Conference Call 3Q11. (Only in Portuguese)

Transcription

1 Conference Call 3Q11 (Only in Portuguese)

2 Agenda Brazilian Credit Market Page 3 Issuance of Banknotes Page 16 Key Figures Page 4 Liquidity Page 17 Financial System Ranking Page 5 Service and product revenues Page 19 Distribution Page 6 Quality of Loan Portfolio Page 20 Loan Portfolio Page 7 Efficiency Ratio Page 24 Middle Market Portfolio Page 10 Capital Structure Page 25 Daycred - Payroll Page11 Basel Index Page 26 Daycred Auto Loans Funding Total Deposits Foreign Currency Funding Page 12 Page 13 Page 14 Page 15 Profitability Page 27 Recurring Key Figures Page 28 3Q11 Highlights Page 29 2

3 Brazilian Credit Market Credit Evolution in Brazil (% of GDP) M11 Copom 162 nd Copom Meeting Minutes (*) The balance of the financial system was R$1,929.0 billion in September, representing 48.4% of GDP. The average annual interest rate on the credit operations reached 39.0%. The rate for the corporate segment reached 30.0%, whereas for the individuals segment it was 45.7%. The average maturity of credit operations rose to 493 days in August, the maturity for the corporate segment reached 407 days and it was 583 days for individuals. The default rate on credit operations in arrears for more than ninety days was 5.3% in July. The rate related to corporate loans remained stable at 3.8%, and those for operations involving individuals was 6.8%. (*) Source: Brazil Central Bank 3

4 Key Figures 3Q11 Total Assets R$ 11,502.4 million Expanded Loan Portfolio R$ 7,794.0 million Loan Portfolio R$ 6,962.9 million Funding R$ 7,041.7 million Shareholders Equity R$ 1,903.4 million Basel Index 16.6% (Tier I) 3Q11 9M11 Net Income R$ 95.7 million R$ million ROAE 22.0% 15.9% ROAA 3.6% 2.8% NIM-AR (*) 11.7% 11.3% Efficiency Ratio 30.8% 31.6% (*) New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks and matched operations repurchase agreements-tri-party repos outstanding. 4

5 5 Financial System Ranking Ranking Daycoval Private National Banks National Banks Net Income 13º 18º Shareholders Equity 16º 22º Total Deposits 18º 25º Total Assets 21º 26º Source: Brazil Central Bank June 2011 Rating

6 Distribution: More than 100 points of Sale 31 Branches SÃO PAULO SP HD Av. Paulista SP - ALPHAVILLE ES - VITÓRIA CE - FORTALEZA SP - BOM RETIRO MG - BELO HORIZONTE PE - BOA VIAGEM SP - BRÁS RJ - RIO DE JANEIRO PE - RECIFE SP - CAMPINAS PR - LONDRINA RN - NATAL SP - FARIA LIMA PR - CURITIBA SE- ARACAJU SP - GUARULHOS RS - CAXIAS DO SUL DF - BRASÍLIA SP - RIBEIRÃO PRETO RS - PORTO ALEGRE MS - CAMPO GRANDE SP - SÃO BERNARDO SC - FLORIANÓPOLIS MT - CUIABÁ SP - SOROCABA AL - MACEIÓ AM - MANAUS SP - UBERLÂNDIA BA - SALVADOR PA - BELÉM IFP Promotora de Serviços de Intermediação Financeira Ltda, is a financial intermediation company created to promote operations for individuals. It has 52 stores in operation throughout Brazil. 14 Daypag Offices in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Americana, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu e Detran São Paulo 11 exchange bureaus in São Paulo and one correspondent foreign exchange desks distributed strategically in São Paulo and Rio de Janeiro 6

7 Loan Portfolio: growth in line with the funding operations Loan Portfolio (R$ mn) 3Q11 2Q11 Chg. % 3Q10 Chg. % Middle Market + Trade Finance 4, , % 3, % Payroll Loans 1, , % 1, % Auto Loans % % Direct Credit to Consumers (DCC) / Other % % Total Loan Porfolio 6, , % 5, % Loan Portfolio R$ Million 5,186 5,567 5,985 6,356 6,963 7

8 Expanded Loan Portfolio: growth higher than the market average Expanded Loan Portfolio R$ Million Loan Portfolio by Segment (R$ mn) 3Q11 2Q11 Chg. % 3Q10 Chg. % Mi ddl e Ma rket 3, , % 3, % Tra de Fi na nce % % Ava l s a nd Sureties Gra nted % % Recei va bl es purcha s e % % Total Portfolio Middle Market 5, , % 3, % Pa yrol l Loa ns 1, , % 1, % Pa yrol l Loa ns Portfol i o As s i gnments % % Total Payroll Loans 1, , % 1, % Auto Loa ns % % Auto Loa ns Portfol i o As s i gnments % % Total Auto Loans % % Direct Credit to Consumers (DCC) % % Total 7, , % 5, % 8

9 Expanded Loan Portfolio: growth of 10.3% during the quarter Loan Portfolio R$ Million 40.5% 10.3% 7,067 6,222 6, , ,447 6,957 5,485 6,031 7, ,712 Breakdown Loan Portfolio (*) 2Q11 7.8% 0.7% 23.8% 67.7% Loan Portfolio Credit Assignments Middle Market Payroll Loans Auto Loans DCC Breakdown Loan Portfolio (*) 3Q11 7.4% 0.7% 22.2% 69.7% Middle Market Payroll Loans Auto Loans DCC (*)Includes Credit Assignments, sureties and avals granted and the purchase of credit reghts 9

10 10 Middle Market: increase of 49.8% over the past 12 months, currently representing 69.7% of the total portfolio Middle Market Portfolio R$ Million 4,786 4,402 4,177 3,627 5,433 Breakdown Portfolio Middle Chg. % x 3Q11 % Loan Market (R$ mn) 2Q11 Working Capital 2, % 6.6% Guaranteed Account 1, % 17.1% Trade Finance % 28.5% Avals and Sureties % 19.5% Receivables Purchase % 30.1% BNDES % 2.4% TOTAL Middle Market 5, % 13.5% Guarantees Breakdown 3Q11 Sectors Breakdown 3Q11 Geographic Distribution 3Q11 6.3% 7.3% Receivables 15.3% 6.6% 16.2% 48.3% Vehicles / Real Estate Agricultural Products Financial Investments Equipments / Foreign goods Other 18.4% 6.8% 31.2% 43.6% Industry Services Commerce Other 8.4% Southeast 7.3% 15.0% 56.4% 12.9% South Northeast Mid-West North

11 Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) R$ Million Total Loan Portfolio (*) R$ 1,730mn 3Q11 - % 1,383 1,476 1,617 1,684 1,730 (*) Includes credit assignments in all of the quarters (R$ 72.8million in 3Q11) Total Origination R$ Million Total Origination R$ 361 mn 3Q11- %

12 Daycred Auto Loans: new origination strategy Total Loan Portfolio (*) R$ Million Total Origination R$ Million (*) Includes credit assignments in all of the quarters (R$ 9.7million in 3Q11) Liquidity of Auto Loans Portfolio 3Q11 R$ Million Liquidity of the Auto Loans Portfolio - Aug-06 to Jun-11 R$ % Accum. PMTs received in advance 70,459, % 35% PMTs received on date of maturity 31,805, % 51% PMTs received with delay of 30 days 63,178, % 82% PMTs received with delay of 60 days 15,258, % 90% PMTs received with delay of 90 days 6,429, % 93% PMTs received with delay of 120 days 2,633, % 94% PMTs received over 120 days 3,509, % 96% PMT s overdue 8,223, % 100% Liquidity of the Auto Loans Portfolio 193,275, % Outstanding PMT s Total Amount 201,499, % Origination Last 12 months (*) 18.6% Small Vehicles 81.4% Heavy-duty Vehicles (*) We have not financed motorcycles since October

13 Funding: increase of 36.1% over the past 12 months Funding (R$ mn) 3Q11 2Q11 Chg. % Total Deposits 4, , % Demand Deposits + Other Deposits % Time Deposits 3, , % Interbank Deposits % Letter of Credit - Agribusiness % Borrowing and Onlending 1, , % Foreign Issuances 1, , % Banknotes % Total 7, , % Funding R$ Million 5,175 5, % 4.9% 5,916 6,713 7,042 16% 17% 12% 13% 18% 22% 25% 25% 26% 24% 63% 61% 58% 62% 58% Foreign Issuances Borrowing and Onlending Total Deposits 13

14 14 Total Deposits: growth of 26.9% over the past 12 months Total Deposits - R$ Million 3,248 3,194 3,422 4,140 4,122 Total Deposits Breakdown 2Q11 Total Deposits Breakdown 3Q11 7.4% 26.6% 8.9% Corporates + Demand Deposits Individuals 41.0% Investment Funds Institutional 10.2% 7.8% 27.9% 37.9% Corporates + Demand Deposits Individuals Investment Funds Institutional 16.2% Financial Institutions + Interbank Deposits 16.2% Financial Institutions + Interbank Deposits

15 15 Long Term Funding Long Term Funding - R$ Million 2, , , , , , , , , , , , ,767.0 International Finance Corporation (IFC) Syndicated Loan (IFC) Borrowing and Onlending Foreign Issuances Banknotes Date of Transaction December/2007 June/2010 Maturity January/13 (due of last tranche) June/14 (due of last tranche) Amount (US$ mn) Eurobond March/2010 March/ Syndicated Loan (IIC) November/2010 November/15 (due of last tranche) Eurobond January/2011 January/

16 16 Issuance of Banknotes First bank to conduct a public issuance of Banknotes, in the amount of R$ million maturing in 2 years, concluded on October 18 th, Banknote Issue of September 15, 2011 (1 st Issue) Issuer Issue Denominations Ranking Status Banco Daycoval S.A. R$ million Exclusively book value, without the issue of certificates Term November 15, 2013 Lead Coordinator Coordinator

17 17 Liquidity: positive gap of 103 days between the duration of the credit and funding operations Outstanding Operations (Loan Portfolio) 3Q11 - % Outstanding Operations (Funding) 3Q11 - % 0.7% 6.9% 25.2% 30.8% 36.4% Maturity of 67.2% over the next 12 months 0.9% 17.2% 28.1% 21.5% 32.3% Maturity of 53.8% over the next 12 months Up to 3 months From 1 to 3 years Over 5 years Loan Portfolio by Segment (1) From June, 2011 (2) Excludes BNDES and Avals and Sureties From 3 to 12 months From 3 to 5 years Average term to Maturity (1) days R$ mm Total Portfolio Middle Market 202 4,684.2 Payroll Loans 714 1,657.4 Auto Loans DCC + Other Total Loan Portfolio 396 6,962.9 Up to 3 months From 1 to 3 years Over 5 years Funding From 3 to 12 months From 3 to 5 years Average term to Maturity (1) days R$ mm Time Deposits 202 3,720.8 Interbank Deposits Banknotes + Letter of Credit - Agribusiness Foreign Issuances 1,153 1,034.0 Borrowing and Onlending (2) 1,016 1,468.5 Total Funding 499 6,743.2

18 18 Liquidity 3Q11 Cash Breakdown (%) 3Q11 R$ mn 34.1% 65.9% Overnight Repos (Selic) Federal Government Bonds Cash 1,378.0 Liquid Assets 1,773.4 Total Assets 11, Q11 Total Assets Breakdown (%) 3Q11 Total Assets - R$mn 14.9% 22.1% 7.1% 55.9% Lending Operation Interbank Investments Other Assets 9,329 8,939 9,787 11,024 11,502 Securities and Derivatives

19 Service and product revenues Currently, Asset manages 23 funds, of which 11 are open funds and 12 are exclusive funds. We closed 3Q11 with total funds administered and/or under management of R$ 1,261.0 million and gross revenues through the administration of investment funds of R$ 2.5 million, increase of 19.0% compared to the previous quarter. Daycoval closed 3Q11 with 11 exchange bureaus and one exchange correspondent. During the quarter we sold 11,612 pre-paid cards in different currencies and our bureaus turnover totaled R$$ 48 million during the period, strong growth of 108.7% compared to the previous quarter. Daypag product, designed to meet the needs of car licensing agents and driving schools in São Paulo state by financing fees to be collected, processed over 474,000 payment slips over the quarter, growth of 56.6% compared to the 2Q11. In 3Q11, more than 37,000 payment slips were processed through our Dayconnect home banking system. This involved 3,600 clients and more than 8,000 users who access their accounts and interbank investments with Banco Daycoval in a safe and speedy manner. 19

20 20 Quality of Loan Portfolio (*): establishment of the provision is adequate 3Q11 Provision Total Loan Portfolio Portfolio R$ % Provision R$ mn mn Total Provision / Loan Porfolio (%) Total Provision / Loan(%) Middle Market + Trade Finance 4, Payroll 1, Auto Loans CDC Retailers / Other Subtotal 6, Credit Assignments Total 6, (*) Unconsolidated

21 Quality of Loan Portfolio (*) Establishment of Provision - R$ mn Middle Market + Trade Finance Payroll Auto Loans Direct Credit to Consumers Total Balance and Establishment of Provision - R$ Million Balance of Provision Establishment of Provision (*) Unconsolidated 21

22 22 Quality of Loan Portfolio (*) Past due operations more than 14 days Past due operations more than 60 days (*) Unconsolidated

23 Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 119.1% of the E-H portfolio Loan E-H - R$ mn 3 T 3Q10 2Q11 3Q11 (%) Loan Middle Market + Trade Finance Payroll Auto DCC Total % LLP / Loan E H (%) 3Q10 2Q11 3Q11 Total 106.2% 115.6% 119.1% Recovered Loans - R$ mn 3Q10 2Q11 3Q11 (%) Loan Middle Market + Trade Finance Retail Total Write-offs - R$ mn 3Q10 2Q11 3Q11 (%) Loan Total (45.5) (26.7) (50.8) 0.7 (*) Unconsolidated 23

24 Efficiency Ratio: despite the 2.9 p.p. increase during the quarter, this ratio remains stable, proving the adequate manner in which we manage operating costs. 3Q11 2Q11 Chg. % 3Q10 Chg. % Personnel Expenses (exclude IFP) (32.9) (26.7) 23.2% (22.5) 46.2% Administrative Expenses (exclude IFP) (31.8) (25.7) 23.7% (23.0) 38.3% Subtotal Expenses (exclude IFP) (64.7) (52.4) 23.5% (45.5) 42.2% Personnel and Administrative Expenses - IFP (2.2) (2.2) 0.0% (0.2) n.a. Administrative Expenses - IFP (1.4) (1.3) 7.7% - n.a. Subtotal (3.6) (3.5) 2.9% (0.2) n.a. Comission Expenses (total retail) (15.3) (11.6) 31.9% (7.1) 115.5% Total (83.6) (67.5) 23.9% (52.8) 58.3% Efficiency Ratio (%) p.p p.p Efficiency Ratio (considering Profit Sharing) (%) p.p p.p Efficiency Ratio % Efficiency Ratio Average Past 12 months 24

25 25 Capital Structure: maintenance of low leverage Shareholders Equity R$ Million 1, , , , ,903.4 Loan Portfolio / Shareholders Equity - times

26 Basel Index Basel Index % - Tier I In 3Q11 the Basel II Ratio, calculated based on the standardized approach and reflecting the changes required under Bacen circular letter 3515/2010, reached 16.6%, an increase of 1.8 p.p. in comparison to 2Q11. Had the same calculation formula as applied in 2Q11 been used, the Basel Ratio would have been 17.8% in 3Q11 Basel Ratio considering the conversion of the warrants in the amount of R$ million Current net equity (September/11) 1,903.4 Capital Increase (exercising the warrants) Basel Index % - Tier I Restated net equity 2,439.4 Basel Ratio after the conversion 21.3% 3Q11 3Q11 (*) (*) If we take into consideration the conversion of the warrants in the amount of R$ million, which could be done at any moment between March 2011 through March

27 Profitability: Net Income of R$95.7 million, significant growth of 27.3% compared to 2Q11 Net Income R$ mn Return on Average Equity (ROAE) - % M10 9M11 9M10 9M11 Return on Average Assets (ROAA) - % Net Interest Margin Adjusted and Recurring (NIM-AR) (1) - % M10 9M11 9M10 9M11 (1) New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks and matched operations repurchase agreements-tri-party repos outstanding 27

28 Recurring Key Figures Recurring Key Figures Q11 2Q11 3Q11 9M11 Net Income (R$ mn) Hedge/MTM (R$ mn) 4.4 (13.2) Swap DAYC4 (R$ mn) 15.5 (6.4) (12.4) (11.2) (30.0) Adjusted Net Income (R$ MM) Adjusted ROAA (%) 3.1% 2.7% 3.3% 3.3% 3.1% Adjusted ROAE (%) 14.8% 14.9% 19.7% 19.9% 17.4% Adjusted Eficiency Ratio (%) NIM-AR - % p.y

29 3Q11 Highlights Net Income of R$ 95.7 million in 3Q11, representing substantial growth of 27.3% compared to the previous quarter ROAE reached 22.0%, an increase of 4.4 p.p compared to the previous quarter and the net financial margin (NIM-AR) (1) was 11.7 % in 3Q11 The balance of the expanded Loan Portfolio (2) increased 10.3% during the quarter, closing 3Q11 at R$ 7,794.0 million Total Funding reached R$ 7,041.7, an increase of 4.9% over the quarter The average maturity of funding operations is 499 days, whereas the average maturity of credit is 396 days, presenting a positive GAP of 103 days The Efficiency Ratio was 30.8%, which proves the adequate management of our operating costs Basel Ratio of 16.6%, down 1.8 p.p for the quarter First bank to conduct a public issuance of Banknotes, in the amount of R$ million maturing in 2 years (1) New methodology includes exchange-rate change on passive operations and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks and matched operations repurchase agreements-tri-party repos outstanding (2) Includes assignments, sureties and avals granted and Receivables purchase 29

30 Conference Call 3Q11 Investor Relations Phone: +55 (11) /1025/1039 This report 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 our business. Many important factors may adversely affect the results of Banco Daycoval as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the middle-market segment, the ability of Banco Daycoval to obtain funding for its operations, and amendments to Central Bank regulations. The words believe, may, could, seek, estimate, continued, anticipate, plan, expect and other similar words have the objective of identifying estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report. 30