Q2 2026 Banco de Bogota SA Earnings Call

Speaker #2: ¿Preparados? Vamos a empezar. Karen, abre tu micrófono.

Javier Dorich Doig: Preparados. Vamos a empezar. Karen, abre tu mic.

Operator 1: Line muted.

Speaker #1: Line muted.

Speaker #2: Karen, ¿me escuchas? Karen, ¿todo ok? No te escucho. Confírmame que es que no te escucho y quiero estar seguro para que arranquemos bien. Ok.

Javier Dorich Doig: Karen, ¿me escuchas? Karen, ¿todo ok? No te escucho. Confírmame, es que no te escucho y quiero estar seguro para que arranquemos bien. Esperemos que Karen va a refrescar. Qué pena.

Speaker #2: Esperemos que Karen va a refrescar. Qué pena. Hola, ¿me escuchas? Listo. Ahora sí, vamos a empezar. Vale, disculpen por eso. No sé qué pasó.

Operator: Hola, ¿me escuchas?

Javier Dorich Doig: Listo. Ahora sí. Vamos a empezar.

Operator: Vale, disculpen. No sé qué pasó. Good morning. Welcome to Banco de Bogotá's Q2 2026 consolidated results conference call. My name is Karen, and I will be your operator for today's conference call. Currently, all participants are in a listen only mode. Afterwards, management will be available for a Q&A session. Please note that this conference is being recorded. We also advise you to read the disclaimer available on slide number 3. When applicable in this webcast, we refer to billions as millions of millions and to billion as thousands of millions. Thank you for your attention. Mr. Juan Carlos Echeverry, CEO of Banco de Bogotá, will be the host and speaker today. Mr. Sergio Sandoval, CFO, and Javier Dorich, Head of Investor Relations and Corporate Development, will join him. Mr. Echeverry, the floor is yours.

Operator: [Foreign language] Good morning. Welcome to Banco de Bogotá's Q2 2026 consolidated results conference call. My name is Karen, and I will be your operator for today's conference call. Currently, all participants are in a listen only mode. Afterwards, management will be available for a Q&A session. Please note that this conference is being recorded. We also advise you to read the disclaimer available on slide number three. When applicable in this webcast, we refer to billions as millions of millions and to billion as thousands of millions. Thank you for your attention. Mr. Juan Carlos Echeverry, CEO of Banco de Bogotá, will be the host and speaker today. Mr. Sergio Sandoval, CFO, and Javier Dorich, Head of Investor Relations and Corporate Development, will join him. Mr. Echeverry, the floor is yours.

Speaker #2: Good morning. Welcome to Banco de Bogotá Q2 2026 consolidated results conference call. My name is Karen, and I'll be your operator for today's call.

Speaker #2: Currently, all participants are in listen-only mode. Afterwards, management will be available for a question-and-answer session. Please note that this conference is being recorded.

Speaker #2: We also advise you to read the disclaimer available on slide number 3. When applicable in this webcast, we refer to trillions as millions of millions, and to billions as thousands of millions.

Speaker #2: Thank you for your attention. Mr. Juan Carlos Echeverri, CEO of Banco de Bogotá, will be the host and speaker today. Mr. Sergio Sandoval, CFO, and Doris, Head of Investor Relations and Corporate Development, will join him.

Speaker #2: Mr. Echeverri, the floor is yours.

Speaker #3: Thank you, Karen. Good morning and welcome. Colombia experienced a devastating earthquake last week, with huge consequences to human life and infrastructure. At Banco Bogotá, we're deeply moved by this tragedy.

Juan Carlos Echeverry Garzón: Thank you, Karen. Good morning and welcome. Colombia suffered a devastating earthquake last week, with huge consequences to human life and infrastructure. At Banco de Bogotá, we are deeply moved by this tragedy. The government has organized an effective response with local authorities and the private sector. Grupo Aval is already implementing plans to bring aid to the affected population through donation channels. Grupo Aval will also help affected clients, and we will review each client case by case to support them in their time of need. in Q2, Colombia conducted its presidential elections. The new government led by Gustavo Petro took office on 7 August, as you all know. We remain confident in President Gustavo Petro's ability to steer the nation in a constructive direction by appointing proven technocrats and experts to critical government roles and policy leadership positions.

Juan Carlos Echeverry: Thank you, Karen. Good morning and welcome. Colombia suffered a devastating earthquake last week, with huge consequences to human life and infrastructure. At Banco de Bogotá, we are deeply moved by this tragedy. The government has organized an effective response with local authorities and the private sector. Grupo Aval is already implementing plans to bring aid to the affected population through donation channels. Grupo Aval will also help affected clients, and we will review each client case by case to support them in their time of need. in Q2, Colombia conducted its presidential elections. The new government led by Gustavo Petro took office on 7 August, as you all know. We remain confident in President Gustavo Petro's ability to steer the nation in a constructive direction by appointing proven technocrats and experts to critical government roles and policy leadership positions.

Speaker #3: The government has organized an effective response with authorities and the private sector. Grupo AL is already implementing plans to bring aid to the affected populations through donation channels.

Speaker #3: Grupo Al will also help affected clients and will review each client case by case to support them in their time of need. In the second quarter, Colombia conducted its presidential elections.

Speaker #3: The new government, led by Abelardo de la Espriella, took office on August 7, as you all know. We are confident in President de la Espriella's ability to steer the nation in a constructive direction by appointing proven technocrats and experts to critical government roles and policy leadership positions.

Speaker #3: We also believe this administration will prioritize responsible, sustainable decision-making that supports long-term stability and growth. Economic growth is GDP-driven, primarily by government and government support.

Juan Carlos Echeverry Garzón: We also believe this administration will prioritize responsible, sustainable decision making that supports long-term stability and growth. Economic growth as measured by GDP, driven primarily by government expenditures, inflation is expected to decline in 2026. In this context, the Colombian Central Bank is likely to raise rates to 12.5% before the year ends. The peso has appreciated against the dollar to levels not seen since 2019, driven by economic high interest rates and a change in the political environment. This macroeconomic environment presents challenges for banks. There is growing concern that high interest rates, inflation and appreciating peso, and recent minimum wage increases may adversely affect certain sectors. Fortunately, at Banco de Bogotá our position is predominantly near neutral and we anticipate that interest rate increases will not affect our results.

Juan Carlos Echeverry: We also believe this administration will prioritize responsible, sustainable decision making that supports long-term stability and growth. Economic growth as measured by GDP, driven primarily by government expenditures, inflation is expected to decline in 2026. In this context, the Colombian Central Bank is likely to raise rates to 12.5% before the year ends. The peso has appreciated against the dollar to levels not seen since 2019, driven by economic high interest rates and a change in the political environment. This macroeconomic environment presents challenges for banks. There is growing concern that high interest rates, inflation and appreciating peso, and recent minimum wage increases may adversely affect certain sectors. Fortunately, at Banco de Bogotá our position is predominantly near neutral and we anticipate that interest rate increases will not affect our results.

Speaker #3: Inflation is expected to decline in 2026. In this context, the Colombian Central Bank is likely to reduce rates to 21.25% before the year-end. The peso has appreciated against the dollar to levels not seen since 2019, driven by high economic interest rates and a change in the political environment.

Speaker #3: This macroeconomic environment presents challenges for banks. There is current concern that high interest rates, inflation, an appreciating peso, and recent minimum wage increases may adversely affect certain sectors.

Speaker #3: Fortunately, at Banco de Bogotá, our position is predominantly neutral, and we anticipate that interest rate increases will not affect our results. We will monitor specific sectors—particularly those subject to combined rate increases and peso appreciation.

Juan Carlos Echeverry Garzón: We will monitor specific sectors subject to combining rate increases and the peso appreciation. As part of the group's strategic realignment effort, we undertook a specific operation this quarter regarding the Corficolombiana shares held by Grupo Aval and its banks. Grupo Aval, Banco de Bogotá, Banco de Occidente, Banco Popular transferred the Corficolombiana shares to Ficentro, a Panamanian entity. Each institution now retains an ownership interest in Corficolombiana through Ficentro, and its intrinsic investment in Corficolombiana remains unchanged. Ficentro now holds 52.8% of Corficolombiana's shares. Following this transaction, Banco de Bogotá's book value for this investment decreased by COP 2.2 trillion, as the asset value of Ficentro was realigned with Corficolombiana's. This transaction was reflected as a reduction in retained earnings. Javier will provide further insights on this matter. The following are the Q2 highlights.

Juan Carlos Echeverry: We will monitor specific sectors subject to combining rate increases and the peso appreciation. As part of the group's strategic realignment effort, we undertook a specific operation this quarter regarding the Corficolombiana shares held by Grupo Aval and its banks. Grupo Aval, Banco de Bogotá, Banco de Occidente, Banco Popular transferred the Corficolombiana shares to Ficentro, a Panamanian entity. Each institution now retains an ownership interest in Corficolombiana through Ficentro, and its intrinsic investment in Corficolombiana remains unchanged. Ficentro now holds 52.8% of Corficolombiana's shares. Following this transaction, Banco de Bogotá's book value for this investment decreased by COP 2.2 trillion, as the asset value of Ficentro was realigned with Corficolombiana's. This transaction was reflected as a reduction in retained earnings. Javier will provide further insights on this matter. The following are the Q2 highlights.

Speaker #3: As part of the group's strategic realignment efforts, we undertook a specific operation this quarter regarding the Colombian shares held by Grupo Al and its banks.

Speaker #3: Grupo AL, Banco de Bogotá, Banco de Occidente, and Banco Popular transferred the Colombian shares to Ficentro, a Panamanian entity. Each institution now retains an ownership interest in Colombian through Ficentro, and its intrinsic investment in Colombian remains unchanged.

Speaker #3: Ficentro now holds 52.8% of Colombian shares. Following this transaction, Banco Bogotá's book value for this investment decreased by COP 2.2 trillion, as the assessed value of Ficentro was realigned with Colombian.

Speaker #3: This transaction was reflected as a reduction in retained earnings. Javier will provide further insights on this matter. The following are the second quarter's highlights.

Speaker #3: Net income attributed to shareholders was 390 billion pesos, resulting in a return on equity of 10%. NIM was 5%, and the net cost of risk was—.

Juan Carlos Echeverry Garzón: Net income attributable to shareholders was COP 390 billion, resulting in a return on equity of 10%. NIM was 5%, and the net cost of risk was 1%. Loans reached COP 100 trillion, increasing by 3.3% this quarter. Deposits reached COP 104 trillion. Cost to assets remain at 2.7%. On 1 August, Banco de Bogotá completed its acquisition of Banco Itaú's retail banking loans and deposits, a key transaction to strengthen its universal banking strategy. Javier will expand on this in more detail. On the next slide, we present the size of the local banking sector and Banco de Bogotá's market share. These figures stand out. By the end of May, banked COP 770 trillion in deposits and COP 765 trillion in gross loans. The bank had a market share of 13.4% in deposits, 12.7% in gross loans during that period.

Juan Carlos Echeverry: Net income attributable to shareholders was COP 390 billion, resulting in a return on equity of 10%. NIM was 5%, and the net cost of risk was 1%. Loans reached COP 100 trillion, increasing by 3.3% this quarter. Deposits reached COP 104 trillion. Cost to assets remain at 2.7%. On 1 August, Banco de Bogotá completed its acquisition of Banco Itaú's retail banking loans and deposits, a key transaction to strengthen its universal banking strategy. Javier will expand on this in more detail. On the next slide, we present the size of the local banking sector and Banco de Bogotá's market share. These figures stand out. By the end of May, banked COP 770 trillion in deposits and COP 765 trillion in gross loans. The bank had a market share of 13.4% in deposits, 12.7% in gross loans during that period..

Speaker #3: 1%. Almost reached $100 trillion pesos, increasing by 3.3% this quarter. Deposits reached $104 trillion pesos, close to assets, remaining at 2.7%. On August 1, Banco Bogotá completed its procedures for Banco Itaú's retail banking loans and deposits—key transactions to strengthen its universal banking strategy.

Speaker #3: Javier will expand on this in more detail. On the next slide, we present the size of the local banking sector and Banco de Bogotá's market share.

Speaker #3: These figures show 770 trillion pesos in deposits and 765 trillion pesos in gross loans. The bank had a market share of 13.4% in deposits and 12.7% in gross loans during that period.

Speaker #3: The bank has a bias toward commercial loans, where it holds a 15.1% market share. In terms of funding, the bank stands out in checking accounts, where it holds 19.1% of this deposit type.

Juan Carlos Echeverry Garzón: The bank has a bias towards commercial loans, where it holds a 15.1% market share. In terms of funding, the bank stands out in checking accounts, where it holds 19.1% of this deposit type. Market share has been stable so far this year, but we will strive to increase these types of financial figures both organically and inorganically, namely Itaú's transaction in the H2 of this year. Now, Sergio Sandoval, Banco de Bogotá's CFO, will continue with digital transformation. Sergio, please proceed.

Juan Carlos Echeverry: The bank has a bias towards commercial loans, where it holds a 15.1% market share. In terms of funding, the bank stands out in checking accounts, where it holds 19.1% of this deposit type. Market share has been stable so far this year, but we will strive to increase these types of financial figures both organically and inorganically, namely Itaú's transaction in the H2 of this year. Now, Sergio Sandoval, Banco de Bogotá's CFO, will continue with digital transformation. Sergio, please proceed.

Speaker #3: Market share has been stable so far this year, but we will strive to increase these types of financial figures, both organically and inorganically—namely, through Itaú's transactions in the second half of this year.

Speaker #3: Now, Sergio Sandoval, Banco de Bogotá's CFO, will continue with digital transformation. Sergio, please proceed.

Speaker #2: Thank you, Juan Carlos. Let's move on to digital transformation, banks, and payment strategy as simultaneous drivers of deposit growth and transactional fee income, enabling interoperable QR codes for individuals.

Sergio Sandoval Cadena: Thank you, Juan Carlos. Let's move on to digital transformation. Advance and payment strategy as a simultaneous driver of deposit growth and transactional fee income, enabling interoperable QR codes for individuals and extending this capability to the corporate segment through Bre-V key transfers from the business mobile banking platform. Customers now receive real-time payments autonomously, which increases transactional activity, accelerates the turnover of funds, and strengthens account balances, turning the payment experience into a stable source of funding. Regarding customers, digital origination is now the main growth vehicle. Its share of total personal loan disbursements rose from 75% in Q1 to 80%, confirming that improvements in customer experience translate into higher conversion, great commercial efficiency, and sustained migration of the business toward digital channels. Digitalization is also generating value beyond origination.

Sergio Sandoval: Thank you, Juan Carlos. Let's move on to digital transformation. Advance and payment strategy as a simultaneous driver of deposit growth and transactional fee income, enabling interoperable QR codes for individuals and extending this capability to the corporate segment through Bre-V key transfers from the business mobile banking platform. Customers now receive real-time payments autonomously, which increases transactional activity, accelerates the turnover of funds, and strengthens account balances, turning the payment experience into a stable source of funding. Regarding customers, digital origination is now the main growth vehicle. Its share of total personal loan disbursements rose from 75% in Q1 to 80%, confirming that improvements in customer experience translate into higher conversion, great commercial efficiency, and sustained migration of the business toward digital channels. Digitalization is also generating value beyond origination.

Speaker #2: And extending this capability to the current segment through Breve Key transfers from the business mobile banking platform, customers now receive real-time payments autonomously, which increases transactional activity, accelerates the turnover of funds, and strengthens account balances.

Speaker #2: Turning the payment experience into a stable source of funding. Regarding customers, digital origination is now the main growth vehicle. Its share of total personal loan disbursements rose from 75% in the first quarter to 80%.

Speaker #2: Confirming that improvements in customer experience translate into higher conversion, greater commercial efficiency, and sustained migration of the business toward digital channels. Digitalization is also generating value beyond origination.

Speaker #2: The self-service collection portal consolidated its role as a key tool for loan normalization, enabling the recovery of 120 billion pesos in provisions so far in 2026, with simultaneous improvements in customer experience, operational efficiency, and portfolio quality.

Sergio Sandoval Cadena: The self-service collections portal consolidated its role as a key tool for loan normalization, enabling the recovery of COP 120 billion in provisions so far in 2026, with simultaneous improvements in customer experience, operational efficiency, and portfolio quality. In partnership with Visa, we developed a new scheme for large commercial banking transactions with preferential pricing, allowing us to compete for flow that previously faced cost barriers in electronic payments. In parallel, we advanced toward the final phase of the launch of the group's new acquiring processor that will reduce the cost per transaction by up to 35%, a structural improvement in the profitability of the business. In cash management, we transformed corporate collections with Bre-V QR codes, a solution already used by 1,500 active companies that allows them to receive instant payments from any financial institution, a solution that reduces operating costs compared to physical channels.

Sergio Sandoval: The self-service collections portal consolidated its role as a key tool for loan normalization, enabling the recovery of COP 120 billion in provisions so far in 2026, with simultaneous improvements in customer experience, operational efficiency, and portfolio quality. In partnership with Visa, we developed a new scheme for large commercial banking transactions with preferential pricing, allowing us to compete for flow that previously faced cost barriers in electronic payments. In parallel, we advanced toward the final phase of the launch of the group's new acquiring processor that will reduce the cost per transaction by up to 35%, a structural improvement in the profitability of the business. In cash management, we transformed corporate collections with Bre-V QR codes, a solution already used by 1,500 active companies that allows them to receive instant payments from any financial institution, a solution that reduces operating costs compared to physical channels.

Speaker #2: In partnership with Visa, we developed a new scheme for large commercial banking transactions with preferential pricing, allowing us to compete for flow that previously faced cost barriers in electronic payments.

Speaker #2: In parallel, we advance toward the final phase of the launch of the group's new acquiring processor that will reduce the cost per transaction by up to 35%.

Speaker #2: As we improve our structure and profitability as a business, in cash management, we are transforming corporate collections with Breve QR codes—a solution already used by 1,500 active companies that allows them to receive instant payments from any financial institution.

Speaker #2: A solution that reduces operating costs compared to physical channels. End customers pay in seconds with no additional steps, while companies gain greater control over their liquidity and cash flow.

Sergio Sandoval Cadena: End customers pay in seconds with no additional steps, while companies gain greater control over their liquidity and cash flow. We complemented our offering with a new digital treasury suite for businesses, leveraging cooperation with Fintechs. This integration allows companies to manage their payments, payroll, and liquidity from a single ecosystem, expanding our reach in the segment, deepening relationships with SMEs, and turning treasury operations into a new source of transactional and customer engagement while positioning the bank as a strategic partner in the growth of Colombian businesses. Turning to sustainability, Q2 saw continued solid progress in our sustainable finance strategy. Let me highlight some key achievements. First, the continued growth of our sustainable loan portfolio. As of the end of Q2, our total sustainable portfolio reached COP 24.5 trillion. The green portfolio amounted to COP 7.5 trillion, representing a 16.7% growth so far this year.

Sergio Sandoval: End customers pay in seconds with no additional steps, while companies gain greater control over their liquidity and cash flow. We complemented our offering with a new digital treasury suite for businesses, leveraging cooperation with Fintechs. This integration allows companies to manage their payments, payroll, and liquidity from a single ecosystem, expanding our reach in the segment, deepening relationships with SMEs, and turning treasury operations into a new source of transactional and customer engagement while positioning the bank as a strategic partner in the growth of Colombian businesses. Turning to sustainability, Q2 saw continued solid progress in our sustainable finance strategy. Let me highlight some key achievements. First, the continued growth of our sustainable loan portfolio. As of the end of Q2, our total sustainable portfolio reached COP 24.5 trillion. The green portfolio amounted to COP 7.5 trillion, representing a 16.7% growth so far this year.

Speaker #2: We complemented our offering with a new digital treasury suite for businesses, leveraging cooperation with fintechs. This integration allows companies to manage their payments, payroll, and liquidity from a single ecosystem.

Speaker #2: Expanding our reach in the segment, deepening relationships with SMEs, and turning treasury operations into a new source of transactional activity and customer engagement, while positioning the bank as a strategic partner in the growth of Colombian businesses.

Speaker #2: Turning to sustainability, the second quarter saw continued solid progress in our sustainable finance strategy. Let me highlight some key achievements. First, the continued growth of our sustainable loan portfolio.

Speaker #2: As of the end of the second quarter, our total sustainable portfolio reached 24.5 trillion pesos. The green portfolio amounted to 7.5 trillion pesos, representing a 16.7% growth so far this year.

Speaker #2: Meanwhile, the social portfolio exceeded $17 trillion pesos. A key highlight was our women SME portfolio, which reached $4.8 trillion pesos and now accounts for over 41% of our total SME portfolio.

Sergio Sandoval Cadena: Meanwhile, the social portfolio exceeded COP 17 trillion. A key highlight was our women SME portfolio, which reached COP 4.8 trillion and now accounts for over 41% of our total SME portfolio. Second, strategic transactions that further strengthen our leadership in sustainable financing. During the quarter, in partnership with International Finance Corporation, we announced financing of up to $150 million to support the energy transition, strengthen SMEs, and promote sustainable construction in Colombia. This transaction represents the first transition loan in the region and received independent verification from S&P Global Ratings regarding the framework governing the use of proceeds. In addition, we financed an energy infrastructure project worth COP 120 billion that enabled the complete replacement of gas transportation through a direct connection to the distribution network.

Sergio Sandoval: Meanwhile, the social portfolio exceeded COP 17 trillion. A key highlight was our women SME portfolio, which reached COP 4.8 trillion and now accounts for over 41% of our total SME portfolio. Second, strategic transactions that further strengthen our leadership in sustainable financing. During the quarter, in partnership with International Finance Corporation, we announced financing of up to $150 million to support the energy transition, strengthen SMEs, and promote sustainable construction in Colombia. This transaction represents the first transition loan in the region and received independent verification from S&P Global Ratings regarding the framework governing the use of proceeds. In addition, we financed an energy infrastructure project worth COP 120 billion that enabled the complete replacement of gas transportation through a direct connection to the distribution network.

Speaker #2: Second, strategic transactions that further strengthen our leadership in sustainable financing. During the quarter, in partnership with IFC, we announced financing of up to $150 million to support the energy transition, strengthen SMEs, and promote sustainable construction in Colombia.

Speaker #2: These transactions represent the first transition loan in the region and received independent verification from S&P regarding the framework governing the use of proceeds. In addition, we financed an energy infrastructure project worth 120 billion pesos that enabled the complete replacement of gas transportation through a direct connection to the distribution network.

Speaker #2: As a result, the project is expected to eliminate the consumption of around 150,000 liters of diesel per year, reducing emissions, improving operational efficiency, and lowering the logistical risk associated with fuel supply.

Sergio Sandoval Cadena: As a result, the project is expected to eliminate the consumption of around 150,000 liters of diesel per year, reducing emissions, improving operational efficiency, and lowering the logistical risks associated with fuel supply. Third, on the social front, we expanded our financial education and entrepreneurship initiatives, reaching more than 2,000 people during the quarter. We also completed ECOTECH's third cohort program and launched a fourth, moving closer to our goal of supporting 100 ventures by 2026. Finally, we joined WE Finance Code Colombia, an initiative led by Asobancaria and Bitinvest, in partnership with Colombia's National Financial Inclusion program, CoreWoman, and Colombia's banking and securities regulator. We aim to expand access to financing for women-led businesses by addressing gender gaps, improving the use of information, strengthening capabilities, and fostering collaboration among key stakeholders across the financial sector. The next slide, let me summarize the local macroeconomic context.

Sergio Sandoval: As a result, the project is expected to eliminate the consumption of around 150,000 liters of diesel per year, reducing emissions, improving operational efficiency, and lowering the logistical risks associated with fuel supply. Third, on the social front, we expanded our financial education and entrepreneurship initiatives, reaching more than 2,000 people during the quarter. We also completed ECOTECH's third cohort program and launched a fourth, moving closer to our goal of supporting 100 ventures by 2026. Finally, we joined WE Finance Code Colombia, an initiative led by Asobancaria and Bitinvest, in partnership with Colombia's National Financial Inclusion program, CoreWoman, and Colombia's banking and securities regulator. We aim to expand access to financing for women-led businesses by addressing gender gaps, improving the use of information, strengthening capabilities, and fostering collaboration among key stakeholders across the financial sector. The next slide, let me summarize the local macroeconomic context.

Speaker #2: Third, on the social front, we expanded our financial education and entrepreneurship initiatives, reaching more than 2,000 people during the quarter. We also completed Ecotex's third cohort program and launched a fourth, moving closer to our goal of supporting 100 ventures by 2026.

Speaker #2: Finally, we join with Finance Code Colombia, an initiative led by Asobancaria and BitInvest, in partnership with Colombia's National Financial Inclusion Program, Core Woman, and Colombia's Banking and Securities Regulator.

Speaker #2: We aim to expand access to financing for women-led businesses by addressing gender gaps, improving the use of information, strengthening capabilities, and fostering collaboration among key stakeholders across the financial sector.

Speaker #2: Next slide. Let me summarize the local macroeconomic context. In the second quarter of 2026, growth, while positive, was supported by temporary factors. The first of these is the increased household spending associated with the 2026 FIFA World Cup.

Sergio Sandoval Cadena: In Q2 2026, growth, while positive, was supported by temporary factors. The first of these is the increased household spending associated with the 2026 FIFA World Cup. This event boosted economic activity through greater dynamism in commerce, clothing, entertainment, restaurants, and sports betting. Likewise, the public administration continued to support economic activity due to increased personnel to handle the local elections, as well as higher budget execution, which reached a four-year high, significantly contributing to the growth of national activity. Another sector that performed well was utilities, driven by the increased energy demand from households due to the intensive use of air conditioning and restrooms, given the high temperatures experienced in several cities across the country. In contrast to these sectors, agriculture, mining, manufacturing, and construction continued to exhibit weak or negative results. In agriculture, the weather and high input costs were detrimental.

Sergio Sandoval: In Q2 2026, growth, while positive, was supported by temporary factors. The first of these is the increased household spending associated with the 2026 FIFA World Cup. This event boosted economic activity through greater dynamism in commerce, clothing, entertainment, restaurants, and sports betting. Likewise, the public administration continued to support economic activity due to increased personnel to handle the local elections, as well as higher budget execution, which reached a four-year high, significantly contributing to the growth of national activity. Another sector that performed well was utilities, driven by the increased energy demand from households due to the intensive use of air conditioning and restrooms, given the high temperatures experienced in several cities across the country. In contrast to these sectors, agriculture, mining, manufacturing, and construction continued to exhibit weak or negative results. In agriculture, the weather and high input costs were detrimental.

Speaker #2: This event boosted economic activity through greater dynamism in commerce, clothing, entertainment, restaurants, and sports betting. Likewise, the public administration continued to support economic activity due to increased personnel to handle the local elections.

Speaker #2: As well as higher budget execution, which reached a four-year high, significantly contributing to the growth of national activity. Another sector that performed well was utilities, driven by the increased energy demand from households due to the intensive use of air conditioning and radiators.

Speaker #2: Given the high temperatures experienced in several cities across the country, in contrast to these sectors, agriculture, mining, manufacturing, and construction continue to exhibit weak or negative results.

Speaker #2: In agriculture, the weather and high input costs were detrimental. In construction, high interest rates and the slow execution of major infrastructure projects weakened the sector.

Sergio Sandoval Cadena: In construction, high interest rates and the slow execution of major infrastructure projects weakened the sector. In mining, the decline is structural, and in manufacturing, the appreciation of the peso has harmed the sector's competitiveness. This suggests that the economic recovery maintains a pattern in which some sectors improve while others continue to lag. For the remainder of the year, tighter local financial conditions, the diminishing effects of transitory factors, the impact of the war in the Middle East, the arrival of droughts, and the expectation of fiscal adjustments are projected to lead the Colombian economy to register economic growth of only 2.5% throughout 2026. Turning to prices, inflation rose from 5.6% at the end of March to 6.1% in June 2026, its highest level since July 2024, before moderating slightly to 6% in July.

Sergio Sandoval: In construction, high interest rates and the slow execution of major infrastructure projects weakened the sector. In mining, the decline is structural, and in manufacturing, the appreciation of the peso has harmed the sector's competitiveness. This suggests that the economic recovery maintains a pattern in which some sectors improve while others continue to lag. For the remainder of the year, tighter local financial conditions, the diminishing effects of transitory factors, the impact of the war in the Middle East, the arrival of droughts, and the expectation of fiscal adjustments are projected to lead the Colombian economy to register economic growth of only 2.5% throughout 2026. Turning to prices, inflation rose from 5.6% at the end of March to 6.1% in June 2026, its highest level since July 2024, before moderating slightly to 6% in July.

Speaker #2: In mining, the decline is structural, and in manufacturing, the appreciation of the peso has harmed the sector's competitiveness. This suggests that the economic recovery maintains a pattern in which some sectors improve while others continue to lag.

Speaker #2: For the remainder of the year, tighter local financial conditions, the diminishing effects of transitory factors, the impact of the war in the Middle East, the arrival of droughts, and the expectation of fiscal adjustments are projected to lead the Colombian economy to register economic growth of only 2.5% throughout 2026.

Speaker #2: Turning to prices, inflation rose from 5.6% at the end of March to 6.1% in June 2026, its highest level since July 2024, before moderating slightly to 6% in July.

Speaker #2: Services dependent on the minimum wage saw a variation exceeding 9%, while rents maintain an inflation close to 5%. This is more evidence of the indexation problem.

Sergio Sandoval Cadena: Services dependent on the minimum wage saw a variation exceeding 9%, while rents maintained an inflation close to 5%, more evidence of the indexation problem. Meanwhile, inflation in regulated goods accelerated due to higher fuel prices resulting from the war in the Middle East. Additionally, energy and gas prices increased as a result of greater use of thermal power plants for electricity generation as a precaution against the arrival of droughts. In the food sector, and weather conditions also exerted upward pressure. For the remainder of the year, the upward trend in inflation is expected to continue given the intensification of the aforementioned factors, ending the year at 6.8%. On the fiscal front, the government finalized the total return swap, or TRS, operation in May and updated the medium-term fiscal framework in June.

Sergio Sandoval: Services dependent on the minimum wage saw a variation exceeding 9%, while rents maintained an inflation close to 5%, more evidence of the indexation problem. Meanwhile, inflation in regulated goods accelerated due to higher fuel prices resulting from the war in the Middle East. Additionally, energy and gas prices increased as a result of greater use of thermal power plants for electricity generation as a precaution against the arrival of droughts. In the food sector, and weather conditions also exerted upward pressure. For the remainder of the year, the upward trend in inflation is expected to continue given the intensification of the aforementioned factors, ending the year at 6.8%. On the fiscal front, the government finalized the total return swap, or TRS, operation in May and updated the medium-term fiscal framework in June.

Speaker #2: Meanwhile, inflation in regulated goods accelerated due to higher fuel prices resulting from the war in the Middle East. Additionally, energy and gas prices increased as a result of greater use of thermal power plants for electricity generation as a precaution against the arrival of droughts.

Speaker #2: In the food sector, weather conditions also exerted upward pressure. For the remainder of the year, the upward trend in inflation is expected to continue, given the intensification of the aforementioned factors, ending the year at 6.8%.

Speaker #2: On the fiscal front, the government finalized the total return swap, or TRS, operation in May and updated the medium-term fiscal framework in June. With the closure of the TRS and other debt management operations during the quarter, the government carried out a significant swap of external debt for domestic debt.

Sergio Sandoval Cadena: With the closure of the TRS and other debt management operations during the quarter, the government carried out a significant swap of external debt for domestic debt. As of June, the share of external debt in total debt was 22.9%, the lowest in the 21st century, also supported by the appreciation of the peso. Regarding the fiscal framework, while the revenue forecast for 2026 is stable, the expense forecast is not. Higher spending pressures are expected, leading to a total fiscal deficit of 6.7% of GDP in 2026, above the target of 5.3% of GDP. Given this outlook with high inflation expectations, and a still vulnerable fiscal situation, the Colombian Central Bank raised its policy rate by 75 basis points in June and left them at 12% in July and will remain at 12% at least until September.

Sergio Sandoval: With the closure of the TRS and other debt management operations during the quarter, the government carried out a significant swap of external debt for domestic debt. As of June, the share of external debt in total debt was 22.9%, the lowest in the 21st century, also supported by the appreciation of the peso. Regarding the fiscal framework, while the revenue forecast for 2026 is stable, the expense forecast is not. Higher spending pressures are expected, leading to a total fiscal deficit of 6.7% of GDP in 2026, above the target of 5.3% of GDP. Given this outlook with high inflation expectations, and a still vulnerable fiscal situation, the Colombian Central Bank raised its policy rate by 75 basis points in June and left them at 12% in July and will remain at 12% at least until September.

Speaker #2: As of June, the share of external debt in total debt was 22.9%, the lowest in the 21st century. This was also supported by the appreciation of the peso.

Speaker #2: Regarding the fiscal framework, while the revenue forecast for 2026 remains the same, the expense forecast is not. Higher spending pressures are expected, leading to a total fiscal deficit of 6.7% of GDP in 2026.

Speaker #2: Above the target of 5.3% of GDP. Given this outlook, with high inflation, inflation expectations, and a still vulnerable fiscal situation, the Colombian Central Bank raised its policy rate by 75 basis points in June and left them at 12% in July. They will remain at 12% at least until September.

Speaker #2: The Central Bank may continue raising rates as it seeks to bring inflation back toward target after six consecutive years of overshooting it. With a scenario of higher domestic interest rates and a favorable reading of the elections, which confirm a change in government, the local exchange rate extended its downward trend.

Sergio Sandoval Cadena: The central bank may continue raising rates as it seeks to bring inflation back to our target after six consecutive years of overshooting it. With a scenario of higher domestic interest rates and a favorable reading of the elections, which confirm a change in government, the local exchange rate extended its downward trend, reaching levels around 3,100 pesos per dollar. Following the election results, the country's risk premium fell to 150 basis points, near its lowest level since 2021. This lower premium reflects investors' expectations that under the new government, Colombia will implement macroprudential measures, contain the fiscal deficit, oversee negotiated minimum wage increases, and promote investment incentives, among other policies that foster a better business environment and strengthen the local currency. However, passing reforms in a highly divided Congress will be crucial to meeting these expectations and their corresponding impact on the economy and local assets.

Sergio Sandoval: The central bank may continue raising rates as it seeks to bring inflation back to our target after six consecutive years of overshooting it. With a scenario of higher domestic interest rates and a favorable reading of the elections, which confirm a change in government, the local exchange rate extended its downward trend, reaching levels around 3,100 pesos per dollar. Following the election results, the country's risk premium fell to 150 basis points, near its lowest level since 2021. This lower premium reflects investors' expectations that under the new government, Colombia will implement macroprudential measures, contain the fiscal deficit, oversee negotiated minimum wage increases, and promote investment incentives, among other policies that foster a better business environment and strengthen the local currency. However, passing reforms in a highly divided Congress will be crucial to meeting these expectations and their corresponding impact on the economy and local assets.

Speaker #2: Reaching levels around 3,100 pesos per dollar. Following the election results, the country's risk premium fell to 150 basis points, near its lowest level since 2021.

Speaker #2: This lower premium reflects investors' expectations that, under the new government, Colombia will implement macroprudential measures, contain the fiscal deficit, oversee negotiated minimum wage increases, and promote investment incentives, among other policies that foster a better business environment and strengthen the local currency.

Speaker #2: However, passing reforms in a highly divided Congress will be crucial to meeting these expectations and their corresponding impact on the economy and local assets.

Speaker #2: Now, I will turn over the presentation to Javier Dorich, Head of Investor Corporate Development. Thank you, Sergio. Good morning, everyone. As we mentioned on previous calls, the bank had been negotiating with Banco Itaú to acquire its retail banking loans, as well as the deposits and clients.

Sergio Sandoval Cadena: Now, I will turn over the presentation to Javier Dorich, Head of Investor and Corporate Development.

Sergio Sandoval: Now, I will turn over the presentation to Javier Dorich, Head of Investor and Corporate Development.

Javier Dorich Doig: Thank you, Sergio. Good morning, everyone. As we mentioned on previous calls, the bank had been negotiating with Banco Itaú to acquire its retail banking loans, as well as deposits and clients, both in Colombia and in Panama. We are glad to announce that this transaction took place on 1 August. Financial statements in this call do not include this transaction as it happened after the Q2 closure. Please note that the figures for this transaction are estimates as of now, and final figures may vary slightly. In Colombia, Banco de Bogotá received COP 6.4 trillion in assets, mainly consumer loans and mortgages. The bank also received COP 4.5 trillion in liabilities. In Panama, the bank received $4.8 million in assets and $103.4 million in deposits. The bank has been focused on making this transition for Itaú clients as smooth as possible.

Javier Dorich: Thank you, Sergio. Good morning, everyone. As we mentioned on previous calls, the bank had been negotiating with Banco Itaú to acquire its retail banking loans, as well as deposits and clients, both in Colombia and in Panama. We are glad to announce that this transaction took place on 1 August. Financial statements in this call do not include this transaction as it happened after the Q2 closure. Please note that the figures for this transaction are estimates as of now, and final figures may vary slightly. In Colombia, Banco de Bogotá received COP 6.4 trillion in assets, mainly consumer loans and mortgages. The bank also received COP 4.5 trillion in liabilities. In Panama, the bank received $4.8 million in assets and $103.4 million in deposits. The bank has been focused on making this transition for Itaú clients as smooth as possible.

Speaker #2: Both in Colombia and in Panama. We are glad to announce that this transaction took place on August 1st. Financial statements in this call do not include this transaction, as it happened after the second quarter's closure.

Speaker #2: Please note that the figures for this transaction are estimates as of now, and final figures may vary slightly. In Colombia, Banco de Bogotá received COP 6.4 trillion in assets, mainly consumer loans and mortgages.

Speaker #2: The bank also received 4.5 trillion pesos in liabilities. In Panama, the bank received $4.8 million in assets and $103.4 million in deposits.

Speaker #2: The bank has been focused on making this transition for Itaú clients as smooth as possible. We worked hard to ensure clients had a warm welcome into Banco de Bogotá, with as few inconveniences as possible.

Javier Dorich Doig: We worked hard to ensure clients had a warm welcome into Banco de Bogotá with as few inconveniences as possible. These types of operations are challenging, and behind this one, there is a great effort on our part. We are now working on keeping the new clients and fulfilling their level of expectation for our products and services. On the next slide, we present an operation related to Corficolombiana's ownership. In June 2026, Grupo Aval Banco Popular transferred all its shares in Corporación Financiera Colombiana or Corficolombiana to Corporación Financiera Centroamericana or Ficentro, a member of the Aval financial conglomerate. Banco Popular will continue to act as the consolidating entity for Corficolombiana by consolidating Ficentro pursuant to a shareholders' voting agreement among the contributing entities. Grupo Aval and its banks now hold hundreds of capital. Banco de Bogotá transferred its entire equity stake in Corficolombiana to Ficentro.

Javier Dorich: We worked hard to ensure clients had a warm welcome into Banco de Bogotá with as few inconveniences as possible. These types of operations are challenging, and behind this one, there is a great effort on our part. We are now working on keeping the new clients and fulfilling their level of expectation for our products and services. On the next slide, we present an operation related to Corficolombiana's ownership. In June 2026, Grupo Aval Banco Popular transferred all its shares in Corporación Financiera Colombiana or Corficolombiana to Corporación Financiera Centroamericana or Ficentro, a member of the Aval financial conglomerate. Banco Popular will continue to act as the consolidating entity for Corficolombiana by consolidating Ficentro pursuant to a shareholders' voting agreement among the contributing entities. Grupo Aval and its banks now hold hundreds of capital. Banco de Bogotá transferred its entire equity stake in Corficolombiana to Ficentro.

Speaker #2: These types of operations are challenging, and behind this one there is a great effort on our part. We are now working on keeping the new clients and fulfilling their level of expectation for our products and services.

Speaker #2: On the next slide, we present an operation related to Colombiana's ownership. In June 2026, Grupo Banco de Bogotá and Banco de Bogotá transferred all their co-share to Corporación Financiera Centroamericana, or FICENTRO, a member of the above financial conglomerate.

Speaker #2: Banco Popular will continue to act as a consolidating entity for Corp Colombiana by consolidating FICENTRO, pursuant to a shareholders' voting agreement among the contributing entities.

Speaker #2: Grupo Aval and its banks now hold 100% of its capital. Banco de Bogotá transferred its entire equity stake in Corficolombiana to FICENTRO. In return, the bank received shares in FICENTRO representing 65.76% of FICENTRO's outstanding equity.

Javier Dorich Doig: In return, the bank received shares in Ficentro representing 65.76% of Ficentro's outstanding equity, thereby indirectly maintaining the same ownership of Corficolombiana. This transaction primarily aims to simplify Corficolombiana's ownership structure by consolidating the stake into a single jointly controlled vehicle within Grupo Aval. From an accounting perspective, the carrying amount of investment in Corficolombiana before the transaction was COP 6.9 trillion. However, the investment in Ficentro must be recognized at Corficolombiana's book value of COP 4.7 trillion. The resulting difference of COP 2.2 trillion is recognized as a reduction in equity reflected in return earnings. This transaction lowered total capital adequacy by 200 as it affects both common equity Tier 1 capital and credit risk-weighted assets. Turning to assets, let us review the bank's balance sheet performance for the Q2 2026.

Javier Dorich: In return, the bank received shares in Ficentro representing 65.76% of Ficentro's outstanding equity, thereby indirectly maintaining the same ownership of Corficolombiana. This transaction primarily aims to simplify Corficolombiana's ownership structure by consolidating the stake into a single jointly controlled vehicle within Grupo Aval. From an accounting perspective, the carrying amount of investment in Corficolombiana before the transaction was COP 6.9 trillion. However, the investment in Ficentro must be recognized at Corficolombiana's book value of COP 4.7 trillion. The resulting difference of COP 2.2 trillion is recognized as a reduction in equity reflected in return earnings. This transaction lowered total capital adequacy by 200 as it affects both common equity Tier 1 capital and credit risk-weighted assets. Turning to assets, let us review the bank's balance sheet performance for the Q2 2026.

Speaker #2: They indirectly maintained the same ownership of Corpocolombiana. This transaction primarily aims to simplify Corpocolombiana's ownership structure by consolidating the stake into a single, jointly controlled vehicle within Grupo Aval.

Speaker #2: From an accounting perspective, the current amount of investment in Corp Colombiana before the transaction was $6.9 trillion pesos. However, the investment in FICENTRO must be recognized at Corp Colombiana's book value of $4.7 trillion pesos.

Speaker #2: The resulting difference of 2.2 trillion pesos is recognized as a reduction in equity reflected in retained earnings. This transaction lowered total capital deposits by 200.

Speaker #2: As it affects both Common Equity Tier One capital and credit risk-weighted assets. Turning to assets, let us review the bank's balance sheet performance for the second quarter of 2026.

Speaker #2: Total assets stood at 141 trillion pesos. Reflecting a 0.8% quarter over quarter decline and a 7.9% decrease from the same period last year. The quarter over quarter decrease is mainly explained by Corp Colombiana's share transaction and the maturity of the May 2026 subordinated notes.

Javier Dorich Doig: Total assets stood at 141 trillion pesos, reflecting a 0.8% quarter-over-quarter decline and a 7.9% decrease from the same period last year. The quarter-over-quarter decrease is mainly explained by Corficolombiana's shared transaction and the maturity of the May 2026 subordinated notes. The loan portfolio remained the bank's principal asset category, constituting 67.9% of total assets on a net basis, followed by fixed income investments at 13.4%, other assets at 11.6%, and equity investments at 7.2%. Gross loans totaled 100.4 trillion pesos, representing a growth of 3.3% during the quarter and 10.2% year-over-year. Broad-based expansion across segments with the mortgage portfolio increasing by 3.6%, the commercial portfolio growing by 3.3%, equivalent to 2 trillion pesos, and the consumer portfolio rising by 3.1%. Our guidance for loan growth in 2026 is in the 14% range, including inorganic growth. On the next slide, we present the bank's funding.

Javier Dorich: Total assets stood at 141 trillion pesos, reflecting a 0.8% quarter-over-quarter decline and a 7.9% decrease from the same period last year. The quarter-over-quarter decrease is mainly explained by Corficolombiana's shared transaction and the maturity of the May 2026 subordinated notes. The loan portfolio remained the bank's principal asset category, constituting 67.9% of total assets on a net basis, followed by fixed income investments at 13.4%, other assets at 11.6%, and equity investments at 7.2%. Gross loans totaled 100.4 trillion pesos, representing a growth of 3.3% during the quarter and 10.2% year-over-year. Broad-based expansion across segments with the mortgage portfolio increasing by 3.6%, the commercial portfolio growing by 3.3%, equivalent to 2 trillion pesos, and the consumer portfolio rising by 3.1%. Our guidance for loan growth in 2026 is in the 14% range, including inorganic growth. On the next slide, we present the bank's funding.

Speaker #2: The loan portfolio remained the bank's principal asset category, constituting 67.9% of total assets on a net basis, followed by fixed income investments at 13.4%.

Speaker #2: Other assets are at 11.6%, and equity investments at 7.2%. Gross loans total 100.4 trillion pesos, representing a growth of 3.3% during the quarter and 10.2% year over year.

Speaker #2: Gross broad-based expansion across segments, with the mortgage portfolio increasing by 3.6%, the commercial portfolio growing by 3.3%, equivalent to COP 2 trillion, and the consumer portfolio rising by 3.1%.

Speaker #2: Our guidance for loan growth in 2026 is in the 14% range, including inorganic growth. On the next slide, we present the bank's funding. Total funding reached 122 trillion pesos.

Javier Dorich Doig: Total funding reached 122 trillion pesos, up 0.1% during the quarter. Deposits continued to grow as a share of total funding, accounting for 85.3%, followed by banks and other funding sources at 6.8%, interbank borrowings at 5.3%, and bonds at 2.6%. In May, the bank's subordinated international bonds issued in 2016 matured. It is worth remembering that in Q1, a total of $487 million, demonstrating an active approach to liability management, strengthening its maturity profile, and optimizing its funding structure in line with its financial and liquidity strategy. In the local market, the bank also issued 250 billion pesos in bonds, further supporting its funding diversification and long-term funding goals. Total deposits stood at 104 trillion pesos, increasing 0.7% quarter over quarter. Savings accounts and time deposits grew solidly during the period, while checking accounts declined by 6%.

Javier Dorich: Total funding reached 122 trillion pesos, up 0.1% during the quarter. Deposits continued to grow as a share of total funding, accounting for 85.3%, followed by banks and other funding sources at 6.8%, interbank borrowings at 5.3%, and bonds at 2.6%. In May, the bank's subordinated international bonds issued in 2016 matured. It is worth remembering that in Q1, a total of $487 million, demonstrating an active approach to liability management, strengthening its maturity profile, and optimizing its funding structure in line with its financial and liquidity strategy. In the local market, the bank also issued 250 billion pesos in bonds, further supporting its funding diversification and long-term funding goals. Total deposits stood at 104 trillion pesos, increasing 0.7% quarter over quarter. Savings accounts and time deposits grew solidly during the period, while checking accounts declined by 6%.

Speaker #2: Up 0.1% during the quarter. Deposits continued to grow as a share of total funding, accounting for 85.3%, followed by banks and other funding sources at 6.8%, interbank borrowings at 5.3%, and bonds at 2.6%.

Speaker #2: In May, the bank's subordinated international bonds issued in 2016 matured. It is worth remembering that in the first quarter, a total of $487 million, demonstrating an active approach to liability management.

Speaker #2: Strengthening its maturity profile and optimizing its funding structure in line with its financial and liquidity strategy. In the local market, the bank also issued $250 billion pesos in bonds.

Speaker #2: Further supporting its funding diversification and long-term funding goals. Total deposits stood at 104 trillion pesos, increasing 0.7% quarter over quarter. Savings accounts and time deposits grew solidly during the period, while checking accounts declined by 6%.

Speaker #2: The deposit-to-net loans ratio reached 1.09 times, remaining above our target level despite loan growth outpacing deposit growth during the quarter. Let's move on to equity and capital adequacy.

Javier Dorich Doig: The deposit to net loans ratio reached 1.09 times, remaining above our target level despite loan growth outpacing deposit growth during the quarter. Let's move on to equity and capital adequacy. In the top left, total equity and shareholders' equity decreased by 1.7 trillion pesos. This effect is mainly due to the previously mentioned operation involving Corficolombiana shares, which reduced book value by 2.2 trillion pesos. The period's results were 392 billion pesos, and OCI improved by 148 billion pesos this quarter, partially offsetting the effects of the Corficolombiana share operation. In the top right, we show the tangible capital ratio and the equity to assets ratio. Both variables decreased by around 110 basis points this quarter. In the bottom left, we present the consolidated capital adequacy, which reached its peak in Q1 2026.

Javier Dorich: The deposit to net loans ratio reached 1.09 times, remaining above our target level despite loan growth outpacing deposit growth during the quarter. Let's move on to equity and capital adequacy. In the top left, total equity and shareholders' equity decreased by 1.7 trillion pesos. This effect is mainly due to the previously mentioned operation involving Corficolombiana shares, which reduced book value by 2.2 trillion pesos. The period's results were 392 billion pesos, and OCI improved by 148 billion pesos this quarter, partially offsetting the effects of the Corficolombiana share operation. In the top right, we show the tangible capital ratio and the equity to assets ratio. Both variables decreased by around 110 basis points this quarter. In the bottom left, we present the consolidated capital adequacy, which reached its peak in Q1 2026.

Speaker #2: In the top left, total equity and shareholders' equity decreased by $1.1 trillion pesos. This effect is mainly due to the previously mentioned operation involving Corficolombiana shares, which reduced book value by $2.2 trillion pesos.

Speaker #2: The period's result was $392 billion pesos, and OCI improved by $148 billion pesos this quarter, partially offsetting the effects of the Corp Colombiana's share operation.

Speaker #2: In the top right, we show the tangible capital ratio and the equity-to-assets ratio. Both variables decreased by around 110 basis points this quarter.

Speaker #2: In the bottom left, we present the consolidated capital adequacy, which reached its peak in the first quarter of 2026; then, in the second quarter, it declined to levels similar to those of December 2025.

Javier Dorich Doig: In Q2, declined to levels similar to those of December 2025. The Q1 peak was due to the sale of Multi Financial Group or MFG, which reduced credit risk-weighted assets without significantly affecting Tier 1 capital. With the operation regarding Corficolombiana shares, CET1 capital decreased in 1.5 trillion pesos. Therefore, CET1 capital stood at 13.3 trillion pesos, down 9.9% quarter on quarter, even after offsetting profits and improvements in OCI. Tier 2 capital fell 4.1% this quarter, mainly due to the peso appreciation against the US dollar to 802 billion pesos. Risk-weighted assets remained relatively stable this quarter. Credit risk-weighted assets increased by 0.4%, market risk-weighted assets decreased by 0.3%, and operating risk-weighted assets increased by 1.6% this quarter for a total increase of 0.5%. CET1 and Tier 1 ratios were 14%, while total capital adequacy was 14.9%.

Javier Dorich: In Q2, declined to levels similar to those of December 2025. The Q1 peak was due to the sale of Multi Financial Group or MFG, which reduced credit risk-weighted assets without significantly affecting Tier 1 capital. With the operation regarding Corficolombiana shares, CET1 capital decreased in 1.5 trillion pesos. Therefore, CET1 capital stood at 13.3 trillion pesos, down 9.9% quarter on quarter, even after offsetting profits and improvements in OCI. Tier 2 capital fell 4.1% this quarter, mainly due to the peso appreciation against the US dollar to 802 billion pesos. Risk-weighted assets remained relatively stable this quarter. Credit risk-weighted assets increased by 0.4%, market risk-weighted assets decreased by 0.3%, and operating risk-weighted assets increased by 1.6% this quarter for a total increase of 0.5%. CET1 and Tier 1 ratios were 14%, while total capital adequacy was 14.9%.

Speaker #2: The first-quarter peak was due to the sale of Multi-Financial Group, or MFG, which reduced credit risk-weighted assets without significantly affecting C1 capital.

Speaker #2: With the operation regarding Corpocolombiana shares, Tier 1 capital decreased by COP 1.5 trillion. Therefore, Tier 1 capital stood at COP 13.3 trillion, down 9.9% quarter-on-quarter, even after offsetting profits and improvements in OCI.

Speaker #2: Tier 2 capital fell mainly due to the peso appreciation against the US dollar, to 802 billion pesos. Risk-weighted assets remained relatively stable this quarter.

Speaker #2: Credit risk-weighted assets increased by 0.4%, market risk-weighted assets decreased by 0.3%, and operating risk-weighted assets increased by 1.6% this quarter, for a total increase of 0.5%.

Speaker #2: Tier 1 and Tier 1 ratios were 14%, while total capital adequacy was 14.9%. These figures are 5.5 percentage points and 3.4 percentage points above regulatory minimums, including buffers.

Javier Dorich Doig: These figures are 5.5 percentage points, 3.4 percentage points above regulatory minimums, including buffers. Finally, in the bottom right corner, we observe the bank's standalone capital adequacy. CET1 capital stood at COP 12.2 trillion at quarter end. Meanwhile, Tier 2 capital totaled COP 946 billion. In addition, total risk-weighted assets decreased slightly by 1% quarter-over-quarter. As a result, the CET1 and Tier 1 ratios in the standalone scenario reached 13.6%, while the total capital ratio stood at 14.7%. The standalone capital position remains comfortably above regulatory requirements. Specifically, the Tier 1 ratio is 5.1 percentage points above the regulatory minimum, including buffers. Total capital adequacy is 3.2 percentage points above regulatory minimums. Now let's move to our P&L performance ratios, starting with the net interest margin. The central bank rate increased 75 basis points during the Q2.

Javier Dorich: These figures are 5.5 percentage points, 3.4 percentage points above regulatory minimums, including buffers. Finally, in the bottom right corner, we observe the bank's standalone capital adequacy. CET1 capital stood at COP 12.2 trillion at quarter end. Meanwhile, Tier 2 capital totaled COP 946 billion. In addition, total risk-weighted assets decreased slightly by 1% quarter-over-quarter. As a result, the CET1 and Tier 1 ratios in the standalone scenario reached 13.6%, while the total capital ratio stood at 14.7%. The standalone capital position remains comfortably above regulatory requirements. Specifically, the Tier 1 ratio is 5.1 percentage points above the regulatory minimum, including buffers. Total capital adequacy is 3.2 percentage points above regulatory minimums. Now let's move to our P&L performance ratios, starting with the net interest margin. The central bank rate increased 75 basis points during the Q2.

Speaker #2: Finally, in the bottom right corner, we observe the bank's standalone capital adequacy. Tier 1 capital stood at $12.2 trillion pesos at quarter end. Meanwhile, Tier 2 capital totaled $946 billion pesos.

Speaker #2: In addition, total risk-weighted assets decreased slightly by 1% quarter-over-quarter. As a result, the Tier 1 and T1 ratios in the standalone scenario reached 13.6%, while the total capital ratio stood at 14.7%.

Speaker #2: The standalone capital position remains comfortably above regulatory requirements. Specifically, the Tier 1 ratio is 5.1 percentage points above the regulatory minimum, including buffers, and total capital adequacy is 3.2 percentage points above regulatory minimums.

Speaker #2: Now let's move to our P&L performance ratios, starting with the net interest margin. The central bank rate increased 75 basis points during the second quarter.

Speaker #2: Consequently, the bank's cost of funds increased by 67 basis points to 7.3%, driven by higher costs on time deposits, savings accounts, and obligations with other banks.

Javier Dorich Doig: Consequently, the bank cost of funds increased by 67 basis points to 7.3%, driven by higher costs on time deposits, savings accounts, and obligations with other banks. The yield on loans increased by 105 basis points this quarter to 12.7%, driven primarily by higher interest rates on consumer and commercial loans and, to a lesser extent, mortgages. The yield on investments increased to 10.9% this quarter, up 67 basis points from the Q1, driven by higher net gains on trading investments, partly due to presidential election results. Loan NIM increased by 44 basis points this quarter to 5.3%, as loan yield increased more than the cost of funds. Investment NIM was 3.4%, up six basis points from the previous quarter due to gains on trading investments mentioned earlier. Therefore, total NIM came in at 5%, up from the previous quarter and 25 basis points from the previous year.

Javier Dorich: Consequently, the bank cost of funds increased by 67 basis points to 7.3%, driven by higher costs on time deposits, savings accounts, and obligations with other banks. The yield on loans increased by 105 basis points this quarter to 12.7%, driven primarily by higher interest rates on consumer and commercial loans and, to a lesser extent, mortgages. The yield on investments increased to 10.9% this quarter, up 67 basis points from the Q1, driven by higher net gains on trading investments, partly due to presidential election results. Loan NIM increased by 44 basis points this quarter to 5.3%, as loan yield increased more than the cost of funds. Investment NIM was 3.4%, up six basis points from the previous quarter due to gains on trading investments mentioned earlier. Therefore, total NIM came in at 5%, up from the previous quarter and 25 basis points from the previous year.

Speaker #2: The yield on loans increased by 105 basis points this quarter to 12.7%, driven primarily by higher interest rates on consumer and commercial loans, and to a lesser extent, mortgages.

Speaker #2: The yield on investments increased to 10.9% this quarter, up 67 basis points from the first quarter. This was driven by higher net gains on trading investments, partly due to the presidential election results.

Speaker #2: Long NIM increased by 44 basis points this quarter to 5.3%, as long yield increased more than the cost of funds. Investment NIM was 3.4%, up 6 basis points from the previous quarter, due to gains on trading investments mentioned earlier.

Speaker #2: Therefore, total NIM came in at 5.0%, up 6 basis points from the previous quarter and 25 basis points from the previous year. We expect total NIM to be around 4.7% for 2026.

Javier Dorich Doig: We expect total NIM to be around 4.7% for 2026. On the next slide, we present the loan portfolio quality by segments, as well as PDL formation and coverage. 90-day PDLs remain stable at 3.6%, while 30-day PDLs increased 21 basis points this quarter to a level of 5.1%. In the commercial segment, loan quality improved by nine basis points this quarter in 90-day PDLs and deteriorated nine basis points in 30-day PDLs. Overdrafts showed the most improvement in both metrics, while financial leases and commercial credit cards showed the highest deterioration. In consumer loans, 30-day PDLs deteriorated 47 basis points and 90-day PDLs deteriorated 19 basis points. Personal loans, credit cards, and payroll loans deteriorated in both metrics. Vehicle loans and overdrafts improved in quality on both metrics this quarter. On mortgages, 30-day PDLs increased by 35 basis points this quarter to 6.8%.

Javier Dorich: We expect total NIM to be around 4.7% for 2026. On the next slide, we present the loan portfolio quality by segments, as well as PDL formation and coverage. 90-day PDLs remain stable at 3.6%, while 30-day PDLs increased 21 basis points this quarter to a level of 5.1%. In the commercial segment, loan quality improved by nine basis points this quarter in 90-day PDLs and deteriorated nine basis points in 30-day PDLs. Overdrafts showed the most improvement in both metrics, while financial leases and commercial credit cards showed the highest deterioration. In consumer loans, 30-day PDLs deteriorated 47 basis points and 90-day PDLs deteriorated 19 basis points. Personal loans, credit cards, and payroll loans deteriorated in both metrics. Vehicle loans and overdrafts improved in quality on both metrics this quarter. On mortgages, 30-day PDLs increased by 35 basis points this quarter to 6.8%.

Speaker #2: On the next slide, we present the loan portfolio quality by segments, as well as PDL formation and coverage. Ninety-day PDLs remain stable and increased 21 basis points this quarter to a level of 5.1%.

Speaker #2: In the commercial segment, loan quality improved by 9 basis points this quarter in 90-day PDLs and deteriorated by 9 basis points in 30-day PDLs. Overdrafts showed the most improvement in both metrics, while financial leases and commercial credit cards showed the highest deterioration.

Speaker #2: In consumer loans, 30-day PDLs deteriorated 47 basis points and 90-day PDLs deteriorated 19 basis points. Personal loans, credit cards, and payroll loans deteriorated in both metrics.

Speaker #2: Vehicle loans and overdrafts improved in quality on both metrics this quarter. For mortgages, 30-day PDLs increased by 35 basis points this quarter to 6.8%. For 90-day PDLs, this segment deteriorated by 6 basis points to 4%.

Javier Dorich Doig: For 90-day PDLs, this segment deteriorated by six basis points to 4%. In the bottom left, we observed that new 30-day PDL formation was higher than in previous quarters, as higher inflation and interest rates especially affected consumer loans. New 90-day PDL formation was also slightly above the past year's average. On the next slide, we present gross loans by stages and segments, along with their coverage ratios. In general terms, there was a slight deterioration in quality as stage 1 loans decreased their share by 28 basis points this quarter, while stage 2 increased its share by 24 basis points and stage 3 increased by four basis points. As you may observe, in all segments, there was a slight decrease in stage 1 loan share, while stage 2 and 3 increased or maintained their share. In the bottom left, overall coverage decreased by five basis points to 4.6%.

Javier Dorich: For 90-day PDLs, this segment deteriorated by six basis points to 4%. In the bottom left, we observed that new 30-day PDL formation was higher than in previous quarters, as higher inflation and interest rates especially affected consumer loans. New 90-day PDL formation was also slightly above the past year's average. On the next slide, we present gross loans by stages and segments, along with their coverage ratios. In general terms, there was a slight deterioration in quality as stage 1 loans decreased their share by 28 basis points this quarter, while stage 2 increased its share by 24 basis points and stage 3 increased by four basis points. As you may observe, in all segments, there was a slight decrease in stage 1 loan share, while stage 2 and 3 increased or maintained their share. In the bottom left, overall coverage decreased by five basis points to 4.6%.

Speaker #2: In the bottom left, we observe that new 30-day PDL formation was higher than in previous quarters, as higher inflation and interest rates especially affected consumer loans.

Speaker #2: New 90-day PDL formation was also slightly above the past year's average. On the next slide, we present gross loans by stages and segments, along with their coverage ratios.

Speaker #2: In general terms, there was a slight deterioration in quality, as Stage 1 loans decreased their share by 28 basis points this quarter, while Stage 2 increased its share by 24 basis points, and Stage 3 increased by 4 basis points.

Speaker #2: As you may observe, in all segments there was a slight decrease in Stage 1 loan share, while Stage 2 and Stage 3 increased or maintained their share.

Speaker #2: In the bottom left, overall coverage decreased by 5 basis points to 4.6%. Stage 1 coverage decreased by 7 basis points to 1.1%, while stages 2 and 3 decreased coverage by 59 and 48 basis points, respectively.

Javier Dorich Doig: Stage 1 coverage decreased by 7 basis points to 1.1%, while stages 2 and 3 decreased coverage by 59 and 48 basis points respectively. Moving on to the next slide, we present the net cost of risk and charge-off ratios. At the top, one can observe that the net cost of risk was 2.1% this quarter, up from 1.6% last quarter. It is worth noting that our guidance was around 2% in the last calls and the previous quarter net cost of risk was an outlier. The commercial segment's net cost of risk increased 60 basis points to 0.9% as cost of risk increased for most products, excluding credit cards and overdrafts. The cost of risk increased 38 basis points to 5.8%. Deterioration was most notable in personal loans and credit cards, which tend to carry the highest credit risk and no collateral.

Javier Dorich: Stage 1 coverage decreased by 7 basis points to 1.1%, while stages 2 and 3 decreased coverage by 59 and 48 basis points respectively. Moving on to the next slide, we present the net cost of risk and charge-off ratios. At the top, one can observe that the net cost of risk was 2.1% this quarter, up from 1.6% last quarter. It is worth noting that our guidance was around 2% in the last calls and the previous quarter net cost of risk was an outlier. The commercial segment's net cost of risk increased 60 basis points to 0.9% as cost of risk increased for most products, excluding credit cards and overdrafts. The cost of risk increased 38 basis points to 5.8%. Deterioration was most notable in personal loans and credit cards, which tend to carry the highest credit risk and no collateral.

Speaker #2: Moving on to the next slide, we present the net cost of risk and charge-off ratios. At the top, one can observe that the net cost of risk was 2.1% this quarter.

Speaker #2: Up from 1.6% last quarter. It is worth noting that our guidance was around 2% in the last calls, and the previous quarter net cost of risk was an outlier.

Speaker #2: The commercial segment's net cost of risk increased 60 basis points to 0.9%, as cost of risk increased for most products, excluding credit cards and overdrafts.

Speaker #2: The cost of risk increased 38 basis points to 5.8%. Deterioration was most notable in personal loans and credit cards, which tend to carry the highest credit risk and have no collateral.

Speaker #2: Nevertheless, the increase in the cost of risk for these products is slight compared with two years ago, and is expected given the macroeconomic environment.

Javier Dorich Doig: Nevertheless, the increase in the cost of risk for these products are slight compared with 2 years ago and are expected given the macroeconomic environment. In mortgages, net cost of this quarter to a loss of 0.9%. We expect the net risk to be in the 2% range for all of 2026. Charge-offs increased this quarter relative to average loans and 90-day PDLs. The first quarter's charge-offs were abnormally low, and this quarter's charge-offs are in line with those of recent periods. On the next slide, we present the income structure and details on other income. Amounted to COP 405 billion, a 4% increase in the first quarter. The decrease came from lower banking, credit cards, and logistics fees, each down by similar amounts.

Javier Dorich: Nevertheless, the increase in the cost of risk for these products are slight compared with two years ago and are expected given the macroeconomic environment. In mortgages, net cost of this quarter to a loss of 0.9%. We expect the net risk to be in the 2% range for all of 2026. Charge-offs increased this quarter relative to average loans and 90-day PDLs. The first quarter's charge-offs were abnormally low, and this quarter's charge-offs are in line with those of recent periods. On the next slide, we present the income structure and details on other income. Amounted to COP 405 billion, a 4% increase in the first quarter. The decrease came from lower banking, credit cards, and logistics fees, each down by similar amounts.

Speaker #2: In mortgages, net cost of risk increased by 23 basis points this quarter to a level of 6.9%. We expect the net cost of risk to be in the 2% range for all of 2026.

Speaker #2: Charge of risk increased this quarter relative to average loans and 90-day PDLs. The first quarter's charge of risk was abnormally low, and this quarter's charge of risk is in line with those of recent periods.

Speaker #2: On the next slide, we present the mean contractor and details on other income. Gross quarter amounted to 405 billion pesos, a 4% increase in the first quarter.

Speaker #2: The decrease came from lower banking credit card and logistics fees, each down by similar amounts. As we mentioned in our previous call, fiduciary fees are no longer consolidated as of this year, as Fiduciaria Bogotá transfers its fiduciary business to Aval Fiduciaria, a company that is not consolidated but rather held as an associate.

Javier Dorich Doig: As we mentioned in our previous call, fiduciary fees are no longer consolidated as of this year as Banco de Bogotá transferred its fiduciary business to Aval Fiduciaria, a company we don't consolidate but rather hold as an associate and receive its profits through equity. Total income decreased by 4.9% this quarter, with an increase in assets and liabilities held for sale. As a result, the fee income ratio came in at 20.7%, slightly below our 21% guidance for the year. We expect the fee income ratio to be around 21% in 2026. Other income came in at up 63% from the first quarter of 2026, mainly due to higher net investment profits. Equity method income came in at COP 189 billion, 4.9% above last quarter, and net derivatives and FX was also higher than in the past quarters and positive.

Javier Dorich: As we mentioned in our previous call, fiduciary fees are no longer consolidated as of this year as Banco de Bogotá transferred its fiduciary business to Aval Fiduciaria, a company we don't consolidate but rather hold as an associate and receive its profits through equity. Total income decreased by 4.9% this quarter, with an increase in assets and liabilities held for sale. As a result, the fee income ratio came in at 20.7%, slightly below our 21% guidance for the year. We expect the fee income ratio to be around 21% in 2026. Other income came in at up 63% from the first quarter of 2026, mainly due to higher net investment profits. Equity method income came in at COP 189 billion, 4.9% above last quarter, and net derivatives and FX was also higher than in the past quarters and positive.

Speaker #2: It received its profits through equity distribution. Total income decreased by 4.9% this quarter, with an increase in assets and liabilities held for sale. As a result, the fee income ratio came in at 20.7%, slightly below our 21% guidance for the year.

Speaker #2: We expect the fee income ratio to be around 21% in 2026. Other income came in at 500 pesos, up 63% from the first quarter of 2026, mainly due to higher net investment profits.

Speaker #2: Equity method income came in at 189 billion pesos, 4.9% above last quarter, and net derivatives and effects was also higher than in past quarters and positive.

Speaker #2: Moving forward, we present efficiency ratios, measured as cost-to-income and cost-to-asset ratios. Total expenses for the quarter came in at 955 billion pesos, down 6.4% from the previous quarter, and 2.7% above a year ago.

Javier Dorich Doig: Moving forward, we present efficiency ratios measured as cost to income and cost to asset ratios. Total expenses for the quarter came in at COP 955 billion, down 6.4% from the previous quarter and 2.7% above a year ago. The lower expenses were mainly from general and administrative expenses. Total income came in at COP 1.9 trillion, decreasing by 4% this quarter, mainly due to higher interest expense and lower other income. As a result, cost to income for the quarter was 51.3%. The cost to asset ratio decreased by 4 basis points this quarter and remained at 2.7%, as the 6.4% reduction in operating expenses was offset by lower average assets. We expect the cost to income ratio to be in the 52% to 53% range and cost to assets to be around the 2.7% area for 2026. The next slide shows the bank's profitability.

Javier Dorich: Moving forward, we present efficiency ratios measured as cost to income and cost to asset ratios. Total expenses for the quarter came in at COP 955 billion, down 6.4% from the previous quarter and 2.7% above a year ago. The lower expenses were mainly from general and administrative expenses. Total income came in at COP 1.9 trillion, decreasing by 4% this quarter, mainly due to higher interest expense and lower other income. As a result, cost to income for the quarter was 51.3%. The cost to asset ratio decreased by 4 basis points this quarter and remained at 2.7%, as the 6.4% reduction in operating expenses was offset by lower average assets. We expect the cost to income ratio to be in the 52% to 53% range and cost to assets to be around the 2.7% area for 2026. The next slide shows the bank's profitability.

Speaker #2: The lower expenses were mainly from general and administrative expenses. Total income came in at 1.9 trillion pesos, decreasing by 4% this quarter, mainly due to higher interest expense and lower other income. As a result, the cost-to-income ratio for the past quarter was 51.3%.

Speaker #2: The cost-to-asset ratio decreased by 4 basis points this quarter and remained at 2.7%, as the 6.4% reduction in operating expenses was offset by lower average assets.

Speaker #2: We expect the cost-to-income ratio to be in the 52% to 53% range, and cost-to-assets to be around the 2.7% area for 2026.

Speaker #2: The next slide shows the bank's profitability. The increase in mean to 5% was partially offset by a higher net cost of risk of 2.1% and lower gross fees of 17 billion pesos.

Javier Dorich Doig: The increase in NIM to 5% was partially offset by a higher net cost of risk of 2.1% and lower gross fees of COP 17 billion. These variables resulted in net income of COP 392 billion for the quarter and net income attributable to shareholders of COP 390 billion. Therefore, the quarter's return on assets was 1.1% and return on equity was 10%. This is the first quarter in which we reached a double-digit ROE since Q2 2025, and the first time since 2023 without an extraordinary event. We would have reached these levels last quarter had it not been for the impact of the equity tax. For the entire 2026, we expect return on equity in the 7% to 8% range. Our guidance for ROE decreased by 0.5 percentage points due to higher expected expenses from integrating Itaú retail clients and products.

Javier Dorich: The increase in NIM to 5% was partially offset by a higher net cost of risk of 2.1% and lower gross fees of COP 17 billion. These variables resulted in net income of COP 392 billion for the quarter and net income attributable to shareholders of COP 390 billion. Therefore, the quarter's return on assets was 1.1% and return on equity was 10%. This is the first quarter in which we reached a double-digit ROE since Q2 2025, and the first time since 2023 without an extraordinary event. We would have reached these levels last quarter had it not been for the impact of the equity tax. For the entire 2026, we expect return on equity in the 7% to 8% range. Our guidance for ROE decreased by 0.5 percentage points due to higher expected expenses from integrating Itaú retail clients and products.

Speaker #2: These variables resulted in net income of 392 billion pesos for the quarter, and net income attributable to shareholders of 390 billion pesos. Therefore, the quarter's return on assets was 1.1%, and return on equity was 10%.

Speaker #2: This is the first quarter in which we reached a double-digit ROE since the second quarter of 2025, and the first time since 2023 without an extraordinary event.

Speaker #2: We would have reached these levels last quarter had it not been for the impact of the equity tax. For the entire 2026, we expect return on equity in the 7% to 8% range.

Speaker #2: Our guidance for ROE decreased by 0.5 percentage points due to higher expected expenses from integrating Itaú Retail clients and products. We will continue striving to improve our results and position the bank as the best option for Colombians.

Javier Dorich Doig: We will continue striving to improve our results and place the bank as the best option for Colombians. Finally, we present the guidance for 2026. Loan growth is expected to be in the 14% area, including inorganic growth of around 7%. Net interest margin is expected around 4.7%. Net cost of risk is expected to be in the 2% area. Fee income ratio should come in close to 21%. Cost to income ratio is expected between 52% and 53%. Cost to assets should come in in the 2.7% area. Finally, return on average equity should be between 7% and 8%. Now we are open to your questions.

Javier Dorich: We will continue striving to improve our results and place the bank as the best option for Colombians. Finally, we present the guidance for 2026. Loan growth is expected to be in the 14% area, including inorganic growth of around 7%. Net interest margin is expected around 4.7%. Net cost of risk is expected to be in the 2% area. Fee income ratio should come in close to 21%. Cost to income ratio is expected between 52% and 53%. Cost to assets should come in in the 2.7% area. Finally, return on average equity should be between 7% and 8%. Now we are open to your questions.

Speaker #2: Finally, we present the guidance for 2026. Loan growth is expected to be in the 14% area, including inorganic growth of around 7%. Net interest margin is expected to be around 4.7%.

Speaker #2: Net cost of risk is expected to be in the 2% area. Fee income ratio should come in close to 21%. Cost-to-income ratio is expected to be between 52% and 53%.

Speaker #2: Cost to assets should come in at around 2.7%. And finally, return on average equity should be between 7% and 8%. We are now open to your questions.

Speaker #2: You are now in the main conference.

Operator 1: You are now in the main conference.

Speaker #1: I'm now beginning the Q&A.

Operator: We now begin the Q&A.

Operator: We now begin the Q&A.

Speaker #2: All participants are now muted. Press *6 to unmute your line.

Operator 1: All participants are now muted. Press star six to unmute your line.

Speaker #1: Please note the following instructions. For the Q&A chat box, please type your question, and we'll proceed to read it. After answering the questions received in the Q&A chat box, we'll proceed with live questions.

Operator: Please note the following instructions. For the Q&A chat box, please type your question and we will proceed to read it. After answering the questions received in the Q&A chat box, we will proceed with live questions. If you wish to ask your question live, please place your request and we will open your microphone and call your name accordingly. Please press the star button and number five to access the Q&A feature. If you are using a speakerphone, you may need to pick up your handset before pressing the numbers. Once again, for the Q&A chat box, please type your question and we will read it. If you wish to ask your question live, please place your request and we will open your microphone and call your name accordingly. If you are connected by phone, please press the star button and number five to access the Q&A feature.

Operator: Please note the following instructions. For the Q&A chat box, please type your question and we will proceed to read it. After answering the questions received in the Q&A chat box, we will proceed with live questions. If you wish to ask your question live, please place your request and we will open your microphone and call your name accordingly. Please press the star button and number five to access the Q&A feature. If you are using a speakerphone, you may need to pick up your handset before pressing the numbers. Once again, for the Q&A chat box, please type your question and we will read it. If you wish to ask your question live, please place your request and we will open your microphone and call your name accordingly. If you are connected by phone, please press the star button and number five to access the Q&A feature.

Speaker #1: If you wish to ask your question live, please place your request and we'll open your microphone and call your name accordingly. Please press the Start button and number 5 to access the Q&A feature.

Speaker #1: If you're using a speakerphone, you may need to pick up your handset before pressing the numbers. Once again, for the Q&A chat box, please type your question and we'll read it.

Speaker #1: If you wish to ask your question live, please place your request and we will open your microphone and call your name accordingly. If you are connected by phone, please press the star button and number 5 to access the Q&A feature.

Speaker #1: If you're using a speakerphone, you may need to pick up your handset before pressing the numbers. Right now, we're standing by for questions. Our first question comes from Mr. Santiago Zárate from Citi.

Operator: If you are using a speakerphone, you may need to pick up your handset before pressing the numbers. Right now, we are standing by for questions. Our first question comes from Santiago Zarate from Citi. His question is: What financial impact do you envision given the latest interest rate increase? Thank you.

Operator: If you are using a speakerphone, you may need to pick up your handset before pressing the numbers. Right now, we are standing by for questions. Our first question comes from Santiago Zárate from Citi. His question is: What financial impact do you envision given the latest interest rate increase? Thank you.

Speaker #1: His question is: What financial impact do you envision given the latest interest rate increase? Thank you.

Speaker #3: Hi, Santiago. This is Javier. Thank you for your question. It happened in June, when Banco de la República increased rates by 75 basis points, taking them to 12%.

Javier Dorich Doig: Hi, Santiago. This is Javier. Thank you for your question. It happened in June, where Banco de la República increased rates by 75 basis points, taking them to 12%. Since then, the interest rate has remained at that level, and will do so at least until September. Our economic research team foresee that rates could increase a little more to 12.5%. About the financial impact, our balance sheet is mostly NIM neutral, meaning that neither an increase nor a decrease in interest rates affect materially our NIM. Anyway, what we could see is a slight moderation in credit demand, but this could take some time to materialize. For now, growth is still robust and healthy, and we have not seen a material deterioration in our quality indicators. Thank you.

Javier Dorich: Hi, Santiago. This is Javier. Thank you for your question. It happened in June, where Banco de la República increased rates by 75 basis points, taking them to 12%. Since then, the interest rate has remained at that level, and will do so at least until September. Our economic research team foresee that rates could increase a little more to 12.5%. About the financial impact, our balance sheet is mostly NIM neutral, meaning that neither an increase nor a decrease in interest rates affect materially our NIM. Anyway, what we could see is a slight moderation in credit demand, but this could take some time to materialize. For now, growth is still robust and healthy, and we have not seen a material deterioration in our quality indicators. Thank you.

Speaker #3: Since then, the interest rate has remained at that level and will do so at least until September. Our economic research team foresees that rates could increase a little more, to 12.5%.

Speaker #3: Regarding the financial impact, our balance sheet is mostly neutral, meaning that neither an increase nor a decrease in interest rates materially affects our name.

Speaker #3: Anyway, what we could see is a slight moderation in credit demand, but this could take some time to materialize. For now, growth is still robust and healthy, and we have not seen a material deterioration in our quality indicators.

Speaker #3: Thank you.

Speaker #1: Thank you very much. Our second question comes from Mr. Simón Londoño from Bancolombia. His question is: Good morning. Representation and questions. Could you briefly explain the main drivers behind the increase in provisions and the higher COR?

Operator: Thank you very much. Our second question comes from Mr. Simón Londoño from Bancolombia. His question is: Good morning. Thank you for the presentation and for the questions. Could you briefly explain the main drivers behind the increase in provisions and the higher COR? Also, do you expect provisions to rise materially with the integration of the Itaú portfolio? Thank you.

Operator: Thank you very much. Our second question comes from Mr. Simón Londoño from Bancolombia. His question is: Good morning. Thank you for the presentation and for the questions. Could you briefly explain the main drivers behind the increase in provisions and the higher COR? Also, do you expect provisions to rise materially with the integration of the Itaú portfolio? Thank you.

Speaker #1: Also, do you expect provisions to rise materially with the integration of the Itaú portfolio? Thank you.

Javier Dorich Doig: Hi, Simón, and thank you for your question. Regarding the first part, the thing is that if you see slide 18, in the Q1, commercial cost of risk was atypically low at 0.3%. The Q2 stabilized at a level that is still below 1%. That is most of the explanation of the increase in cost of risk. Of course, you also see an increase in consumer cost of risk, namely credit cards and personal loans, going from 5.5% to 5.8%. Regarding the second part of your question, no, we do not expect a deterioration regarding the Itaú portfolio. In fact, the credit quality in that portfolio is slightly better than the one we already have in the bank. Thank you.

Javier Dorich: Hi, Simón, and thank you for your question. Regarding the first part, the thing is that if you see slide 18, in the Q1, commercial cost of risk was atypically low at 0.3%. The Q2 stabilized at a level that is still below 1%. That is most of the explanation of the increase in cost of risk. Of course, you also see an increase in consumer cost of risk, namely credit cards and personal loans, going from 5.5% to 5.8%. Regarding the second part of your question, no, we do not expect a deterioration regarding the Itaú portfolio. In fact, the credit quality in that portfolio is slightly better than the one we already have in the bank. Thank you.

Speaker #3: Hi, Simón, and thank you for your question. Regarding the first part, the thing is that if you see slide 18, in the first quarter, commercial cost of risk was typically low at 0.3%.

Speaker #3: In the second quarter, it stabilized at a level that is still below 1%. So, that is most of the explanation for the increase in cost of risk.

Speaker #3: Of course, you also see an increase in consumer cost of risk, namely credit cards and personal loans going from 5.5% to 5.8%. Regarding the second part of your question, as you know, we do not expect a deterioration regarding the Itaú portfolio.

Speaker #3: In fact, the credit quality in that portfolio is slightly better than the one we already have in the bank. Thank you.

Speaker #1: Thank you very much. Our third question comes from Mr. Alejandro Rojas from Citibank Colombia. He says, "Thanks for the presentation. Could you elaborate on the factors that make Banco de Bogotá's loan NIM relatively neutral to interest rate increases in Colombia?" Thank you.

Operator: Thank you very much. Our third question comes from Mr. Alejandro Rojas from Citibank Colombia. He says: Thanks for the presentation. Could you elaborate on the factors that make Banco de Bogotá's loan NIM relatively neutral to interest rate increases in Colombia? Thank you.

Operator: Thank you very much. Our third question comes from Mr. Alejandro Rojas from Citibank Colombia. He says: Thanks for the presentation. Could you elaborate on the factors that make Banco de Bogotá's loan NIM relatively neutral to interest rate increases in Colombia? Thank you.

Speaker #3: Yes, Alejandro, of course, and thank you for your question. A key point there is our balance sheet structure, or the breakdown in terms of our loan portfolio.

Javier Dorich Doig: Yes, Alejandro, of course, and thank you for your question. A key there is our balance sheet structural breakdown in terms of our loan portfolio. If you see slide number 12, you can see that around 63% of our loan portfolio are commercial loans, which are mostly in variable rates, namely IBR. In a scenario of increasing rates, that is a natural hedge for us compared to the other side of the balance sheet in terms of the funding. We are mostly hedged in that matter. In a scenario of increasing rates, that is a cushion for us. Thank you.

Javier Dorich: Yes, Alejandro, of course, and thank you for your question. A key there is our balance sheet structural breakdown in terms of our loan portfolio. If you see slide number 12, you can see that around 63% of our loan portfolio are commercial loans, which are mostly in variable rates, namely IBR. In a scenario of increasing rates, that is a natural hedge for us compared to the other side of the balance sheet in terms of the funding. We are mostly hedged in that matter. In a scenario of increasing rates, that is a cushion for us. Thank you.

Speaker #3: If you see slide number 12, you can see that around 63% of our loan portfolio are commercial loans, which are mostly at variable rates, namely IVR.

Speaker #3: So, in a scenario of increasing rates, that is a natural hedge for us compared to the other side of the balance sheet, in terms of the funding.

Speaker #3: So we are mostly hedged in that matter. So, in a scenario of increasing rates, that is a cushion for us. Thank you.

Speaker #1: Thank you very much. We'll move on now to our on-stage questions. Our first question comes from Mr. Daniel Mora. Mr. Mora, the floor is yours, from CreditCorp Capital.

Operator: Thank you very much. We will move on now to our onstage questions. Our first question comes from Daniel Mora. Daniel Mora, the floor is yours. From Credicorp Capital. Daniel Mora, the floor is yours. Daniel Mora, we are standing by for your questions, if you could please open your microphone.

Operator: Thank you very much. We will move on now to our onstage questions. Our first question comes from Daniel Mora. Daniel Mora, the floor is yours. From Credicorp Capital. Daniel Mora, the floor is yours. Daniel Mora, we are standing by for your questions, if you could please open your microphone.

Speaker #1: Mr. Mora, the floor is yours. Mr. Mora, we're standing by for your questions. If you could please open your microphone.

Speaker #4: Hi, good morning. Thank you for the presentation. Can you hear me?

Daniel Mora: Hi, good morning. Thank you for the presentation. Can you hear me?

Daniel Mora: Hi, good morning. Thank you for the presentation. Can you hear me?

Speaker #3: Yes.

Javier Dorich Doig: Yes.

Javier Dorich: Yes.

Speaker #4: Perfect. Thank you so much. I have a couple of questions. The first one is: can you provide for our caller information about the one-time impacts that you expect due to the consolidation of the retail business of Itaú?

Daniel Mora: Perfect. Thank you so much. I have a couple of questions. The first one is, can you provide further color or information about the one-time impacts that you expect due to the consolidation of the retail business of Banco Itaú? Specifically, I would like to know if you will need to record a one-time expense of provision expenses related to the total portfolio that you will receive from Banco Itaú. That would be my first question, if I may. The second one, I will do it after.

Daniel Mora: Perfect. Thank you so much. I have a couple of questions. The first one is, can you provide further color or information about the one-time impacts that you expect due to the consolidation of the retail business of Banco Itaú? Specifically, I would like to know if you will need to record a one-time expense of provision expenses related to the total portfolio that you will receive from Banco Itaú. That would be my first question, if I may. The second one, I will do it after.

Speaker #4: Specifically, I would like to know if you will need to record a one-time expense for provision expenses related to the total portfolio that you will receive from Itaú.

Speaker #4: And that will be my first question, if I may. The second one, I will ask after.

Javier Dorich Doig: Hi, can you hear me?

Javier Dorich: Hi, can you hear me?

Speaker #3: So, hi. Can you hear me?

Speaker #4: Yes.

Daniel Mora: Yes.

Daniel Mora: Yes.

Javier Dorich Doig: Thank you. As I was mentioning, Daniel, the answer is no. We will not have an impact in our PNLs regarding provisions on Itaú. We bought that already considering those provisions. Regarding the impact, the most impact that you will see will be in our balance sheet and our market share. Remember that this transaction is more than COP 6 trillion in the loan portfolio. That is between 80 and 90 basis points in market share and roughly 2 points in consumer and mortgages. On the other side of the balance sheet is roughly COP 4 trillion in deposits, which will give us around 60 to 70 basis points in deposits. Please go on with the second part of your question.

Speaker #3: Thank you. So, as I was mentioning, Daniel, the answer is no. We will not have an impact in our P&L regarding provisions on Itaú.

Javier Dorich: Thank you. As I was mentioning, Daniel, the answer is no. We will not have an impact in our PNLs regarding provisions on Itaú. We bought that already considering those provisions. Regarding the impact, the most impact that you will see will be in our balance sheet and our market share. Remember that this transaction is more than COP 6 trillion in the loan portfolio. That is between 80 and 90 basis points in market share and roughly 2 points in consumer and mortgages. On the other side of the balance sheet is roughly COP 4 trillion in deposits, which will give us around 60 to 70 basis points in deposits. Please go on with the second part of your question.

Speaker #3: We bought that already, considering those provisions. And regarding the impacts, the most significant impacts that you will see will be in our balance sheet and our market share. Remember that this transaction is more than $6 trillion in the loan portfolio, which is between 80 and 90 basis points in market share.

Speaker #3: And roughly two points in consumer and mortgages. And on the other side of the balance sheet is roughly $4 trillion in deposits, which will give us around 60 to 70 basis points in deposits.

Speaker #3: Please go on with the second part of your question.

Speaker #4: Perfect. Okay, very clear. But just to clarify, the portfolio that you got already considered the stock of provisions that were already constituted by Itaú, correct?

Daniel Mora: Perfect. Okay. Very clear. Just to clarify, the portfolio that you got already considered the stock of provisions that were already constituted by Itaú. So you don't have to make an initial recording of provisions to achieve a normal level of coverage for the portfolio that you're receiving. It's already net loans.

Daniel Mora: Perfect. Okay. Very clear. Just to clarify, the portfolio that you got already considered the stock of provisions that were already constituted by Itaú. So you don't have to make an initial recording of provisions to achieve a normal level of coverage for the portfolio that you're receiving. It's already net loans.

Speaker #4: So you don't have to make an initial recording of provisions to achieve a normal level of coverage for the portfolio that you are receiving.

Speaker #4: It's already net loans.

Speaker #3: That is correct.

Javier Dorich Doig: That is correct.

Javier Dorich: That is correct.

Speaker #4: Perfect. And the second question is regarding consumer deterioration. Are you worried that we could observe a new trend of deterioration considering the sharp increase in new PDL formation and also the fact that interest rates and inflation will remain high for a while?

Daniel Mora: Perfect. The second question is regarding consumer deterioration. Are you worried that we could observe a new trend of deterioration considering the sharp increase in the new PDL formation and also the fact that interest rates and inflation will remain high for a while? Do you expect to maintain the cost of risk control at 2% or we could observe an upward in coming quarters? Thank you so much. That will be my second one.

Daniel Mora: Perfect. The second question is regarding consumer deterioration. Are you worried that we could observe a new trend of deterioration considering the sharp increase in the new PDL formation and also the fact that interest rates and inflation will remain high for a while? Do you expect to maintain the cost of risk control at 2% or we could observe an upward in coming quarters? Thank you so much. That will be my second one.

Speaker #4: Do you expect to maintain the cost of risk control at 2.2%, or could we observe an upward trend in the upcoming quarters? Thank you so much.

Speaker #4: That will be my second one.

Speaker #3: Okay, so regarding that, the answer is yes—there can be a slight deterioration in the second part of the year. That is already incorporated into our guidance. If you see, a slight 2.2% is already included.

Javier Dorich Doig: Okay. Regarding that, the answer is yes, there can be a slight deterioration in the second part of the year. That is already incorporated into our guidance, that if you see slide 22, is at 2%. If you take the average for the first two quarters or the H1 of the year is closer to 1.8%. So it is included that we will have a slight deterioration, but there is still room to get to that 2%. If you see what happened two years ago or maybe already three years ago, is that inflation got to higher than 13% and also the 13%. This is a key difference, the usual recovery got to levels close to 50%. That was maybe one of the key main factors behind the deterioration in the consumer portfolio. This time we think it is different.

Javier Dorich: Okay. Regarding that, the answer is yes, there can be a slight deterioration in the second part of the year. That is already incorporated into our guidance, that if you see slide 22, is at 2%. If you take the average for the first two quarters or the H1 of the year is closer to 1.8%. So it is included that we will have a slight deterioration, but there is still room to get to that 2%. If you see what happened two years ago or maybe already three years ago, is that inflation got to higher than 13% and also the 13%. This is a key difference, the usual recovery got to levels close to 50%. That was maybe one of the key main factors behind the deterioration in the consumer portfolio. This time we think it is different.

Speaker #3: And if you take the average for the first two quarters of the first half of the year, it's closer to 1.8, so it is included.

Speaker #3: That we will have a slight deterioration but there's still room to get to that 2%. If you see what happened like two years ago or maybe already three years ago, is that inflation got to higher than 13% and also the 13%, but and this is a key difference, the usury or cap rate got to levels close to 50%.

Speaker #3: So, that was maybe one of the key main factors behind the deterioration in the consumer portfolio. This time, we think it is different. We have learned the lesson.

Javier Dorich Doig: We have learned a lesson regarding the grade profiles that we give grade, but also the macroeconomic environment is not that hard as it was three years ago. Thank you, Daniel, for your question.

Javier Dorich: We have learned a lesson regarding the grade profiles that we give grade, but also the macroeconomic environment is not that hard as it was three years ago. Thank you, Daniel, for your question.

Speaker #3: Regarding the credit profiles that we give credit to, the macroeconomic environment is also not as difficult as it was three years ago. Thank you, Daniel, for your question.

Speaker #4: Perfect. Thank you so much. Very clear.

Daniel Mora: Perfect. Thank you so much. Very clear.

Daniel Mora: Perfect. Thank you so much. Very clear.

Operator: Thank you very much. Now on stage, we have Mr. Santiago Villanueva from Corredores. Mr. Villanueva, the floor is yours. Once again, we are calling on Mr. Santiago Villanueva from Corredores. Mr. Villanueva, the floor is yours.

Operator: Thank you very much. Now on stage, we have Mr. Santiago Villanueva from Corredores. Mr. Villanueva, the floor is yours. Once again, we are calling on Mr. Santiago Villanueva from Corredores. Mr. Villanueva, the floor is yours.

Speaker #1: Thank you very much. Now, on stage, we have Mr. Santiago Villanueva from Corredores. Mr. Villanueva, the floor is yours. Once again, we're calling on Mr. Santiago Villanueva from Corredores.

Speaker #1: Mr. Villanueva, the floor is yours.

Speaker #3: Yeah, sorry. Can you hear me? Yes, sir. Okay, thank you. Good morning, and thank you for taking my question. I just have, yeah, two questions.

Santiago Villanueva: Yeah, sorry. Can you hear me?

Santiago Villanueva: Yeah, sorry. Can you hear me?

Javier Dorich Doig: Yes, sir.

Javier Dorich: Yes, sir.

Santiago Villanueva: Okay. Thank you. Good morning, and thank you for taking my question. I just have two questions. I see that the downward revision to the ROE guidance is attributed to an increase in operating expenses. I want to ask, why are you seeing this increase in operating expenses for the year? If you see any material opportunities for efficiency gains following the transaction with Itaú, and how much could these efficiency gains amount for the bank? Thank you.

Santiago Villanueva: Okay. Thank you. Good morning, and thank you for taking my question. I just have two questions. I see that the downward revision to the ROE guidance is attributed to an increase in operating expenses. I want to ask, why are you seeing this increase in operating expenses for the year? If you see any material opportunities for efficiency gains following the transaction with Itaú, and how much could these efficiency gains amount for the bank? Thank you.

Speaker #3: I see that the downward revision to the ROE guidance is attributed to an increase in operating expenses. I want to ask, why are you seeing this increase in operating expenses for the year?

Speaker #3: And if you see any material opportunities for efficiency gains following the transaction with Itaú, how much could these efficiency gains amount to for the bank?

Speaker #3: Thank you.

Speaker #5: Thank you, Santiago, for the question. The reason is actually the transaction itself. We have some one-off expenditures to reflect in our P&L for the second quarter.

Javier Dorich Doig: Thank you, Santiago, for the question. The reason is actually the transaction itself. We have some one-off expenditures to reflecting our P&L for Q2, and that's the reason we are expecting a little bit increase in efficiency ratio for Q2. As long for the synergies or efficiencies to be captured by the transaction, definitely it's a huge opportunity for us. It's a large portfolio, COP 6.4 trillion in loans. So definitely that was one of the drivers for this decision for us.

Javier Dorich: Thank you, Santiago, for the question. The reason is actually the transaction itself. We have some one-off expenditures to reflecting our P&L for Q2, and that's the reason we are expecting a little bit increase in efficiency ratio for Q2. As long for the synergies or efficiencies to be captured by the transaction, definitely it's a huge opportunity for us. It's a large portfolio, COP 6.4 trillion in loans. So definitely that was one of the drivers for this decision for us.

Speaker #5: And that's the reason we're expecting a little bit of an increase in the efficiency ratio for the second quarter. As for the synergies or efficiencies to be captured by the transaction, definitely, it's a huge opportunity for us.

Speaker #5: It's a large portfolio, $6.4 trillion in loans. So definitely, that was one of the drivers for this decision for us.

Speaker #3: About the amount, how much do you think came as deficiencies in this transaction?

Santiago Villanueva: About the amount, how much do you think can the efficiencies be in this transaction?

Santiago Villanueva: About the amount, how much do you think can the efficiencies be in this transaction?

Javier Dorich Doig: We estimated when we made the business case for the transaction, we were able to capture around 20% or 30% of the cost of that kind of business. We estimate it is around between COP 50 billion to COP 100 billion.

Javier Dorich: We estimated when we made the business case for the transaction, we were able to capture around 20% or 30% of the cost of that kind of business. We estimate it is around between COP 50 billion to COP 100 billion.

Speaker #5: We estimated, when we made the business case for the transaction, that we would be able to capture around 20% or 30% of the cost of that kind of business.

Speaker #5: We estimate it's somewhere between 50 to 100 billion pesos.

Speaker #3: Okay, thank you. That's very helpful.

Santiago Villanueva: Okay, thank you. That is very helpful.

Santiago Villanueva: Okay, thank you. That is very helpful.

Javier Dorich Doig: This is $50 million to $100 million. Santiago, for your question.

Javier Dorich: This is $50 million to $100 million. Santiago, for your question.

Speaker #5: 50,000 and 100 billion pesos, right? Santiago, for your question.

Speaker #1: Thank you very much. There seem to be no further questions on either line, so we'll proceed now with the final remarks from Mr. Juan Carlos Echeverri.

Operator: Thank you very much. There seem to be no further questions on either line, so we will proceed now with the final remarks from Mr. Juan Carlos Echeverry, CEO of Banco de Bogotá. Mr. Echeverry, the floor is yours.

Operator: Thank you very much. There seem to be no further questions on either line, so we will proceed now with the final remarks from Mr. Juan Carlos Echeverry, CEO of Banco de Bogotá. Mr. Echeverry, the floor is yours.

Speaker #1: CEO of Banco de Bogotá, Mr. Echeverri, the floor is yours.

Speaker #4: Thank you, Karen. This quarter's results show improvement in profitability. Nevertheless, we remain committed to continuous improvement and delivering better results. We're working on several fronts and will let you know our progress when the time comes.

Juan Carlos Echeverry Garzón: Thank you, Karen. This quarter results show improvement in profitability. Nevertheless, we remain committed to continuous improvement and delivering better results. We are working on several fronts, and we will let you know our progress when the time comes. Thank you for joining us today. Have a nice day.

Juan Carlos Echeverry: Thank you, Karen. This quarter results show improvement in profitability. Nevertheless, we remain committed to continuous improvement and delivering better results. We are working on several fronts, and we will let you know our progress when the time comes. Thank you for joining us today. Have a nice day.

Speaker #4: Thank you for joining us today. Have a nice day.

Speaker #1: Mr. Echeverri, thank you very much. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.

Operator: Mr. Echeverry, thank you very much. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.

Operator: Mr. Echeverry, thank you very much. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.

Operator 1: The host has ended this call. Goodbye.

Operator: The host has ended this call. Goodbye.