GEMS FIRST TO MARKET

Research evidence excerpt

GEMS FIRST TO MARKET

AQ trends benign this quarter, we believe that growth and NIMs will be the key focus areas for

investors. In this context, we expect a strong quarter for Indian NBFCs (BAF, CIFC, LTFH) and select mid-tier banks (AUBANK)

with potential for earnings upgrades on the back of solid growth momentum and AQ trends, with no visible deterioration in

bounce rates or collection efficiency. We continue to reiterate our positive view on large private banks with a preference for

ICICI Bank, where the NII inflection is very visible, with valuations likely to catch up with a lag. We flag IIB and YES as key

UWs. We have revised our forecasts and PTs to incorporate the 1Q forecasts - please refer to Table 5 IndiaBanks:Sumaryofkeychanges and Table 6 IndiaNBFCs:Sumaryofkeychanges for more

details.

| SIMPAR & Subsidiaries (Guilherme Mendes), Brazil

Downgrading SIMH to Neutral on Holding Discount; JSLG Preferred Within the Group

We are updating our estimates for SIMPAR (SIMH3, N) and its listed subsidiaries Movida (MOVI3, N), VAMOS (VAMO3, OW),

and JSL (JSLG3, OW), following Movida’s removal from restriction, the incorporation of J.P. Morgan's latest macroeconomic

assumptions, and their respective capital increases . We take this opportunity to downgrade SIMPAR to Neutral (from

Overweight) on valuation grounds, as its holding discount currently stands at 10% — below both our model's fair value estimate

of 25% and the historical average of approximately 20% . While we acknowledge management's efforts to reduce leverage at

the holding level — R$1.2 billion post capital injection, down from R$4.0 billion in mid-2023 — we believe that additional

initiatives, such as a potential sale of the CS Infra Ports division, are likely to yield only modest benefits, and may not be