2Q15 CONFERENCE CALL

Transcription

1 2Q15 CONFERENCE CALL

2 Highlights Recurring Net Income R$ 77.1 million R$ million -23.3% (2Q15/1Q15) 33.2% (1H15/1H14) Net Income of R$ 83.3 million in the quarter, a reduction of 20.7% compared to 1Q15. Accrued for the year, the Income was R$ million, 42.1% higher compared to the same period of the previous year. ROAE -Adjusted and Recurring (p.a.) -3.9 p.p. (2Q15/1Q15) 11.7% 2.8 p.p. (1H15/1H14) Annualised 1H15: 13.6% NIM-AR (1) (p.a.) 1.4 p.p. (2Q15/1Q15) 13.5% -0.3 p.p. (1H15/1H14) Annualised 1H15: 12.6% Expanded Loan Portfolio The ROAE was 12.6% p.a and 14.4% p.a. for the Half. The net financial margin NIM was 13.1 % p.a. in 2Q15. Funding reached a balance of R$ 14,601.5 million, an increase of 5.9% compared to 1Q15 and 31.6% versus 2Q14. In July we raised a syndicated loan (A / B Loan) with IIC and 12 banks in the amount of approximately US$ 200 million with a term of up to five years. We ended the quarter with a 108.7% E-H rating portfolio coverage level (balance of LLP/E-H Portfolio). R$ 13.3 billion Shareholder's Equity R$ 2.6 billion -0.9% (2Q15/1Q15) 19.8% (1H15/1H14) 2.0% (2Q15/1Q15) 5.7% (1H15/1H14) We ended 2Q15 with Shareholder s Equity of R$ 2,646.2 million and a Basel III index of 18.3%, which demonstrates our low leverage and high capital level. Banco Daycoval announced a public offer for the acquisition of shares, for delisting the Company. (1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights 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

3 Expanded Loan portfolio reaches 13.3 bi, reduction of 0.9% in the quarter. Expanded Loan Portfolio R$ mn Expanded Loan Portfolio (R$ mn) 2Q15 1Q15 Chg. % 2Q14 Chg. % Companies 5, , % 4, % Receivables Purchas e 1, , % 1, % Avals and Sureties % % Total Expanded Companies 7, , % 6, % Total Payroll Loans 5, , % 4, % Total Auto Loans % % Total DCC/Other % % Total Expanded Loan Portfolio 13, , % 11, % Breakdown Loan Portfolio 2Q15 Breakdown Loan Portfolio (*) 2Q15 Expanded Expanded Loan Portfolio Loan Portfolio- R$ mn(r$ mn) 1% 6% Companies Payroll Loans 11,075 11,627 12,780 13,384 13,263 38% 55% Auto Loans DCC 2Q14 3Q14 4Q14 1Q15 2Q15 3

4 Companies Portfolio: 94% of active clients with sales less than R$ 300 mn/year. Highlights 39 Branches Companies portfolio reduced 3.2% in the quarter and grew 17.4% compared to 2Q14 64% of the balance due is from clients with sales up to R$ 300 mn/year Companies Portfolio R$ mn Companies Portfolio (R$ mn) 7,462 7,572 7,328 6,579 6,243 94% of active clients with sales less than R$ 300 mn/year 86% of the tickets are lower than R$ 500,000 93% of the clients have a balance due lower than R$ 5 mn Diversification of clients and sectors: 10 largest clients represented 5.1% of the credit portfolio 2Q14 3Q14 4Q14 1Q15 2Q15 50 largest clients represented only 13.0% of the portfolio No single segment represents more than 10% of the credit portfolio Provision: 6.0% and NPL: 1.0% Collateral Breakdown Collateral Loans to Companies - Outstanding Operation - (June/15) Loan Portfolio Outstanding Operation - (March/15) 7% 3%4% 5% 5% 13% 63% Receivables Real Estate Vehicles Agricultural Products Financial Investments 15% 33% 3% 49% Maturity of 49% over the next 90 days Equipments / Foreign goods Others Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years 4

5 Companies Portfolio: Diversification of the sectorial breakdown. Breakdown Companies R$(mn) 2Q15 Chg. % 1Q15 Working Capital 3, % Guaranteed Account 1, % Receivables Purchase 1, % Trade Finance % Cross- Avals and Sureties Selling % BNDES % Total Companies 7, % 10% 15% Sectors Breakdown-2Q15 Companies Portfolio Breakdown 2Q15 5% 4% 66% Working Capital/Guaranteed Account Receivables Purchase Trade Finance Aval and Sureties BNDES Concentration by Sector Commerce 20.4% Food and Cereal Wholesaler 3.8% Services 31.0% Highway Transportation 3.7% Industry 42.0% Sugar and Alcohol Mill 4.4% Products For Agriculture 1.0% Real Estate Development 3.6% General Electronic Products 1.7% New Vehicles 0.9% Holding Company 2.7% Vehicles and Auto parts 1.6% Export and import of Sugar 0.9% Medical Services 1.4% Inner Tubes 1.5% Supermarket and Hypermarket 0.9% Factoring 1.3% Light Vehicles 1.5% Others 12.9% Others 18.3% (1) (1) (1) Others 31.3% (1) Others represent a lower share than the last ones cited in the sub-sector 5

6 Payroll Loans: Balance of R$ 5,031 million. Highlights Number of contracts in the portfolio: 2Q15: 1.096,000 Total Payroll Loan (*) R$ mn Payroll Portfolio (R$ mn) Average ticket: R$ 5,000 Portfolio Duration: 24 months 4,017 4,189 4,441 4,908 5,031 Average Interest Rate (year): 29.6% Number of Promoters: 1,118 Refinancing Origination (Refin): 45% 2Q14 3Q14 4Q14 1Q15 2Q15 49 own stores-ifp: 15.6% share of sales Provision: 2.2% and NPL: 0.4% (*) Includes credit assignment in all of the quarters (R$1,4 mn in 2Q15) Payroll Origination Portfolio Média Origination da Originação Monthly - (R$ Average MM) Q14 3Q14 4Q14 1Q15 2Q15 Net Origination Gross Origination Breakdown Breakdown Payroll of Loan Payroll (*) R$ - 2Q15 5,031 mn (includes credit assignments) 2.1% 0.8% 0.2% INSS 7.2% State Government 0.1% 7.8% Government /SIAPE Municipalities 12.4% 41.6% Army Courts Others Debit Account 27.8% Private 6

7 Daycred Auto Loans: Stable compared to 1Q15. Highlights Number of contracts in the portfolio 2Q15: 113,100 Average ticket: R$ 7,000 with minimum down payment of 30% Portfolio Duration: 15 months Auto Loan Portfolio R$ mn Auto Loan Portfolio (R$ mn) Average Interest Rate (year): 35.9% Vehicle average age: 10 years Number of Promoters: 91 Portfolio distribution: 72% small vehicles 2Q14 3Q14 4Q14 1Q15 2Q15 Focused on the Southeast Provision: 7.8% and NPL: 1.7% Origination Auto Loans of Auto Origination Loan Portfolio (R$ mn) R$ mn Loans Auto - Outstanding Operation - Loans (June/15) Auto - Outstanding Operation (June/15) 37% 3% 21% Maturity of 97% over the next 3 years 39% 2Q14 3Q14 4Q14 1Q15 2Q15 Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years 7

8 157 points of Sale and diversified products. Manages 42 funds; 29 Exchange Bureaus; 49 stores operating throughout in Brazil; 40 service units in the state of São Paulo; Funds Administered / managed totaling R$ 2.0 billion operations and turnover of R$ 238 million in the quarter. 15.6% share of sales; 353 employees. Processed 1,503,000 payment slips in 2Q15 versus 1,537,000 payment slips in 2Q14. 8

9 Funding: Diversification in the funding. Funding (R$ mn) 2Q15 1Q15 Chg. % 2Q14 Chg. % Deposits 4, , % 3, % Letter of Credit - LCI + LCM % % Total Deposits + LCI + LCM 5, , % 4, % Individuals % % Institutional 2, , % 2, % Institutional - Public Offerings % 0.0 n.a Local Bonds (Letras Financeiras) 4, , % 2, % Loan Portfolio by Segment 2, , % 2, % Bonds Issued Abroad (Private Placement) % 0.0 n.a Foreign Issuances 2, , % 2, % Foreign borrowings 1, , % 1, % Domestic onlendings % % Borrowing and Onlending 2, , % 1, % Total 14, , % 11, % Focus on stable and recurring sources of financing available in the market; Number of investors in the diversified CDB portfolio was 3,450. In July we raised a syndicated loan (A / B Loan) with IIC and 12 banks in the approximately of US$ 200 million with a term of up to five years. Ratings Funding R$ mn 9

10 Available cash of R$ 3.7 billion. Average Term of Loan Portfolio: Average Term of Funding: 425 Funding - Outstanding Operations 420 Loan Portfolio - Outstanding Operation (June/15) (June/15 Outstanding Operations (Loan Portfolio) - 2Q15 -% Outstanding Operations (Funding) 2Q15 - % 10% 4% 13% 20% 26% 31% Maturity of 60% over the next 12 months 32% Maturity of 55% over the next 12 months 35% 29% to 3 months From 3 to 12 months From 1 to 3 years m 3 to 5 years Over 5 years Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years 10

11 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Ratio of the loan portfolio provision at 4.6%. Total Provision / Loan Portfolio(%) Total Provision / Loan Portfolio (1) - (%) Evolution LLP / Portfolio by Segment (%) Companies Portfolio Provision (1) -(%) Total Middle Market Provision(%) Total Payroll Provision(%) Payroll Provision-(%) Total Auto Provision (%) Auto Provision- (%) (1) Includes Receivables purchase 11

12 NPL, loans overdue by more than 90 days reaches 0.8% in 2Q15, well below the market average. Overdue Loans (1) 2Q14 1Q15 2Q15 Overdue Loans more than 90 days past due- R$mn Companies Portfolio Payroll Auto DCC + Other LLP Balance / Overdue Loans > 90 days (%) 431.5% 499.4% 551.4% Overdue Loans > 90 days/loan Portfolio 1.0% 0.7% 0.8% Companies Portfolio 1.2% 0.8% 1.0% Payroll 0.3% 0.3% 0.4% Auto Past due operations more than 90 days (%) 1.5% 1.6% 1.7% Past due operations more than 90 days Loan Portfolio E-H - R$ Mn 2Q14 3Q14 4Q14 1Q15 2Q15 Companies (1) Payroll Auto DCC + Other (1) Total LLP Balance/Portfolio EH - (%) 101.9% 99.8% 110.9% 109.9% 108.7% Balance and Estabilishment of Provision (*) - R$ mn 5% 4% % 1.0% 1.0% 0.8% 0.7% 0.8% 2% 1% 2Q14 3Q14 4Q14 1Q15 2Q15 0% Past due operations > 90 days (R$mn) Past due operations > 90 days / Loan Portfolio (1) Includes Receivables purchase to Companies Portfolio and DCC. (*) Unconsolidated Write-offs - R$ Mn 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Companies (103.7) (53.7) (72.4) (67.2) (43.7) (229.4) (110.9) Retail (30.9) (32.9) (35.0) (35.3) (35.5) (62.6) (70.8) Total (134.6) (86.6) (107.4) (102.5) (79.2) (292.0) (181.7) 12

13 LLP - Recovered Loans Recovered Loans LLP (-) Recovered Loans 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Establishment of Provision Recovered Loans of Establishment of Provision LLP (Net Recovered Loans of Establishment of Provision)

14 Recurring Efficiency Ratio ends the quarter at 33.0%. Recurring Efficiency Ratio (R$ mn) 2Q15 1Q15 Chg. % 2Q14 Chg. % 1H15 1H14 Chg. % Personnel Expenses (66.8) (62.3) 7.2% (51.1) 30.7% (129.1) (98.1) 31.6% Administrative Expenses (68.3) (65.0) 5.1% (46.3) 47.5% (133.3) (91.7) 45.4% Personnel and Administrative Expense (135.1) (127.3) 6.1% (97.4) 38.7% (262.4) (189.8) 38.3% Commission Expenses (Total) (52.9) (53.3) -0.8% (70.1) -24.5% (106.2) (131.2) -19.1% Payroll (39.0) (38.9) 0.3% (56.5) -31.0% (77.9) (105.2) -26.0% Auto Loans (10.0) (10.6) -5.7% (7.9) 26.6% (20.6) (15.6) 32.1% Direct Credit to Consumer (DCC) + Others (0.6) (0.5) 20.0% (0.9) -33.3% (1.1) (1.6) -31.3% Daytravel (3.3) (3.3) 0.0% (4.8) -31.3% (6.6) (8.8) -25.0% Total (188.0) (180.6) 4.1% (167.5) 12.2% (368.6) (321.0) 14.8% Recurring Efficiency Ratio (%) 33.0% 35.8% -2.8 p.p 37.4% -4.4 p.p 34.3% 36.1% -1.8 p.p Recurring Efficiency Ratio (considering Profit Sharing) (%) 35.9% 38.5% -2.6 p.p 39.5% -3.6 p.p 37.1% 38.1% -1.0 p.p Recurring Efficiency Ratio% Índice de Eficiência Recorrente% Q14 3Q14 4Q14 1Q15 2Q15 14

15 Basel Index and Shareholder s Equity Basel Index III-% (1) - Tier I Below the main changes estabilished by Circular Instruction 3644/14 of the Central Bank: Payroll and Auto Loans are weighted at 75%, independent of the maturity of the operation; Retail exposure limit goes to R$1,500 thousand (Individual) and R$3,000 thousand (micro and small company); Payroll loans with federal government bodies now have 50% credit risk mitigation. Shareholder's Equity (R$ mn) Change in Shareholder s Equity 2Q15 (1) Basel Index 3 minimum 11% required by the Central Bank. 15

16 Adjusted Net Interest Margin and Recurring (NIM-AR) of R$ 13.5% in 2Q15. Net Income Adjusted and Recurring-(RS mn) Recurring Net Income (R$ mn) Composition of Net Income Recurring (R$ mn) Net Income-(R$ mn) Net Income (R$ mn) Accounting Net Income Adjusted Net Income Mark to Market Hedge of Net Foreign Funding of Income Tax 2Q Q Q Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Return on Average Equity (ROAE) Adjusted and Recurring-(% p.a.) 1H (42.3) 1H (19.6) 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Return on Average Equity (ROAE) Adjusted and Recurring-(%) Composition of Net Income Recurring (R$ mn) Adjusted Net Income Equivalence Exchange Variation Adjusted Net Income ignoring the Exchange equivalence 2Q (1.4) 64.1 Return on Average Equity (ROAE)-(%) 1Q Q (2.8) Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 1H (3.2) Return on Average Asset (ROAA) Adjusted and Recurring-(% p.a.) 1H Recurring Adjusted Net Interest Margin (NIM-AR) - (% p.a.) Return on Average Assets (ROAA) Adjusted and Recurring - (%) Adjusted Net Interest Margin and Recurring (NIM-AR) (*) - (%) Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 (*) Methodology includes exchange-rate variations on liability operations, receivables purchase and excludes the result of property protection operations, DAYC4 swaps and matched operations- repurchase agreements-triparty repos 16 outstanding.

17 2Q15 Conference Call Investor Relations Ricardo Gelbaum +55 (11) Erich Romani +55 (11) Susie Cardoso +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." 17