1 Conference Call Results of the 1st Quarter/2007 May 09, 2007.
-
Upload
myron-blankenship -
Category
Documents
-
view
215 -
download
0
Transcript of 1 Conference Call Results of the 1st Quarter/2007 May 09, 2007.
1
Conference CallConference Call
Results of the Results of the
1st Quarter/20071st Quarter/2007
May 09, 2007
2
Banco Itaú Holding Financeira S.A.
Highlights
2. 7.9% growth in the loan portfolio in the quarter - including the operations of BkB Chile and Uruguay:
• Personal Loans: 20.7% in the quarter and 39.9% in the last 12 months;• Vehicles: 10.1% in the quarter and 59.3% in the last 12 months;• Small and Medium-Sized Companies: 19.3% in the quarter and 77.6% in the last 12 months;
1. Results• Recurring Net Income of R$ 1,902 million in the1st Qtr/07, a 5.8% increase in comparison to the previous
quarter – new criteria ; annualized ROE of 31.3%. Emphasizing the reduction of R$110 million of expenses for loan losses and the decrease of R$91 million
of non-interest expenses quarter-to-quarter;• Consolidated Recurring Net Income per Share reached R$ 1.59 in 1st Qtr/07 growing 26.2% in
comparison to 1st Qtr/06 .
3. Additional provisions: • R$ 50 million increase in the excess provision for loan losses in the quarter, reaching the balance of
R$ 1,750 million.
4. Nonperforming Loans Ratio: Nonperforming loans ratio of 5.0%.
5. BIS Ratio: • Maintenance of the high level of 16.5%.
3
Banco Itaú Holding Financeira S.A.
Reconciliation of net income
R$ Million
1 For further details, please consult Itaú Holding’s Management Discussion and Analysis report (page 4).
1st Q/07 4th Q/06
Recurring Net Income – New Criteria 1,902 1,798Adjustments to the new accounting criteria (51) (170)
Loan renegotiations x discounts - 52 Expenses of commissions paid to car dealers (208) (222)Tax benefit of IOC 156 -
Recurring Net Income – Previous Criteria 1,851 1,628
Reversal of adjustments to the new accounting criteria 51 170
Non recurring effects1
-
(111)
Net Income not including BkB Chile and Uruguay Acquisition Effects - 1,687
BkB Chile and Uruguay acquisition effects - (408)
Net Income 1,902 1,280
4
Banco Itaú Holding Financeira S.A.
• The Brazilian fiscal legislation allows that companies remunerate its shareholders by means of the payment of either dividends or interests on own capital.
• The interests on own capital are deductible for tax purposes, whereas the dividends are paid as a net income distribution.
• The deductibility regarding the interests on own capital is basically limited to the result of multiplying stockholders’ equity by the Long-Term Interest Rate (TJLP).
• Considering: (i) not only the increase in profits and, in consequence, the distribution of the shareholders´ remuneration (II) but also the reduction of the Long-Term Interest Rate, the Board of Directors decided to provision in the form of dividends the monthly sums to be paid, as well as the supplementary portions relating to the first semester of 2007, because the maximum amount possible to be declared as interests on own capital in 2007 is in the limit, due to both the monthly interests on own capital already declared in the first months of the year, and the complementary interests on own capital relative to the fiscal year of 2006 yet declared in the beginning of 2007.
• The portion to be declared in 2008 so as to complete the shareholders´ remuneration relating to the fiscal year of 2007, it will be provisioned in the exercise of 2007 and to be declared as interests on own capital in 2008 exercise.
Interest on Own Capital X Dividends
5
Banco Itaú Holding Financeira S.A.
Highlights
1st Q/07 4th Q/06 1st Q/06Variance
1Q07- 4Q06Variance
1Q07- 1Q06
Net Income 1,902 1,280 1,460 48.6% 30.3%
Recurring Net Income – New Criteria (*) 1,902 1,798 - 5.8% -
Recurring Net Income – Previous Criteria (*) 1,851 1,628 1,397 13.7% 32.5%
Recurring Net Income per share (R$) 1.59 1.38 1.26 15.2% 26.2%
Stockholders’ Equity 24,971 23,564 16,619 6.0% 50.3%
Recurring ROE (Average Equity) annualized (%) 31.3% 28.8% 34.7% 250 b.p. -340 b.p.
Market Capitalization 86,277 92,270 71,859 -6.5% 20.1%
Solvency Ratio (%) 16.5% 17.2% 16.9% -70 b.p. -40 b.p.
Efficiency Ratio (%) 44.1% 47.4% 47.2% -330 b.p. -310 b.p.
Nonperforming Loans (%) 5.0% 5.3% 5.2% -30 b.p. -20 b.p.
(*) The net income has been adjusted for a better comparison.
R$ Million
6
Banco Itaú Holding Financeira S.A.
Itaú Holding Pro Forma
1st Q/07 4th Q/06(*)Variance
1Q07- 4Q06
Managerial Financial Margin 4,984 4,845 2.9%
• Banking Operations 4,369 4,289 1.9%
• Treasury 367 429 -14.5%
• Management of Foreign Exchange Risk from Investments Abroad
248 127 95.3%
Result of Loan Losses (1,266) (1,311) -3.4%
Banking Service fees 2,421 2,456 -1.4%
Non Interest Expenses (3,280) (3,371) -2.7%
Recurring Net Income – New Criteria 1,902 1,798 5.8%
R$ Million
(*)The net income for the fourth quarter of 2006 has been adjusted for a better comparison.
7
Banco Itaú Holding Financeira S.A.
Loans by Type of Customer
1 Agricultural and Mortgage Loans – linked with the balances of Demand and Savings Deposits.
Mar 31, 07 Mar 31, 07 Dec 31, 06 Mar 31, 06VarianceMar/07-Dec/06
VarianceMar/07-Mar/
06
VarianceMar/07-Dec/06
Individuals 46,404 42,085 40,487 30,813 3.9% 36.6% 14.6%
• Credit Cards 8,706 8,548 9,188 6,904 -7.0% 23.8% -5.3%
• Personal Credit 16,033 13,707 13,284 11,457 3.2% 19.6% 20.7%
• Vehicles 19,830 19,830 18,014 12,451 10.1% 59.3% 10.1%
• Mortgage Loans (Chile/Uruguay) 1,835 - - - - - -
Company Loans 49,012 47,347 47,263 36,703 0.2% 29.0% 3.7%
• Corporate 24,615 24,615 26,816 22,962 -8.2% 7.2% -8.2%
• Small and Medium Sized 24,397 22,733 20,446 13,741 11.2% 65.4% 19.3%
Mandatory Credit 1 5,655 5,655 5,898 4,529 -4.1% 24.9% -4.1%
Total Loans 101,071 95,088 93,648 72,046 1.5% 32.0% 7.9%
With BkB Chile and Uruguay
Without BkB Chile and Uruguay
With BkB Chile and Uruguay
R$ Million
8
Banco Itaú Holding Financeira S.A.
Loan Portfolio Break Down
36.4% 38.9% 41.5% 42.0% 42.8% 45.5% 41.8% 43.2% 45.9%
18.4% 19.0% 18.7% 18.9% 19.1% 18.8% 22.0% 21.8%24.1%7.6% 7.2% 6.9% 6.3% 6.2% 6.4% 6.3%5.6%
37.6% 34.8% 32.9% 32.4% 31.9% 29.6% 29.8% 28.6% 24.4%
6.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07
Individuals Small and Medium-Sized CompaniesMandatory Loans Corporate
9
Banco Itaú Holding Financeira S.A.
Nonperforming Loans and Coverage Ratios
(*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.
Nonperforming Loans Ratio
NPL RatioNPL Ratio- IndividualsNPL Ratio- Businesses
Coverage Ratio (*)
1.6%2.1% 2.2% 2.1%
5.1% 5.2% 5.3% 5.0%
8.1% 8.3% 8.1% 7.8%
Jun/06 Sep/06 Dec/06 Mar/07
166%168%169%164%181%
Mar.07Dec.06Sep.06Jun.06Mar.06
10
Banco Itaú Holding Financeira S.A.
Delinquency Ratio (NPL) by Segment
Note: Not considering BkB Chile and Uruguay, NPL reached 5.2% on March 31, 2007 for the Consolidated and 7.4% for the Itaubanco-Branch Banking sub segment.
Mar 31, 07Dec 31,
06Sep 30,
06
NPLCredit
PortfolioNPL
Ratio NPL RatioNPL
Ratio
Itaubanco 2,741 41,937 6.5% 7.3% 7.5%
Branch Banking 2,486 37,492 6.6% 7.6% 7.7%
Credit Cards – Account Holders
255 4,446 5.7% 5.2% 5.9%
Itaú BBA 14 20,787 0.1% 0.7% 0.1%
Itaucred
1,844 28,456 6.5% 6.2% 6.4%
Vehicles
1,077 21,284 5.1% 4.8% 5.0%
Credit Cards – Non Account Holders
257 3,932 6.5% 5.5% 6.6%
Taií 511 3,241 15.8% 15.2% 13.9%
Total
4,599 91,180 5.0% 5.3% 5.2%
R$ Million
11
Banco Itaú Holding Financeira S.A.
Funding
1 Includes Repurchase Agreement – Own Issue Securities, where was recorded a new issuance of subordinated debt amounting R$ 5,000 million.
Mar 31,07 Dec 31,06 Mar 31,06
Variance (%)
Mar/07-Dec/06
Mar/07-Mar/06
Deposits 1 99,533 89,522 67,272 11.2% 48.0%
Investment Funds 174,836 167,866 126,558 4.2% 38.1%
Managed Portfolios 11,434 11,942 9,018 -4.3% 26.8%
Technical Provisions regarding to Insurance, Pension Plans and Capitalization
20,131 19,036 15,538 5.8% 29.6%
Subtotal – Clients 305,934 288,367 218,386 6.1% 40.1%
Foreign Exchange Portfolio 23,474 13,124 14,032 78.9% 67.3%
Funds from Acceptances and Securities Issued 7,831 7,541 6,714 3.8% 16.6%
On-lendings 5,348 5,338 4,186 0.2% 27.8%
Repurchase Agreement – Third Part Portfolio 14,098 8,353 4,123 68.8% 241.9%
Subtotal - Market 50,751 34,355 29,055 47.7% 74.7%
Total 356,685 322,722 247,441 10.5% 44.1%
R$ Million
Note: Not considering BKB Chile and Uruguay, the balance of funding reached R$ 349,604 million on Mar 31, 07, an 8.3% increase
compared to Dec 31, 06.
12
Banco Itaú Holding Financeira S.A.
Banking Service Fees
1st Q/07 4th Q/06 1st Q/06 Variance1Q07- 4Q06
Variance1Q07- 1Q06
Funds management fees 1 482 483 449 -0.1% 7.5%
Current account services 405 410 365 -1.3% 11.0%
Credit Cards 576 577 487 -0.2% 18.4%
Credit operations and guarantees provided
498 486 388 2.4% 28.4%
Collection services 222 250 224 -11.1% -0.8%
Other 238 250 210 -4.8% 13.4%
Total 2,421 2,456 2,121 -1.4% 14.1%
R$ Million
1 Investment Funds and Consortium.
Note: Not considering BKB Chile and Uruguay, Banking Service Fees reached R$ 2,384 million in 1st Q/07, a 2.9% decrease compared to 4th Q/06.
13
Banco Itaú Holding Financeira S.A.
Non Interest Expenses
1st Q/07 4th Q/06 1st Q/06 Variance1Q07- 4Q06
Variance1Q07- 1Q06
Personnel Expenses 1,252 1,251 1,132 0.1% 10.6%
Other Administrative Expenses 1,539 1,681 1,229 -8.4% 25.2%
Other Operating Expenses 377 269 335 40.1% 12.5%
Tax Expenses (CPMF and Others) 1 111 171 82 -35.1% 35.4%
Total 3,280 3,371 2,779 -2.7% 18.0%
R$ Million
1 It does not include PIS, COFINS and ISS
Note: Not considering BKB Chile and Uruguay, Non-Interest Expenses reached R$ 3,145 million in the 1st Q/07, a 6.7% decrease compared to 4th Q/06.
14
Banco Itaú Holding Financeira S.A.
BkB Transactions Integration
. The integration has being carried out so as to minimize disruptions for customers;
. BkB branch network has being transferred to the Personnalité operating platform. The process will be ended by the end of the second quarter of 2007;
. The transfer of small and mid-size businesses customers of BkB to Itaú is under way and expected to be completed in June 2007;
. BkB´s corporate clients are already using Itaú BBA´s platform;
. Synergy gains are happening already and their impact will be completely felt as from the second half of 2007.
15
Banco Itaú Holding Financeira S.A.
50.8% 50.1%47.2% 45.7%
49.9%47.4% 44.1%
50.5%
2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06 1Q/07
Efficiency Ratio
46.7%
49.6%
16
Banco Itaú Holding Financeira S.A.
Unrealized Profits/(Losses) (1)In Stockholders' Equity
03/31/07 12/31/06 03/31/06
Interbank Deposits 31 17 34
Securities and Derivatives 195 187 466
Loans 196 103 275
Investment in BPI 1,645 1,523 1,381
From Parent Company 970 898 814
From Minorities 675 625 567
Securitization of Foreign Payment Orders (24) (43) 3
Subordinated Debt (105) (44) (41)
Other Liabilities 521 704 347
Total Unrealized 2,458 2,447 2,465
Financial Instruments – Market Value
(1) Does not take into consideration the corresponding tax effects.
R$ Million
17
Banco Itaú Holding Financeira S.A.
Segmentation (Pro forma)
NB: The organization chart of Itaucred segment reflects, chiefly, the transactions
carried out through channels intended for non current account holders.
Itaú
ItaucredItaú BBAItaubanco
Banking
Cards – Current Account Holders
Insurance, Pension Plans
and Capitalization
Investment Funds and
Managed Portfolio
Corporation
Corporate Operations
&
Investment Banking
Vehicles
Cards – Non Current Account
Holders
Taií, FIC (CBD) and FAI (LASA)
18
Banco Itaú Holding Financeira S.A.
Highlights of Pro Forma Segments
Itaubanco Itaú BBA Itaucred Corporation Itaú 1
1st Quarter of 2007
Recurring Net Income 1,259 243 297 102 1,902
Allocated Capital Tier I 12,131 4,704 2,936 5,199 24,791
RAROC in the Quarter (% p.y.) 41.3% 18.6% 41.6% 10.2% 31.3%
Total Assets 202,085 81,989 27,431 9,080 257,850
4th Quarter of 2006
Recurring Net Income – New Criteria (*) 1,208 297 248 45 1,798
Allocated Capital Tier I 12,244 5,754 2,780 2,787 23,564
RAROC in the Quarter (% p.y.) (*) 40.5% 21.3% 38.9% 5.5% 31.8%
Total Assets 159,178 61,869 25,844 6,253 209,691
R$ Million
1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.(*) The figures for the fourth quarter of 2006 have been adjusted by applying the same accounting criteria adopted in the first quarter of 2007.
Itaubanco
19
Itaubanco Pro Forma 1st Q/07 4th Q/06(*) Variance 1st Q/06
Managerial Financial Margin 3,306 3,238 2.1% 2,360
• Banking Operations 2,816 2,885 -2.4% 2,244
• Treasury 310 263 17.9% 11
• Management of Foreign Exchange Risk from Investments Abroad
179 90 98.9% 104
Result of Loan Losses (874) (812) 7.6% (863)
Banking Service Fees 1,909 1,913 -0.2% 1,721
Non-Interest Expenses (2,501) (2,533) -1.3% (2,065)
Net Income 1,259 1,208 4.2% 792
Allocated Capital Tier I 12,131 12,244 -0.9% 9,371
Return on Average Tier I Allocated Capital (%) 41.3% 40.5% 80 b.p. 37.4%
. Net Income Itaubanco - Banking 852 770 10.6% 430
. Net Income Credit Cards - Current Account Holders 162 153 5.9% 157
. Net Income Insurance, Pension Plans and Capitalization 185 247 -25.1% 158
. Net Income Funds and Managed Portfolio 60 39 53.5% 48
(*) The figures for the fourth quarter of 2006 have been adjusted by applying the same accounting criteria adopted in the first quarter of 2007.
R$ Million
Itaubanco
20
Credit Cards – Current Account Holders - Pro Forma
1st Q/07 4th Q/06(*) Variance 1st Q/06
Managerial Financial Margin 288 305 -5.6% 283
Result of Loan Losses (80) (105) -23.8% (95)
Banking Service Fees 374 393 -4.8% 356
Non-Interest Expenses (305) (330) -7.6% (273)
Net Income 162 153 5.9% 157
Allocated Capital Tier I 715 1,028 -30.5% 552
Return on Average Tier I Allocated Capital (%) 74.2% 65.7% 850 b.p. 103.4%
Number of Cards (thousands) 13,530 13,390 1.0% 12,703
Billing 9,210 10,554 -12.7% 7,157
R$ Million
(*) The figures for the fourth quarter of 2006 have been adjusted by applying the same accounting criteria adopted in the first quarter of 2007.
Itaubanco
21
Insurance, Pension Plans and Capitalization - Pro FormaR$ Million
1st Q/07 4th Q/06 Variance 1st Q/06
Earned Premiums 663 624 6.3% 630
Results from Pension Plans and Capitalization 76 73 4.1% 60
Retained Claims (331) (304) 8.9% (360)
Marketing Expenses (141) (133) 6.0% (148)
Managerial Financial Margin 127 197 -35.5% 158
Non-Interest Expenses (153) (186) -17.7% (174)
Net Income 185 247 -24.8% 158
Combined Ratio (%) 84.4% 82.8% 160 b.p. 91.2%
Claim Level (%) 50.1% 48.5% 160 b.p. 57.9%
Tier I Allocated Capital 1,627 1,737 -6.3% 1,379
Return on Average Tier I Allocated Capital (%) 44.1% 58.7% -1460 b.p. 47.2%
Itaú BBA
22
Itaú BBA Pro Forma
1st Q/07 4th Q/06 Variance 1st Q/06
Managerial Financial Margin 400 536 -25.4% 611
• Banking Operations 274 333 -17.7% 281
• Treasury 57 166 -65.8% 285
• Management of Foreign Exchange Risk from Investments Abroad
69 37 84.2% 44
Result of Loan Losses 44 (30) -246.7% 13
Banking Service Fees 134 145 -7.6% 131
Non-Interest Expenses (195) (215) -9.3% (168)
Net Income 243 297 -18.2% 390
Allocated Capital Tier I 4,704 5,754 -18.2% 4,354
Return on Average Tier I Allocated Capital (%) 18.6% 21.3% -270 b.p. 35.9%
R$ Million
Itaú BBA
23
Itaú BBA - Loans + Private Securities (*)
(*) Not including loans to financial institutions.
Loans 15%Private Securities 32%Total 17%
Annual GrowthMar/07 vs. Mar/06
2,932
3,286
28,70129,53429,69224,24424,92124,067
3,081
4,0564,042
2,275
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
dec/05 mar/06 jun/06 sep/06 dec/06 mar/07
R$ MM
Loans (Including endorsements and sureties) Securities
26,342 28,002 27,176
32,978 33,576 32,758
Itaucred
24
R$ Million
Itaucred Pro Forma• Transactions carried out in channels intended for non current account holders customers.
1st Q/07 4th Q/06 (*) Variance 1st Q/06
Financial Margin 1,141 991 15.1% 744
Result of Loan Losses (436) (440) -0.9% (307)
Banking Service Fees 380 385 -1.3% 270
Non-Interest Expenses (548) (531) 3.2% (484)
Net Income 297 248 19.8% 133
• Vehicles 235 206 14.1% 112
• Credit Cards – Non Current Account Holders 83 69 20.3% 59
• Taií (21) (27) -22.2% (38)
Tier I Allocated Capital 2,936 2,780 5.6% 2,028
Return on Average Tier I Allocated Capital (%) 41.6% 38.9% 270 b.p. 28.7%
(*) The figures for the fourth quarter of 2006 have been adjusted by applying the same accounting criteria adopted in the first quarter of 2007.
25
Banco Itaú Holding Financeira S.A.
Net Income and Net Income per Share
Note: The Net Income per Share was adjusted to reflect the stock split of 900% that occurred in oct/05.
Recurring Net Income per share (R$)Recurring Net Income (R$ Million)
1,383 1,352 1,425 1,3971,579 1,592 1,628
1,902
1,283
1.21 1.29 1.26 1.33 1.381.59
1.391.19
1.00
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06 1Q/07
0.0
0.5
1.0
1.5
2.0
2.5
26
Conference CallConference Call
Results of the Results of the
1st Quarter/20071st Quarter/2007
May 09, 2007