Diario | Latin America

Research evidence excerpt

Diario | Latin America

azil. In addition, we see SulAmerica’s strong performance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

fading, given employment-linked demand and saturation in SP/RJ, contrasting optimistic market . Consumer Total

Source: Jefferies estimates.

assumptions. Also, MLRs normalized and ROEs near peak limit further margin upside. We

downgrade to Hold. Exhibit 3 - Private payroll loan market:

Backbook by players (BRLbn)

IFS (Buy) | Strong start to the year. Q1 26 net at PEN598m (+35% y/y) or a 10% beat to BBG 120

consensus number. ROE at 19.4%. A sequential acceleration in NII (from +2% in Q4 to 6% now) 100

and the lowest CoR print (1.4%) since early 2023 are the main highlights. High yielding loans now

growing 9% (+5% consumer, +9% Small biz). Underlying credit quality very sound with S3 formation 80

at 1.8% of loans (consumer at 5.9%). 60

LatAm Banks | Brazil | What Really Mattered Last Week. Payroll loans, asset quality and

profitability/funding growth dispersion drove the debate last week. Seven charts frame the story, 20

with credit trends as the core link—amid fading expectations for material rate cuts. 0Q1 25 Q2 25 Q3 25 Q4 25 Q1 26

Top 5 Others

Vivo (Hold) | Q1 26 | Stable underlying trends, earnings 'miss' largely due to lower asset sales. .Source: Jefferies estimates.

Steady growth in top line (7.4% y/y), EBITDA (8.9%), net income (19.2%) and OpFCFaL (9.7%) but Alejandro Anibal Demichelis * | Equity Analyst

earnings below cons at EBITDA and net income level (4.2% and 19% below respectively), largely due +34 919498377 | ademichelis@jefferies.com

to lower asset sales in Q1, which are lumpy in nature and likely to increase from Q2 onwards. Total Inigo Vega * | Equity Analyst

shareholder remuneration YTD 6.0% of market cap.