Unifin Financiera SAB de CV

BMV:UNIFINA

Earnings Call Transcript 2019-Q4

[Operator]

Good morning, and welcome to UNIFIN's Corp. Fourth Quarter and Fiscal Year 2019 Conference Call. [Operator Instructions] For opening remarks and introductions, I'd like to turn the call over to Mr. David Pernas, Head of Corporate Finance and Investor Relations at UNIFIN. Sir, you may begin.

[David Sánchez, executive]

Thank you, Rob, and good morning, everyone. Thank you all for joining us today to discuss UNIFIN's fourth quarter and full year 2019 results. In the conference call, UNIFIN's senior management team will discuss the company's fourth quarter and yearly earnings as per the press release published yesterday. If you have not received a copy of the earnings release, please contact the Investor Relations team or download it from the website.

First, I would like to remind you that forward-looking statements may be made during this conference call. These do not necessarily consider changing economic circumstances, industry conditions, the company's performance or financial results. As such, these forward-looking statements are based on several assumptions and factors that could change, causing actual results to materially differ from current expectations. Therefore, we ask that you refer to the disclaimer located in the earnings release prior to making an investment decision.

I am very pleased to introduce Mr. Sergio Camacho, Chief Executive Officer; and Sergio Cancino, Chief Financial Officer. At this time, I would like to turn over the call to Sergio Camacho for his presentation. Sergio, you may begin.

[Sergio Camacho Carmona, executive]

Thank you, David. Good morning, everyone, and thank you all for joining on today's call. 2019 was a transformative year for UNIFIN. We grew our portfolio by about 30%, above the 20% to 25% growth provided in our guidance. Moreover, during 2019, we invested heavily in systems, marketing and people to ensure profitable growth and low risk going forward.

We also locked in long-term funding in the capital markets as financing conditions improved. We achieved this while navigating a challenging macroeconomic environment. In 2019, global growth is projected to have increased by the slowest pace in a decade caused, in good part, by the trade conflict between the U.S. and China.

Meanwhile, in Mexico, the economy was stagnant in 2019. The contraction in public and private investment as a result of the change in administration contributes to the negative economic performance. The cancellation of Mexico City's airport was a controversial decision. Even though debt and payments by bondholders and contractors were fully guaranteed by the government, it caused a significant deterioration in business sentiment. As a result of this measure and a bearish landscape for business, gross fixed investment decreased by 5.1% during the first 11 months of 2019, impacting the appetite for credit and leasing.

Even though the economy remains stagnant, the macroeconomic fundamentals and financial indicators in Mexico remained stable throughout the year. Moreover, the easing policy adopted by the Central Bank, along with increase in real wage income and record-high remittances, translated into healthy fundamentals for consumers, one of the main drivers of the economy. The latter, coupled with the recent approval of the USMCA, should lead to an inflection point for the economy, particularly boosting business investments.

Notwithstanding these uncertain global and local macroeconomic outlook, UNIFIN was able to report solid results that demonstrate the strength of our business models and our ability to adapt our business to a changing environment. Our total portfolio grew 30% this year. The business segment with the largest growth was factoring. This growth was mainly driven by our clients' lack of liquidity and funds over the quarter, which was a side effect of the challenging macroeconomic situation.

Notwithstanding the decline throughout the year, originations recovered in the fourth quarter to reach MXN 10.1 billion, a growth of 47.7% compared to MXN 7.1 billion reported in the third quarter of this -- of last year, mostly explained by a significant recovery in the leasing originations, which grew 70.4% compared to the previous quarter. Moreover, as of December 2019, our backlog stood at MXN 14 billion of approved facilities waiting to be disbursed or more than 2,200 new clients, which we expect to materialize in the upcoming months.

During 2019, we were rightfully focused on seeking to understand our clients' needs and help them achieve their financial goals. We are convinced that the key to our success relies mainly in 2 factors. The first factor is new products and services for our clients. Through the history of UNIFIN, we have consistently strengthened our relationship with our clients and created additional financial solutions to help them support their businesses, particularly when commercial banks slowed their lending pace.

In addition to our core business products, as technology and customer needs evolve, at UNIFIN, we have worked on creating a new range of financial solutions such as working capital loans and reinforced fleet and insurance services. Also, we strongly believe that new technologies and digital platforms will transform the future of the global SME sector.

At UNIFIN, we want to be pioneers of these transformations. After a couple of years of continuous work and transformation, within weeks, we will launch our brand-new digital platform, Uniclick. This platform will grant access to a larger universe of clients and potential cross-selling enhancements in the medium term, as we strive to become a full partner to the SM&Es (sic) [ SMEs ]. The first product line by Uniclick is on short-term credit facility, which is characterized by simplicity, speed and ability to scale rapidly in unattended market. We are convinced that Uniclick will be a successful channel that will have the support, expertise and financial strength that UNIFIN has in the market.

Additionally, we are closing strategic alliances with key players in the digital market that we will be announcing in the upcoming weeks. Looking into 2020, we will continue to invest in technology to market and manage current and new products that comply with our clients' changing needs.

The second factor is a focus on the faster-growing regions and sectors. As you know, the economic slowdown is not widespread among regions and sectors in Mexico. We have a dedicated economic analysis team that, through 2019, identified the regions with higher economic growth and potential, mostly in the Northern and Central parts of the country. This, in addition to the information provided by our data analysis and business intelligence department, who provide the necessary data quality to reallocate UNIFIN offices and efforts, thus increasing our client base in those areas. These teams will continue these efforts through 2020, identifying new opportunities and working closely with the commercial force to capture them.

Let's move on to our financial results. In 2019, UNIFIN was not immune to the challenging economic environment and business sentiment. As we said in our previous call, economic uncertainty has translated into slower decision-making process for some of our clients, resulting in lower originations in the leasing business. Despite this slowdown, we managed to close the year with a growth in total interest income of 23.3% versus last year.

Interest costs rose by 26% to MXN 5.5 billion. This increase occurred as we prudently performed our funding need from the middle of 2019, leading to an increase in debt and fixed rates. As the proceeds for the bonds in July and August 2019 are yet to be fully deployed, there was a negative carry effect from excess liquidity on our balance sheet. However, we have full redeployment of the recent bonds bond issuance by the end of third quarter, especially as we experienced a recovery in originations compared to the third quarter.

During 2019, the weighted average funding cost was 10.5% compared to 10.1% in 2018, 20 bps below our guidance for the year. The 4 basis points increase in the funding cost was mostly caused by incremental gross debt.

The financial margin for the year was MXN 3.8 billion, a growth of 18.7% compared to 2018. The increase in the financial margin is related to our sales platform. However, the NIM for -- the 2019 contracted by 40 basis points to 7.4% versus 2018, explained by the lag between issuing new debt and the deployment of those funds through offering new leases and financing to our clients. The loan loss provision portfolio for the last year increased by 30.5%, ending in MXN 428 million, consistent with our portfolio growth. As a result, the adjusted financial margin for the year closed at MXN 3.9 billion.

In 2019, we invested heavily in improving our human and technology resources. Marketing was also key to our business in order to strengthen our brands and reach potential clients. As a result, administrative expenses rose by 26.1% compared to 2018. This was part due to the corporate restructuring and the salary increase for around 100 key employees. However, operational expenses as a percentage of sales marginally were effectively contained as the margin increased from 12.5% in 2018 to 12.8% in 2019.

Moving on, our operating income for the year grew 6.1% compared to 2018 to MXN 1.8 billion. The financial results, which consists of bank commissions and fees, in addition to gains related to our foreign currency, cash assets and liabilities, ended with an income of MXN 528 million for the year.

As a result of the above, the consolidated net income for the year decreased by 1.7% to MXN 1.9 billion. However, the net income grew quarter-over-quarter by 17% from MXN 471 million in the third quarter to MXN 552 million in the fourth quarter, showing the recovery in our originations. Going forward, we believe that stronger originations and our investment in technology throughout the year will help lower operational costs and, in turn, improve our net income.

Taking a closer look at the balance sheet. As previously mentioned, our total portfolio grew by 30% year-over-year, reaching MXN 58.5 billion, with the leasing segment growing to MXN 43 billion; factoring at MXN 3.2 billion; auto loan, 4% to MXN 2.9 billion; while the structured leasing and other loans stood at MXN 9.5 billion. Over the year, nonperforming loans as a percentage of the total portfolio reached 4.1%, which is below market average and in line with historic trends and management expectations.

The loan loss reserve for the 2019 ended at MXN 1.3 billion compared to MXN 953 million in 2018, while total assets increased by 29.6% compared to 2018. The financial liabilities at the end of 2018 were MXN 62.9 billion, an increase of 26.5% compared to 2018, attributed mainly to portfolio growth. The weighted average terms of liabilities in the quarter was 49 months versus 33 months for the total portfolio.

Furthermore, in 2019, the fixed rate debt accounted for 18.7% (sic) [ 85.7% ] of the total debt. The stockholders' equity rose to MXN 10.9 billion, a positive change of 13.2% compared with the figure in 2018. Under IFRS accounting, net fixed assets could be recorded at fair value, and the difference between appraisal value and acquisition costs must be allocated into equity. Therefore, we have opened a new accounting record within the balance sheet that is named "other capital accounts."

Finally, I would like to touch on guidance for 2020. We expect the total portfolio to grow between 20% to 25% and the return on equity to reach low 20s. The new digital platform will also allow us to increase our client base, while generating operational synergies that will be translated into higher profitability for the company.

We are confident that 2020 will be a positive year for the company. We expect Mexico growth dynamics to improve, helping demand for our core products. Interest rates are falling, which, over time, shall improve our financial margins. We have a liquid-based -- a liquid balance sheet enabling us to fund new opportunity. But most of our strategies towards the market started to deliver by the end of the quarter.

Also, we are very confident of the success of Uniclick. We have made the necessary investments in systems, people and marketing to capture market opportunities and value. We are launching new products, adapting to our clients' needs and harnessing financial technology to our advantage. These actions will translate into an improvement of UNIFIN's overall profitability, strengthening our commitment with our stakeholders.

Thank you for listening. And now we would like to begin our Q&A session.

[Operator]

[Operator Instructions] Our first question comes from Nicolas Riva with Bank of America.

[Nicolas Riva, analyst]

Sergio, I have 3 questions for you. The first one on capital. You can explain why the change now of views of creating now this account in equity to account for this difference between market value and acquisition costs of operating lease assets. I mean you're applying this to all of your leased assets?

Also, you gave guidance for ROE, low 20s for this year. Does that assume no capital increase then for this year? And your thoughts in general on capital because, I mean, excluding this new account, your capital ratios would have decreased actually in the quarter.

Second, on asset quality. So you had very strong loan growth, 30% in the year. You're guiding 20% to 25% for this year, and originations picked up as well. However, the NPL ratio increased. So if you can explain how comfortable you feel growing now faster given the pickup in NPLs and obviously loan loss provisions.

And finally, on the maturity profile. The average duration of your funding is longer than the assets. However, on year 2, on 2021, you have a gap. You have more liabilities maturing than assets. If you can explain or talk about your thoughts regarding that, what's the plan in terms of refinancing?

[Sergio Camacho Carmona, executive]

Sure. Let me start -- talk first with the plan for refinancing. As showing these expectations for growth for this year, of course, demand that we need to tap the markets this year, we are exploring different alternatives to which market can be more efficient. However, over the recent weeks, we have been approached locally by some pension funds and insurance companies for some appetite to issue locally, particularly in the means of market securitizations.

So we are now in the process of analyzing the different alternatives that we have in the table to see which can be better for both the cost of funding but also focusing a lot on the maturity profile. As you have stated, on this gap, we are aware of that. And the plan that we have under analysis, as we speak, those in line also to others -- that gap.

And regarding capital, as we have previously said, we are very close to see what are the implications of growth in our capital structure. What I can tell you as of today is that this new platform that I have already mentioned that will translate into an increase in our client base will not require any capital injection from UNIFIN to the platform because within the alliances that we -- that I have already said that we are closing, attained some capital injection as we speak.

So the return on equity, we're showing a conservative number on this because we do not -- even though we have plans, we still do not have the full forecast for how much improvement on profitability. This new platform and the new initiatives that we have in place will deliver into our P&L, thus impacting positively our balance sheet.

So what I can tell you as of today is that we are very close to see the capital structure of the company. We have different alternatives in the table also on that front. And that's it, basically. I don't know, David, do you want to...

[David Sánchez, executive]

Yes. Nicolas, I mean, just to add a little bit on and expand on what Sergio was mentioning. I believe that it's important to mention -- and recall that over the past, around 24 -- almost 36 months, we entered into a cycle in which the cost of funding and the overall cost of debt was substantially impacted or was substantially impacting the numbers of the company, especially the margins.

Now under a different cycle in which rates are likely to continue coming down and the overall premiums towards new debt and new issue -- new issuances and so on, we expect a very controlled weighted average cost of funding. This has, to a point, just from a mathematical effect, to impact the profitability of the business in the margin side upwards. And that should be a positive consideration for the contribution of ROEs.

And in addition to that, if you account for a recovery on the operating volumes of our originations, the contribution should be even better. That's why we were lagging on the margin side because we have substantial decreases in originations year-over-year that weren't reflecting on the revenue side or in the interest income side, but higher expenses to finance the growth.

As full deployment comes by, we are expecting higher profitability, and hence the results on the core business, for a profitability expansion, considering the guidance of the low 20s, no? Not considering the benefits that the new digital platform could contribute to the core business.

[Sergio Camacho Carmona, executive]

Just as a final remark, I would like to say that, as we have previously said, we're not going to jeopardize either the financial health nor the capital structure of the company by means of growth, yes? We are very, very, very careful on that.

[David Sánchez, executive]

And just regarding your maturity profile and to clarify, like Sergio was saying, we're already in the plans of analyzing the year's budget for financing, but also considering liability management that is required and refinancings for that specific maturities that you're mentioning, no?

So the company is looking for ways to enhance that. And we believe that in the short term, we can find an alternative that will help us defer that accumulation of liabilities, no? Which isn't -- I mean the difference between the asset side and the liabilities, it's 400 basis points in -- nominally speaking. So it's not even too much money that we're worried about, no?

[Operator]

Our next question comes from Carlos Rivera with Barclays.

[Carlos Rivera Zermeno, analyst]

So my first one is related also to this revaluation account, just wanted to confirm the amount. I think it was something around MXN 2.4 billion. And if you could give us a little bit more color there, how this is calculated, how frequently should we expect it and if there is any implication towards the end of the lease. From what I understand, you assign, typically, a low residual value. So when you -- when the lease matures, you give that at a low price -- below market price to your clients. So if you start making revaluations, would this have any negative implications, something that we will see a few years when the lease matures? That will be my first question.

And the second question is regarding this new platform, the Uniclick. How much do you plan to grow in terms of portfolio? What percentage of a total portfolio do you think you can get here? And what level of NPLs are you expecting for this product? Of course, it's now the higher NPL ratio, I assume, since you have no collateral. So how should we think about asset quality going forward for the company?

[Sergio Camacho Carmona, executive]

Carlos, [ what I spent time ] today, the technical explanation on these other accounting within the stockholders' equity. If you remember, and as we have prudently said, that last year, we [ shared ] -- we said a transformational year for UNIFIN. In that context, we somehow diversify or reallocated resources within our sales teams to go into a further diversification on how do we tap the market.

In that regard, we segment our client base depending to the size of the client. So for the larger accounts, we start to create dedicated teams within different sectors. So we have a specified personnel for attending oil and gas and infrastructure, transportation, manufacturing, services with people that we bring from the street that are specialists in the different areas.

So within that specialization and particularly on our oil and gas division, we start to create a lot of opportunities for doing business going forward. And that basically is the reason why you see this increment between the stockholders' equity because it's related to one particular exposure. And now David is going to go with information on this.

[David Sánchez, executive]

Yes, Carlos. Okay. So the revaluation on the equity -- and I think Nicolas also was asking this question. In terms of the other capital accounts, it's not that we're revaluating our net fixed assets, the general account of net fixed assets. It's just pertaining to one particular asset that was acquired alongside the fourth quarter of this year. I will give an explanation further on the type of assets. But the technical -- the technical, basically, consideration is that, under IFRS regulations, an operating lease asset, which doesn't consider a residual value in this case because it's a financing, no, or selling the asset at the end of the contract must be recorded in the stockholders' equity at fair value. Therefore, we have opened a new accounting record within the balance sheet for the other capital accounts.

Now the acquisition of the asset is basically an oil rig, which we bought from a -- from the DIB -- from the IDB. And this asset, in particular, had already come from us, from a client, which had a signed contract and, of course, a close operation for drilling and extracting oil here in Pemex. The asset is already delivering results, no? But since it was this strength in its value -- its original value, we bought it at 30% of the commercial value.

And then the IFRS explanation towards the revaluation vis-à-vis fair value to the commercial value, no? So this is -- this would be like a one-off effect, just to be clear on the capital account, no? It's not a revaluation on all the net fixed asset position of the company. I don't know if that's clear for you.

[Carlos Rivera Zermeno, analyst]

Yes. So interim, we should not be expecting this kind of movements in the equity on a consistent basis. It's a onetime also. If it happens, it will be probably building to a large project but something not more radical. Is that a fair assessment?

[David Sánchez, executive]

Yes. That is a fair assessment. And again, this is financing, not necessarily -- it's not a leasing contract that we used to have over the rest of the business. So the difference is that there is no impairment or vertical value or anything, which was your question also, no?

[Carlos Rivera Zermeno, analyst]

Yes. Okay, understood. Then if we could move to the second question, please.

[David Sánchez, executive]

Yes, as to Uniclick?

[Sergio Camacho Carmona, executive]

Yes. Yes, let me provide you with a further explanation of it. If you recall, we announced 2 years ago, particularly in January 2018, that we'll start a very in-depth analysis on how -- on understanding our clients. And we created on those months the data analysis and the business intelligence department. We went through a very in-depth analysis through past, present and future customers to see what were their needs, to see what they were looking for. And if you recall, we announced that we enhanced all of our marketing and all of our business teams to transform them from a classical banking promoter to like advisory or an adviser profile.

If you recall, we announced, actually that many of them, actually all of them, we send them back to school, particularly in a policy that we had with Tecnológico de Monterrey. So we were very focused on providing advisory services to our clients. And somehow that helped us, despite the macroeconomic environment, to provide with good results from our point of view.

But once that we got all of -- all that data of identifying close to 240,000 enterprises and having a lot of information about them, we saw what can be a robust approach to have a product that can be used as a point of entry with these new clients or this universe of clients that somehow it's unattended in the Mexican economy. So we decided to dig further into that. And basically, over a year ago, we started our efforts, and we created a digital platform to provide a very fast, very efficient, with a very low exposure amounts to provide with unsecured lending to some of these SMEs. That went in addition to some reconfiguration of our business teams, and it was a complete strategy that we applied in the company.

So basically, our target with this new digital platform is to use this product as the point of entry and then enhance them or go with them within this, potentializing their growth and start providing a cross-selling of all of our different products. So in terms of our portfolio, this is not considered to be a big jump on it. But on the client base, it's considered to be a huge increase on our client base. And that's basically the core, and that's basically the strategy behind that.

We will be announcing this ideally on early next month. And of course, you will be -- know this and about this because we're going to do something, I will say, very, very formal about this launching. And of course, on that -- on those days, we're going to start -- we're going to also do the announcement of the strategies and the alliances that we are working as we speak.

[David Sánchez, executive]

Just to spend a little bit more on that front. The idea is to have, like mentioned, alongside the costs to have a more consolidated offering of products and relationships to our clients, to meet their actual needs that -- hence the expansion. This will also grant the capabilities of expanding in our cross-selling efforts, not only for these working capital facilities, but eventually, we want to increase the penetration of our insurance services and among other considerations.

So the idea is to have a quick point of entry to a new market that will give us a limited exposure in terms of risk because of the actual size of the offering that we're going to give in this product, but grant a lot -- or give a lot of value to the customer that can then be fully consolidated into the Uniclick platform as a strategic alliance, and as we want to become their main partner for financing solutions, balance sheet and among other considerations, no?

[Sergio Camacho Carmona, executive]

On NPLs for this business platform, as I said, we have been working on these and other class -- stage with a significant amount of clients. And as of today, and considering our credit parametrics, the NPLs that this new platform shows are lower than the overall NPLs for the entire entity. So we do not expect deterioration of the asset quality.

[Operator]

[Operator Instructions] Our next question comes from Alonso Garcia with Crédit Suisse.

[Ricardo Garcia, analyst]

My question -- my first question is a follow-up on the capital position that -- you mentioned that some alliances that you are about to close will concern some capital injections. So my question here is, if these injections will be on UNIFIN, on the company, or to a separate vehicle, such as a JV?

And my second question is regarding OpEx, no? OpEx was pressured this year given the investments you are making on these strategic initiatives. So my question is what should we expect from OpEx growth this year? And for how long should OpEx be pressured from these sort of initiatives?

[Sergio Camacho Carmona, executive]

Yes. The alliances that we are somehow already closed are on capital injections on Uniclick. However, as we consolidate, they will be translated into UNIFIN. But also, the alternative or the offer for capital injections on UNIFIN, it's on the table as well. So on that front, we feel very comfortable of the different alternatives that we have in place. We're, as I said, continuing with a very healthy capital structure regarding the fixed income investors.

And on that, we feel very comfortable, even though that, as of the reporting on the fourth quarter, we continue to have a significant gap on the capitalization ratio that we have in our bonds vis-à-vis what we are reporting. So we feel okay on that front with no sense of urgency, let me put it that way, on capital requirements.

And on OpEx, I -- that our budget, considering the investments that we have already made at Uniclick and level, but also with significant investments on systems through UNIFIN derived into this increase on OpEx as a percentage of sales. However, we feel very comfortable to announce that we will be around 13% for the full year 2020.

[Ricardo Garcia, analyst]

That's OpEx to sales?

[Sergio Camacho Carmona, executive]

OpEx to sales, yes.

[Ricardo Garcia, analyst]

Okay. And just one final question, a follow-up also on Uniclick. What's the size of the companies you're targeting here in terms of, probably, number of employees or annual sales? And how does it compare to the company's inflation on reserve, with your leasing and other products?

[Sergio Camacho Carmona, executive]

Well, it's -- of course, it's a smaller size of enterprises as the maximum amount that we're going to be lending through this platform is MXN 2.5 million. So you can imagine the size of an enterprise that has that working capital requirement or that has that leasing requirement. So the size is lower.

However, on the lease debt analysis, we have found that we have a larger enterprises that only need that amount of money, and they're accessing because of the speed, because of the service that we're providing to them through these platforms, no? So it's somehow a little bit unbig, the size of it, but of course, we are targeting smaller enterprises.

[Operator]

Our next question comes from Nik Dimitrov with Morgan Stanley.

[Nikolai Dimitrov, analyst]

I had a quick question for me. One of your smaller peers came to market relatively recently. And they kind of differentiated themselves as being the only regulated nonbank financial institution in Mexico. So I was wondering whether being regulated is something that you ever considered. And if you can give us the pros and cons of potentially being regulated?

[Sergio Camacho Carmona, executive]

Nik, honestly, the -- being regulated, it's only a sales pitch. We have gone through very -- so certainly, because we have gone through very in-depth analysis, actually, with the banking commission on that regard, and we do not find anything that could help or improve our operations being regulated.

As a matter of fact, when we analyze an in-depth of UNIFIN operations, we are kind of valuated. Being a public entity, we need to comply with all the banking commission's requirements. We also received some audits, of course, by our external auditor as a public entity, but most important, since we have a very significant relationships with the development banks of Mexico government, we receive an audit on an annual basis.

And for example, just to let you know, we have already received an approval on a term sheet from Banobras, from a credit facility that is starting on MXN 2 billion that has a maturity of 30 years. For providing that maturity, believe me that they did a significant job in getting into our systems, into our portfolio and so forth, so on. So we are subject to a lot of different eyes on our operations. So getting back to the question, we do not see any benefit besides the marketing thing, no?

[David Sánchez, executive]

I would add, Nik, that it's important to mention that since 2006, UNIFIN has been issuing securitizations in the local market. These securitizations have been continuously reviewed on a 6-month or a semiannual basis by independent auditors constantly through this entire time.

In addition to that, we have several different procedures along the year in terms of limited reviews because of the constant issuance of debt, the partnering off with many of different financial advisers, both locally and internationally, among other considerations. So the regulation, in this case, I don't think it really adds value too much for investors. It doesn't add any on a corporate basis side also. And we have been under constant scrutiny over the course of the natural history of the businesses. We are a company that has been approaching the capital markets since 2002.

[Nikolai Dimitrov, analyst]

Right. No, listen, I kind of agree with what you said. I was personally surprised by the very warm reception that the market gave. So clearly, that marketing end goal worked. And then just one last thing. Where are you in terms of like your conversations with Fitch regarding the breach of one of the covenants? I mean if there's any -- yes, sorry, go ahead.

[David Sánchez, executive]

No, no. We sat down with both rating agencies early this week to discuss on a preliminary basis, of course, the results of the company, the plans, the incorporation of this new line of business, Uniclick, among other considerations. It's definitely a frequent communication in terms of capitalization, no? They put it out in the results, and we are proactively approaching them to see and to show them that we're very willing to analyze different alternatives.

Within the alternatives, we are considering even, for instance, tagging partial guarantees to the portfolio to try to resolve for the capital structure, among other considerations. I mean this is a very proactive approach on behalf of the company. I think they will come up with the analysis regarding the 4Q numbers, but we've already told them that we are in the lookout for -- in counting that. So I think, in a way, the conversation is comfortable at this time.

[Operator]

We have reached the end of the question-and-answer session. At this time, I'd like to turn the call back to David Pernas for closing comments.

[David Sánchez, executive]

Thank you all for joining us today and for your interest in UNIFIN. Please contact us with any questions you may have. We look forward to speaking with you again soon. Have a good day.

[Operator]

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.