But our agenda has to be focused on payroll and non-payroll clients. And we want them to look at Santander as their main bank with specialty stores, with omni-channel or multi-channel approach, not only for payroll. Clients should look at Santander and see that we have a whole basket of things. I can have everything in one single bank. So, we want to be a simpler bank and a more effective bank, as I said earlier.
Gustavo Alejo: Daniel, it is precisely that. We are making progress. And the relative share of other banks is being reduced year-on-year. So, there is an agenda of reduction. We are leveraging our digital footprint with a very strong agenda. And we are also using our proprietary channel. Therefore, this is a move that we are already engaged in, in general for the payroll portfolio. But we will also be more aggressive in other portfolios where there was a higher dependency reliance on third parties. We are moving at the right speed, but certainly there are some market challenges, like you said it yourself. But we are ready to defend our portfolio with these movements of lower Selic rate. Just to add another important point. We have INSS, we have payroll, we have private loans and we have payroll deductible loans coming from the public sector.
So there are pricing and competition dynamics that are different, but we are very pleased to say that we are evolving in all of them. So we do not want to rely on a single one, even though INSS is quite relevant. We do not want to rely on the government alone. Our agenda is very dynamic, so we’re very pleased with the way things are evolving. That’s why we are focusing on these lines going forward. Thank you.
Camila Toledo: Our next question comes from Bank of America and the question is from Flavio Yoshida. Good morning, Flavio, and welcome.
Flavio Yoshida: Good morning. Thank you for taking my question. My question is about competition on your credit business or loan business. I think in the past few years we saw not only you, but other banks making adjustments to their portfolios, but now the risk appetite seems to be increasing. Therefore, I would just like to understand how you’re getting prepared to face this more competitive environment. We see companies focusing on cards, AG and SME loans. And how is your feeling about demand for credit on the part of your clients?
Mario Leão: Thank you, Flavio. It’s a pleasure to talk to you again. Well, we are closely monitoring the competition dynamic. I would say that the speed and timing of this stepping on the brake has been different, depending on the bank in 2022 and 2023. Probably we were one of the first, if not the first bank to say, okay, from 2021 to 2022, performance is not good. So, we would have to step on the brake and then we would spend the next two years managing that. The fact that we were the first allowed us to manage that portfolio for a longer period of time. So, in the midst of 2023, we say, in addition to all the businesses that we were managing that were a part of that case, like AG, etc., we can grow in other lines. It could be secured or maybe not secured, but in terms of hyper-personalization and segmentation, now our capacity has increased substantially when compared to what we had in 2021, also because technology evolved and the systems evolved as well.
Therefore, in 2024, we are eager to grow our portfolio. We are more eager now than what we were in 2022 and 2023. And certainly, the market as a whole is looking at the same lines and each one will pursue answers at their own pace. But how are we going to deal with that? Well, maybe because we started sooner, we have an advantage and we will try to get better experiences vis-à-vis the competition. Again, we are focusing on principality and the obsession is a buzzword for us. And we will certainly try to be the main bank to our clients. And there are many other things that we have no time to mention. We focus on customer centricity. We, in fact, will have an agenda that prioritizes the demands from our clients. And certainly, this will also involve having a very good and profitable agenda for the bank.
But we will try to pursue a balance with a competitive dynamic. And this does not only pertain to banks or incumbent banks, but this is a competition agenda that involves the capital markets. We never had any difficulty in growing on the wholesale side. We could have grown a lot more than what we grew. There was just a drop of 0.1 percentage points. And we will also talk about the expanded loan portfolio in 2024 because it will be easier to talk to you about that. But in terms of wholesale, it’s a matter of profitability. There will be cases where we will be more of an investment bank. We will do a very quick portfolio rotation. And in the cases that make sense, we will include that client in our portfolio. It’s not just a matter of having more appetite.
But the focus, I mean, there is more demand coming from retail. Of course, there is demand from the wholesale side. But there is probably a delay in terms of major projects, major investments. And even in M&A agendas, because they demand acquisition investments, there was a large case in the first quarter, I mean, in that turn of quarters. But this hasn’t been yet a very major inorganic agenda. So I hope that on the wholesale side, we expect to see a better evolution in 2024. But we are well prepared to face that.
Flavio Yoshida: Okay, thank you. Thank you very much.
Camila Toledo: Let’s move to our last question with Guilherme Grespan with JPMorgan. Good morning, Guilherme, go ahead.
Guilherme Grespan: Good morning. Thank you for your time and for taking my question. One around would like to tap into a different type of product. We spoke a lot about payroll deductible loans and we also talk talking about installment payment picks. We’ve seen some entrants being successful with a relevant contribution for their top line, particularly in the card business. If I’m not mistaken, you were the first, if not among the first, to launch the product in Brazil. We haven’t heard so much about this product in the last two years. So, I’d like you to share with us the challenges of the product, what was right, what was wrong about it and if this remains a relevant product for you. Thank you.
Mario Leão: Right, soon after the government launched PIX, it was a very successful agenda. In 2022, we created Divide o Pix. We wanted to connect a wire transfer with consumer loan. So, we created DVD [ph] PIX. We have been growing in this agenda, the CP agenda, also related to PIX, CP meaning consumer credit. And we did this, calibrating with the risk appetite that was being adjusted for the new reality that we had to cope with in the right way, given the macro evolution that we had, particularly in 2021. So, we didn’t want to grow it for the sake of growing because it was a new product. But it is a product that has been on our shelf for two years. We had no deployment, implementation challenges. The big challenge is how fast we wanted to grow in pure personal credit because we reduced the client base that we wanted to operate with.
We started operating with clients in the scale from one to ten. We were operating, continued to operate with clients scored nine and ten in our rating scheme. Each bank has a different one. But just to give a dimension of how sensitive we are. And even in this more sensitive range, we were able to grow this in personal credit, including Divide o Pix and in the card basis we reported here. So, we believe that this line item will evolve looking forward. It’s not specifically very relevant, although it started some time ago. But with time, as PIX evolves, we want to be hand in hand with the evolutions of the Brazilian Central Bank and so that we can engage clients more and more with us, with installment PIX or other products. This is not so relevant yet, but we expect it to grow together with the personal credit or CP agenda.
