2Q18. Investor. Relations E a r n i n g s Re s u l t s

Transcription

1 2Q18 Investor Relations E a r n i n g s Re s u l t s

2 Highlights Net Income of R$ million in 2Q18, 23.6% lower than 1Q18 and R$ million in the 1H18 evolution of 17.7% over 1H17. Recurring Net Income of R$ million in 2Q18, 23.3% higher 1Q18 and R$ million in 1H18, a growth of 64.0% over 1H17. Additional provision of R$ million for loan operations and guarantees accounts. ROAE of 15.7% p.a. in the quarter and 18.7% in the first half and Net Financial Margin (NIM) of 12.5% p.a. in 2Q18 and 12.3% in 1H18. Recurring ROAE of 25.2% and Net Financial Margin (NIM-AR) of 13.8% in 2Q18. Expanded Loan Portfolio of R$ 16.0 billion, up 1.9% in the quarter and growth of 15.1% in the last 12 months. The LLP Balance/Loan portfolio reached 6.4% in 2Q18, including the additional provision was 7.4%. Basel III Ratio of 15.8%, with the minimum required at 8.625% and Shareholders Equity of R$ 3,196.6 million. 2 2

3 Expanded Loan portfolio reaches R$ 16.0 billion in 2Q18. Expanded Loan Portfolio (R$ mn) 2Q18 1Q18 Chg. 2Q17 Chg. Companies 6, , % 5, % Receivables Purchase 1, , % 1, % Leasing % % Avals and Sureties % % Total Expanded Companies 10, , % 8, % Payroll Loans 4, , % 4, % Payroll Card % % Total Payroll Loans 4.965,9 4, % 5, % Total Auto Loans 621, % % Total DCC/Other 43, % % Total Expanded Loan Portfolio 15, , % 13, % Expanded Loan Portfolio R$ mn Breakdown Loan Portfolio - % 13,860 14,078 16,033 15,654 15, % 0.3% Companies Payroll Loans 31.1% 64.7% Auto Loans Other 2Q17 3Q17 4Q17 1Q18 2Q18 3

4 Companies Portfolio: Growth of 2.2% compared to 1Q18. Highlights Focus on companies with anual revenues between R$ 10mn and R$ 300mn 90% of active clients with sales less than R$ 300 mn/year 84% of the tickets are lower than R$ 500,000 58% of the balance due is from clients with sales up to R$ 300 mn/year 94% of the clients have a balance due lower than R$ 5 mn 40 branches. In 2Q18, new branch in Joinville SC. Companies Portfolio R$ mn 10,533 10,106 10,324 8,206 8,548 2Q17 3Q17 4Q17 1Q18 2Q18 Collateral - % Geographic Distribution - % Outstanding Operation - % 3% 2% 1% 2% Receivables 6% 14% 72% Real Estate Financial Investments Equipments / Foreign goods Vehicles Agricultural Products Others 10% 3% Southeast South 13% Northeast 58% Mid-West 16% North 32% 17% 3% 48% Maturity of 48% over the next 90 days Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years 4

5 Companies Portfolio: Diversification of the sectorial breakdown Breakdown Companies R$ (mn) 2Q18 Chg. 1Q18 Working Capital 4, % Receivables Purchase 1, % Guaranteed Account 1, % Avals and Sureties % Trade Finance 871,5 1.0% Leasing % BNDES % Total Companies 10, % Sectors Breakdown 6% 5% Working Capital/Guaranteed Account 8% 9% Receivables Purchase Avals and Sureties 55% Trade Finance 17% Leasing BNDES Concentration by Sector 2Q18 Industry 42.8% Service 29.4% Commerce 23.2% 10 Largest sectors Transportation 2.4% Chemical and Petrochemical 7.0% Agribusiness 5.4% Real State Development 4.4% Food and beverage 3.9% Electric and Electronical 1.9% Cooperatives 1.6% Paper and Cardboard 1.3% Auto Parts adn Acessories Industry 3.1% 100 Largest 50 Largest 20 Largest 10 Largest Largest Debtor Concentration of Credit 12.7% 7.3% 4.5% 0.8% 18.0% * % over the total of the Companies portfolio 5

6 Payroll Loans: Balance of R$ 4,966 million Highlights Payroll Card: 349,300 Number of contracts in the portfolio 2Q18: 1, Average ticket: R$ 5,100 Portfolio Duration: 15 months Average Interest Rate (year): 29.4% 38 own stores-ifp: 14.6% share of sales in the quarter Refinancing Origination (Refin): 39% Total Payroll Loan R$ mn 5,049 4,928 4,884 4,915 4,966 2Q17 3Q17 4Q17 1Q18 2Q Portfolio Origination Monthly Average R$ mn Q17 3Q17 4Q17 1Q18 2Q18 Net Origination Refin. Total Breakdown Payroll Loan 4.0% INSS 8.7% 12.3% 33.3% State Government Municipalities 12.7% 28.8% Army Government /SIAPE Others Breakdown Payroll Origination 2.3% INSS 8.9% 32.8% 16.8% State Government Army Municipalities 18.6% Government /SIAPE 20.6% Others 6

7 Daycred Auto Loans: increase of 5.4% compared to 1Q18. Highlights Number of contracts in the portfolio 2Q18: 94,800 Average ticket: R$ 6,500 Portfolio Duration: 14 months Average Interest Rate (year): 39.8% p.a. Vehicle average age: 12 years (80% light vehicles and 20% heavy vehicles) Auto Loan Portfolio R$ mn Focus on the Southeast of Brazil Number of Promoters: 142 Origination of Auto Loan Portfolio R$ mn 2Q17 3Q17 4Q17 1Q18 2Q18 Auto Loans - Outstanding Operation 3% % 18% Maturity of 97% over the next 3 years 38% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Up to 3 months 3 to 12 months 1 to 3 years 3 to 5 years 7

8 Daycoval Asset manages 61 funds. Gross Revenue of R$ 2.4 mn through the management of investment funds in 2Q18 and R$ 4.6 mn in 1H Multimarket Funds; 5 Fixed Income Funds; 1 Stock Fund; 5 FIDC; 13 Investment Clubs; 1 Real Estate Fund; 3 Holding Funds and 1 Managed Portfolio R$ 1.8 billion Management and Custody services. Asset Management - R$ mn Advantages of Digital Investe Online investment platform daycovalinveste.com.br Range of products: LCM, LCA, Local Bonds, CDB(bank depositary receipts), Funds and Automatic Credit; Consulting: The client has access to a direct channel with investment specialists via phone, or WhatsApp; ,121 2,427 2,561 2,655 2,842 Automatic investment: Daycoval launched Investe, an automatic investment service for clients with profitability of 100% of the CDI and daily liquidity; Diversification of portfolio on the same investment platform: In addition to the Bank's products, we offer products from other institutions; Q17 3Q17 4Q17 1Q18 2Q18 Daycoval Automatic Credit: This is an approved credit limit for individuals who have fixed income investments in Daycoval Investe. 8

9 Other Products and Services 32 Exchange Bureaus 125,900 operations and turnover of R$ million in 2Q18 FOREIGN CURRENCY At Daycoval Câmbio you can find the main foreign currencies in circulation in the world. Loans and Financing Operations 38 stores throughout the country 14.6% share of sales 275 employees. Collection 33 offices 1,258,000 trading operations with pre-paid cards, cash and remittances TRAVEL MONEY CARDS American Dollar Canadian Dollar Australian Dollar New Zealand Dollar Euro and Pound. daycovalcgi.com.br daycovalcambio.com.br/lojaonline ecode.daycoval.com.br 9

10 Funding: Increase of 9.2% compared to 2Q17. Funding (R$ mn) 2Q18 1Q18 Chg. 2Q17 Chg. Deposits 4, , % 5, % Letter of Credit - LCI + LCM 1, , % 1, % Total Deposits + LCI + LCM 5, , % 6, % Individuals % % Institutional 5, , % 4, % Institutional - Public Offerings % % Local Bonds (Letras Financeiras) 6, , % 5, % Subordinated Local Bonds (Letras Financeiras) n.a. - n.a. Bonds 1, , % 1, % Foreign borrowings 2, , % 2, % Domestic onlendings % % Borrowing and Onlending 2, , % 2, % Total 17, , % 15, % Funding R$ mn Risk Rating Agencies 15,753 15,718 14,908 15,692 39% 39% 38% 37% 34% 36% 37% 39% 17,197 35% 39% 11% 11% 11% 10% 11% 16% 16% 14% 14% 15% 2Q17 3Q17 4Q17 1Q18 2Q18 Global Long Term Ba2 National Long Term Aa2.br Short Term BR-1 Perspective Stable Apr/18 Global Long Term BB- Short Term B National Long Term AA (bra) Short Term F1+(bra) Perspective Stable Jun/18 Global Long Term BB- Short Term B National Long Term bra+ Short Term bra-1 Perspective Negative Jan/18 BRMP 1 Low Risk for Short Term (up to 2 years) Very safe Jul/18 Borrowing and Onlending Local Bonds Foreign Issuances Total Deposits + LCA + LCM 10

11 Asset & Liability by Maturity - Positive Gap of 15 days 7,079 3,441 5,559 4,402 5,507 3,813 1, Free Cash of R$ 4.9 billion Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years Loan Portfolio - Outstanding Operations 8.7% 2.6% Funding Loan Portfolio Funding - Outstanding Operations 2.5% 0.3% 24.0% 24.6% 35.8% Maturity of 64% over the next 12 months 32.0% 41.2% Maturity of 65% over the next 12 months 28.3% Up tp 3 months 3-12 months 1-3 years 3-5 years over 5 years Loan Portfolio by Segment Average term to Maturity (1) days Companies 188 Trade Finance 94 Payroll Loans 466 Auto Loans 433 DCC + Other Leasing 527 BNDES 361 Total Loan Portfolio 304 (1) From June 30, 2018 Up tp 3 months 3-12 months 1-3 years 3-5 years over 5 years Funding Average term to Maturity (1) days Total Deposits 159 Interbank Deposits 57 Local Bonds (letras financeiras) 415 LCA (Letter of Credit Agribusiness) 180 LCM (Letter Home Mortgage) 254 Foreign Issuances 257 Borrowing and Onlending (2) 323 Leasing 195 BNDES 362 Total Funding 319 (1) From June 30, 2018; (2) Does not consider Avals and Sureties 11

12 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Loan Portfolio Establishment of Additional Provision of R$ million in 2Q18. Total Provision Balance and Establishment of Provision (% Loan Portfolio) R$ MN , Considering Additional Provision Considering Additional Provision Provision Balance Stablishment of Provision Evolution LLP / Portfolio by Segment (%) Companies Portfolio Provision (1) Payroll Provision Vehicle Provision Excluding Additional Provision Excluding Additional Provision Excluding Additional Provision Additional Provision (1) Includes Receivables purchase and Leasing Additional Provision Additional Provision 12

13 LLP Balance / Portfolio E-H reached 104.1%. Provision Expenses by segment (R$ mn) Q17 3Q17 4Q17 1Q18 1Q18 1H17 1H18 Companies Payroll Loans Auto Loans + others Additional Provision (*) (*) Does not consider Additional Provision. 17% 24% 17% , Not considering Additional Provison of R$ 110 million Recovered Loans (R$ mn) 93% % 31% % T17 3T17 4T17 1T18 2T18 1S17 1S18 Not considering Additional Provison of R$ 272 million Loan Portfolio E-H - R$ mn 2Q17 3Q17 4Q17 1Q18 2Q18 Companies Leasing Payroll Auto DCC + Other Total Final Balance LLP LLP Balance / Portfolio E-H (%) 95.2% 96.4% 103.0% 104.1% 104.1% 1 Considers receivables purchase E-H portfolio. 2 Does not consider Additional Provision. Considering the Additional Provison of R$143.3 million in 2Q18, the LLP balance/e-h Portfolio was 119.6%. Write-off (R$ mn) 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 Companies (45.0) (53.1) (68.5) (50.7) (98.9) (67.8) (149.6) Retail (50.9) (49.7) (47.9) (44.6) (44.3) (101.3) (88.9) Total (95.9) (102.8) (116.4) (95.3) (143.2) (169.1) (238.5) Companies Retail % Recovered Loans (1) (1) Recovered Loans / write-off of previous year 13

14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Quality indicators of credit portfolio remain controlled. Overdue Loans ) 2Q18 1Q18 2Q17 Overdue Loans more than 90 days past due - R$ mn Overdue Loans more than 90 days past due - R$ mn falling due installments LLP Balance / Overdue Loans > 90 days (%) 412.4% 466.6% 580.4% LLP Balance / Overdue Loans > 90 days (%) falling dueinstallments 189.6% 201.8% 172.9% Overdue Loans > 90 days/loan Portfolio (%) 1.6% 1.4% 1.2% Overdue Loans > 90 days/loan Portfolio (%) falling due installments 3.4% 3.3% 4.0% Past due operations - more than 90 days R$ MN % 0.8% 1.0% 0.9% 1.3% 1.8% 1.7% 0.7% 1.1% 1.2% 1.3% 1.1% % 1.6% Past due operations - more than 90 days Installments falling due % % 4.5% 4.0% 3.8% 2.7% 2.5% 2.8% 2.7% 3.4% 3.0% 2.9% 3.3% 3,4% 2.3% Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio Past due operations > 90 days (R$ mn) Past due operations > 90 days/loan Portfolio 14

15 Past due loans > 90 days % 1.0% 1.3% 1.0% 1.8% 2.6% 2.5% 0.5% 1.2% 1.2% 1.4% 1.8% 1.9% 1.1% COMPANIES Past due loans > 90 days installments falling due % % 2.2% 2.2% 1.7% 1.8% % % % 2.3% 2.5% 1.6% 1.9% 2.4% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio Past due loans > 90 days % 0.4% 0.4% 0.4% 0.5% 0.6% 0.6% 0.7% 0.8% 0.9% 0.9% 0.9% 0.8% 0.8% PAYROLL Past due loans > 90 days installments falling due % 4.2% 4.8% 5.7% 5.3% 5.1% 5.4% 4.7% 2.1% 2.2% 2.4% 2.4% 2.6% 2.8% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio Past due loans > 90 days VEHICLES Past due loans > 90 days installments falling due % 1.7% 2.0% 2.2% 2.4% 2.6% 2.5% 2.6% 2.5% 2.4% 2.1% 1.8% 1.7% 1.6% 7.3% 8.2% 9.0% 10.1% 10.8% 11.3% 11.2% 11.3% 10.8% 9.8% 8.3% 7.7% 7.3% 7.1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Past due operations > 90 days R$ (mn) Past due operations > 90 days/loan Portfolio 15

16 Efficiency Ratio of 28.6% in 2Q18 Efficiency Ratio (R$ mn) 2Q18 1Q18 Chg. 2Q17 Chg. 1H18 1H17 Chg. (+) Personnel + Administrative Expenses + Commisions (205.5) (194.2) 5.8% (185.7) 10.7% (399.7) (366.1) 9.2% (+) Depreciation and Amortization % 0.5 n.a % Total Expenses (A) (202.9) (191.7) 5.8% (185.2) 9.6% (394.6) (365.0) 8.1% (+) Income from Financial Intermediation - LLP % % 1, % (+) Income from Services Provided % % % (+) Income from Receivables purchase % % % (+) Other adjustments - securities - (0.7) n.a. - n.a. (0.7) - n.a. (+) Exchange Rate Variation (0.1) (0.1) n.a. (86.8) n.a (0.2) (20.2) n.a. Total Income (B) % % 1, , % Efficiency Ratio (A/B) (%) 28.6% 28.3% 0.3 p.p 31.3% -2.7 p.p 28.5% 32.4% -3.9 p.p Efficiency Ratio - % Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 16

17 NIM-AR of 13.8 % in 2Q18. Recurring Adjusted Net Interest Margin (NIM-AR) (%) 2Q18 1Q18 Chg. 2Q17 Chg. 1H18 1H17 Chg. Adjusted Income from Financial Intermediation adjusted (mn) % % 1, , % Hedge/MTM R$ (mn) (14.0) 3.3 n.a n.a n.a. Hedge Interest rate (DI) R$ (mn) 1.7 (2.2) n.a. (0.6) n.a. (10.7) (6.1) n.a. Recurring Adjusted Income from Financial Intermediation (A) R$ (mn) % % 1, , % Average Remunerated Assets R$ (mn) 22, , % 20, % 22, , % (-) Expenses of financial intermediation add back provisions R$ (mn) (1,733.1) (1,890.0) n.a. (1,035.7) n.a. (1,811.6) (1,218.8) n.a. Average Remunerated Assets (B) R$ (mn) 20, , % 19, % 20, , % Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/B) 13.8% 13.6% 0.2 p.p 11.7% 2.1 p.p 12.7% 11.4% 1.3 p.p Adjusted Net Interest Margin and Recurring - (NIM-AR) (1) - (%) Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 (1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights and portfolio transfers to other banks and excludes matched operations repurchase agreements-tri-party repos outstanding. 17

18 Basel Index of 15.8% in 2Q18. Basel Index III (1) Shareholder's Equity R$ MN 16.5% 15.9% 14.9% 16.1% 15.8% 2, , , , , Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 (1) Basel Index 3 minimum 8.65%.required by the Central Bank. R$ MN Change in Shareholder s Equity June , (48.9) 3,196.6 (5.3) Dec/17 Net Income Interest on Equity and Dividends Asset Valuation Adjustmet Jun/18 18

19 Net Income of R$ million and Return on Average Equity (ROAE) of 18.7% in 1H18. R$ MN Q17 3Q17 4Q17 1Q18 2Q18 * Adjusted Net Income Net Income Net Income 202.4* H * H18 Net Income Recurring Key Figures (R$ mn) 2Q18 1Q18 1H18 1H17 Net Income Additional Provision* (90.0) - (90.0) - Hedge/MTM R$ (mn) (7.7) 1.9 (5.8) 26.2 Hedge Interest rate (DI) R$ (mn) 1.0 (1.2) (0.2) (3.4) Exchange Variation - Equivalence - Branch Adjusted Net Income , Adjusted ROAE (%) 25.2% 21.7% 23.5% 16.3% Adjusted ROAA (%) 3.2% 2.8% 3.0% 2.0% Adjusted Eficiency Ratio (%) 28.1% 28.4% 28.2% 33.6% (*) Refers to the gross amount of R $ million for credit operations and R $ 6.7 million for guarantees operations. Return on Average Equity (ROAE) - % Return on Average Assets (ROAA) - % ROAE %* 23.5%* ROAA %* %* ROAE ROAA 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 * Adjusted ROAE * Adjusted ROAA 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 19

20 2Q18 Conference Call Investor Relations Ricardo Gelbaum +55 (11) Erich Romani +55 (11) Claudine Wrobel +55 (11) "This material may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect the Bank's business. Many important factors may adversely affect the results of Banco Daycoval as described in management's estimates and forward-looking statements. These factors include, but are not limited to, the following: the performance of the Brazilian and international economies; fiscal, foreign-exchange and monetary policies; increasing competition in the companies segment; Banco Daycoval's ability to obtain funding for its operations; and changes to Central Bank rules and regulations. The words "believe," "may," "could," "seek," "estimate," "continue," "anticipate," "plan," "expect" and other similar words are used to identify estimates and projections. Considerations involving estimates and forward-looking statements include information relating to results and projections, strategies, competitive positioning, the industry environment, growth opportunities, the effects of future regulation, and the effects of competition. Such estimates and projections are valid only at the time of writing. Daycoval does not undertake to publish updates or review any of these estimates in response to new information, future events or other factors. In light of the risks and uncertainties involved, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make decisions based on the estimates, projections and forward-looking statements contained in this material." 20