Conference Call 4Q11

Transcription

1 Conference Call 4Q11

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 Page 12 Profitability Page 27 Funding Total Deposits Long Term Funding Page 13 Page 14 Page 15 Recurring Key Figures Page 28 Corporate Governance Page 29 Conclusion Page 30 2

3 Brazilian Credit Market Credit Evolution in Brazil (% of GDP) The balance of the financial system was R$ billion in december, an increase of 19.0% over the year, representing 49.1% of GDP. The average annual interest rate on the credit operations reached 37.1% in december, an increase of 2.1 p.p over the year. The rate for the corporate segment reached 28.2%, whereas for the individuals segment it was 43.8%. The average maturity of credit operations rose to 495 days in november, an increase of 26 days over the last 12 months, the maturity for the corporate segment reached 402 days and it was 595 days for individuals. The default rate on credit operations in arrears for more than ninety days was 5.5% in december, an increase of 1.1 pp over the year. The rate related to corporate loans remained stable at 3.9%, and those for operations involving individuals was 7.3%. (*) Source: Brazil Central Bank 3

4 Key Figures Total Assets Expanded Loan Portfolio Loan Portfolio Funding Shareholders Equity 4Q11 R$ 12,104.7 million R$ 8,828.8 million R$ 7,724.8 million R$ 7,861.2 million R$ 1,952.4 million Basel Index 16.5% (Tier I) 4Q Net Income R$ 90.7 million R$ million Adjusted Net Income R$ 88.8 million R$ million ROAE 18.8% 16.4% Adjusted ROAE 18.4% 17.6% ROAA 3.2% 2.9% NIM-AR (*) 12.4% 11.3% Efficiency Ratio 33.7% 32.2% (*) 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 Financial System Ranking Ranking Daycoval Source: Brazil Central Bank September 2011 Rating Private National Banks National Banks Net Income 12 th 17 th Shareholders Equity 16 th 22 th Total Deposits 19 th 26 th Total Assets 22 nd 27 th 5

6 Distribution: More than 130 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 54 stores in operation throughout Brazil. 34 Daypag Offices in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Americana, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu e Detran São Paulo 12 exchange bureaus in São Paulo and five correspondents 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 by Modality (R$ mn) 4Q11 3Q11 Chg. % 4Q10 Chg. % Middle Market + Trade Finance 5, , % 3, % Payroll Loans 1, , % 1, % Auto Loans % % Direct Credit to Consumers (DCC) / Other % % Total 7, , % 5, % Loan Portfolio R$ Million 5,567 5,985 6,356 6,963 7,725 7

8 Expanded Loan Portfolio: growth higher than the market average, 41.9% during the year Expanded Loan Portfolio R$ Million Expanded Loan Portfolio (R$ mn) 4Q11 3Q11 Chg. % 4Q10 Chg. % Middle Market 4, , % 3, % Trade Finance % % Ava l s a nd Sureties Gra nted % % Recei va bl es purcha s e % % Total Portfolio Middle Market 6, , % 4, % 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 8, , % 6, % 8

9 Expanded Loan Portfolio: growth of 13.3% during the quarter Loan Portfolio R$ Million 41.9% 13.3% 7,794 6,596 7, , ,957 7,712 6,031 6,447 8, ,764 Loan Portfolio Credit Assignments Breakdown Loan Portfolio (*) 3Q11 Breakdown Loan Portfolio (*) 4Q11 7.4% 0.7% Middle Market 6.9% 0.6% Middle Market 22.2% 69.7% Payroll Loans Auto Loans DCC 20.9% 71.6% 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 51.4% over the past 12 months, currently representing 71.6% of the total portfolio Middle Market Portfolio R$ Million Breakdown Portfolio Middle Market R$(mn) 4Q11 % Loan Chg. % x 3Q11 Working Capital 2, % 20.5% Guaranteed Account 1, % 6.2% Trade Finance % 1.8% Avals and Sureties % -1.0% BNDES % 5.6% Receivables Purchas e % 79.4% Total Middle Market 6, % 16.4% Guarantees Breakdown 4Q11 Sectors Breakdown 4Q11 Geographic Distribution 4Q11 5.1% 5.3% Receivables 9.1% 5.0% 13.7% 61.8% Vehicles / Real Estate Agricultural Products Financial Investments Equipments / Foreign goods Other 5.0% 21.7% 42.2% 31.1% Industry Services Commerce Other 8.9% Southeast 7.7% 14.9% 55.5% South Northeast 13.0% Mid-West North

11 11 Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) R$ Million Total Loan Portfolio (*) R$ 1,842mn 4Q11 - % 1,476 1,617 1,684 1,730 1,842 (*) Includes credit assignments in all of the quarters (R$ 57.6 million in 4Q11) Total Origination R$ Million Total Origination R$ 365 mn 4Q11- %

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$ 6.9million in 4Q11) Liquidity of Auto Loans Portfolio 4Q11 R$ Million Liquidity of the Auto Loans Portfolio - Aug-06 to Sep-11 R$ % Accum. PMTs received in advance 92,857, % 36% PMTs received on date of maturity 40,712, % 52% PMTs received with delay of 30 days 79,181, % 82% PMTs received with delay of 60 days 18,823, % 90% PMTs received with delay of 90 days 8,064, % 93% PMTs received with delay of 120 days 3,251, % 94% PMTs received over 120 days 4,196, % 96% PMT s overdue 10,802, % 100% Liquidity of the Auto Loans Portfolio 247,086, % Outstanding PMT s Total Amount 257,888, % Origination Last 12 months (*) 17.7% Small Vehicles 82.3% Heavy-duty Vehicles (*) We have not financed motorcycles since October

13 13 Funding: increase of 11.6% over the last quarter Funding R$ Million 50.0% 11.6% 5,241 13% 26% 5,916 18% 24% 6,713 7,042 16% 17% 22% 25% 7,861 4% 14% 23% 61% 58% 62% 58% 59% Total Deposits Borrowing and Onlending Foreign Issuances Banknotes

14 14 Total Deposits: growth of 42.2% over the past 12 months Total Deposits - R$ Million 3,194 3,422 4,140 4,122 4,542 Total Deposits Breakdown 3Q11 Total Deposits Breakdown 4Q % 7.8% 27.9% 37.9% 16.2% Corporates + Demand Deposits Individuals Investment Funds Institutional Financial Institutions + Interbank Deposits 6.5% 11.2% Corporates + Demand Deposits Individuals 27.1% 14.5% 40.7% Investment Funds Institutional Financial Institutions + Interbank Deposits

15 Long Term Funding Long Term Funding - R$ Million International Finance Corporation (IFC) Syndicated Loan (IFC) 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 on 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 Leader Coordinator Coordinator

17 Liquidity: positive gap of 120 days between the duration of the credit and funding operations Outstanding Operations (Loan Portfolio) 4Q11 - % Outstanding Operations (Funding) 4Q11 - % 0.6% 6.6% 33.4% 24.8% 34.6% Maturity of 68.0% over the next 12 months 0.7% 19.0% 16.6% 34.4% 29.3% Maturity of 53.4% over the next 12 months Up to 3 months From 1 to 3 years Over 5 years From 3 to 12 months From 3 to 5 years Up to 3 months From 1 to 3 years Over 5 years From 3 to 12 months From 3 to 5 years Loan Portfolio by Segment (1) From December2011 (2) Excludes BNDES Average term to Maturity (2) days Total Portfolio Middle Market 187 Trade Finance 146 Payroll Loans 710 Auto Loans 506 DCC + Other 229 Total Loan Portfolio 352 Funding Average term to Maturity (1) days Total Deposits 264 Interbank Deposits 210 Banknotes 657 Letter of Credit Agribusiness 81 Foreign Issuances 1,189 Borrowing and Onlending (2) 265 Total Funding

18 18 Liquidity 4Q11 Cash Breakdown (%) 4Q11 R$ mn Cash 1,216.9 Liquid Assets 1,610.5 Total Assets 12, Q11 Total Assets Breakdown (%) 4Q11 Total Assets - R$mn 8,939 9,787 11,024 11,502 12,105

19 Service and product revenues Service revenues totaled 2011 R$ 62.0 million during the year. Currently, Asset manages 26 funds, of which 13 are open funds and 13 are exclusive funds. We closed 4Q11 with total funds administered and/or under management of R$ 1,338.0 million, an increase of 6.1% during the past 12 months, and gross revenues through the administration of investment funds of R$ 2.5 million and R$9.7 million during the year. Daycoval closed 4Q11 with 12 exchange bureaus and five exchange correspondents. During the quarter we sold pre-paid cards in different currencies and our bureaus turnover totaled R$$ 33.7 million during the period, during the year these numbers were 24,000 pre-paid cards and R$ million. 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 958,000 payment slips over the quarter, growth of 102.1% compared to the 3Q11. In 4Q11, more than 46,000 payment slips were processed through our Dayconnect home banking system. This involved 3,300 clients and more than 5,000 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 4Q11 Provision Total Loan Portfolio Portfolio R$ mn Total Provision / Loan Porfolio (%) % Provision R$ mn Total Provision / Loan(%) Middle Market + Trade Finance 5, % Payroll 1, % Auto Loans % CDC Retailers / Other % Subtotal 7, % Credit Assignments % Total 7, % (*) Unconsolidated

21 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

22 22 Quality of Loan Portfolio (*) Past dueoperations more than 14 days Past due operations more than 60 days % 191% 185% 181% 189% % 1.6% 1.6% 1.4% 1.4% Past due operations > 14 days (R$mn) LLP / Past due operations (%) Past due operations > 14 days / Loan Portfolio (%) (*) Unconsolidated

23 Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 115.4% of the E-H portfolio Loan E-H - R$ mn 3 T 4Q10 3Q11 4Q11 (%) Loan Middle Market + Trade Finance Payroll Auto DCC Total % LLP / Loan E H (%) 4Q10 3Q11 4Q11 Total 105.3% 119.1% 115.4% Recovered Loans - R$ mn 4Q10 3Q11 4Q11 (%) Loan Middle Market + Trade Finance ,0 18,5 Retail ,2 16,2 Total ,2 34,7 Write-offs - R$ mn 4Q11 3Q11 4Q11 (%) Loan Total (17.9) (50.8) (28.1) 0.4 (180.4) (140.2) (*) 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. Personnel and Administrative Expenses (R$ mn) 4Q11 3Q11 Chg.% 4Q10 Chg.% Chg.% Total Personnel (exclude IFP) (39.2) (32.9) 19.1% (25.5) 53.7% (125.3) (91.2) 37.4% Administrative Expenses (exclude IFP) (33.5) (31.8) 5.3% (25.0) 34.0% (117.9) (83.4) 41.4% Administrative Expenses - Foreign Issuances/Banknotes (1.8) 0.0 n.a. 0.0 n.a. (4.1) (0.3) n.a. Total Personnel and Administrative Expenses (exclude IFP) (74.5) (64.7) 15.1% (50.5) 47.5% (247.3) (174.9) 41.4% Total Personnel - IFP (2.2) (2.2) 0.0% (2.8) -21.4% (8.8) (3.0) 193.3% Administrative Expenses - IFP (1.5) (1.4) 7.1% (1.0) 50.0% (5.6) (1.0) 460.0% Total Personnel and Administrative Expenses IFP (3.7) (3.6) 2.8% (3.8) -2.6% (14.4) (4.0) 260.0% Commission Expenses (total) (19.5) (15.3) 27.5% (8.4) 132.1% (55.9) (30.0) 86.3% Total (97.7) (83.6) 16.9% (62.7) 55.8% (317.6) (208.9) 52.0% Efficiency Ratio (A/B) (%) 33.7% 30.8% 2.9 p.p 27.8% 5.9 p.p 32.2% 24.6% 7.6 p.p Efficiency Ratio (considering Profit Sharing) (%) 36.4% 35.3% 1.1 p.p 32.3% 4.1 p.p 35.6% 28.2% 7.4 p.p Efficiency Ratio % Efficiency Ratio Average Past 12 months 24

25 25 Capital Structure: maintenance of low leverage Shareholders Equity R$ Million 1, , , , ,952.4 Loan Portfolio / Shareholders Equity - times

26 Basel Index Basel Index % - Tier I Basel Ratio considering the conversion of the warrants in the amount of R$ million Current net equity (September/11) 1,952.4 Capital Increase (exercising the warrants) Basel Index % - Tier I Restated net equity 2,485.4 Basel Ratio after the conversion 21.0% 4Q11 4Q11 (*) (*) 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$90.7 million, significant growth of 27.9% compared to 4Q10 Net Income R$ mn Return on Average Equity (ROAE) - % Return on Average Assets (ROAA) - % Net Interest Margin Adjusted and Recurring (NIM-AR) (1) - % (1) 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 Reccuring Key Figures Recurring Key Figures (R$ mn) 4Q11 3Q11 Chg. % 4Q10 Chg. % Chg. % Net Income % % % ROAE 18.8% 20.4% -1.6 p.p 16.1% 2.7 p.p 16.4% 16.0% 0.4 p.p Hedge/MTM (2.6) % (11.3) -77.0% % Swap DAYC4 5.9 (11.2) % % (24.1) 15.5 n.a Credit Assigments (1.4) (0.8) 75.0% % (5.1) 9.8 n.a Recurring Net Income % % % Shareholders Equity 1, , % 1, % 1, , % Total Assets 11, , % 9, % 10, , % Recurring ROAA (%) 3.1% 3.3% p.p 2.8% 0.3 p.p 3.1% 3.0% 0.1 p.p Recurring ROAE (%) 18.4% 18.8% -0.4 p.p 14.8% 3.6 p.p 17.6% 14.2% 3.4 p.p Adjusted Eficiency Ratio (%) 33.5% 32.3% 1.2 p.p 29.1% 4.4 p.p 30.6% 26.2% 4.4 p.p Adjusted and Recurring Net Income (R$ mn) Adjusted and Recurring Return on Average Equity (ROAE) (% p.a.) T10 1T11 2T11 3T11 4T11 28

29 Corporate Governance: in December 2011, Daycoval began the process of migrating to level 2 of the Corporate Governance of the BM&FBovespa Companies registered at Level 2 are required to have greater transparency in information due to the different requirements from those of level 1: Tag Along concessions Level 1 Level 2 Status 80% of common (ON) shares (pursuant to the legislation) 100% for common (ON) and preferred (PN) shares Makeup of the Board of Directors Prohibition of accumulation of positions (Beginning May 10, 2011) Minimum of three members (pursuant to the legislation) Positions of Chairman of the Board and President / Chief Executive Officer held by the same person (three years grace period from the date of joining) Minimum of five members, of which at least 20% must be independent with a unified mandate of up to two years Positions of Chairman of the Board and President / Chief Executive Officer held by the same person (three years grace period the date of joining) 29

30 Conclusion We ended 4Q11 with net income of R$ 90.7 million and R$ million for the year of 2011, up 11.1% over 2010 Recurring net income was R$ million on the year, representing significant growth of 33.5% compared to 2010, and observing it Q-o-Q we see Daycoval s consistent growth ROAE reached 18.8% in 4Q11, growth of 2.7 p.p. over 4Q10 and the adjusted and recurring net financial margin (NIM-AR) (1) was 12.4% The recurring ROAE was 18.4% in 4Q11, with the index maintaining high levels over the past months The Expanded Loan Portfolio (2) was up 13.3% on the quarter, closing 4Q11 at R$ 8,828.8 million, a substantial growth of 41.9% in the past 12 months and the Middle-Market portfolio grew 16.4% during the period, reaching 71.6% of the expanded loan portfolio. Total Funding reached R$ 7,861.2 million, an increase of 11.6% in the quarter and in line with the loan portfolio, which reached R$ 7,724.8 million in 4Q11 We were the first bank to conduct a Public Issue of Banknotes in the amount of R$ million maturing in 2 years Moody s Investor Service awarded Investment Grade to Daycoval and Standard & Poor s raised Daycoval s rating to to BB+ for the Long-Term Global scale and AA for the Long-Term National scale In December 2011, Daycoval initiated the process to migrate to the BM&FBovespa Corporate Governance Level 2 The Basel Ratio reached 16.5% in 4Q11, a 0.1 p.p. reduction for the quarter. (1) 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 30

31 31 4Q11 Conference Call 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.