Carlos Vazquez: Well, the biggest driver of the move down from our prior guidance to this ’23 guidance is the change in the fact that we don’t own the shares Evertec anymore, number one; and number two, the change in overdraft policies and number three, the change on our practice of setting mortgages that we are not setting anymore. So those are the biggest drivers of the shift down to 150 per quarter roughly. Obviously, remember, there’s always some seasonality in that number. So it goes up and down for different things during the year, but that is the right range. We continue initiatives on our business initiatives to try to continue to move rates up in different fronts. So hopefully, as those initiatives succeed, we can start moving rates up from the 150. And some of those are already being designed and implemented if everything works well, we may start seeing some of that in ’23, but our best guess right now is 150 per quarter.
Timur Braziler: Got it. Thank you.
Operator: Thank you. Our next question today comes from the line of Alex Twerdahl from Piper Sandler. Please go ahead. Your line is now open.
Alex Twerdahl: Hey, good morning, guys.
Ignacio Alvarez: Good morning.
Carlos Vazquez: Good morning.
Alex Twerdahl: I just want to ask some of the questions the team I just asked a little bit differently. I’m just — I’m curious, when you put out a target for 2025, why 2025? Does that represent sort of an inflection point or an end point in some of these initiatives? Or how can you pick that date for that year?
Ignacio Alvarez: This is Ignacio. Basically, we think that year. The transformation initiative is going to be an ongoing effort. It’s the way — it’s going to change the way we work. But obviously, to sort of measure our success, we wanted to take an initial 3-year period, where we see where we are going to be at the 3-year period. And basically, that’s how we reached ’25. It was kind of arbitrary, but we felt 3 years gave us enough time to implement the measures that we’re doing to give them time to bear fruit. So — and that’s how you picked it. But obviously, this is all going — and obviously, we expect all these efforts to be sustainable, not only sustainable, so it’s not like we are going to reach that and stop, but keep growing incrementally over time.
Alex Twerdahl: Right. And then is Popular a leaner institution at that point? Or like what’s going to be different? I mean, obviously, every bank is investing in technology meaningfully, but does it allow you to operate with a reduced branch count or sort of what — like what would we see that would be different at that point?
Ignacio Alvarez: I’m not sure branch count is the thing you expect to see the most. I mean that will depend on traffic. We can talk about branches separately. But I think, obviously, we are aiming to do a lot more things digitally, and we are also aiming to do a lot more things self-service. So for example, making our underwriting more automatic, so you don’t have to have as much manual intervention, this is across, especially our businesses, but it will apply to everything. But hopefully, we will do — it will help us with our compliance. We’re investing also in technology, which is very manual today, very people-oriented, so really, I can’t give you a specific date, but definitely over time, we should see a lot less manual intervention in many of our processes, be the underwriting, be the compliance, be the everything.
So I think that’s the goal. The goal is to be more digital, more — have more self-servers for our clients. And hopefully, over time, that’s going to impact us favorably.
