Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, we now begin the question and answer session. [Operator Instructions]. Our first question is from Mario Pierry, Deutsche Bank.
Mario Pierry - Deutsche Bank
Good morning. I have two questions. First one is with relation to your level of delinquency. When we look at the nonperforming loan ratio, we actually deteriorated 10 basis points this quarter. Do you still expect to see a modest improvement in delinquency for the rest of the year and if you do, can you just tell us if you were surprised by the deterioration in asset quality this quarter, because in the previous quarter we had seen 30 basis points improvement? So I just wanted to get a feel from you if you still expect delinquency to improve. And then the second question has to do with your costs. It seems like costs were higher than expected. I was wondering if you have already been able to realize any cost synergies related to BankBoston and what is your outlook for costs going forward. Thank you.
Silvio de Carvalho - Executive Director of Controllership
Silvio speaking. In relation to delinquency, we are forecast that the level we will keep [ph] is 5.1 during the second semester. They are a little bit lower than that. That is how you see the market. Remember that when you discover the break down of the delinquency, you can see improvement related with the individuals. In realty, this level was a little bit higher than the first quarter because of the small and middle companies. That we increase our [indiscernible] about 60% in the year. That's the reason because we see this... a real increase, and we are supposed that we will keep this level during the second semester. In relation to the synergy of cost of BankBoston, the integration is finished already, even though we are supposed to keep the guidance about 180 million reais during the second semester. That's our guidance in relation to that. This... with all the branches, other people are here in the bank and we sold the building that had the main offices of BankBoston, that's it.
Mario Pierry - Deutsche Bank
If you will... so just to be clear, the synergies of 180 million with BankBoston, none of that has been realized yet right? And also, is that all going to come in the form of costs or we also going to see synergies with revenues and this 180 million includes revenues and costs?
- To read the full transcript on Seeking Alpha, click here »
