Earnings Presentation - Banco Votorantim...Earnings Presentation 3rd Quarter, 2013 Disclaimer: This...
Transcript of Earnings Presentation - Banco Votorantim...Earnings Presentation 3rd Quarter, 2013 Disclaimer: This...
Earnings Presentation
3rd Quarter, 2013
Disclaimer: This presentation may include references and statements on expectations, planned synergies, growth estimates, projections of results, and future strategies for Banco
Votorantim, it’s associated and affiliated companies, and subsidiaries. Although these references and statements reflect the management’s belief, they also involve imprecision and
risks that are highly difficult to be foreseen. Consequently, they may conduct to different results from those anticipated and discussed here. These expectations are highly dependent on
market conditions, on Brazil’s economic and banking system performances, as well as on international market conditions. Banco Votorantim is not responsible for bringing up to date
any estimate in this presentation.
1
Results maintained trajectory of gradual improvement 3Q13 Highlights
Executive summary
1. Ratio between Net Interest Income and Average Interest-Earning Assets; 2. Includes Banking Fees; 3. Net of income from the recovery of written-off loans; includes ALL expenses of the portfolios assigned with recourse
Consistent
revenue
generation
Net Interest Income (NII) increased 3.8% (R$42M) compared to 2Q13, reaching R$1,154M
• 4.6% p.y. Net Interest Margin¹ (NIM) in 3Q13, an improvement of 30 bps vs. 2Q13
Fee Income² grew 1.8% vs. 2Q13, amounting to R$257M in 3Q13
Improved
quality of the
portfolio
Maintenance of quality and scale in Auto Finance origination
• Better quality vintages reached 67% of the auto finance managed loan portfolio (62% in June/13)
NPL 90 reduced to 5.5% in Sept/13 – improvement of 20 bps in the quarter and 190 bps in 12 months
ALL
reduction
Allowance for Loan Losses (ALL) expenses³ reduced 26.4% (R$253M) vs. 2Q13, totaling R$706M
• Comparing 9M13/9M12, there was a 38.3% total reduction and 48.0% (R$1.8B) in Consumer Finance
90-day Coverage Ratio reached 117% in Sept/13 (June/13: 111%; Sept/12: 93%)
Net Financial
Margin increase
Net Financial Margin tripled when compared to 2Q13, amounting to R$448M in 3Q13
• Net Financial Margin growth resulted from both NII increase and continuous ALL reduction
Cost base
under control
Personnel and Administrative expenses increased only 0.4% vs. 2Q13, totaling R$604M
• It’s worth noting that there was a 1.5% reduction in 9M13 (R$1,800M) vs. 9M12 (R$1,828M)
– Excluding expenses with labor claims, the reduction would have been of 4.5% in the period
Results improved R$37M when compared to 2Q13 (3Q13: R$-159M; 2Q13: R$-196M)
2
Banco Votorantim is one of the leading banks in Brazil “Top 10” in total assets, with diversified business portfolio and robust shareholder base
Banco Votorantim is one of the largest
privately-held Brazilian banks in total assets…
...and is well positioned to capture
additional business opportunities
Banco Votorantim – Overview
Shareholder
50% Total
10 largest banks in June/13 - Total Assets (R$B)¹
...and also in terms of loan portfolio...
112125
131
144478
710
771
814
990
Votorantim²
BTG Pactual Safra
HSBC Santander
BNDES
Bradesco
CEF Itaú
Banco do Brasil 1,140
10 largest banks in June/13 - Loan Portfolio (R$B)¹
National privately-held
Foreign
State-owned
24
4352
56
191
265
275
327423
537
Banrisul Safra
HSBC Votorantim²
Santander BNDES
Bradesco
Itaú CEF
Banco do Brasil
National privately-held
Foreign
State-owned
1. Sept/13 information unavailable by the preparation of this presentation; 2. On-balance portfolio according to Bacen’s Res. 2,682; 3. Banco Votorantim estimate
Diversified business portfolio
• Wholesale Banking
– Relevant position in credit for large enterprises
• Consumer Finance
– Among market leaders in auto finance
– 7th largest player in payroll loans³
– 5.6 million customers
• Wealth Management
– 9th largest asset manager by Anbima’s ranking
Strong shareholder base, committed to the institution
– Votorantim Group and Banco do Brasil
Strategic partnership with Banco do Brasil
Low fixed-cost business model in Consumer Finance
• Third-party distribution (vs. branches)
7th
10th
3
Diversified portfolio of Wholesale and Consumer businesses Focus on profitability while deepening synergies with Banco do Brasil
Shareholders
Pillars
1. Securitization with substantial risk retention before entry in force of Bacen’s Res. 3,533; 2. Includes guarantees provided and private securities; 3. Commissioned products
Consumer Finance Wholesale
Auto
Finance
Origination with quality, scale and
profitability
Focus on used vehicles (multi-brand
dealers)
Advance in new auto finance along with BB
(new car dealers)
Other
Businesses
Act selectively in
payroll loans, focused
on INSS (retirees and
pensioners)
Expand synergic
businesses (credit
cards, insurance sales)
Explore new
opportunities (e.g.
“Mais BB³”)
Corporate &
IB (CIB)
Wealth
Management
Middle
Market
Grow among companies with annual revenues above R$ 200M
Strengthen the offer of products and
services (derivatives, FX, IB)
Increase operating efficiency
Banco do Brasil Votorantim Group
Asset: 9th largest in the market, with
innovative products
Private: focus on estate planning via customized
solutions
Increase synergies with BB
Position itself as a relevant partner via:
• Agile and long-term relationships
• Integrated financial solutions
(credit, derivatives, IB, FX, structured products and distribution)
+
R$ 36.9B R$ 36.2B
R$ 73.1B
Expanded credit portfolio²
Off-balance¹ risk portfolio
R$ 5.4B
R$ 1.0B
Assigned to FI
Assigned to FIDC
R$ 28.1B R$ 8.1B R$ 29.8B R$ 7.1B
Assets under Management
R$ 42.7B
Corporate strategy
4
R$M % R$M %
Net Interest Income (A) 1,112 1,154 42 3.8 3,355 3,389 33 1.0
ALL Expenses (B) (959) (706) 253 (26.4) (4,140) (2,554) 1,586 (38.3)
Consumer Finance (669) (563) 106 (15.9) (3,775) (1,964) 1,811 (48.0)
Wholesale (290) (144) 147 (50.5) (365) (590) (225) 61.6
Net Financial Margin (A+B) 153 448 295 193.1 (785) 834 1,619 (206.3)
Operating Income/Expenses (549) (682) (134) 24.4 (1,676) (1,880) (204) 12.2
Fee/Banking Fee Income 253 257 4 1.8 749 748 (1) (0.1)
Personnel Expenses (250) (241) 9 (3.7) (700) (719) (19) 2.8
Other Administrative Expenses (351) (363) (12) 3.3 (1,129) (1,081) 47 (4.2)
Tax Expenses (133) (142) (10) 7.3 (351) (400) (48) 13.8
Other Operating Income/Expenses¹ (67) (193) (126) 188.2 (245) (428) (183) 74.8
Operating Income (Loss) (396) (235) 161 (40.8) (2,461) (1,046) 1,415 (57.5)
Non-Operating Income (Loss) 3 (14) (17) - (116) (29) 87 (75.0)
Taxation and Profit Sharing 197 89 (107) (54.6) 1,016 442 (575) (56.6)
Net Income (Loss) (196) (159) 37 (18.8) (1,560) (633) 927 (59.4)
2Q13 3Q13Var. 3Q13/2Q13
9M12 9M13Var. 9M13/9M12INCOME STATEMENT
(R$ Million)
Results kept their trajectory of gradual improvement,
driven by growth in the Net Financial Margin
1. Includes Other Operating Income/Expenses, as well as Equity in Income of Associated Companies and Subsidiaries
Consolidated results
Results have confirmed, once again,
the progress in Banco Votorantim’s restructuring process
5
Net Interest Income (NII) grew 3.8% (R$42M) in 3Q13 vs. 2Q13 Fee Income increased 1.8% vs. 2Q13, amounting to R$ 257M in the quarter
MFB cresceu 3,8% em relação ao 2T13,
impulsionando o NIM do 3T13 para 4,6%
Fee Income increased 1.8%
over 2Q13, amounting to R$257M
1. Ratio between Net Interest Income (before ALL) and Average Interest Earning Assets
1,154
4.6%
2Q13
1,112
4.3%
3Q12
1,120
+3.8%
3Q13
4.4%
Net Interest Income (NII)
9M13
3,389
4.3%
9M12
3,355
4.3%
+1.0%
Net Interest Income (R$M) and NIM¹ (% p.y.) Fee and Banking Fee Income (R$M)
3Q13 NIM increase reflects better portfolio quality,
as well as focus on profitability (vs. growth)
257253256
3Q12
+1.8%
3Q13 2Q13
749
-0.1%
9M13
748
9M12
NII increased 3.8% compared to 2Q13,
driving the 3Q13 NIM to 4.6%
6
-1.4%
CIB
Middle
Market
Auto
Finance
Others¹
Sept/13
73.1
28.1
8.1
29.8
7.1
June/13
74.1
28.2
8.8
29.7
7.4
Sept/12
76.3
29.0
9.5
30.3
7.5
-3.0%
Sept/13
79.5
28.1
8.1
34.7
8.6
June/13
81.9
28.2
8.8
35.7
9.2
Sept/12
89.7
29.0
9.5
40.8
10.5
-4.5%
0.4%
-7.7%
-0.4%
∆Sept13
/June13
-6.8%
-2.8%
-7.7%
-0.4%
∆Sept13
/June13
The Bank maintained its conservative position in credit R$73.1B expanded credit portfolio in Sept/13, with a 1.4% reduction vs. June/13
Expanded portfolio (interest earning) reduced
1.4% when compared to June/13…
...while managed portfolio decreased 3.0% due
to the reduction in off-balance securitization
R$ Billion
6.4 13.4 7.8
Credit portfolio by segment
1 Payroll loans, credit cards and individual loans; 2. Since Jan/12, revenues from credit assignments with recourse are recognized over the term of the contract, while the assets themselves remain recorded in the assignor’s balance sheet Note: private securities criteria were revised in 3Q13, in order to be better aligned to BB’s methodology
Off-balance
securitization
Expanded credit portfolio (includes guarantees provided, private securities, and on-balance securit.)
Expanded managed credit portfolio (includes off-balance securitization with recourse)
Credits assigned with recourse until Dec/11 had their
revenues recognized by the time of the assignment²
7
-0.4%
Sept/13
28.1
June/13
28.2
Sept/12
29.0
Middle Market CIB
Note: expanded credit portfolio includes on-balance portfolio, guarantees provided and private securities; private securities’ criteria were revised in 3Q13, in order to be better aligned to BB’s methodology
Wholesale – Highlights and credit portfolio
Wholesale: CIB and Middle Market maintained their focus
on profitability and on strengthening their product offering
Wholesale businesses
Focus on clients with revenues of R$200M-R$600M/year
• R$100M-R$200M/year: selective action
Strengthening of the product platform (derivatives, FX, IB)
Increase operating efficiency
Focus on profitability (disciplined capital allocation)
Serves companies with revenues above R$600M/year
Increase the Bank’s relevance to clients via:
• Strengthening of the product platform
• Enhancement of international distribution (NY and London)
• Agile relationships, with long-term vision and industry
knowledge
Focus on profitability (disciplined capital allocation)
Expanded credit portfolio (R$B) Expanded credit portfolio (R$B)
Sept/13
8.1
June/13 Sept/12
9.5 8.8
From R$100M
to R$600M 79% 74%
8
Payroll Loans Auto Finance
1. Only on-balance portfolio; 2. Refers to light vehicles
Consumer Finance businesses
7th largest player in the payroll loans market²
Focus on INSS (retirees and pensioners)
Selective operation in private and public payroll loans
Among market leaders in auto finance
Acts as an extension of Banco do Brasil in auto
finance outside the branch network
Continuous improvement of credit processes
• 58%² automated credit decisions in Sept/13
Managed loan portfolio (R$B) Managed loan portfolio (R$B)
Consumer Finance: focus on used auto finance and
INSS payroll loans (retirees and pensioners)
Consumer Finance – Highlights and loan portfolio
Sept/12
40.8
30.3
10.5 6.0
-2.8%
On-
balance
Off-
balance
Sept/13
34.7
29.8
4.9
June/13
35.7
29.7
-7.3%
On-
balance
Off-
balance
Sept/13
8.2
6.6
1.5
June/13
8.8
7.0
1.8
Sept/12
10.1
7.2
2.9 -18.9%
0.4%
∆Sept13
/June13
-15.9%
-5.1%
∆Sept13
/June13
Used/
Total¹ 73% 68%
INSS/
Total 61% 51%
9
-42% +24%
Used light
vehicles
Other
vehicles¹
9M13
10.1
7.4
(73%)
2.7
9M12
8.2
5.5
(67%)
2.7
9M11
17.5
9.2
(52%)
8.3
Auto Finance: origination increased 24% in 9M13 vs. 9M12 Maintained focus on used light vehicles and conservatism in credit concession
Origination grew 24% in the 9M13 vs. 9M12,
focused on used light vehicles...
...while maintaining conservative criteria in
credit concession
9.00
25.9
Sept/12
7.50
24.1
Sept/11
12.00
27.5
Dec/10
10.75
24.6
Selic²
BVF
rate
Sept/13
1. Composed of trucks, motorcycles and new light vehicles ; 2. Market’s benchmark interest rate
26% 27% 38% 37%
45444952
3Q13 3Q12 3Q11 4Q10
Down
payment
Average tenor
Consumer Finance – Auto Finance
∆ 9M13/
9M12
0.4%
35%
∆ 9M13/
9M11
-67%
-19%
Banco Votorantim is one of the market leaders in auto
finance, focused on used light vehicles
Auto Finance origination (R$B) Down payment (%) and average tenor (months)
Auto finance origination interest rate x Selic rate² (% p.y.)
10
The Bank has been originating auto finance vintages with
quality for the past 2 years, focused on multi-brand dealers
Sept/13
0.9
June/13
1.0
Dec/12
1.1
June/12 Dec/11
1.0
June/11 Dec/10
2.1
June/10 Dec/09
1.5
June/09
1.1
Vintages indicating lower quality
64% 71% Multi-brand dealers/
Total production
Inad 30¹ (by vintage)
New car dealers
Multi-brand dealers
80%
Inad 30 (by vintage) returned to historic
quality levels since the 4Q11
Consumer Finance – Auto Finance
June09-
June10
average
1. % of each month’s production with first installments past due over 30 days
Light vehicles – Origination by channel (R$B) and 1st installment delinquency¹ (%)
11
Sept/13
5.5
6.9
6.5
June/13
5.7
7.1
6.8
Mar/13
6.2
7.7
7.2
Dec/12
6.6
8.3
7.7
Sept/12
7.4
9.4
9.1
67%
Growing participation of better quality vintages in auto
finance has contributed to reduce delinquency
Better quality vintages reached 67% of the
auto finance portfolio in Sept/13...
19% 15% 13% 11% 6%
52%
47%43%
38%33%
27%
29%38%
44%52%
59%66%
8%
Sept/13 June/13 Mar/13 Dec/12 Sept/12
100%
Up to
June/10
July/10 to
Sept/11
After
Sept/11
Dec/13P
...contributing to the continuous improvement
on delinquency, that fell to 5.5% in Sept/13
Auto finance managed portfolio¹ by vintage (%)
Delinquency
1. Includes on-balance loan portfolio according to Bacen’s Res. 2,682, and off-balance credits assigned with substantial risk retention until Dec/11, before entry in force of Bacen’s Res. 3,533
48%
Quality
vintages/
Total (%)
73% Cons. Finance Light vehicles Total
Managed loan portfolio’s¹ NPL 90 (%)
Total NPL 90 reduced
190 bps in 12 months
12
Managed Loan Portfolio (A) 76,775 74,185 71,480 68,385 65,923 63,546 61,281
NPL 90 Balance 5,390 5,539 5,276 4,520 4,056 3,616 3,373
NPL 90 Quarterly Variation (B) 793 149 (262) (756) (465) (439) (244)
Write-off (C) 693 1,079 1,269 1,434 1,149 1,339 902
New NPL (D=B+C) 1,486 1,228 1,007 678 684 900 659
New NPL Rate¹ (D/A) 1.88% 1.60% 1.36% 0.95% 1.00% 1.36% 1.04%
NEW NPL
(R$ Million)1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
“New NPL” rate reduced again in 3Q13 90-day NPL formation decreased to R$659M in 3Q13, vs. R$900M in 2Q13
1.04% 1.36%
1.00% 0.95% 1.36%
1.60% 1.88%
1. Variation in the balance of NPL 90 + loans written-off to loss in the quarter, divided by loan portfolio by the end of the immediately preceding quarter
New NPL
rate
Delinquency – New NPL
3Q13
0.90 0.66
2Q13
1.34
0.90
1Q13
1.15
0.68
4Q12
1.43
0.68
3Q12
1.27 1.01
2Q12
1.08 1.23
1Q12
0.69
1.49
Write-off (R$B) New NPL (R$B)
13
ALL expenses decreased 38% in the 9M13 vs. 9M12 And 90-day Coverage Ratio reached 117% in Sept/13
117,1% 110,5%
93,1%
1. Includes on-balance loan portfolio according to Bacen’s Res. 2,682, and off-balance credits assigned with substantial risk retention until Dec/11, before entry in force of
Bacen’s Res. 3,533; 2. Ratio between ALL balance and balance of operations past due over 90 days
Note: ALL expenses include expenses related to credit assignments with recourse (both on and off-balance), as well as revenues from write-off recovery
Expenses with credit provisions (R$M) Managed loan portfolio¹’s 90-day Coverage Ratio²
669 563
290
144
-45.1% -26.4%
3Q13
706
2Q13
959
3Q12
1,286
1,167
119
-38.3%
9M13
2,554
1,964
590
9M12
4,140
3,775
365
ALL expenses reduced 26.4% vs. 2Q13 and
38.3% (R$ 1.6B) in the 9M13 vs. 9M12...
...in parallel to the ongoing increase in the
Coverage Ratio, that reached 117% in Sept/13
ALL expenses and 90-day Coverage Ratio
NPL 90 balance (R$M)
ALL balance (R$M)
Sept/13
3,373 3,996
3,616
June/13
3,948
Sept/12
5,276 4,914
∆ 9M13/
9M12
-48.0%
61.6%
R$ Million
Wholesale
Cons.
Finance
14
Banco Votorantim has also improved cost management Personnel and Administrative expenses decreased 1.5% (R$28M) in the 9M13 vs. 9M12
Personnel and Administrative Expenses
Personnel and Administrative expenses
reduced 1.5% in the 9M13 vs. 9M12
Excluding labor claims, Personnel expenses
would reduce 5.1% in 9M13 vs. 9M12
Personnel and Administrative expenses (R$M)
395 351 363
221 250 241
Admin.
Person.
3Q13
604
2Q13
601
3Q12
615
-1.9% +0.4%
-1.5%
9M13
1,800
1,081
719
9M12
1,828
1,129
700
∆ 9M13/
9M12
2.8%
-4.2%
Personnel expenses (R$M)
This cost base reduction results from a set of initiatives
for efficiency gains undertaken since Sept/11
68
Others
Labor
claims
9M13
719
651
9M12
700
686
13
∆ 9M13/
9M12
404.0%
-5.1%
Related to
restructuring
process
15
Summary: results kept trajectory of gradual improvement... Consistent revenue generation, reduction in ALL expenses and cost base under control
Total revenues (NII, Fee/Banking Fee Income and Other Op. Revenues) Credit provision expenses – ALL
Personnel and Administrative expenses Net income and Net financial margin
R$ Million
Consolidated results
590
-38.3%
9M13
2,554
1,964
9M12
4,140
3,775
365
563669
-26.4%
Cons.
Finance
Wholesale
3Q13
706 144
2Q13
959 290
3Q12
1,286
1,167
119
395 363
221 250 241
351
0.4%
3Q13
604
2Q13
601
3Q12
615
700 719
-1.5%
Administrative
Personnel
9M13
1,800
1,081
9M12
1,828
1,129
3.8%
3Q13
1,441
2Q13
1,388
3Q12
1,413
0.7%
9M13
4,227
9M12
4,196
-159-196
-459
448
153
3Q13 2Q13 3Q12
-166
633
834
9M13 9M12
1,560
-785
Net financial margin (post provision) Net income
16
Prepayment expenses of
credit assignments³ ALL expenses Expenses with contingencies²
2 3 1
889
959
706
9M13
2,554
5.3%
9M12
4,140
7.4%
9M11
2,214
3.9%
R$M R$M
212
69
444
130
124
406
9M13 9M11 9M12
1Q13
2Q13
R$55M increase in
3Q13 vs. 2Q13
62
80
78
225
457
9M13 9M12
220
9M11
R$M
Revenues recognized by
the time of the assignment
Off-balance
securitiz. 13.5 10.5 5.4
ALL expenses/Loans¹ (p.y.)
3Q13
...but were still impacted by the following factors Credit provision expenses (ALL) and contingencies remain above the historic level
Consolidated results
1. Refers to the period’s average managed loan portfolio; 2. Civil and labor; 3. Credits assigned with recourse until Dec/11 (before Res. 3,533)
2014 results are going to be substantially better,
despite impacts from the past
17
In this context, the Bank has improved its funding profile Increased participation of long-term instruments (e.g. LF, Securitization) and reduced CDs
Funding evolution (R$B)
Additionally, Banco Votorantim has a stand-by credit
facility of ~R$7B from BB, which has never been tapped
Funding
Sept/13
73.9
16.3
5.1
15.0
7.7
7.1
7.2
10.4
5.1
June/13
76.1
16.4
6.9
14.3
8.5
7.0
7.5
10.3
5.3
Sept/12
79.0
19.8
15.1
12.1
10.2
8.0
6.5 0.9
6.4
1. Includes other deposits, debenture issuances, and box of options; 2. Credits assigned with substantial risk retention to FIDCs e to other FI, under Res. 3,533 (i.e. does not
include off-balance credit assignments) Note: International funding is 100% swapped for BRL
19%
7%
15%
20%
13%
10%
10%
10%
10%
7%
8% 14%
8%
Debentures
(repos)
Time deposits (CD)
Bills (LF, LCA e LCI)
Loans and onlendings
Subordinated debt
Private securities
Credit Assignments²
Others¹
25%
1%
Sept/13
73.9
22%
Sept/12
79.0
18
Capital (PR) 13,002 12,111 11,430 10,794 10,728
Tier I Capital 8,449 7,875 7,595 7,401 7,338
Tier II Capital 4,553 4,236 3,835 3,393 3,390
Capital Requirement (PRE) 9,396 9,310 9,245 8,541 8,481
Credit risk 8,764 8,721 8,494 7,991 7,846
Market risk 337 294 469 268 234
Operational risk 296 296 282 282 400
Excess Capital 3,606 2,800 2,185 2,253 2,247
Basel Ratio (PR/(PRE/0,11)) 15.2% 14.3% 13.6% 13.9% 13.9%
Tier I 9.9% 9.3% 9.0% 9.5% 9.5%
Tier II 5.3% 5.0% 4.6% 4.4% 4.4%
Mar.13 June.13 Sept.13BASEL RATIO
(R$ Million)Sept.12 Dec.12
Banco Votorantim ended Sept/13 with a 13.9% Basel Ratio Tier I ended 3Q13 at 9.5%, only composed of Core Capital
Capital structure
Shareholders are committed to maintain the Bank’s
capital structure at adequate levels
Note: as of Oct/13, shall come into force some of the new Basel III rules, which considers, among other measures: (i) removal of the subordinated debt limit authorized to integrate Tier II capital, and (ii) 10% decay of subordinated debt that do not fit the new Basel III requirements
19
Annexes
20
Sept/13
42.7
June/13
42.7
Mar/13
41.1
Dec/12
47.3
Sept/12
45.6
Total assets Assets under management
On-balance loan portfolio
Sept/13
110.7
June/13
111.9
Mar/13
119.7
Dec/12
121.0
Sept/12
110.7
Financial highlights
Shareholders’
Equity
Sept/13
10.7
7.1
3.6
June/13
10.8
7.1
3.6
Mar/13
11.4
7.7
3.8
Dec/12
12.1
8.2
3.9
Sept/12
13.0
8.7
4.3
Sept/13
54.9
June/13
55.7
Mar/13
56.5
Dec/12
57.0
Sept/12
58.1
Financial highlights
R$ Billion
Capital
21
Net Interest Income (A) 1,120 1,112 1,154 3.8% 3,355 3,389 1.0%
ALL Expenses (1,286) (959) (706) -26.4% (4,140) (2,554) -38.3%
Net Financial Margin (B) (166) 153 448 193.1% (785) 834 -206.3%
Average Interest-Earning Assets (C) 104,263 105,840 102,260 -3.4% 105,371 105,837 0.4%
Compulsory Reserves (Bacen) 2,267 491 200 -59.2% 3,540 564 -84.1%
Interbank Funds Applied 12,251 15,492 15,374 -0.8% 14,592 15,920 9.1%
Securities 31,301 33,719 31,360 -7.0% 28,637 33,319 16.4%
Loan Portfolio 58,444 56,138 55,326 -1.4% 58,602 56,034 -4.4%
NIM (A/C) 4.4% 4.3% 4.6% 0.3 p.p. 4.3% 4.3% -
NIM after ALL (B/C) -0.6% 0.6% 1.8% 1.2 p.p. -2.9% 3.2% 6.1 p.p.
9M12NET INTEREST MARGIN (NIM)
(R$ Million)3Q12 9M13
Var. 9M13
/9M122Q13 3Q13
Var. 3Q13
/2Q13
Net Interest Margin (NIM)
Financial highlights - NIM
NIM reached 4.6% in 3Q13, reflecting continuous
improvement of portfolio quality and focus on profitability
22
Sept/13
6.4%
3,948
June/13
6.3%
3,996
Mar/13
6.5%
4,313
Dec/12
6.6%
4,518
Sept/12
6.9%
4,914
Sept/13
3,373
117.1%
June/13
3,616
110.5%
Mar/13
4,056
106.4%
Dec/12
4,520
99.9%
Sept/12
5,276
93.1%
ALL Balance (R$M) 90-day Coverage ratio¹ (%)
NPL 90 / Managed loan portfolio (%) NPL 60 / Managed loan portfolio (%)
ALL balance/Managed loan portfolio ALL balance (R$M)
Managed loan portfolio’s credit indicators Improved asset quality and coverage ratio of the portfolio
Financial highlights - Credit
1. Ratio between ALL balance and balance of operations past due over 90 days
Note: refers to managed loan portfolio (includes credits assigned with substantial risk retention until Dec/11 (before Res. 3,533))
2.4%
6.6%
8.3%
Sept/12
2.4%
7.4%
9.4%
Sept/13
2.1%
5.5%
6.9%
June/13
2.4%
5.7%
7.1%
Mar/13
2.3%
6.2%
7.7%
Dec/12
Wholesale Total Consumer Finance
2.9%
7.7% 7.2%
9.0%
Mar/13 Sept/13
2.6%
6.9%
8.6%
June/13
2.8%
9.7%
Dec/12
3.1%
8.2%
10.3%
Sept/12
2.7%
8.8%
11.2%
Wholesale Total Consumer Finance
NPL 90 balance (R$M) 90-day Coverage
23
Total Past due Falling due Total Past due Falling due Total Past due Falling due
AA 8,034 - 8,034 6,662 - 6,662 5,244 - 5,244
A 33,087 - 33,087 26,293 - 26,293 26,285 - 26,285
B 6,640 1,632 5,008 10,109 1,227 8,882 10,062 1,125 8,936
C 3,645 1,443 2,202 6,819 1,454 5,364 7,814 1,303 6,511
D 1,411 837 574 1,556 891 664 1,198 678 521
E 1,104 637 467 1,139 530 609 1,180 469 711
F 554 517 37 569 440 130 461 379 82
G 678 589 88 522 416 106 498 358 140
H 2,925 2,698 226 2,078 1,987 92 2,162 2,035 127
TOTAL 58,079 8,354 49,725 55,748 6,946 48,802 54,903 6,347 48,557
B-C/Total 18% 37% 15% 30% 39% 29% 33% 38% 32%
RISK
(R$ Million)
Sept.12 June.13 Sept.13
On-balance loan portfolio per risk level Greater B-C portfolio due to the adoption of a more conservative “departure rating” policy since 2Q12
Financial highlights – Credit
On-balance loan portfolio classified as levels B and C (R$M)
Falling
due
Past due
Sept/13
17,875
86%
14%
June/13
16,928
84%
16%
Mar/13
15,273
79%
21%
Dec/12
12,759
76%
24%
Sept/12
10,285
70%
30%
June/12
8,905
63%
37%
Mar/12
9,141
58%
42%
Increase in B-C
portfolio related to
greater % of initial
provisioning applied to
vehicles financed
since 2Q12
(“departure rating”)
24
Personnel Expenses (221) (250) (241) -3.7% 9.2%
Other Administrative Expenses (395) (351) (363) 3.3% -8.1%
Total Personnel and Administrative Expenses (A) (615) (601) (604) 0.4% -1.9%
Net Interest Income (NII) 1,120 1,112 1,154 3.8% 3.0%
Fee/Banking Fee Income 256 253 257 1.7% 0.1%
Equity in Income of Associated Companies and Subsidiaries 18 20 30 50.9% 63.9%
Other Operating Income/Expenses (95) (87) (223) 156.9% 133.7%
Total Revenues (B) 1,300 1,297 1,218 -6.1% -6.3%
Efficiency Ratio (A/B) - 3M 47.4% 46.4% 49.6% 3.2 p.p. 2.2 p.p.
Efficiency Ratio (A/B) - 12M 50.6% 51.0% 51.6% 0.6 p.p. 1.0 p.p.
Expenses with labor claims and contingencies (183) (98) (143) 45.2% -22.1%
Efficiency Ratio (A/B) excl. labor claims and conting. - 3M 41.5% 41.9% 43.6% 1.7 p.p. 2.1 p.p.
Efficiency Ratio (A/B) excl. labor claims and conting. - 12M 44.4% 43.6% 44.2% 0.6 p.p. -0.2 p.p.
EFFICIENCY RATIO (ER)
(R$ Million)3Q12 2Q13 3Q13
Var. 3Q13
/2Q13
Var. 3Q13
/3Q12
Financial highlights – Efficiency Ratio
Efficiency Ratio (ER) Efficiency Ratio still impacted by specific expenses with contingencies and labor claims