Banco Cruzeiro do Sul

Transcription

1 Banco Cruzeiro do Sul Earnings Release 2Q09/1H09

2 2Q09 Highlights On the 2Q09 the Bank privileged the asset growth, recovering the paycheck deductible loans origination; The 2Q09 net earnings was of R$ 23.2 million, posting a ROAE of 8.3%, overcoming the 1Q09 loss (R$ 21.8 million) and presenting a net income for the 1H09 of R$ 1.4 million; The total payroll deductible loans origination, including the paycheck deductible credit card, on the 2Q09 amounted to R$ million, 28.5% higher than the 1Q09 (R$ million); The total on-balance credit portfolio reached R$ billion: R$ billion in paycheck deductible loans, R$ 91.2 million in credit card operations, and R$ million in the SME business segment. The term deposit base amounted to R$ 2,826 million, posting a growth of 49.6% if compared to 1Q09 (R$ 1,889.1 million), and 101.4% compared to 2Q08 (R$ 1,402.6 million). 2

3 Net Earnings Due mainly to different accounting procedures adopted (Res. 3,533), the net earnings related to the first two quarters of 2009 are lower than the same period of 2008, 1Q08 R$ 39.6 million and 1H08 R$ million, respectively. The 2Q09 net earnings was of R$ 23.2 million, posting a ROAE of 8.3%, and overcoming the 1Q09 loss of R$ 21.8 million. Net Earnings The 1H09 net earnings was R$ 1.4 million (21.8) Q08 1Q09 2Q09 3

4 Future Earnings Forecast Based on the 1H09 paycheck deductible loan origination, we forecast that we will reach an on-balance credit portfolio amount that would allow us to reach positive earnings at FY09, as per below: 1Q09 2Q09 2Q09 3Q09 4Q09 (R$ 000) (Real) (Foressen (Real) (Foreseen (Foreseen) Expected production CPP 655, , , , ,000 Financial results of credit portfolios 89, , , , ,988 Operating expenses (100,094) (94,141) (119,390) (91,314) (89,951) Other results (10,761) - (41,724) - - Profit before taxes (21,144) 19,035 25,250 37,969 57,038 Accumulated (21,144) (2,108) 4,106 42,076 99,113

5 Shareholder Equity SHAREHOLDER'S EQUITY 1,136 1,048 1,069 1,028 1,019 The 1H09 shareholder equity was of R$ 1,018.7 million, 10.3% lower than the same period last year (R$ 1,136 million) The average shareholder equity on the 2Q09 was of R$ 1,022.2 million, and on the 1H09 of R$ 1,034.0 million Q08 1Q09 2Q % BIS 99,897,555 shares ON 38,414,146 shares PN Totaling 138,311,701 shares 19.0% 14.7% 15.7% 20.4% 22.5% 18.5% 15.7% Market value of R$ million. Share price on June 30 th, 09: R$ Q08 1Q09 2Q09 The 2Q09 BIS ratio was 15.7%, higher than the 11% minimum required by the Central Bank of Brazil 5

6 Dividends and Interesent on own capital Banco Cruzeiro do Sul paid out Interest over Own Capital related to the 1H09 in the amount of R$ 32.4 million. The distributed amount corresponded to R$ per ordinary share, and R$ per preferential share. The annualized dividend yield on the 1H09 was of 14.6%, taking into consideration the June 30 th,09 share price of R$ Since the IPO the accumulated dividend yield is of 8.8% taking into consideration the issue price of R$ per share. Date of approval Return Return value per share (R$) The Amount of Income (R$ 000) Date of Payment 08/23/2007 1/21/2008 Interest on own capital Interest on own capital , /9/ , /2/2008 3/12/2008 Dividends , /25/2008 5/14/2008 3/7/2008 Interest on own capital Interest on own capital , /15/ , /15/2008 3/4/2009 Dividends , /16/2009 7/17/2009 Interest on own capital , /14/2009 6

7 CREDIT Main Business lines Focused on low risk personal lending backed by payroll deductible instrument, complemented by middle market operations. Segment Product % Total Portfólio 1 2Q09 2Q08 Growth¹ (%) % Total Assets Loans to Public Servants Payroll Loans Loans to Beneficiaries of INSS 95.4% 11.3% 78.4% Payroll Paycheck Loan Linked Deductible Credit Credit Card Cards Middle Market Short term working capital loans guaranteed by receivables 4.6% (37.4%) 3.8% Notes: 1 Total credit portfolio includes credit assignments 7

8 Credit Portfolio Portfolio Portfolio Balance Balance - R$ 3,788.6 mm R$ 3,788.6 mm 3, % % % The total credit portfolio reached R$ 5.6 billion in 2Q09, a growth of 7.5% compared to 2Q08 (R$ 5.2 billion), and a negative growth of 0.3% compared to the 1Q09 (R$ 5.6 billion). Paycheck-deductible¹ Paycheck-deductible Credit Card Middle Market Total Credit Portfolio (R$ mm) 5,314 5,222 5,626 5,611 4, ,110 1, ,285 2,501 1, ,289 3,197 3,800 3,447 3, ,334 The on-balance credit portfolio reached R$ billion in 2Q09, a growth of 9.9% compared to 1Q09 (R$ billion), and a negative growth of 0.3% compared to 2Q08 (R$ billion). The amount of assets assigned to other financial institutions, and senior shares in FIDC represented 32.5% of the portfolio total in 2Q09 (R$ 5,611.0 million), against 38.7% in 1Q Q08 1Q09 2Q09 Balance Sheet Contracts of Loan with co-obligation Contracts of Loan without co-obligation Source: Banco Cruzeiro do Sul 8

9 Payroll Deductible Loan Origination On 2Q09 the payroll deductible loan origination amounted to R$ million, and R$ 1.44 billion on the 1H09. The average monthly origination amount on the 2Q09 was of R$ million, and of R$ million no 1H09; The total origination amount including the paycheck deductible credit card origination on the 2Q09 was of R$ million. On the 1H09 the total origination reached R$ 1,497.6 million; We highlight the origination recovery observed during the 1H09, posting a positive trend for the second half of the year. Origination (R$ mm) Paycheck Deductible Loans (R$ Billion) Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Payroll Loans 78,370 71,495 65,623 68,201 62,635 59, % 56, % 20.3% Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 40% 35% 30% 25% 20% 15% 10% 5% 0% Public Employees INSS Paycheck-deductible (R$ Bi) YoY Variation Source: Bacen (R$ milhões) 9

10 Quality of Loan Portfolio 95.7% of credit assets rated between AA e C, in accordance with Resolution of the Central Bank of Brazil. 2Q09 Quality of Loan Portfolio 6.3% 4.0% 32.2% 53.2% AA A B C Provision represents only 1.59% of the total loan portfolio due to the high quality of payroll-deductible loans, whose provision for loan losses is 0.71%. R$ MM* 2Q09 PLL Provisions Pay Check Deductible Loans 3, , % Middle Market , % Total Credit Portfolio 3, , % % * Consolidated statement figures 10

11 Credit Card Operations Banco Cruzeiro do Sul has more than 100 agreements with government entities to offer the Paycheck deductible loan credit card. Portfolio Balance R$ 3,788.6 mm 3, % % % Paycheck-deductible¹ Paycheck-deductible Credit Card Middle Market Issued card growth was of 69.2% if compared to the 2Q08 (797,4 thousand). The number of active customers grew 38% between the 2Q08 (275.6 thousand) and the 2Q09 (380.4 thousand). The growth between the 1Q09 (370.2 thousand) and the 2Q09 was of 2.8%. The outstanding on-balance financed amount on the 2Q09 was of R$ 91.2 million, 37.1% higher than the 1Q09. Financed Balance (R$ mm) Issued Cards (000) , , , Q08 1Q09 2Q Q08 1Q09 2Q09 11

12 Middle Market Portfolio Balance R$ 3,788.6 mm 3, % % In 2Q09 the credit portfolio on the MME segment reached R$ million, a negative growth of 37.4% compared to same period of 2008 (R$ million). Compared to 1Q09 the portfolio decrease 8.9% (R$ million). Middle Market Middle Market % Paycheck-deductible¹ Paycheck-deductible Credit Card Middle Market Q08 1Q09 2Q09 Conservative credit approach, with collateral quality improvement, and shorter tenor transactions was the driver of the MME business strategy. 131 active customers. Average credit portfolio amount: R$ 1.2 million. Average credit portfolio interest rate: 2.18% p.m. Average credit portfolio tenor: 151 days 12

13 Diversified Sources of Funding R$ mm 2Q09 % do of Total R$ mm 1Q09 % do of Total % Variation do Total Credit Assignments Formal credit assignment agreements with other financial institutions 1, % 1, % -12.4% Short / Medium Term Notes Short term notes program started on 2003 Medium term note program started on 2006 (maturities up to 2016) % % -3.5 % Time Deposits Average Ticket R$ 507,6 mm Average Interest Rate 110,3% CDI (Brazilian basic interest rate) Average Tenor 280 days 2, % 1, % 49.6% FIDC Established on FIDCs with 10 years tenor FIDCs has a AA rating or superior 1, % 1, % -5.1% Others Interbank deposits Demand deposits Other deposits % % -24.7% TOTAL 6, % 5, % 9.4% 13

14 Contractual Liquidity During the 1H09 Banco Cruzeiro do Sul maintained its liquidity and focus on asset quality policy adopted in the past quarters. The increase in guarantees for time deposits via the Fundo Garantidor de Crédito, authorized by the National Monetary Council as of April 1, 2009, enabled the issue of Time Deposits with Special Guarantee (DPGEs) in conditions favorable to our paycheckdeductible loans requirements. We continued our relationship with partner financial institutions, assigning credit assets that generated resources at prices and maturity dates compatible with our operations, but DPGEs funding reduced our dependence on the assignment of assets to other financial institutions, and consequently the maintenance of a higher asset volume in the portfolio. R$ Assets 4,611.8 Cash Cash equivalents Credit assets for assignment (Paycheck Deductible + SME) 3,788.6 Liability 3,265.4 National currency 2,455.5 Foreign currency Balance 1,346.4 ¹Cash in FIDC's, Cash in other currencies, Pledged securities (BM&F) 14

15 Distribution Network and Franchise Agreements with government entities 341 operational agreements covering more than 2,800 entities on the 3 government levels as follows: 149 federal, 91 state, and 101 municipalities Q08 1Q09 2Q09 National distribution coverage 410 correspondents; 251 Correspondent Banks Long lasting relationship with the correspondents; Full IT support with in house technology development; Remuneration through commissions and incentive plans based on effective net origination Q08 1Q09 2Q09 The average weighted commission paid to correspondents on the 2Q09 was of 8,29%, compared to 6,35% on the 1Q09 and 6,40% on the 2Q08; Our 10 major correspondents were responsible for 18.4% of the total paycheck deductible loan origination on the 2Q09 and for 20% on the 1H09. 15

16 Client Base Large client base; Over 1.3 million active customers; 9.1% growth compared to the 1Q09, and of 24.8% related to the 2Q08; Cross sell potential. Client Base - (000) , , , , Q08 1Q09 2Q09 INSS Public Employees Cards 16

17 IR Contacts: Fausto Vaz Guimarães Neto Phone: +55 (11) João de Lacerda Soares Phone: +55 (11) Roberto Coutinho Phone: +55 (11) ri.bcsul.com.br 17