Institutional Presentation 1st half annual

Transcription

1 Institutional Presentation 1st half annual

2 Index Timeline...3 Shareholding and Organizational Structure...4 INSS Auction - Brazilian Social Security Payroll Auction...5 Loan Portfolio...6 Geographical Operating Area...7 Client Base...8 INSS Beneficiaries Perspective...9 Loan Portfolio Breakdown Funding Time Deposits...15 Loan Portfolio Quality...16 lncome and Expenses...17 Basel and Rating...19 Constant Technological Evolution...20 Banco Mercantil de Investimentos...21 Environmental & Social Responsibility...22 Contacts...23

3 Timeline Banco Mercantil de Minas Gerais foundation - Curvelo/ MG Araújo Family takes over BMMG lncorporation of Banco Industrial de Minas Gerais Banco Santa Cruz and Banco Metrópole acquisition lt consolidates in MG and is recognized in the banking and financial sectors Nationwide Banco Industrial de Campina Grande and Mercantil do Brasil acquisition. lt becomes known as Banco Mercantil do Brasil Revitalization of Visual ldentity and branches network. lnstitutional Solidity, Social and Environmental Responsibility, service and service providing excellence are recognized and valued / 2014 INSS Payroll auction winner in MG and SP countryside. Focus on INSS Beneficiaries service. New business opportunities for Banco Mercantil de Investimentos The Main Branch is awarded with the ISO 9001 Certification, proving the quality of its service. EMPRESA CERTIFICADA 3

4 Shareholding and Organizational Structure CONTROLLING GROUP ON: 62,9%. PN: 37,1% FREE FLOAT ON: 20,8%. PN: 79,2% BOARD OF DIRECTORS DIRECTIVE COMMITTEE PRESIDENT Luiz Henrique Andrade de Araújo VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT Maurício de Faria Araujo Paulo Henrique Brant de Araujo Renato Augusto de Araújo José Ribeiro Vianna Neto EXECUTIVE COMMITTEE EXECUTIVE VICE PRESIDENT Marco Antônio Andrade de Araújo BOARD OF EXECUTIVE OFFICERS COMMERCIAL INSS COMMERCIAL INDIVIDUALS AND COMPANIES CONTROLLERSHIP CREDIT AND CREDIT MANAGEMENT DEVELOPMENT AND BUSINESS SUPPORT FINANCE, MARKETING, INVESTOR AND SHAREHOLDERS RELATIONS PRODUCTS TECHNOLOGY AND INFRASTRUCTURE Valci Rezende Leonardo Ferreira Rodrigo Queiroz Ângela Mourão Uelques Almeida Gustavo Araújo Taise Cruz Lauro Wilson 4

5 INSS Auction - Brazilian Social Security System Mercantil do Brasil won the auction again with the sarne batches, keeping its strategic position. UNTIL SEPTEMBER 2007 Brazilian Social Security System paid banks fees for processing the beneficiaries payroll. SINCE SEPTEMBER 2007 Banks started to process the beneficiaries payroll without receiving fees for the service. AUGUST 2014 Brazilian Social Security System published the new Auction Notice for the period of 2015 to MB won the MG state and the countryside of SP state auctions: MB has the right to process the remaining payroll over the next 20 years. JULY 2009 Auction notice for all the 26 batches to process the beneficiaries payroll starting in January Definition: Bidding in every 5 years to offer the new beneficiaries payroll. 5

6 Loan Portfolio R$ MM HALF-ANNUAL EVOLUTION R$ MM Loan Portfolio Companies Individuals - Branch Network Individuals - Correspondent Agents Loan Portfolio Companies R$ (HoH) -R$ % 42% 44% 46% 40% 38% 34% 18% 18% 20% 31% 17% Individuals R$ R$ 6 Dec/16 Jun/17 Dec/17 Jun/18 6

7 Geographical Operating Area 230 CLIENT SERVICE POINTS IN BRAZIL SEGMENTATION LOAN PORTFOLIO'S REGION DISTRIBUTION FOCUS ON THE NATIONAL INSTITUTE OF SOCIAL SECURITY (INSS) BENEFICIARIES RN 26% CLIENT SERVICE POINTS PE Operate INSS segment 216 BA 43% INSS segment exclusive 186 DF GO SP MG RJ ES 31% INSS specialized managers Multiple segments Business platforms SP 121 MG 96 Other states 13 PR SC RS Minas Gerais 43% São Paulo 31% Other states 26% Premium platforms 10 7

8 Client Base (Thousand) TOTAL BASE = NON ACCOUNT HOLDERS + ACCOUNT HOLDERS NON ACCOUNT HOLDERS ACCOUNT HOLDERS Dec/ Dec/ Dec/ Jun/ Jun/ Jun/ Dec/ Dec/17 Dec/ Jun/ Jun/ Jun/ thousand new beneficiaries / month 25 thousand new account holders /month 83% Satisfaction rate of service* (MB Internal Survey ) 8

9 INSS Beneficiaries Perspective - Branch Network % CLIENT BY GENDER 56 % % 44 % WOMEN MEN Personal Loans PRODUCTION (MONTHLY AVERAGE) R$ MM Payroll Loans TOTAL LOAN PORTFOLIO R$ MM 88% Dec/16 Jun/17 Dec/17 Jun/ % -29% -11% PAYROLL LOANS AND PERSONAL LOANS 9

10 INSS Beneficiaries Perspective - Branch Network PRODUCTS PENETRATION CLIENT LOAN AVERAGE TICKET 87% 64% Insurance 63% Service Package R$ 5 thousand PERMANENT BENEFITS (old-age retirement, occupational injuries, senior social assistance, etc) 57% 56% Credit Card 58% Revolving Loans RELATIONSHIP Above 2 years 58% AGE RANGE Between 36 and 65 years 10

11 Loan Portfolio Breakdown - R$ MM PRODUCTS BY SECTOR 4% 7% 8% 4% 2% each 25% 3% 3% 1% each 5% 11% 2% each 69% 8% 24% 12% Payroll Loans- INSS (Brazilian Social Security System) Personal Loans - Account Debt 25% 24% Working Capital 12% Rural Loans 8% Renegotiation 8% Payroll Loans Public 7% Payroll Loan - Credit Card Business Check Account 4% 2% Real Estate Loan 2% Overdraft Account 2% Trade Finance 2% Other Products 4% Individuals 69% Engineering 5% Passenger Transportation 3% Biofuel and Sugar 3% lron and Steel 2% Services 2% Food 2% Cargo Transportation and Logistics 1% Financial Activities 1% Building Material 1% Other Sectors 11% 11

12 Loan Portfolio Breakdown ANNUAL REVENUE - COMPANIES LARGEST DEBTORS - INDIVIDUALS AND COMPANIES 16% 2% 6% 33% 8% 13% 51% 17% > R$ 200 MM 16% > R$ 15 MM up to R$ 200MM 51% Up to R$ 15 MM 33% TOP 1 2% TOP 10 6% TOP 20 8% TOP 50 13% TOP % 12

13 Loan Portfolio Breakdown CLIENT AVERAGE TICKET OPERATION AVERAGE TERM INDIVIDUALS R$ Thousand INDIVIDUALS Months 1 CREDIT CARD 3 PAYROLL LOANS 30 PERSONAL LOANS 4 PERSONAL LOANS 43 VEHICLE FINANCING 24 VEHICLE FINANCING 62 PAYROLL LOANS COMPANIES COMPANIES 69 DISCOUNT 134 OVERDRAFT FACILITIES 2 DISCOUNT OVERDRAFT ACCOUNT 3 OVERDRAFT ACCOUNT WORKING CAPITAL 12 TRADE FINANCE RURAL LOANS 33 WORKING CAPITAL 256 RURAL LOANS TRADE FINANCE 13

14 Funding R$ MM R$ MM Dec/ % Jun/17 Dec/ % 61% Jun/ Time Deposit (CDB) DPGE I and II Demand Deposit, Saving Account and lnterbank Funding Credit Assignment Financial Credit Bills, Subordinated Bills*, Agribusiness Credit Bills and Real Estate Credit Bill Securities lssued Abroad * Subordinated Bills - R$ 250 MM Individuals 61% Companies 30% Institutional Investors 9% 14

15 Time Deposits LOAN PORTFOLIO X TIME DEPOSITS TIME DEPOSITS (CDB) - COMMERCIAL SEGMENTATION R$ MM Loan Portfolio Time Deposits R$ MM 3% 56% 22% 43% Dec-16 Jun-17 Dec-17 operations with special guarantee by FGC. 31% CDB: AVERAGE TICKET Jun-18 Treasury - R$ 164 MM 3% Retail - R$ MM 22% INSS Beneficiaries - R$ MM 31% Companies - R$ MM R$ 9 thousand 43% 15

16 Loan Portfolio Quality and ALM DELINQUENCY RATIO ASSETS AND LIABILITIES MANAGEMENT over 90 days % of Loan Portfolio Months Companies Individuals MB Total POSITIVE GAP between loan portfolio and funding 19,3% 17,5% 12,0% 10,8% 11,3% 11,6% 8,0% 8,0% 6,8% 6,7% Dec/16 Jun/17 6,3% Dec/17 Dec/16 Jun/17 Dec/17 Jun/18 Loan Portfolio Individuals Companies Average Term of Permanence Dec/16 Jun/17 Dec/17 Jun/18 Time Deposits (CDB) ,4% Jun/18 16

17 Income and Expenses INCOME EXPENSES R$ MM (HoH) R$ MM Jun/17 Jun/18 (YoY) Non-performing Loans - 18,6% Financial lntermediation % Administrative - 9,9% Loan Operations % Personnel - 6,7% Service Income % Banking Fees % Dec/16 Jun/17 Dec/17 Jun/18 17

18 Income and Expenses RESULTS ROAE Annualized R$ MM Dec/16 Jun/17 Dec/17 Jun/18 7,0% 2,6% 2,9% 3,6% Dec/16 Jun/17 Dec/17 Jun/18 Net Income Operational Result 18

19 Basel and Rating BASEL RATIO RATING 16,11% 14,60% 14,40% 14,94% Moody s (Global) Caa1 Dec/16 Jun/17 Dec/17 Jun/18 Standard & Poor s (Domestic) brbbb- Jun/18 R$ (Thousand) Riskbank 8,22 Regulatory Capital Shareholder's Equity Tier I Tier II

20 Constant Technological Evolution SERVICE CHANNELS - 1st half annual TECHNOLOGY INVESTMENTS ATMs Over 20 million of total transactions performed on ATMs INTERNET BANKING More then 3 million transactions MOBILE BANKING Over 3.5 million transactions SOCIAL NETWORK 236 thousand "likes" on Facebook CONSTANT COMPUTER NETWORK RENEWAL INVESTMENT IN DIGITAL PLATFORM INVESTMENTS IN SOFTWARE, SYSTEMS AND TELECOM MOBILE MESSAGES Almost 9 million sent messages Near 183 thousand sent s PHONE Almost 2 million answered calls BRANCHES 186 INSS segment exclusive branches 20

21 Banco Mercantil de Investimentos S/A WHY BMI OBJECTIVE Supply of structured products to capital market and Advisory Services for M&A and Corporate Finance transactions. UNIQUE SUPPORT Mercantil do Brasil structure and relationship with it s main customers and investors. EXPERIENCED TEAM Experienced professionals with track record in M&A and Capital Market operations. OPERATIONS PERFORMED COMPANHIA DE SANEAMENTO DE MG S.A. 10th ISSUANCE OF DEBENTURES R$ 140MM SEP DATORA MOBILE S.A DEBENTURES R$ 20MM MAY CEMIG GERAÇÃO E TRANSMISSÃO S.A. PROMISSORY NOTES R$ 620MM OCT TRAVESSIA SECURITIZADORA DE CRÉDITOS FINANCEIROS II S.A. SECURITIZAÇÃO DA CARTEIRA DE CRÉDITO PESSOAL DO BANCO MERCANTIL DO BRASIL R$ 100MM JAN CO-MANAGER LEAD MANAGER CO-MANAGER LEAD MANAGER CEMIG TELECOM S.A. DEBENTURES R$ 27MM MAY FIDC NAUTILUS CREDIT ASSIGNMENT WITHOUT RECOURSE OF MERCANTIL DO BRASIL FINANCEIRA'S PAYROLL LOAN PORTFOLIO R$ 100MM MAR DISTRIBUIÇÃO S.A. PROMISSORY NOTES R$ 400MM MAY EMPREENDIMENTOS AGRÍCOLAS S.A. CERTIFICATE OF AGRIBUSINESS RECEIVABLES R$ 40MM AUG CO-MANAGER ESTRUCTURING MANAGER LEAD MANAGER SPECIAL PARTICIPANT 21

22 Corporate Social Responsability THE PUSH THAT MOVES SPORT, CULTURE AND CITIZENSHIP SPORT CULTURE CITIZENSHIP Cabeça de Prata (Iniciative for elderly people) Athletes development project sponsorship - Minas Tênis Clube Arte Favela - Graffiti at Cultural Centers SOS Choir - Social Iniciative Service Campanha Doar Faz Bem (Charity drive) MB Consciente Ambiental (MB Environmental Conscious) MB Doação de Sangue (MB Blood Donation) MB Educação Financeira (MB Financial Education) Minas pela paz (Minas for peace) 22

23 Contacts INVESTOR RELATIONS TEAM INSTITUTIONAL INVESTORS GUSTAVO ARAÚJO ROBERTO ASSUMPÇÃO JOSÉ GERALDO MARINA MIRANDA (31) RICARDO SANTIAGO (31) ANA RAQUEL TORRES 23

24 THANK YOU!