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2Q10 Earnings Presentation
Anis Chacur Neto
Deputy CEO
Sérgio Lulia Jacob
Director Vice-President & IRO
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
2
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.
Highlights
Net Income in 2Q10 reached R$ 50.2 million, an increase of 6.9% in
comparison to 1Q10 and of 41.8% when compared to 2Q09.
Annualized Return on Average Equity was 15.9%, an increase of 0.7 p.p.
over 1Q10 (15.2%) and of 3.9 p.p. when compared to 2Q09 (12.0%).
3
over 1Q10 (15.2%) and of 3.9 p.p. when compared to 2Q09 (12.0%).
Credit Portfolio including guarantees issued reached BRL 10,251.3
million, an increase of 8.1% over 1Q10 and 55.4% when compared to
2Q09.
Credit Portfolio quality remains high with 97.0% of operations rated
between AA-C.
Credit Portfolio
8.1%
6,598.1 7,422.2 8,509.2 9,484.5 10,251.3
1.159,5 1.182,2
1.218,4 1.247,1 1.279,1
CREDIT PORTFOLIO (BRL million)
Including guarantees issued
SHAREHOLDERS’ EQUITY (BRL million)
AND BASEL INDEX
84.3% 84.9% 84.1% 85.2% 85.8%
4
2Q09 3Q09 4Q09 1Q10 2Q10
Corporate
Middle Market
Other
2Q09 3Q09 4Q09 1Q10 2Q10
8.8%
4,438.1 4,863.4 5,644.7 6,293.0 6,844.6
2Q09 3Q09 4Q09 1Q10 2Q10
17,9%
15,4%
14,6%
13,3%
17,8%
LOANS (BRL million)
13.3% 13.3% 14.6% 13.9% 13.5%
2.7% 1.8% 1.3% 0.9% 0.7%
79.0% 79.3% 78.1% 78.7% 79.3%
19.1% 19.2% 20.8% 19.9% 19.7%
1.9% 1.5% 1.1% 1.4% 1.0%
Credit Portfolio Quality
Segments
Loan Portfolio *
(BRL million)
Write Off
(BRL million)
Write Off /
Loan Portfolio
LLR **
(BRL million)
LLR ** /
Loan Portfolio
Past Due >
90 days
(BRL million)
Past Due >
90 days /
Loan Portfolio
Corporate 5,426.1 0.0 0.00% 70.0 1.29% 6.2 0.12%
Middle Market 1,346.1 6.7 0.50% 49.0 3.64% 8.1 0.60%
Other 72.5 1.3 1.84% 3.2 4.43% 1.2 1.59%
Total - 2Q10 6,844.6 8.0 0.12% 122.1 1.78% 15.5 0.23%
1Q10 6,293.0 20.0 0.32% 120.9 1.92% 21.0 0.33%
4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57%
3Q09 4,863.4 13.4 0.28% 128.4 2.64% 31.5 0.65%
5
Jun/2010
D-H 3.0%
AA-C 97.0%
2Q09 4,438.1 7.7 0.17% 132.4 2.98% 42.1 0.95%
*Excluding guarantees issued.
* *Loan Loss Reserves
1,03% 0,99% 0,98% 1,05%
2,23%
2,81%
2,98%
2,64%
2,25%
1,92%
1,78%
0,21% 0,25% 0,28% 0,34%
0,64%
1,18%
0,95%
0,65% 0,57%
0,33% 0,23%
0,17% 0,11% 0,04% 0,05% 0,04% 0,16% 0,17%
0,28%
0,09%
0,32%
0,12%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Loan Loss Reserves NPL (> 90 days) Write-off
4.950,3
5.426,1
2.056,4
2.446,4
2.746,8
3.129,4
3.364,7
Guarantees issued
Loans
Corporate
(BRL million)
8.8%
5,563.1 6,305.0 7,157.2 8,079.8 8,790.8
6
3.506,7 3.858,6
4.410,4
4.950,3
5.426,1
2Q09 3Q09 4Q09 1Q10 2Q10
São Paulo
52.6%
São Paulo -
Countryside
30.5%
Rio de
Janeiro
6.5%
South
10.5%
2Q09 1Q10 2Q10
Portfolio / number of grupos (BRL million) 10.9 12.8 13.0
Duration (days) 316 346 360
Number of active clients 509 675 679
5.6%
1.173,7 1.252,2
1.346,1
29,1
51,9
68,3
62,1
41,9
Guarantees issued
Loans
Middle Market
(BRL million)
877.0 984.4 1,242.0 1,314.3 1,388.0
7
847,9
932,5
1.173,7 1.252,2
2Q09 3Q09 4Q09 1Q10 2Q10
Loans
São Paulo
47.1%
São Paulo –
Countryside
10.9%
Rio de Janeiro
8.0%
South
27.6%
Minas Gerais
6.4%
2Q09 1Q10 2Q10
Portfolio / number of grupos (BRL million) 1.8 2.0 2.0
Duration (days) 206 256 261
Number of active clients 493 652 695
Treasury (BRL Mi) 2Q10 1Q10 2Q09 6M10 6M09
Revenues 8.6 14.7 8.9 23.3 9.1
Consolidated Average VaR 5.6 1.7 4.1 3.6 3.1
Other Activities
TREASURY AND CAPITAL MARKETS
8
Capital Markets (BRL Mi) 2Q10 1Q10 2Q09 6M10 6M09
Underwriting Fees and M&A 1.6 2.4 0.5 4.0 0.8
Numbers of deals 5 8 2 13 4
23.7%
23.7%
23.8%
30.8%
International
4,999.4
5,532.1
5,841.6
6,446.2
7,779.5
4,999.4
5,532.1
5,841.6
7,779.5
4,999.4
5,532.1
5,841.6
7,779.5
4,999.4
5,532.1
5,841.6
7,779.5 (BRL million)
Funding
9
20.0% 20.0% 22.0% 19.3% 13.6%
13.5%
14.7%
12.7% 14.8%
13.2%
11.7%
13.6% 9.7%
11.0% 10.4%
13.8%
19.5% 21.7%
22.3%
23.1%
8.8%
8.4%
10.2%
8.9%
8.9%
32.1%
2Q09 3Q09 4Q09 1Q10 2Q10
Retail
BNDES
Financial
institutions
Institutional
Corporate
NII (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%)
Credit Operations 104.7 93.8 11.6 85.7 22.2 198.5 174.4 13.8
Treasury* 8.6 14.7 - 8.9 - 23.3 9.0 -
Net Interest Income before Loan-Loss Provisions (LLP) 113.3 108.5 4.4 94.5 19.9 221.8 183.4 20.9
LLP (9.0) (13.8) (34.9) (14.9) (39.5) (22.8) (40.5) (43.7)
LLP (Brazilian Central Bank resolution nº 2,682) (11.6) (13.8) (15.8) (10.3) 12.5 (25.4) (35.4) (28.3)
Additional LLP 2.6 - - (4.5) - 2.6 (5.1) -
Total 104.3 94.7 10.1 79.7 30.9 199.0 143.0 39.2
MANAGERIAL NET INTEREST INCOME
Managerial Income Statement
Revenue
10
2Q09 3Q09 4Q09 1Q10 2Q10
5,9% 5,6% 5,5% 5,7% 5,3%
NIM (p.a.)
INCOME FROM SERVICES RENDERED
* Treasury result with managerial adjustments
Income from services rendered (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%)
Guarantees issued 16,5 14,9 10,7 9,9 66,9 31,4 17,3 81,5
Underwriting Fees and M&A 1,6 2,4 0,5 4,0 0,8
Banking Fees 8,1 7,1 14,1 3,1 163,9 15,2 5,7 168,7
Total 26,2 24,4 7,2 13,4 94,9 50,6 23,7 113,3
Managerial Income Statement
Expenses
PERSONNEL, ADMINISTRATIVE AND PROFIT-SHARING EXPENSES
Expenses (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%)
Personnel (22,4) (20,9) 6,8 (17,5) 28,0 (43,3) (38,1) 13,6
Other administrative expenses * (13,5) (14,3) (5,6) (13,2) 2,8 (27,9) (25,5) 9,3
Profit Sharing (15,4) (15,4) (9,2) 67,1 (30,9) (16,7) 84,5
Taxes (8,3) (8,3) (0,5) (16,6) (1,1)
11
37,4%
41,6% 41,7%
38,0% 37,6%
2Q09 3Q09 4Q09 1Q10 2Q10
Total (59,6) (59,0) 1,0 (40,4) 47,5 (118,7) (81,5) 45,7
EFFICIENCY RATIO
(including profit sharing)
* Deductible donation.
Profitability
ADJUSTED NET INCOME
BRL million
ADJUSTED ROAE
(p.a.)
35,4
38,1
44.5*
46,9
50,2
12,0%
13,0%
14.8%* 15,2%
15,9%
12
35,4
38,1
2Q09 3Q09 4Q09 1Q10 2Q10
*Excluding extraordinary effects of divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government
2Q09 3Q09 4Q09 1Q10 2Q10
Estimates Outlook
Credit Portfolio 25% - 30%
Corporate 22% - 25%
Guidance 2010
13
Middle Market 30% - 40%
Personnel and other adm expenses 5% - 10%
Contacts
Investor Relations
Sérgio Lulia Jacob
Director Vice-President & IRO
14
Alexandre Sinzato, CFA
IR Superintendent
www.abcbrasil.com.br/ir
ri@abcbrasil.com.br
+55 (11) 3170-2186

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2 q10 conference call presentation

  • 1. 1 2Q10 Earnings Presentation Anis Chacur Neto Deputy CEO Sérgio Lulia Jacob Director Vice-President & IRO
  • 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 2 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.
  • 3. Highlights Net Income in 2Q10 reached R$ 50.2 million, an increase of 6.9% in comparison to 1Q10 and of 41.8% when compared to 2Q09. Annualized Return on Average Equity was 15.9%, an increase of 0.7 p.p. over 1Q10 (15.2%) and of 3.9 p.p. when compared to 2Q09 (12.0%). 3 over 1Q10 (15.2%) and of 3.9 p.p. when compared to 2Q09 (12.0%). Credit Portfolio including guarantees issued reached BRL 10,251.3 million, an increase of 8.1% over 1Q10 and 55.4% when compared to 2Q09. Credit Portfolio quality remains high with 97.0% of operations rated between AA-C.
  • 4. Credit Portfolio 8.1% 6,598.1 7,422.2 8,509.2 9,484.5 10,251.3 1.159,5 1.182,2 1.218,4 1.247,1 1.279,1 CREDIT PORTFOLIO (BRL million) Including guarantees issued SHAREHOLDERS’ EQUITY (BRL million) AND BASEL INDEX 84.3% 84.9% 84.1% 85.2% 85.8% 4 2Q09 3Q09 4Q09 1Q10 2Q10 Corporate Middle Market Other 2Q09 3Q09 4Q09 1Q10 2Q10 8.8% 4,438.1 4,863.4 5,644.7 6,293.0 6,844.6 2Q09 3Q09 4Q09 1Q10 2Q10 17,9% 15,4% 14,6% 13,3% 17,8% LOANS (BRL million) 13.3% 13.3% 14.6% 13.9% 13.5% 2.7% 1.8% 1.3% 0.9% 0.7% 79.0% 79.3% 78.1% 78.7% 79.3% 19.1% 19.2% 20.8% 19.9% 19.7% 1.9% 1.5% 1.1% 1.4% 1.0%
  • 5. Credit Portfolio Quality Segments Loan Portfolio * (BRL million) Write Off (BRL million) Write Off / Loan Portfolio LLR ** (BRL million) LLR ** / Loan Portfolio Past Due > 90 days (BRL million) Past Due > 90 days / Loan Portfolio Corporate 5,426.1 0.0 0.00% 70.0 1.29% 6.2 0.12% Middle Market 1,346.1 6.7 0.50% 49.0 3.64% 8.1 0.60% Other 72.5 1.3 1.84% 3.2 4.43% 1.2 1.59% Total - 2Q10 6,844.6 8.0 0.12% 122.1 1.78% 15.5 0.23% 1Q10 6,293.0 20.0 0.32% 120.9 1.92% 21.0 0.33% 4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57% 3Q09 4,863.4 13.4 0.28% 128.4 2.64% 31.5 0.65% 5 Jun/2010 D-H 3.0% AA-C 97.0% 2Q09 4,438.1 7.7 0.17% 132.4 2.98% 42.1 0.95% *Excluding guarantees issued. * *Loan Loss Reserves 1,03% 0,99% 0,98% 1,05% 2,23% 2,81% 2,98% 2,64% 2,25% 1,92% 1,78% 0,21% 0,25% 0,28% 0,34% 0,64% 1,18% 0,95% 0,65% 0,57% 0,33% 0,23% 0,17% 0,11% 0,04% 0,05% 0,04% 0,16% 0,17% 0,28% 0,09% 0,32% 0,12% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Loan Loss Reserves NPL (> 90 days) Write-off
  • 6. 4.950,3 5.426,1 2.056,4 2.446,4 2.746,8 3.129,4 3.364,7 Guarantees issued Loans Corporate (BRL million) 8.8% 5,563.1 6,305.0 7,157.2 8,079.8 8,790.8 6 3.506,7 3.858,6 4.410,4 4.950,3 5.426,1 2Q09 3Q09 4Q09 1Q10 2Q10 São Paulo 52.6% São Paulo - Countryside 30.5% Rio de Janeiro 6.5% South 10.5% 2Q09 1Q10 2Q10 Portfolio / number of grupos (BRL million) 10.9 12.8 13.0 Duration (days) 316 346 360 Number of active clients 509 675 679
  • 7. 5.6% 1.173,7 1.252,2 1.346,1 29,1 51,9 68,3 62,1 41,9 Guarantees issued Loans Middle Market (BRL million) 877.0 984.4 1,242.0 1,314.3 1,388.0 7 847,9 932,5 1.173,7 1.252,2 2Q09 3Q09 4Q09 1Q10 2Q10 Loans São Paulo 47.1% São Paulo – Countryside 10.9% Rio de Janeiro 8.0% South 27.6% Minas Gerais 6.4% 2Q09 1Q10 2Q10 Portfolio / number of grupos (BRL million) 1.8 2.0 2.0 Duration (days) 206 256 261 Number of active clients 493 652 695
  • 8. Treasury (BRL Mi) 2Q10 1Q10 2Q09 6M10 6M09 Revenues 8.6 14.7 8.9 23.3 9.1 Consolidated Average VaR 5.6 1.7 4.1 3.6 3.1 Other Activities TREASURY AND CAPITAL MARKETS 8 Capital Markets (BRL Mi) 2Q10 1Q10 2Q09 6M10 6M09 Underwriting Fees and M&A 1.6 2.4 0.5 4.0 0.8 Numbers of deals 5 8 2 13 4
  • 9. 23.7% 23.7% 23.8% 30.8% International 4,999.4 5,532.1 5,841.6 6,446.2 7,779.5 4,999.4 5,532.1 5,841.6 7,779.5 4,999.4 5,532.1 5,841.6 7,779.5 4,999.4 5,532.1 5,841.6 7,779.5 (BRL million) Funding 9 20.0% 20.0% 22.0% 19.3% 13.6% 13.5% 14.7% 12.7% 14.8% 13.2% 11.7% 13.6% 9.7% 11.0% 10.4% 13.8% 19.5% 21.7% 22.3% 23.1% 8.8% 8.4% 10.2% 8.9% 8.9% 32.1% 2Q09 3Q09 4Q09 1Q10 2Q10 Retail BNDES Financial institutions Institutional Corporate
  • 10. NII (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%) Credit Operations 104.7 93.8 11.6 85.7 22.2 198.5 174.4 13.8 Treasury* 8.6 14.7 - 8.9 - 23.3 9.0 - Net Interest Income before Loan-Loss Provisions (LLP) 113.3 108.5 4.4 94.5 19.9 221.8 183.4 20.9 LLP (9.0) (13.8) (34.9) (14.9) (39.5) (22.8) (40.5) (43.7) LLP (Brazilian Central Bank resolution nº 2,682) (11.6) (13.8) (15.8) (10.3) 12.5 (25.4) (35.4) (28.3) Additional LLP 2.6 - - (4.5) - 2.6 (5.1) - Total 104.3 94.7 10.1 79.7 30.9 199.0 143.0 39.2 MANAGERIAL NET INTEREST INCOME Managerial Income Statement Revenue 10 2Q09 3Q09 4Q09 1Q10 2Q10 5,9% 5,6% 5,5% 5,7% 5,3% NIM (p.a.) INCOME FROM SERVICES RENDERED * Treasury result with managerial adjustments Income from services rendered (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%) Guarantees issued 16,5 14,9 10,7 9,9 66,9 31,4 17,3 81,5 Underwriting Fees and M&A 1,6 2,4 0,5 4,0 0,8 Banking Fees 8,1 7,1 14,1 3,1 163,9 15,2 5,7 168,7 Total 26,2 24,4 7,2 13,4 94,9 50,6 23,7 113,3
  • 11. Managerial Income Statement Expenses PERSONNEL, ADMINISTRATIVE AND PROFIT-SHARING EXPENSES Expenses (BRL million) 2Q10 1Q10 Chg.(%) 2Q09 Chg.(%) 6M10 6M09 Chg.(%) Personnel (22,4) (20,9) 6,8 (17,5) 28,0 (43,3) (38,1) 13,6 Other administrative expenses * (13,5) (14,3) (5,6) (13,2) 2,8 (27,9) (25,5) 9,3 Profit Sharing (15,4) (15,4) (9,2) 67,1 (30,9) (16,7) 84,5 Taxes (8,3) (8,3) (0,5) (16,6) (1,1) 11 37,4% 41,6% 41,7% 38,0% 37,6% 2Q09 3Q09 4Q09 1Q10 2Q10 Total (59,6) (59,0) 1,0 (40,4) 47,5 (118,7) (81,5) 45,7 EFFICIENCY RATIO (including profit sharing) * Deductible donation.
  • 12. Profitability ADJUSTED NET INCOME BRL million ADJUSTED ROAE (p.a.) 35,4 38,1 44.5* 46,9 50,2 12,0% 13,0% 14.8%* 15,2% 15,9% 12 35,4 38,1 2Q09 3Q09 4Q09 1Q10 2Q10 *Excluding extraordinary effects of divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government 2Q09 3Q09 4Q09 1Q10 2Q10
  • 13. Estimates Outlook Credit Portfolio 25% - 30% Corporate 22% - 25% Guidance 2010 13 Middle Market 30% - 40% Personnel and other adm expenses 5% - 10%
  • 14. Contacts Investor Relations Sérgio Lulia Jacob Director Vice-President & IRO 14 Alexandre Sinzato, CFA IR Superintendent www.abcbrasil.com.br/ir ri@abcbrasil.com.br +55 (11) 3170-2186