated kind of like the valuation in the P&L So, we don't have any backlog in sense of like we were fully reflecting Transbanks' book value in our books. We go in 25% of that, but there is no other further update on the sale there. Regarding interchange fees, well as you know that the law was passed that governs they're going to fix interchange fees. The commission is working. They already started publishing how some of what they're looking at, their methodology, but there is no -- nothing yet that they haven't stated anything yet regarding where actually interchange fees will end up. So I think by March or February, we should have more clarity, but they're working a 100% on that. So it's coming for sure by February or March and probably in the next call, we might have a more clear update. But clearly, that will have an impact on card fees next year, right? We don't know how much yet. And the good news is that people are using their cards more intensively, client is growing. And in the long term, the fixing of interchange fees will probably want to permit acquirers will be better numbers for acquirers like Getnet; and two, it will probably, therefore, permit the acquiring business and the usage of cards to expand even further, OK?

Yuri Fernandes -- JP Morgan -- Analyst

Super clear, you can use the acquired as a natural hedge right, like a higher net?

Emiliano Muratore -- Chief Financial Officer

Yes. Net, you lose in the beginning but in the long term, it should let the market expand more.

Yuri Fernandes -- JP Morgan -- Analyst

No, super clear, thank you very much guys.

Operator

Thank you. Our next question comes from Mr. Alonso Garcia from Credit Suisse. Please, go ahead, sir.

Alonso Garcia -- Credit Suisse -- Analyst

Thank you. Good morning everyone. Thank you for taking my questions. Most of my questions have been answered, but just wanted to check with you if there is any regulatory change that you are aware of, either at the unit level or the Congress or the constitution of assembly that will affect the banking system?

And my second question would be regarding the higher interest rate scenario in Chile, I mean, so far, we have seen mortgages continue to grow nicely. I just wanted to hear from you that the margin you're seeing slower demand on that product given the higher rate scenario going forward? Thank you.

Emiliano Muratore -- Chief Financial Officer

Okay. Claudio, can you comment on the regulatory agenda?

Claudio Soto -- Chief Economist

Yes. Well, the main initiatives in Congress right now, one is the FinTech law that is at the very early stages, that includes also the regulation of open banking. And then there is a law that was introduced in Congress that puts another cap to the TCM, the cap on the maximum rate you can charge on grade. It makes -- the law makes some adjustment so that it might be cut even further. Those 2 initiatives are at the very early stages in Congress and there are many initiatives in Congress that begin it's procedure. But then after a while, they do not continue. There were many initiatives in Congress that were related to the pandemic that were attached to the declaration of state of emergency. Since the state of emergency was not renewed, those initiatives are now not on the table.

Emiliano Muratore -- Chief Financial Officer

Okay. Thank you. Sorry, one thing. And Claudio regarding the constitutional convention or anything if there's any other?

Claudio Soto -- Chief Economist

Yes. Well, regarding the constitutional convention, as I mentioned at the beginning, they began right in the text just a few weeks ago. So we are, again, at a very early stage yet. We will have more insights by the first or second quarter of next year. Having said that, the constitutional convention will write down the blueprint of the constitution, which is a very big set of rules. All the details have to be then defined in common law that will take place to occur.

Emiliano Muratore -- Chief Financial Officer

And regarding your question about long-term interest rate on the mortgage market. I mean, definitely the mortgage market has been affected by 2 main factors. First, the interest rate significantly higher, I mean, 300, 400 basis points higher than a few months ago. And also that because of this new environment, many banks, including us, reduce the maximum tenor you can ask a mortgage, I mean, from 30 to around 20 years. So basically, those 2 factors are, say, making the payments with the monthly payments go up by 30%, 40%, even 50% depending on the segments and the tenors and that is definitely putting pressure on people in the total amount of money they can borrow in order to keep a reasonable relationship between the monthly payment and their salary or their income.

So definitely, if we don't see a normalization, I would say reduction in long-term interest rate I think it's going to be very difficult to keep this double-digit growth in mortgages and that growth will slow down and we'll, let's say, force people to collect a high amount of money for their down payments in order to get into the house. At the end, that's, let's say, will normalize, and you will see that shock to be diluted in time. But we are in the middle of that adjustment where you can expect loan growth from mortgages to slow down in this new rate environment.

Alonso Garcia -- Credit Suisse -- Analyst

Thank you. And just follow up on the first question, I mean regarding this proposal in Congress to reduce the interest rate cap further. I don't know if you could provide some more color on? And of course, I understand, it's very early stage at this point that not everything that gets Congress, gets approval. But I mean if you could comment on the likelihood that you see for it to be approved? Who is supporting this law, if it has found further support in Congress or anything that could help us assess its likelihood of being approved or not eventually? Thank you.

Claudio Soto -- Chief Economist

I will touch up on that. As I mentioned, it's a very early stages in discussion. In the past, we have had initiatives like that more than one -- more than once. And those initiatives just fade away are not do not transform into law. This initiative was put to be discussing Congress in the context of a more broad law in terms of consumption -- consumer protection. I see that has to now low probabilities of going through. There are many issues in discussion in Congress, right now. And this is not really at the top priority in the political agenda. So I think, as it happened in the past, I see that there are up to now low chances that this will effectively be transforming to long.

Emiliano Muratore -- Chief Financial Officer

And also building on Claudio comments, I agree with his view considering that also what we just commented on mortgages, I mean that has resonated on the let's say, I would say, political environment. And in general, this sense that now people cannot access mortgages as easy as they were accessing them before that's, I think it's, let's say, people are kind of worried and putting a lower cap on interest rate would also affect credit supply more on the consumer side and not. So I don't see that in this moment, there is much room to keep, let's say, restricting or putting pressure on credit supply because that could fight back because at the end, people need to borrow for their investment plans for their future plans. And I agree that today, I don't see high chance of that moving at least fast.

Alonso Garcia -- Credit Suisse -- Analyst

Very clear. Thank you for your answers.

Operator

Thank you very much. Our next question comes from Mr. Daniel Mora from CrediCorp Capital. Please, go ahead, sir.

Daniel Mora -- Credit Corp Capital -- Analyst

Hi, good afternoon and thank you for the presentation. I just have one short question. We observe during the year, the large corporate segment has presented the reversal of provisions, can we expect total reversal of provisions in any other particular segment? Thank you so much.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Okay. Yes. So basically, this year, the large corporate segment has seen a reversal of provision. And that well, 2 things there. First of all, last year, and these are -- present information by segment. Remember, any voluntary additional provisions, we don't assign to a segment. They have like they're assigned to our product. But in the segment P&L, they're not included.

So in last year, during the pandemic, obviously, we were worried about a lot of different segments, different companies, and we downgraded -- we were very, very conservative in downgrading and set aside required provisions for the corporate segment. This year, first of all, a lot of those worries didn't pan out. So companies have improved their rating, and that has resulted in a reversal. And second of all, remember as we mentioned in the second quarter, I believe, we sold 2 or 3 of our largest impaired loans, which had a high provision. So when you sell those loans, obviously, you reverse the provision.

So going forward, in the large corporate segment today, has a very, very good asset quality. And given that the economy is recovering, we don't expect a large charge of provisions coming out of the corporate. A large reversal so probably not either because those are a reflection more of the selling of these loans. And other segments -- no, I would say not a reversal because as the loan growth grows, remember here, every loan is born with the provision. So I wouldn't see any reversals in any of the other segments.

Daniel Mora -- Credit Corp Capital -- Analyst

Thank you so much.

Operator

Okay. Thank you very much. Our next question comes from Colab Rachas from LBS. Please go ahead, sir.

Unidentified Participant

Hi, Robert, Emiliano, Claudio, thank you, for taking my question. But first congratulations for the operational dynamic the bank when compared to the other Latin American Bank. But my question is about the Getnet operation in Chile. I noticed that a lot of questioners asked about it. I just was just wondering if you could share with us some debt related to the acquired operations Chile, in terms of TPV market share and also point of sale, I mean, there are some figures on the press release, but in terms of market share, Robert, if I'm not wrong, mentioned that the market share in POS is 50% nowadays. Can you just please confirm this? Did the market share in terms of TPV increased in comparison to the last quarter and how much is it?

Robert Moreno Heimlich -- Managing Director of Investor Relations

So yes. So there again has just started. So in terms of POS, our market share, I believe, today is greater than 15%. And we calculate in Chile, there's around 200 --

Emiliano Muratore -- Chief Financial Officer

200,000 before we enter the market active POS. And today we are reaching like 50,000. So yes, I mean from 15% to 20% market share in active POSs. And active POSs. Remember that around -- we have a lot of small SMEs. A lot of them didn't have a POS. So I think we're expanding the market more than than getting -- more than people switching. Some of our clients have switched to RPS. But I think a majority of our clients that didn't have a POS before. So that's very good also from like a margin perspective. But from a total purchase value, I would say today, our market share is probably around 4% or 5%, but growing rapidly.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Yeah, because also it's important to mention that until last month, we weren't entering into the big merchants because Transbank still had their fees fixed. And basically, the big merchants were having a low fee that was not attractive to us, so we weren't entering that part of the market. Now that has changed because Transbank finally got the approval to review their fee schedule. And so now we are entering into bigger merchants. And also, it's important to mention that until September, we didn't have our e-commerce solution still operating, basically, it was all physical transactions. And as you can imagine in this new post-covid being out of e-commerce was a big drag for us, and that is already part of the past. I mean we are also offering the e-commerce solution, and that will also help us to increase the market share in the amount of sales.

Unidentified Participant

That was very helpful. And my second question, I just wanted to know more about the brick and mortar branches of the banks, especially it's also worth of that bridge. So with this positive outlook for the number of compare changes as you presented on Slide 4, what is the strategy of going forward on the physical channel of the bank, there are some intentions to all been or optimize some of administrative costs. And if you could give guidance on year base our numbers. It will help us a lot. Thank you.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Okay. So yes, so basically, we're in this investment plan that has different branches. You could different aspects to it, OK? So we have the whole digital initiatives, Life, -- et cetera, et cetera. And part of our strategy is also changing and renewing and modifying significantly the physical network, OK? We've always talked about our digital strategy. So our strategy is very much a mix between a strong digital and a strong physical network. But the physical network, clearly evolving profoundly over the next few years. And the key to that is our work cafe. Today, we basically have, I would say, 3 type of branches.

The traditional brands, the the traditional banks, like you see in most countries, human tellers, back office, account managers and people standing in line, OK? Then we have the work cafe branch and then we have the Santander select, which is the branches for more the mid-high end the mass wealthy as you could call it. So when you look at our figures, we clearly -- the focus of branch closures has been this Santander select. We've closed most of them. Those are obviously a segment of clients that don't go to the branch. So you don't need to have all these branches.

And a lot of the people, in fact, that work at Santander select are shifting to the work cafe. The work cafe has the -- it's very efficient, OK? It's much more efficient than a traditional branch. It doesn't have human tellers. It doesn't have a significant back office. It doesn't have cash, OK? So the branch is fully dedicated to business, OK? So another thing is in a traditional branch. You might have 3 or 4, you might have space for 3 or 4 relationship managers. In a work cafe, you have space for around 15 to 20, OK? So in a similar space, you have 4 or 5 times more relationship managers, and you have a much nicer format where our work cafes are in something we call the work cafe community, which is basically a place where mid-market SMEs can go and do business, OK. And where anyone can go and hang out, have a good coffee, see the Internet and do business. So the idea basically in the end is to slowly reduce the traditional branch network format. But in order to do that, you have to begin to be able to eliminate some transactions at the branch.

A lot of our branches when you see a long line or something, it's usually nonclients going to get their check, get a cashier's check, getting paid their salary or paying a bill, OK? So that is all the part because we're very strong in cash management. And so one way to get people out of the branches who are doing these low value-added services is for those people to be able to get their salaries online. So that's where Superdigital and Life Play a very important role. For us to go to company sign a list and say, OK, today, you're paying workers, a lot of these workers don't have a checking account and say, look, don't pay them anymore.

Does that continue paying them through Santander's transactional service but deposit them directly through Superdigital or Life. And that way, you remove people. Another thing is, as we mentioned in the last quarter, we signed an agreement with -- has around 200 branches where people can go and cash a check, get paid, pay a bill. So we uncluttered the branches. So the idea here is that we don't have a specific number of how many branches we can reduce. But definitely, the square footages will fall and the amount of branches, which will be shifting away from this kind of like back-office, old traditional style will all be evolving to this more advanced format where basically, you go to the branch to do business and not to do non-value-added services.

Unidentified Participant

So Robert, putting out together, do you expect the opex, especially the avenue expenses to to expand above or below the current executions for the inflation rate of the financial year?

Robert Moreno Heimlich -- Managing Director of Investor Relations

Yeah, so that at the end, if you look at our cost. You can see this is resulting. So we've done a lot of investments. But you see that cost despite inflation are at a low growth rate. So idea is to continue that trend. Obviously, inflation is 2/3rd of our costs are indexed either to inflation or exchange rate, the depreciation of the best on the acceleration or inflation puts pressure, but with the opex that we have, which has a very, I think high return -- a rapid return and it has a very high productivity contribution, our goal in the next few years is to continue growing our cost at or slightly below inflation.

Unidentified Participant

Those are much helpful. Thank you very much. Robert.

Robert Moreno Heimlich -- Managing Director of Investor Relations

.Okay. Thank you.

Operator

Thank you very much. Our final voice question followed by a couple of text questions. This one is from from Mr. Brian Flores from Citi. Please, go ahead, sir.

Brian Flores -- Citi Bank -- Analyst

Hi, thank you for the opportunity to ask a question. Just a quick follow-up on the politics side. And have you heard of any initiatives by any of the candidates you have mentioned? And sorry, can you hear me?

Robert Moreno Heimlich -- Managing Director of Investor Relations

Yes, yes, we can hear you.

Emiliano Muratore -- Chief Financial Officer

Go ahead.

Brian Flores -- Citi Bank -- Analyst

Thank you. Just any initiatives on any of the candidates, you mentioned voyage and or cash could create certain uncertainty for international investors. It could be capital gains or it could be a particular raise in corporate tax rates? Anything on this that you have heard that is relevant on your point of view?

Emiliano Muratore -- Chief Financial Officer

Claudio?

Claudio Soto -- Chief Economist

Yes. Well, let me give you some context. This government couple of months ago, introduced a bill improved pensions and attached to that bill there was changes in the tax code, including capital gains, taxes on stock transactions that currently are excluded from -- taxes are excluded from capital gain transaction in the stock market and that Bill already introduce them.

Now the bill is not gone through further discussion right now. We are in the middle of political campaign, and we have the election right now. So it's very unlikely that bill will go further. Borich in his program has a very broad tax reform included. He's program is changing. He had a program until 2, 3 weeks ago but then he produced a new programs that is not yet there. I think the original program he has in order to increase revenues for the government at these broad tax reform that includes lowering aviation basically and increase in taxes or closing certain loopholes, tax on wealth that currently we don't have a tax on wealth. So that is more like a personal tax. And also increases in the corporate tax system but that is part of a much broader package in term of the tax reform. A dealer leading candidate, Jose Antonio cast does not have a tax hike in his program. He'd rather have some cuts in taxes in his program. That is more or less what I have in mind, specific things for the financial sector not included in none of the programs. Borich had initially in his program, a revision of international treaties, but his campaign is backing -- is moving away from that proposal that was originally in this program, but I think now he is not supporting this idea of revising international treaties that could introduce noise again regarding international investment.

Brian Flores -- Citi Bank -- Analyst

Very helpful, thank you very much.

Operator

Thank you very much. We have a couple of text questions which I will now read out, perhaps starting with the first one regarding fixed income and bond markets, should we expect to see you in the bond market next year either for the AT1? If so, is the plan to have parent by part of the deal. You are soon having ESG Day. What is the appetite for potential labeled bond?

Emiliano Muratore -- Chief Financial Officer

Yeah. So regarding the last part, I mean we are expecting to finish our ESG framework by the end of the year maybe early next year. And with that in place, definitely we will try to get as much as we can of our funding from the market on in ESG labeled format. For that, we think that it's important to have a robust and very formal framework in order to avoid any kind of reusable greenwashing argument or so and that's why we have been working and we will comment later, I mean next month in our ESG talk about that.

Operator

AT1?

Emiliano Muratore -- Chief Financial Officer

We did AT1 last week, I mean, the parent company participated 100% of that. That has been the policy in the group. With that, we reached our 1.5% of risk-weighted assets in AT1. And we have covered the AT1 needs for the next few years. I mean, with risk-weighted assets growing maybe in 2, 3 years, we can consider doing another transaction like that. But for the time being, that will be done with AT1 issuances.

Operator

Thank you very much. There is about 5 or 6 questions related to the mortgage segment. I will try to group them. The first one is, considering the hike on long-term rates at the mortgage loan growth. Do you see the mortgage segment slowing down in 2022? And how has it been paving in October? The second one, very, very related to this. How will the recent increase in interest rates affect the bank and the industry?

Emiliano Muratore -- Chief Financial Officer

I, mean regarding mortgages, I mean, I wouldn't say that mortgages would fall, but definitely growth to slow down in October. We have already seen like 20% less of number of mortgages being sold or being signed. And with that, reduction in the new origination growth would be slower, but I don't know if it will reach a point where the outstanding will be be falling. And the new interest rate environment, I mean, the Central Bank hiking rates, higher inflation, It has a opposing impact for banks. I mean usually, banks that have this long inflation exposure in the short run, high inflation is positive, but that usually comes with a higher short-term interest rate, and that hits the NIM, especially in the short run because you have faster like faster, shorter turn on liabilities repricing and takes between 1 to 2 years to have the repricing on assets compensated the initial shock. But so far, the impact for us has been like positive because the tightening cycle from the Central Bank has just began and inflation figures have been quite high. And that's why for next year, we can expect, let's say, a lower level of NIM because the Central Bank will keep hiking rates and inflation should be lower than this year.

Operator

Thank you very much. Next one is related to the mortgages. We saw the bank and others introducing shorter terms for mortgages in recent weeks. When do you think the bank will consider reintroducing the 30-year mortgages, under what scenarios? And in line with this, what are the related risks for the construction sector in the coming months considering buyers potentially pulling out of transactions?

Emiliano Muratore -- Chief Financial Officer

Yeah, I mean there, I don't have a specific timing for that, going back to 30 years will depend on how the market situation evolves in terms of level of rates and also access to the capital market in the domestic market. So as of, as of now, we are staying at not longer than 20 years and I don't have a specific timing to define when to go back to 30-years if we finally do it, because it will depend on how the the market evolves.

And from the contractions market, we have seen that, in general, the markets quite of self adjust. And so basically, we expect the number of new projects to slow down and in order to avoid creating an oversupply of square meters into the market. And so we don't have any specific concern regarding that, we think that the sector has gone through other situations like this for different reasons, and it has been able to adjust the supply of new projects to the new environment.

Robert Moreno Heimlich -- Managing Director of Investor Relations

And just adding on to what Emiliano said in during the pandemic, there wasn't very much construction. So today the inventory or number of months before inventory would expire is very low. So there's not an over or in fact, we're on the opposite side of of the cycle, very little inventory available.

Operator

Perfect. Thank you very much for for all this time for questions. We are seeing no further questions at this point, I will pass the line back to the team for the concluding remarks.

Robert Moreno Heimlich -- Managing Director of Investor Relations

Thank you all very much for taking the time to participate in today's call. We look forward to speaking with you again soon. Goodbye.

Operator

[Operator Closing Remarks]

Duration: 83 minutes

Call participants:

Emiliano Muratore -- Chief Financial Officer

Claudio Soto -- Chief Economist

Robert Moreno Heimlich -- Managing Director of Investor Relations

Carlos Gomez -- HSBC -- Analyst

Ernesto Gabilondo -- Bank of America -- Analyst

Alonso Garcia -- Credit Suisse -- Analyst

Juan Recalde -- Scotiabank -- Analyst

Yuri Fernandes -- JP Morgan -- Analyst

Daniel Mora -- Credit Corp Capital -- Analyst

Unidentified Participant

Brian Flores -- Citi Bank -- Analyst

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