Presentation 1Q10
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    Presentation 1Q10 Presentation 1Q10 Presentation Transcript

    • Conference Call 1Q10 Results 0
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock Corretora de ValoresShare Performance 1
    • Total Credit Volume and Segmentation Volume of Credit Operations R$ billion 1,410 1,452 1,227 Credit to individuals growth supported by 33% 936 32% payroll lending, vehicle and real state 29% financing. 29% In Corporate Credit earmarked resources 607 733 from BNDES still stand out. 71% 71% 68% 67% Improved participation of private institutions 2005 2006 2007 2008 2009 31/mar from March. Nonearmarked Resources Earmarked Resources Variation% Individuals Corporates Non Non Total Earmarked Earmarked Credit Mar/10 earmarked Total earmarked Total Resource Resources Resource Resources In the month 2.0 2.8 2.2 0.2 0.2 0.2 1.1 In the quarter 3.7 6.3 4.4 0.4 2.5 1.2 2.6 In the year 3.7 6.3 4.4 0.4 2.5 1.2 2.6 In 12 months 18.6 24.3 20.1 4.6 34.0 14.2 16.8 Source: Central Bank of Brazil – Credit Information System - SCR 2
    • Credit Default Rate Gradual decline in Corporate Credit Back to Dec 2007 levels for credit to Individuals 10 9 8 7 7.0% 6 % 5 5.2% 4 3.6% 3 2 Corporate Individuals Total Source BACEN 1 0 Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2006 2007 2008 2009 2010 Default Rate on Loans to Individuals: Fast retreat from June 2009, returning to the levels of Dec/07. Default Rate on Corporate Loans: Accelerated increase until September/09, with slow decline from November 2009. 3
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock Corretora de ValoresShare Performance 4
    • Slightly over R$ 1.7 billion * Local Currency Loans Trade Finance R$ Million R$ Million -5.4% 1,398.6 1,342.6 1,322.9 +23.1% 332.7 270.1 293.3 1Q09 4Q09 1Q10 1Q09 4Q09 1Q10 Increased origination partially dissipated by Mainly Export financing (ACC/ACE) and, in write offs lesser amount, import financing Local currency loans respond for 80% of Trade Finance portfolio in foreign currency: loan portfolio • US$ 116.7 million in 1Q09 • US$ 173.7 million in 4Q09 94% of Loan Portfolio allocated to midsized • US$ 186.9 million in 1Q10 companies Growth reflects the retake of exports with reaction from December/09 * Including guarantees and L/Cs 5
    • Credit Portfolio Breakdown By Economic Activity By Currency Foreign Individuals Currency 9% 20% Services 25% Industry 54% Local Currency Commerce 80% 12% By Client Concentration By Tenor Above 360 days Up to 90 Other 10 largest days 29% 27% 18% 37% 11 to 60 181 to 360 31% 14% 91 to 180 61 to 160 20% 24% The average of contracts final tenors is 442 days 6
    • Loan Portfolio breakdown by Industry Food, Beverage and Tobacco Agribusiness Construction 14% 22% Automotive 1% Transportation & Logistics 3% 3% Metal Industry 4% Education Financial Institutions Chemical and Pharmaceutical 4% 13% Textile, Clothing & Leather 4% 4% Individuals 4% Financial Services 10% 4% 5% 5% Oil and Biofuel Paper & Pulp Other Industries 7
    • Quality of Loan Portfolio Asset Quality RisK Rating Collateral Structure D-H Vehicles 14% Real State 2% Aval PN 9% 19% A Monitored 31% Pledge 10% Pledge/Lien Securities 6% 3% C 27% B Receivables 28% 50% NPL(*) / Total Loan (%) Allowance for Loan Losses (*) Total amount of contracts with any installment overdue above 60 days % +13.2 133.4 5.9 110.7 97.8 4.2 3.5 1Q09 4Q09 1Q10 1Q09 4Q09 1Q10 Middle Market loans are 81% collateralized, being, 54% in receivables and securities 8
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock Corretora de ValoresShare Performance 9
    • Longer Funding Tenors Total Funding Funding Breakdown R$ Million BNDES +20.9% Onlending 6% 1,880.7 Foreign 1,793.2 Time Borrowings 22% Deposits 1,555.7 37% Interbank Deposits 2% Demand LCA Deposits 1% 2% DPGE(*) 1Q09 4Q09 1Q10 30% Moderate growth in funding compared Funding in Insured Time Deposits (DPGE) to 4Q09 privileged in the quarter due to longer terms, defined maturities and total costs lower than Increasing average tenor of deposits to foreign funding 497 days: • CDBs R$ 698,5 million 363 days Funding in local currency equivalent to 78% of • DPGE R$ 572,0 million 692 days total funding • CDI R$ 42,5 million 69 days • LCA R$ 8,7 million 90 days (*) Fundo Garantidor de Crédito (FGC) - Insured Time Deposits 10
    • Liquidity to Retaking Free Cash (*) Management of liquidity, interest R$ Million rate, currencies and tenor mismatch risks is our Treasury’s 696 708 main task Free Cash: 436 52% of Total Deposits 164% of Shareholder’s Equity 1Q09 4Q09 1Q10 Assets and Liabilities Management R$ Million 733 674 659 516 375(*) Cash, Liquid Financial Assets (CDI), Securities and 332 Derivatives (–) Open Market Funds and Derivatives 245 127 90 days 180 days 360 days Above 360 days Assets Liabilities 11
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock CorretoraShare Performance 12
    • Gradual recovery of income, lower default benefits Income from Financial Intermediation Gross Profit from Financial intermediation R$ Million R$ Million -2.8% 117.7 114.4 % 93.3 +23.4 35.2 28.4 27.4 1Q09 4Q09 1Q10 1Q09 4Q09 1Q10 Evolution of Income from Financial Results from Financial Intermediation Intermediation of 22.7% in the quarter due to: recovery: • Small increase in revenues from loans and • Increased Financial Intermediation Income financing • Lower Loan Loss Provision Expenses • Higher Foreign Exchange Operations Income Gross margin improved to 5.3% from 4.1% in • FX variation on trade finance operations the 4Q09 13
    • Slight improvement in Efficiency Net Operating Expenses Efficiency Ratio R$ Million In % . +16.5 p.p 63.2 61.0 +6.0% 44.5 S&P Model 23.0 23.3 24.4 1Q09 4Q09 1Q10 1Q09 4Q09 1Q10 Operating expenses under control The 2.2 percentage points improvement in the quarter resulted from: Stable income from fees and commissions • Reduced operating expenses, and Lower other operating income during the quarter • Small increase in financial intermediation revenues 14
    • Recovering Profitability Net Profit Net Interest Margin (NIM) R$ Million -8.8% 12.5% 10.6% 9.8% 8.0 8.5% 7.3 6.7% 7.0% 6.1% 4.4 4.9% 5.1% 5.3% 4.1% 0.9% NI M GFM 1Q09 4Q09 1Q10 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 GFM = Gross Financial Margin 66% Net Profit increase in the quarter results Financial Margin confirms recovery trend from: started 4Q09 The evolution in the Intermediation Maintenance of liquidity levels also impacts Financial Result NIM The 30% drop Loan Loss Provision expenses 15
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock Corretora de ValoresShare Performance 16
    • Positive results from restructuring The modernization and restructuring of the Brokerage House included: Relocation of facilities closer to target market Hiring new professionals Development of new products, including fixed income offerings Business management specialized tools deployment Construction of a new homebroker system, in progress DMA – Direct Market Access Acquisition of the Execution Broker Seal from BM&FBOVESPA Repositioning in the BM&F Market Ranking 2008: 52th position 2009: 44th position 1Q10: 17th position Strategic Objectives: Expansion of the institutional and qualified individual investors client base Extending services to retail investors Becoming a liquidity center for institutional clients 17
    • Credit Behavior in BrazilLoan PortfolioFunding and LiquidityResult from OperationsIndusval Multistock Corretora de ValoresShare Performance 18
    • Free Float and Remuneration Capital: Common Shares 27,000,000 Preferred Shares 15,475,101 Total 42,475,101 Treasury Shares(*): 829,279 preferred shares – 5.4% of preferred and 1.9% of total capital Preferred shares Free Float (*): 13.4 million – free float = 31.7% Stock Options Program: 916,521 options granted, not exercise or cancellation Shareholder Remuneration: Anticipated payment of Interest on Own Equity for 1Q10 of R$ 6,3 million equivalent to R$ 0,15015 per share in March 2010 (*) Posição em 31.03.2010 19
    • IDVL4 X IBOV - 2010 130 IBOVESPA IDVL4 120 10 1 100 90 80 09 10 10 10 10 10 10 10 10 10 10 10 10 20 20 20 20 20 20 20 20 20 20 20 20 20 2/ 1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/ 4/ 4/ 4/ /1 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /030 09 19 29 08 18 28 10 20 30 09 19 29 Performance 1Q10 In 12 months IDVL4 +3.1% +57.2% Earnings Adjusted +5.0% +73.3% IBOV +2.6% +71.9% IGC +2.4% +78.9% ITAG +0.1% +79.9% 20
    • In Summary Credit Behavior in Brazil Private Financial Institutions slowly retaking share in credit volume Reducing of default contributes to growth retake Loan Portfolio Focused in midsized companies, origination was retaken and, as delinquency sets back along the year, credit portfolio shall develop gradual growth Funding and Liquidity There is availability at satisfactory costs to resume growth Result from Operations Default ratios decline and expense management contribute to result recovery Indusval Multistock Corretora de Valores Investments in new facilities, new professionals and expansion of activities with DMA, fixed income and retail investors Acquisition of Execution Broker Seal contributes to its positioning upgrade 21
    • Questions and AnswersPlease note that this is the English version of the presentation. The original version is in Portuguese. If there is any discrepancy betweensuch versions, the Portuguese version shall prevail. Banco Indusval Multistock’s full financial statements will be available on our websiteat www.indusval.com.br/ir, under Financial Information – Financial Statements, as soon as they are filed with the CVM – BrazilianSecurities and Exchange Commission.Any reference or statement regarding Banco Indusval Multistock - or its subsidiaries and affiliates - anticipated synergies, growth plans,projected results and future strategies are just estimates. Although these forward-looking statements reflect management’s good faithbeliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to bematerially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to, our abilityto realize the amount of the projected synergies and in the timetable projected, as well as economic, competitive, governmental andtechnological factors affecting Banco Indusval Multistock’s operations, markets, products and prices, and other factors detailed in BancoIndusval Multistock’s filings with the CVM – Brazilian Securities and Exchange Commission which, readers are urged to read carefully, inanalyzing the forward-looking statements that are contained herein. Banco Indusval Multistock undertakes no obligation to update any ofthe projections contained herein. 22
    • Investor Relations – Contact InformationZiro Murata Jr. Banco Indusval S/AIRO Rua Boa Vista, 356 – 7º andar 01014-000- São Paulo – SPPhone: (55 11) 3315-6961 BrasilE-mail: ziro@indusval.com.brMaria Angela R. Valente IR Site:Head of IR www.indusval.com.br/irPhone: (55 11) 3315-6821E-mail: mvalente@indusval.com.br 23