SPOL delivered a decent Q1 report with the Earnings per EC coming in 3%/1% below ARCe/Cons, supported by strong credit quality. We nonetheless think that loan loss volatility could persist despite a strong quarter, while we also expect 2025 to be a transitional year for SPOL post-merger – leaving limited upside to our estimates which already reflect cost efficiency measures. Lending growth was relatively muted in the quarter, and given the bank’s >13% ROE target we think that growth could remain ....
