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Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
Banco ABC - 4th Quarter 2007 Earnings Presentation
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Banco ABC - 4th Quarter 2007 Earnings Presentation

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4th Quarter 2007 Earnings Presentation

4th Quarter 2007 Earnings Presentation

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  • 1. Speakers: Tito Enrique da Silva Neto CEO & Member of the Board of Directors Sérgio Lulia Jacob Executive Vice President & IR Officer Alexandre Sinzato IR Manager 4Q07 Results Presentation January, 31 1
  • 2. DISCLAIMER The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation. 2
  • 3. 2007 Highlights • Banco ABC BRASIL successfully concluded its initial public offering (IPO) in July 2007. Proceeds from the offering increased stockholders’ equity to R$1,085.6 million as of 12/31/2007. • The credit portfolio, including guarantees, reached R$4,992.2 million, growing 71% in relation to the 4Q06 and 17% in relation to the 3Q07. • The quality of the loan portfolio remained high, with 99.5% of loan operations rated between AA and C (Brazilian Central Bank Resolution 2682), compared to 98.8% in the 4Q06 and 99.3% in the 3Q07. • Net income in the quarter (excluding non-recurring expenses from the IPO) increased by 154.6% to R$50.7 million, from R$19.9 million in the 4Q06, representing an increase of 117.6% over 3Q07. Net income for 2007 was R$118.2 million, an increase of 93.8% compared with R$61.0 million in 2006. The bank distributed the gross amount of R$ 43.4 million as interest on shareholders equity. • Our credit rating assigned by Fitch Ratings, equivalent to “AA-” on the national level and “BB+” on the global level, with a stable outlook, is the highest among publicly- held midsize banks. 3
  • 4. Ownership Structure Free Float 33,2% ABC BSC 56% Associates 1,4% Local Management 9,4% Market Cap R$ 1.61 Billion Note: market capitalization calculated based on the share price of R$11.85 as of 12/28/2007. 4
  • 5. Credit Portfolio (R$ mm) Including guarantees 4,992 CAGR = 71.5% 1.9% 4,251 11.8% 1.6% 3,557 11.7% 3,194 2,911 11.6% 1.2% 10.7% 0.9% 10.6% 0.5% 86.3% 86.7% 88.4% 87.2% 88.9% 4Q06 1Q07 2Q07 3Q07 4Q07 Wholesale+L.Middle Middle Consumer Portfolio By Ticket 12/31/07 (%) 12/31/06 (%) (R$) 0 - 500 Thousand 125.6 3.2 34.2 1.5 500 Thousand - 2 MM 192.8 5.0 172.1 7.4 2 MM - 5 MM 448.8 11.5 381.9 16.4 5 MM - 10 MM 772.0 19.9 487.4 20.9 > 10 MM 2,348.1 60.4 1,259.6 53.9 Loans 3,887.2 100.0 2,335.1 100.0 5
  • 6. High-Quality Credit Portfolio Credit Porfolio % 4Q07 Rating (*) Portfolio AA 707.0 18.2% D-H D-H 21.2 0.55 % A 1,745.6 44.9% (In R$ Million) B 1,169.6 30.1% C 243.8 6.3% D 7.9 0.2% E 1.3 0.0% AA-C 99.45 % AA-C 3,866.0 F 1.0 0.0% (In R$ Million) G 1.5 0.0% H 9.5 0.2% Total 3,887.2 100.0% *does not include guarantees issued 4Q07 Write-off % % % Segment Loan Porfolio 4Q07 PLL Past Due 2007 Portfolio Portfolio Portfolio Wholesale/Large Middle 3,216.2 3.0 0.09% 25.4 0.79% 7.3 0.23% Middle 574.7 3.6 0.63% 13.2 2.30% 5.8 1.02% Consumer 96.3 0.1 0.12% 1.4 1.41% 0.5 0.49% 3,887.2 6.7 0.17% 40.0 1.03% 13.6 0.35% Average Annual Losses/Portfolio in the past 10 years: 0.25% 6
  • 7. Business Segments
  • 8. Middle Market Middle (R$ mm) - Including guarantees CAGR = 89.9% SP BH 587 Interior 498 4.14% 8.79% 309 4Q06 3Q07 4Q07 SP 87.07% 12/31/2006 12/31/2007 Duration 110 days 181 days Average Ticket R$ 1.3 MM R$ 1.9 MM Clients 233 311 8
  • 9. Wholesale and Large Middle Wholesale+L.Middle (R$ mm) - Including guarantees CAGR = 66.5% 4,309 RJ / NE 3,684 11.38% 2,587 SP 38.16% Sul 11.04% 4Q06 3Q07 4Q07 12/31/2006 12/31/2007 Duration 349 days 352 days SP (excl. BNDES) Interior / CO AverageTicket R$ 6,8 MM R$ 9.2 MM 39.42% Clients 379 466 9
  • 10. Other Activities Capital Market 4Q07 3Q07 Chg (%) 4Q06 Chg (%) 12M07 12M06 Chg (%) Underwriting Fees and Structured Oper. 4.6 3.5 32.3 2.9 59.3 17.8 9.5 88.6 (R$ MM) Number of Deals 6 7 (14.3) 5 20.0 29 20 45.0 Consumer 4Q07 3Q07 Chg (%) 4Q06 Chg (%) Portfolio (R$ MM) 96.3 67.9 41.8 14.4 568.6 Agreements 29 24 20.8 10 190.0 Agents 86 58 48.3 36 138.9 % INSS 39.9% 49.7% -9.8 pp 53.9% -14.0 pp % Others 60.1% 50.3% 9.8 pp 46.1% 14.0 pp Treasury 4Q07 3Q07 Chg (%) 4Q06 Chg (%) 12M07 12M06 Chg (%) Revenue (R$ MM) 14.4 2.9 401.6 14.5 (0.8) 45.7 35.9 27.5 Average Consolidated VAR (R$ MM) 2.7 2.6 3.8 2.2 22.7 2.6 2.1 23.8 10
  • 11. Funding 3Q07 Financial Private Institutions 3% 32% Corporate 26% Private 2% BNDES Institutional 14% 23% Abroad Local 4Q07 Private 3% Corporate 23% Financial Institutions 41% Private Institutional 2% 19% BNDES 12% 11
  • 12. 4Q07 Net Income Breakdown 82.2 Loan 39.4 12.4 Operations Services -33.4 0.7 Treasury 14.4 Other Operational -11.2 Working 28.4 Expenses Capital Income Tax Profit and Social 50.7 Sharing Distribution Net Interest Income Net Income Results (R$ MM) 4Q07 3Q07 Chg(%) 4Q06 Chg(%) Credit - PLL 39.4 29.0 35.8 22.7 74.0 Services 12.4 9.3 32.9 7.3 69.7 Treasury 14.4 2.9 401.6 14.5 -0.8 Working Capital 28.4 24.0 18.5 10.8 163.0 Operational Results 94.7 65.2 45.1 55.3 71.2 Other IncomeExpenses (33.4) (25.1) 33.3 (29.7) 12.4 Profit Sharing (11.2) (4.5) 152.2 (1.6) 597.7 Taxes 0.7 (12.3) -105.9 (4.0) -118.1 Net Income 50.7 23.3 117.4 19.9 154.8 *Excluding IPO expenses 3Q07: R$ 30.5MM 4Q07 : R$ 0.87MM 12
  • 13. 2007 Net Income Breakdown 244,5 Loan 119,5 42,4 Operations Services -111.7 -34,3 Treasury 45,7 Other Income Tax Operational and Social -22,7 Working 79,3 Expenses Distribution Capital Profit 118,2 Sharing Net Interest Income Net Income Results (R$ MM) 12M07 12M06 Chg.(%) Credit - PLL 119.5 89.1 34.2 Services 42.4 25.2 68.4 Treasury 45.7 35.9 27.5 Working Capital 79.3 38.5 106.2 Operational Results 287.0 188.6 52.2 Other IncomeExpenses (111.7) (103.6) 7.9 Profit Sharing (22.7) (5.0) 353.1 Taxes (34.3) (19.0) 80.6 Net Income 118.2 61.0 93.8 *Excluding IPO expenses 3Q07: R$ 30.5MM 4Q07 : R$ 0.87MM 13
  • 14. Expenses Breakdown Expenses (R$ MM) 4Q07 3Q07 Chg(%) 4Q06 Chg(%) 12M07 12M06 Chg(%) Personnel expenses (14.6) (12.5) 17 (15.5) -6.2 (47.0) (55.6) -15.5 Other administrative expenses (8.5) (7.3) 15.7 (11.7) -27.5 (43.7) (37.6) 16.1 Comissions - Payroll Deductible (1.5) (0.8) 77.1 (0.1) 1,448.8 (3.1) (0.1) 2,759.3 Profit Sharing (11.2) (4.5) 152.2 (1.6) 597.7 (22.7) (5.0) 353.1 Total (35,8) (25,1) 42,6 (29,0) 23,5 (116,4) (98,3) 18,4 Associates 406 378 7.4 314 29.3 406 314 29.3 Front-Office 140 124 12.9 97 44.3 140 97 44.3 Back-Office 266 254 4.7 217 22.6 266 217 22.6 Other RevenuesExpenses (R$ MM) 4Q07 3Q07 Chg(%) 4Q06 Chg(%) 12M07 12M06 Chg(%) Other Operational IncomeExpenses (8.0) (3.1) 160.2 (1.4) 480.0 (13.3) (5.4) 146.3 Tax Expenses (0.9) (1.0) -16.3 (0.7) 18.0 (4.0) (4.2) -5.6 Other Non-Operational IncomeExpenses (0.1) (0.4) n/a (0.3) -64.5 (0.8) (0.7) 14.1 Total (8.9) (4.5) 99.3 (2.4) 271.0 (18.0) (10.3) 75.4 *Excluding IPO expenses 3Q07: R$ 30.5MM 4Q07 : R$ 0.87MM 14
  • 15. Profitability Net Profit (R$ mm) - Quarter Net Profit (R$ mm) – Year CAGR = 154.6% CAGR = 93.8% 50.7 118.2 19.9 23.3 61.0 4Q06 3Q07 4Q07 2006 2007 ROAE (% aa) - Quarter ROAE (% aa) – Year 18.6% 18.6% 14.7% 16.1% 10.1% 4Q06 3Q07 4Q07 2006 2007 15
  • 16. Net Interest Margin NIM - Quarter 7.3% 7.0% 5.9% 4Q06 3Q07 4Q07 NIM – Year 6.6% 6.7% 2006 2007 16
  • 17. Other Indicators Stockholders’ Equity (R$ mm) and Basel Index (%) 26.7% 23.1% 13.9% 1,083 1,086 439 4Q06 3Q07 4Q07 Efficiency Ratio (%) Efficiency Ratio* (%) Quarter Year 49.6% 50.7% 46.7% 48.1% 35.8% 38.2% 39.0% 28.9% 31.0% 25.5% 4Q06 3Q07 4Q07 2006 2007 ÍNDICE DE EFICIÊNCIA (%) - includ Profit Sharing ÍNDICE DE EFICIÊNCIA (%) - includ Profit Sharing 17 ÍNDICE DE EFICIÊNCIA (%) - exclud Profit Sharing ÍNDICE DE EFICIÊNCIA (%) - exclud Profit Sharing
  • 18. Ratings ABC Brasil strength attested by its solid credit rating history 2004 2005 2006 2007 National – Long Term A A AA- AA- National – Short Term F1 F1 F1+ F1+ International – Long Term - BB- BB BB+ International – Short Term - B B B Total Assets: US$ 28,640 Mi. Equity Shareholders: US$ 2,307 Mi. Controlling ROE: 13.1% Shareholder Ratings: (9M07) BBB+ BBB+ A3 18

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