O tempo todo com o Brasil
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O tempo todo com o Brasil 4Q03 Earnings 4Q03 Earnings
description
O tempo todo com o Brasil. 4Q03 Earnings. Highlights. R$ 230.1 bi. Largest Bank in Brazil in Total Assets. R$ 102.7 bi. Leadership in Assets Under Management. R$ 77.6 bi. Leadership in Credit Operations. R$ 150.1 bi. Leadership in Total Funding. 18.8 million. Customer Base. 6 million. - PowerPoint PPT Presentation
Transcript of O tempo todo com o Brasil
O tempotodo com o
Brasil
4Q03 Earnings4Q03 Earnings
Highlights
Largest Bank in Brazil in Total Assets
Leadership in Assets Under Management
Leadership in Credit Operations
Leadership in Total Funding
Customer Base
Customers in BB’s Internet
Largest ATM Network in Latin America
Largest network service in the country
2
efficiency reflected in numbers
HighlightsR$ million
4Q02 3Q03 4Q03 s/4Q02 s/3Q03
Total Assets 204,595 215,134 230,144 12.5 7.0Credit Operations 1 62,900 72,601 77,636 23.4 6.9
Security Portfolio 70,943 74,055 69,590 -1.9 -6.0Deposits 2 97,253 103,071 110,014 13.1 6.7
Asset Management - R$ bi 66.2 91.8 102.7 55.1 11.9
Shareholders’ Equity 9,197 11,687 12,172 32.3 4.1
Market Capitalization 6,699 11,712 17,568 162.2 50.0Net Income 600 665 637 6.2 -4.2ROE %
330.2 25.7 23.1
Earnings Per Share - R$ 0.82 0.91 0.87
Change %
3
1- Credit operations, Leasing operations and others credits, according Res. 2682/992 - Demand, Time, Savings and Interbank3 - Net Income included4 - Annualized
2,02
8 2,38
1
22.6 22.3
2002 2003
adding value to shareholders...
Net Profit and Return On EquityR$ million
4
600
479
600665 637
30.2
21.324.8 25.7
23.1
4Q02 1Q03 2Q03 3Q03 4Q03
Net Profit ROE %
The result of the year allowed a R$ 745.7 millions remuneration to shareholders in the form of Interests on Equity, as dividends. This amount is 28.7% higher than the amount paid in the year of 2002.
result building up
55
Increase in Credit Operations
Expansion in Service Fees
“Other Administrative Expenses” under control
Pricing increase in the security portfolio
Reduction in the delinquency ratios
Overall enhancement in Credit Global Risk
solid results
Income Statementwith Reallocations
6
R$ million 4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 ChangeGross Financial Margin 4,148 3,888 3,977 -4.1% 2.3% 13,575 15,318 12.8% Provision for NPL (855) (747) (827) -3.3% 10.7% (2,876) (3,073) 6.9%Net Financial Margin 3,293 3,141 3,150 -4.4% 0.3% 10,699 12,245 14.4% Service Fees 1,159 1,412 1,511 30.3% 7.0% 4,454 5,491 23.3% Turnover Tax Expenses (249) (242) (289) 15.9% 19.6% (703) (1,004) 42.8%Contribution Margin 4,203 4,312 4,372 4,0% 1,4% 14,450 16,732 15.8% Administrative Expenses (2,728) (2,931) (3,149) 15.4% 7.4% (9,761) (11,298) 15.7%Commercial Income 1,476 1,381 1,223 -17.1% -11.4% 4,689 5,435 15.9%Operating Income 893 1,213 1,335 49.5% 10.0% 3,322 4,811 44.8%Income before Profit Sh.Taxes Ext. Items 995 1,231 1,374 38.1% 11.6% 3,493 4,959 42.0%
Income Tax and Social Contribution (352) (516) (453) 28.8% -12.2% (1,188) (2,067) 74.0% Profit sharing (43) (50) (155) 258.9% 210.9% (145) (273) 88.7%Recurrent Result 600 665 765 27.6% 15.1% 2,160 2,619 21.2%Extraordinary items - - (128) (132) (238) 79.7%Net Income 600 665 637 6.2% -4.1% 2,028 2,381 17.4%
Quarterly Flow Annual Flow
Analysis of volume and spread
ready to a new environment
7
* average
R$ million 4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearGross Financial Margin 4,148 3,888 3,977 -4.1% 2.3% 13,575 15,318 12.8%Asset (-) Permanent 207,918 209,072 221,377 6.5% 5.9% 181,237 208,198 14.9%Spread Annualized 8.2 7.6 7.4 7.5 7.4
Quarterly Flow Annual Flow
13,575
(241)
2,019
(36)
Spread - %
Volume - R$ million
2002 - 7.490365
2003 - 7.357317
2003
- 20
8,19
8
2002
- 18
1,23
7
Loss due to spread decrease Loss due to spread and volume increase
Gain due to volume increase
asset quality preserved
R$ million
8
4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearGross Financial Margin 4,148 3,888 3,977 -4.1% 2.3% 13,575 15,318 12.8% Provision for NPL (855) (747) (827) -3.3% 10.7% (2,876) (3,073) 6.9%Net Financial Margin 3,293 3,141 3,150 -4.4% 0.3% 10,699 12,245 14.4%
Quarterly Flow Annual Flow
6.05.6
5.35.0
4.7
5.95.5
5.14.8
4.6
3.33.0
3.2 3.23.0
4Q02 1Q03 2Q03 3Q03 4Q03
2.4
1.4
0.1
5.4
4.1 4.3
2.11.6
4.6
4.0
4Q02 3Q03 4Q03 2002 2003
Loss / Portfolio Expenses with Provisions/PortfolioOverdue Loans/Total Credit PortfolioOverdue more than 15 days/Total Credit PortfolioOverdue more than 60 days/Total Credit Portfolio
Delinquency ratio % Loss Ratio - Annualized %
margin growth guaranteed by business diversification
9
4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearNet Financial Margin 3,293 3,141 3,150 -4.4% 0.3% 10,699 12,245 14.4% Service Fees 1,159 1,412 1,511 30.3% 7.0% 4,454 5,491 23.3% Turnover Tax Expenses (249) (242) (289) 15.9% 19.6% (703) (1,004) 42.8%Contribution Margin 4,203 4,312 4,372 4.0% 1.4% 14,450 16,732 15.8%
Quarterly Flow Annual Flow
4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearReceitas de Prestação de Serviços 1,159 1,412 1,511 30.3% 7.0% 4,454 5,491 23.3% Customers Relations Fees 336 407 451 34.0% 10.7% 1,280 1,647 28.7% Management of Investment Funds 155 214 220 42.5% 3.0% 700 784 12.0% Loan Operations 96 142 148 54.3% 4.5% 358 538 50.4% Collection 107 130 143 34.0% 10.3% 401 500 24.8% Services to Related Companies 22 34 27 18.8% -22.4% 92 121 31.2% Third Revenue and Payments 95 104 106 12.0% 2.4% 349 392 12.2% Credit Cards 111 109 130 17.3% 20.0% 380 461 21.2% Others 237 273 285 20.3% 4.5% 894 1,049 17.3%
Quarterly Flow Annual Flow
R$ million
Asset Management
customers’ loyalty and asset management leadership
R$ billion
Customer Base - in thousands
10
66.278.0
83.291.8
102.7
17.4 18.6 18.7 18.8 19.0
4Q02 1Q03 2Q03 3Q03 4Q03
Asset Management Market Share %
14,399 14,905 15,645 15,93717,534
9921,005
1,073 1,112
1,217
4Q02 1Q03 2Q03 3Q03 4Q03
Individuals Companies
cost structure suitable with business generation
R$ million
R$ million 4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearContribution Margin 4,203 4,312 4,372 4.0% 1.4% 14,450 16,732 15.8%Administrative Expenses (2,728) (2,931) (3,149) 15.4% 7.4% (9,761) (11,298) 15.7%Commercial Income 1,476 1,381 1,223 -17.1% -11.4% 4,689 5,435 15.9%
Quarterly Flow Annual Flow
4Q02 3Q03 4Q03 s/4Q02 s/3Q03 2002 2003 YearAdministrative Expenses (2,728) (2,931) (3,149) 15.4% 7.4% (9,761) (11,298) 15.7% Other Administrative Expenses (1,197) (1,221) (1,165) -2.7% -4.6% (4,097) (4,514) 10.2% Employees Expenses (1,504) (1,681) (1,949) 29.6% 15.9% (5,548) (6,660) 20.0% Salaries (802) (802) (779) -2.8% -2.8% (2,782) (2,992) 7.6% Social Charges and Benefits (466) (495) (493) 5.7% -0.5% (1,604) (1,881) 17.2% Training (11) (10) (17) 53.7% 70.9% (31) (41) 33.7% Labor Suits (86) (80) (435) 406.2% 442.3% (373) (881) 136.5% Provisions for vacation/leaves (137) (292) (222) 62.7% -24.0% (753) (860) 14.3%
Quarterly Flow Annual Flow
11
Points of Service - in thousands
Human Resources- in thousands
cost structure suitable with business generation
12
9,169 9,362 9,546 9,712 9,979
3,164 3,183 3,209 3,218 3,241
4Q02 1Q03 2Q03 3Q03 4Q03
Others Branch
78.6 79.5 79.5 79.7 80.6
9.5 10.6 10.8 10.8 10.2
4Q02 1Q03 2Q03 3Q03 4Q03
Employees Interns
productivity equation completed by technologyAutomatization
Electronic Transition / Operating Income - %
Efficiency Ratio - %
%
13
Coverage Ratio - %Service Income/Personnel Expenses
77.1 80.7
90.784.0
77.5 80.3 82.5
4Q02 1Q03 2Q03 3Q03 4Q03 2002 2003
58.0 56.7 54.057.6 56.5 59.0 56.3
4Q02 1Q03 2Q03 3Q03 4Q03 2002 2003
74.6%
76.9%77.6%
79.6%
81.4%82.5% 82.4%
84.1% 84.6% 85.0% 85.2%86.4%
Charge/01 JUN/01 SEP/01 DEC/01 MAR/02 JUN/02 SEP/02 DEC/02 MAR/03 JUN/03 SEP/03 DEC/03
53.4 51.5
10.7
14.8 16.3
15.9 13.6
2.1 2.3
9.0
5.64.8
dec/02 dec/03ATM Internet Financial Manager POS Cashier
Administrative Expenses / Operational Income
R$ million
BB - the bank that most invests in Brazil
Market Funding - R$ billionAsset Composition - %
14
dec/02 sep/03 dec/03 s/dec/02 s/sep/03Total Assets 204,595 215,134 230,144 12,5% 7.0% Liquid Assets 90,343 91,627 102,439 13.4% 11.8% Credit Operations 51,470 60,442 65,604 27.5% 8.5% Tax Credit 11,847 9,897 9,406 -20.6% -5.0% Other Assets 50,935 53,168 52,695 3.5% -0.9%Total Liabilities 204,595 215,134 230,144 12.5% 7.0% Deposits 97,253 103,071 110,014 13.1% 6.7% Other Liabilities 98,145 100,376 107,959 10.0% 7.6%Stockholders Equity 9,197 11,687 12,172 32.3% 4.1%
44.2 42.2 38.6 42.6 44.5
25.2 25.6 27.5 28.1 28.5
24.9 27.0 28.8 24.7 22.9
5.8 5.2 5.1 4.6 4.1
dec-02 mar-03 jun-03 sep-03 dec-03
24.3
26.9
3.9
42.1 48
.3
145.
6
20.5 26
.6
6.4
49.6
46.5
149.
5
27.1
27.4
7.3
48.2
40.1
150.
1
dec/02 sep/03 dec/03 Liquidity assets Credit Operations Tax Credit Other Assets
InterbankDeposits
DemandDeposits
SavingsDeposits
TimeDeposits
Open MarketFunds
Total
Securities Portfolio
liquidity preserved
R$ million
Securities Portfolio Maturity - %
15
22.8 26.8 21.6 18.9 16.7
61.0 58.2 64.1 70.5 72.0
12.63.0 1.7 1.7 1.8 2.1
8.7 9.313.2 13.3
dec/02 mar/03 jun/03 sep/03 dec/03
Up to 1 year Up 5 to 1 years Up 10 to 5 years Over 10 years
Cost Market V. Cost Market V. Cost Market V.Securities Portfolio 72,958 70,943 74,043 74,055 69,210 69,590 Available for trading 3,584 3,585 5,372 5,393 16,054 16,095 Available for sale 43,274 41,303 43,159 43,158 27,924 28,307 Held to Maturity 25,763 25,763 25,109 25,109 24,821 24,821 Derivatives 337 292 403 396 411 368
3Q03 4Q034Q02
well balanced credit portfolio
- R$ 77.6 billions
Credit Portfolio
Dec/02 - R$ 62.9 billions Dec/03
16
20.0%
22.3%
26.7%
12.1%
16.4%2.5%
20.6%
20.9%
35.0%
9.5%
12.2%1.9%
Retail Commercial Agribusiness International Abroad Others
BB NFSRetail Portfolio by Risk Level
Shares % - December/03
strong position in retail portfolio
BB SFN
AA-B C-D E-H
17
82.2 87.5 87.2 81.7
17.4
1.2 0.9
6.310.3 11.6
11.5 2.2
Retail Commercial Agribusiness International
85.2
10.2
4.6
BB
78.6
13.6
7.8
SFN
ability to increase businesses with customersCapital Adequacy
R$ million
BIS Ratio -%
18
8.4 9.3 9.7 10.1 9.7
3.84.1 4.1 4.2 4.0
dec/02 mar/03 jun/03 sep/03 dec/03
Level I Level II
12.213.4 13.8 14.3 13.7
dec/02 sep/03 dec/03 s/dec/02 s/sep/03Risk weighted Assets 103,859 109,121 120,973 16.5% 10.9%PLE 12,024 12,705 13,772 14.5% 8.4% Required on weighted assets 11,424 12,003 13,307 16.5% 10.9% Required on swap 142 173 152 6.5% -12.5% Required on exchange exp - - - Required on Interest rate exp 457 529 313 -31.5% -40.8%Required Shareholder’s Equity 13.377 16,520 17,162 28.3% 3.9% Level I 9,172 11,663 12,147 32.4% 4.2% Capital Social 7,436 8,366 8,366 12.5% 0.0% Capital Reserve 5 5 5 0.0% 0.0% Profit Reserve 2,969 2,796 3,674 23.8% 31.4% Detached Account (1,111) (43) 228 -120.5% -624.7% Treasury Stocks (126) (126) (126) 0.0% 0.0% Income Account - 665 - Level II 4,205 4,858 5,015 19.3% 3.2%Surplus / shareholders equity deficit 1,353 3,815 3,391 150.6% -11.1%Surplus / leverage deficit 12,302 34,680 30,825 150.6% -11.1%Coefficient K % 12.24 14.30 13.71
insurance and private pension
Insurance RevenueR$ million
19
Insurance / Net Aggregated Insurance / Net Aggregated ValueValue
20022002 20032003
1,9%
71,1%
27,0%
Insurance GFM Others
456
77
203
110
37
4
24
655
76
277
172
72
4
54
Total
Auto
Life and Others
Capitalization PLans
Private Pension
Health
Manag. Insur. Funds
2002 2003
2.7%
80.6%
16.6%3.2%
75.3%
21.4%
Market recognition
9.110.2
12.7
16.0
24.0
11.512.6
13.914.9
16.00.7 0.7
0.9
1.0
1.4
dec/02 mar/03 jun/03 sep/03 dec/03Price Book Value Price/BV - x
Price X Book Value
20
Strategies lined up with the future
21
To add value to shareholders
Adequacy between revenue and cost structures
To keep BB as the main bank in foreign trade
To establish BB as one of the main Banks in Capital Markets
To enhance Corporate Governance practices
To strength BB’s performance as a socially responsible company
To stimulate banking throughout Banco Popular
To strength customers relationship
To keep the position of the most reminded Bank among Brazilians
Strategies lined up with the future
22
Return on equity 15%
Efficiency ratio 61%
Service Revenues / Administrative Expenses 49%
Customers ( Banco Popular) 1 million
Average customer product 4
Customers 20 million
Electronic transactions 88%
new site of IR
Investor Relations DivisionSBS - Quadra 1 - Bloco C - Ed. Sede III - 17° floor
70073-901 - Brasília (DF)Phone: 55 (61) 310.5920
Fax: 55 (61) 310.3735
DisclaimerDisclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.
For further information access www.bb.com.br/ri
or:
MD&A
