Banco ABC - 4th Quarter 2008 Results Presentation

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4th Quarter 2008 Results Presentation

4th Quarter 2008 Results Presentation

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  • 1. 4Q08 Earnings Presentation February 18, 2009 Participants: Tito Enrique da Silva Neto - CEO Anis Chacur Neto – Deputy CEO Sergio Lulia Jacob - Executive VP & IR Officer Alexandre Yoshiaki Sinzato – IR Manager 1
  • 2. 4Q08 Highlights The Recurring Net Income in 2008 totaled BRL 160.7 million, growing 36.0% in relation to the year of 2007, when the net income reached BRL 118.2 million (excluding IPO expenses). In the 4Q08, the recurring net income was BRL 30.9 million a decrease of 36.2% in relation to BRL 48.4 million of the 3Q08. Considering the additional provisions for loan losses in 4Q08, the net income totaled BRL 150.1 million and BRL 20.3 million in 4Q08. The preventive increase of provisions for loan losses was caused by the new economic environment. Since 2008, Interest on Equity began to be paid on a quarterly basis, with the payment to shareholders in the 4Q08 of gross IOE of BRL 17.5 million. The Efficiency Ratio in the 4Q08 was 34.8% against 35.8% in 3Q08. Banco ABC Brasil has one of the best efficiency ratios presented by the bank market. The Credit Portfolio, including guarantees issued, reached BRL 6,485.5 million, growing 29.9% in relation to 4Q07 and decreasing 5.7% in relation to 3Q08. Even with the provisions mentioned the portfolio quality remained high, with 97.6% of credit operations rated from AA to C (Central Bank Resolution 2,682), compared to 99.4% in 3Q08 and 99.6% in 4Q07. 2
  • 3. Ownership Structure Ownership Structure Common Shares Preferred Shares Total % Marsau Uruguay Holdings S.A. (ABC) 58,046,264 17,859,279 75,905,543 56.4% Management 9,775,856 3,007,771 12,783,627 9.5% Associates - 1,855,070 1,855,070 1.4% Free Float - 43,943,800 43,943,800 32.7% Total 67,822,120 66,665,920 134,488,040 100.0% 3
  • 4. Credit Portfolio CREDIT PORFOLIO - including guarantees issued LOANS CAGR = 29.9% CAGR = 21.1% 5,329.2 6,879.1 6,485.5 4.1% 4,708.1 3.2% 3.2% 17.7% 2.3% 14.2% 12.5% 16.6% 4,992.2 3,887.2 1.9% 2.5% 11.8% 14.8% 86.3% 84.3% 82.7% 81.1% 82.6% 78.2% 4Q07 3Q08 4Q08 4Q07 3Q08 4Q08 R$ mi CONSUMER MIDDLE MARKET WHOLESALE + L. MIDDLE 4
  • 5. Credit Portfolio Quality Past Due > Credit Portfolio Write Off Write Off / PLL / Credit Past Due > Segments PLL (R$ mi) 91days / Credit (R$ mi)* (R$ mi) Credit Portfolio Portfolio 91days (R$ mi) Portfolio Wholesale+L.Middle 3,816.9 - 0.0% 68.7 1.8% 14.6 0.4% Middle 780.9 1.0 0.1% 31.5 4.0% 14.4 1.8% Payroll 110.3 1.0 0.9% 5.0 4.5% 1.3 1.2% Total - 4Q08 4,708.1 2.0 0.0% 105.2 2.2% 30.3 0.6% Total - 3Q08 5,329.3 2.8 0.1% 56.1 1.1% 18.3 0.3% *excluding guarantees issued Dec. 2008 Rating (R$ mi) * 4Q08 % Portfolio 3Q08 % Portfolio D-H 2.4% AA 811.5 17.2 916.3 17.2 A 1,845.9 39.2 2,393.7 44.9 B 1,284.6 27.3 1,729.4 32.5 C 654.4 13.9 255.3 4.8 D 36.1 0.8 8.7 0.2 E 43.0 0.9 3.4 0.1 F 2.7 0.1 10.8 0.2 G 6.2 0.1 2.1 0.0 AA-C 97.6% H 23.7 0.5 9.6 0.2 Total 4,708.1 100.0 5,329.3 100.0 *excluding guarantees issued 5
  • 6. Credit Portfolio WHOLESALE AND LARGE MIDDLE CAGR = 26.8% Minas Gerais + Northeast South 2.7% 11.0% 5,678.4 5,462.8 1,512.6 Rio de Janeiro 1,645.9 4,308.7 10.8% 1,092.5 4,165.8 3,816.9 3,216.2 São Paulo - Countryside São Paulo 4Q07 3Q08 4Q08 R$ mi 26.6% 48.9% Loans Guarantees issued Wholesale + L. Middle 4Q07 3Q08 4Q08 Ticket 9.2 10.1 10.6 Duration * 352 317 306 Clients 466 529 514 *excluding BNDES operations 6
  • 7. Credit Portfolio MIDDLE MARKET CAGR = 38.3% Minas Gerais South 7.3% 979.9 10.2% 812.4 37.2 Rio de Janeiro 31.4 3.0% 587.2 12.5 942.7 780.9 São Paulo - Countryside 574.7 10.1% 4Q07 3Q08 4Q08 R$ mi Loans Guarantees issued São Paulo 69.3% Middle Market 4Q07 3Q08 4Q08 Ticket 1.9 2.4 2.0 Duration * 181 193 202 Clients 311 409 398 * excluding BNDES operations 7
  • 8. Other Activities TREASURY AND CAPITAL MARKET Capital Market (R$ mi) 4Q08 3Q08 Chg.(%) 4Q07 Chg.(%) Underwriting Fees and Structured Oper. 0.8 2.3 (65.2) 4.6 (82.6) Number of trades 3 5 (40.0) 7 (57.1) Treasury (R$ mi) 4Q08 3Q08 Chg.(%) 4Q07 Chg.(%) Income 2.8 4.5 (37.8) 11,2 (75.0) Average consolidated VaR 6.3 4.3 46.5 2.7 133.3 8
  • 9. Funding 5,690.9 5,459.3 47.5% 40.6% 3,841.3 International 44.0% 7.4% 5.8% Retail 9.2% 2.5% 9.6% BNDES 2.4% 11.3% 0.5% 12.2% Interbank 18.0% Local 19.7% 8.4% Institutional 22.3% 16.5% Corporate 22.1% Dec 2007 Sep 2008 Dec 2008 R$ mi • The parent company increased the credit line available to ABC Brasil from USD 150 million to USD 300 million • In December 2008 ABC Brasil had withdrawn USD 143 million of this line 9
  • 10. Managerial Income Statement Chg.(%) Managerial Income Statement (R$ mi) 4Q08 3Q08 2008 2007 Quarter Year Net Interest Income before PLL 79.4 81.4 351.8 258.3 (2.5) 36.2 (+)Effect of Exchange Variation - Cayman Branch - A 21.7 16.6 29.9 (11.3) 30.7 (364.6) (+)Tax Effect of Exchange Variation - Cayman Branch + Sovereign Bonds - B 13.8 6.6 20.4 - 109.1 NA (-)Payroll Credit Assignment - C (comissions) (11.9) - (11.9) - NA NA Managerial Net Interest Income before PLL 103.0 104.6 390.2 247.0 (1.5) 58.0 Credit Operations 95.5 100.1 354.9 212.6 (4.6) 66.9 Payroll Credit Assignment 4.7 - 4.7 - NA NA Treasury 2.8 4.5 30.6 34.4 (37.8) (11.0) PLL (54.1) (11.3) (79.8) (13.7) 378.8 482.5 PLL before ratings review (12.6) - (38.3) - NA NA Ratings review (23.9) - (23.9) - NA NA Additional (17.6) - (17.6) - NA NA Managerial Net Interest Income after PLL 48.9 93.3 310.4 233.3 (47.6) 33.0 Banking Fees 11.2 12.1 43.1 42.4 (7.4) 1.7 Personnel Expenses/Other Administrative/Tax* (35.9) (30.6) (118.4) (98.0) 17.3 20.8 Personnel Expenses/Other Administrative/Tax* - total (47.8) (30.6) (130.3) (98.0) 58.3 33.4 (+)Payroll Credit Assignment - C 11.9 - 11.9 - NA NA Other operating income/expenses 1.4 1.7 4.2 (1.7) (17.6) (347.1) Other operating income/expenses - total 23.1 18.3 34.1 (13.0) 26.2 (362.3) (+)Effect of Exchange Variation - Cayman Branch - A (21.7) (16.6) (29.9) 11.3 30.7 (364.6) Non-Operating Income - 1.2 1.2 (0.8) (100.0) (250.0) Income before Tax and Profit Sharing 25.6 77.7 240.5 175.2 (67.1) 37.3 Income Tax and Social Contribution 13.3 (8.7) (24.5) (34.3) (252.9) (28.6) (+)Tax Effect of Exchange Variation - Cayman Branch + Sovereign Bonds - B (13.8) (6.6) (20.4) - 109.1 NA Profit Sharing (4.8) (14.0) (45.5) (22.7) (65.7) 100.4 Effect of the additional PLL 10.6 - 10.6 - NA NA Recurring Net Income* 30.9 48.4 160.7 118.2 (36.2) 36.0 Net Income 20.3 48.4 150.1 97.5 (58.1) 53.9 *Excluding the expenses with IPO of BRL 20.7 million in 2007 and the effect of the additional provisions for loan losses net of taxes in the 4Q08 of BRL 10.6 million. 10
  • 11. Net Interest Income NII (R$ mi) 4Q08 3Q08 Chg.(%) 2008 2007 Chg.(%) Credit Operations 95.5 100.1 (4.6) 354.9 212.6 66.9 Payroll Credit Assignment 4.7 - NA 4.7 - NA Treasury 2.8 4.5 (37.8) 30.6 34.4 (11.0) Managerial Net Interest Income before PLL 103.0 104.6 (1.5) 390.2 247.0 58.0 PLL (54.1) (11.3) 378.8 (79.8) (13.7) 482.5 PLL before ratings review (12.6) - NA (38.3) - NA Ratings review (23.9) - NA (23.9) - NA Additional (17.6) - NA (17.6) - NA Managerial Net Interest Income after PLL 48.9 93.3 (47.6) 310.4 233.3 33.0 Banking Services Fees Banking Fees (R$ mi) 4Q08 3Q08 Chg.(%) 2008 2007 Chg.(%) Guarantees issued 6.6 5.7 15.8 22.0 13.3 65.4 Underwriting Fees and Structured Operations 0.8 2.3 (65.2) 4.4 17.8 (75.3) Banking Fees 3.8 4.1 (7.3) 16.8 11.3 48.7 Banking Fees - Total 11.2 12.1 (7.4) 43.1 42.4 1.7 11
  • 12. Personnel, Administrative and Profit-Sharing Expenses Expenses (R$ mi)* 4Q08 3Q08 Chg.(%) 2008 2007 Chg.(%) Personnel expenses (20.7) (17.5) 18.3 (68.5) (47.0) 45.7 Other administrative expenses* (11.6) (9.4) 23.4 (36.9) (43.6) (15.4) Profit Sharing (4.8) (14.0) (65.6) (45.1) (22.7) 98.9 Taxes (0.7) (0.8) (12.5) (3.0) (4.2) (28.6) Total (37.8) (41.7) (9.3) (153.5) (117.5) 30.7 Associates 4Q08 3Q08 Chg.(%) 2008 2007 Chg.(%) Front-Office 171 195 (12.3) 171 140 22.1 Back-Office 310 319 (2.8) 310 266 16.5 Total 481 514 (6.4) 481 406 18.5 *excluding payroll commissions and expenses with IPO in 2007 12
  • 13. Profitability RECURRING NET INCOME* – R$ MILLION 160.7 118.2 48.4 30.9 3Q08 4Q08 2007 2008 RECURRING ROAE* – p.a. 16.9% 16.1% 14.2% 10.6% 3Q08 4Q08 2007 2008 *Excluding the expenses with IPO of BRL 20.7 million in 2007 and the effect of the additional provisions for loan losses net of taxes in the 4Q08 of BRL 10.6 million. 13
  • 14. Ratios EFFICIENCY RATIO (%) – including profit sharing 40.5% 35.8% 34.8% 36.0% 3Q08 4Q08 2007 2008 STOCKHOLDERS’ EQUITY (R$ mi) NIM AND BASEL INDEX (%) 1,161.9 1,085.6 23.1% 6.4% 5.9% 6.4% 6.3% 19,2% 18.0% 3Q08 4Q08 2007 2008 2007 2008 14
  • 15. Guidance 2008 X Realized Realized until 3Q08 Estimated annualized Realized Credit Portfolio* 47% - 57% 50% 30% Wholesale + L. Middle 40% - 60% 42% 27% Middle Market 60% - 80% 89% 38% Payroll Deductible 220% - 250% Discontinued Personnel and Administrative expenses** 12% - 18% 15% *including guarantees issued **excluding profit sharing and payroll deductible comissions 15
  • 16. Guidance 2009 % Growth Credit Portfolio* 2% - 12% Wholesale + L. Middle 0% - 10% Middle Market 30% - 40% Personnel and 8% - 12% Administrative expenses** *including guarantees issued **excluding profit sharing and payroll deductible comissions 16
  • 17. Contacts Investor Relations Sergio Lulia Jacob – Executive VP & IR Officer Alexandre Sinzato – IR Manager Eduardo Randich – IR Analyst Henrique Mendonça – IR Analyst Web Site: www.abcbrasil.com.br/ir Email: ri@abcbrasil.com.br Tel.: +55 (11) 3170 2186 17
  • 18. 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. 18