Conference Call 1Q11. (Only in Portuguese)

Transcription

1 Conference Call 1Q11 (Only in Portuguese)

2 Agenda Key Figures Page 3 Foreign Currency Funding Page 13 Financial System Ranking Page 4 Liquidity Page 14 Distribution Page 5 Asset Management Page 15 Loan Portfolio Page 6 Quality of Loan Portfolio Page 16 Middle Market Portfolio Page 8 Efficiency Ratio Page 20 Daycred - Payroll Page 9 Capital Structure Page 21 Daycred Auto Loans Page 10 Profitability Page 22 Funding Total Deposits Page 11 Page 12 1Q11 Highlights Page 24 2

3 Key Figures 1Q11 Total Assets Expanded Loan Credit Portfolio Funding Shareholders Equity Net Income R$ 9,787.1 million R$ 6,596.2 million R$ 5,915.7 million R$ 1,791.2 million R$ 43.5 million Basel Index 18.0% 1Q11 Average past 12 months ROAE 10.1% 15.1% ROAA 1.8% 2.9% NIM-A (*) 9.0% 11.3% Efficiency Ratio 37.6% 26.9% (*) New methodology excluding repurchase agreements tri-party repos outstanding 3

4 Financial System Ranking Ranking Daycoval Ranking Daycoval (*) Private National Banks Net Income 12º Shareholders Equity 16º Total Deposits 22º Total Assets 25º Source: Brazil Central Bank December 2010 Rating Global Scale Global Scale Low Risk Mid-Term Long Term BB Long Term BB Index Short Term B National Scale Long Term braa- Short Term B National Scale Long Term A+ (bra) General Rank: Março/10 8 Short Term bra 1 Positive December 2010 Short Term F1 (bra) Stable May 2011 July

5 Distribution: More than 100 points os 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 57 stores in operation throughout Brazil. 11 Daypag Offices in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Americana, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu e Detran São Paulo 4 exchang in São Paulo and correspondent foreign exchange desks distributed strategically in São Paulo and Rio de Janeiro 5

6 Loan Portfolio: growth higher than the market average Loan Portfolio R$ Million 1Q11 4Q10 Chg. % Mi ddl e Ma rket 3, , % Tra de Fi na nce % Total Portfolio Middle Marke 3, , % Payroll Loans 1, , % Auto Loans / DCC / Other % Total Loan Portfolio 5, , % Expanded Loan Portfolio R$ Million 1Q11 4Q10 Chg. % Mi ddl e Ma rket / Other 3, , % Tra de Fi na nce % Avals and Sureties Granted % Recei va bl es purcha s e % Total Portfolio Middle Market 4, , % Pa yrol l Loa ns 1, , % Payroll Loans Portfolio Assignments % Total Payroll Loans 1, , % Auto Loa ns % Auto Loans Portfolio Assignments % Total Auto Loans % Direct Credit to Consumers (DCC) % Total Expanded Loan Portfolio 6, , % 6

7 Expanded Credit Portfolio: strong growth of 52.9% over the past 12 months Loan Portfolio R$ Million 4, ,210 4, , % 6.0% 6,596 6, , ,485 6,031 6,447 Loan Portfolio Credit Assignments Breakdown Loan Portfolio (*) 4Q10 Breakdown Loan Portfolio (*) 1Q11 8.5% 0.7% 8.1% 0.7% Middle Market Middle Market 23.7% 67.1% Payroll Loans Auto Loans DCC 24.5% 66.7% Payroll Loans Auto Loans DCC (*)Includes Credit Assignments, sureties and avals granted and the purchase of credit reghts 7

8 Middle Market: strong increase of 70.1% over the past 12 months, currently representing 66.7% of the total portfolio Middle Market Portfolio R$ Million 2,587 3,055 3,627 4,177 4,402 Breakdown Portfolio Middle Market 1Q11 (million) Working Capital R$ 2, % Guaranteed Account R$ 1, % Trade Finance R$ % BNDES R$ % Avals and Sureties R$ % Receivables Purchase R$ % TOTAL R$ 4, % Guarantees Breakdown 1Q11 Sectors Breakdown 1Q11 Geographic Distribution 1Q11 9.9% Receivables 5.6% 12.2% 6.2% 14.8% 51.3% Vehicles / Real Estate Agricultural Products Financial Investments Equipments / Foreign goods 6% 17% 35% 42% Industry Services Commerce Other 6% 9% Southeast 15% 58% 12% South Northeast Mid-West North Other 8

9 Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) R$ Million Total Loan Portfolio (*) R$ 1,617 mn 1Q11 - % 1,617 1,476 1,383 1,238 1,126 (*) Includes credit assignments in all of the quarters (R$ 130.7million in 1Q11) Total Origination R$ Million % 4.6% 2.8% 0.4% INSS 12.1% 33.8% 38.1% Total Origination R$ 419 mn 1Q11- % 10.3% 41.4% 36.3% Army State Government Law Courts and Legislative Bodies Municipalities Other Private 8.8% 0.2% 3.0% INSS Army State Government Law Courts and Legislative Bodies Municipalities Private + Other 9

10 Daycred Auto Loans: maintenance of production Total Loan Portfolio (*) R$ Million Total Origination R$ Million (*) Includes credit assignments in all of the quarters (R$ 18.0million in 1Q11) Liquidity of Auto Loans Portfolio 1Q11 R$ Million Origination Last 12 months (*) Liquidity Receiving Paid Loan Portfolio Past due more than 90 days Ratio Liquidity Total Loan 1,483 1, % Old Loan 1,340 1, % New Loan % 25.7% 74.3% Small Vehicles Heavy-duty Vehicles (*) We have not financed motorcycles since October

11 Funding: strong growth of 12.9% during the quarter Funding (R$ mn) 1Q11 4Q10 Chg. % Total Deposits 3, , % Demand Deposits + Other Deposits % Time Deposits 2, , % Interbank Deposits n.a. Borrowing and Onlending 1, , % Foreign Issuances 1, % Banknotes % Total 5, , % Funding R$ Million 4,310 21% 21% 4,842 15% 28% 37.2% 12.9% ,241 12% 13% 5,916 18% 25% 26% 24% 57% 63% 58% 61% 58% Foreign Issuances Borrowing and Onlending Total Deposits 11

12 Total Deposits: growth of 36.6% over the past 12 months Total Deposits - R$ Million 2,506 2,775 3,248 3,194 3,422 Total Deposits Breakdown 4Q10 Total Deposits Breakdown 1Q11 7.7% 6.3% Corporates + Demand Deposits Individuals 7.7% 4.7% Corporates + Demand Deposits Individuals 26.5% 20.0% 39.5% Investment Funds Institutional Financial Institutions + Interbank Deposits 27.0% 18.8% 41.8% Investment Funds Institutional Financial Institutions + Interbank Deposits 12

13 Foreign Currency Funding: Without any relevant maturities in the upcoming months Foreign Issuances and Borrowing and Onlending - R$ Million 1, , % 66% 1, % 2, % 2, % 50% 34% 34% 32% 43% Borrowing and Onlending Foreign Issuances Date of Transaction Maturity Amount (US$ mn) Eurobond July/2008 July/ International Finance Corporation (IFC) Syndicated Loan (IFC) December/2007 June/2010 January/13 (due of last tranche) June/14 (due of last tranche) Eurobond March/2010 March/ Syndicated Loan (IIC) November/2010 November/15 (due of last tranche) Eurobond January/2011 January/ Eurobond held in January /2011 Issuer Banco Daycoval S.A. Issuer Rating (S&P) BB Positive / (Fitch) BB Stable Issue Denominations US$ 300 million Term January 2016 (5 years) Ranking Status Euro Medium Term Note Programme Yield 6,37% p.a Coupon 6,25% p.a Interest Semi- annual (30/360) Listing Irish Stock Exchange Joint Bookrunners Co-Manager 13

14 14 Liquidity: positive gap of 182 days between the duration of the credit and funding operations Outstanding Operations (Loan Portfolio) 1Q11 - % Outstanding Operations (Funding) 1Q11 - % 7.7% 0.9% 33.4% 1.0% 25.2% 3.9% 15.2% 25.7% 32.3% Maturity of 65.7% over the next 12 months 26.3% 28.4% Maturity of 47.5% 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 No maturity From 3 to 12 months From 3 to 5 years Up to 3 months From 1 to 3 years Over 5 years Average Term of Loan Portfolio: 410 days Average Term of Funding Portfolio: 592 days

15 15 Daycoval Asset Management Daycoval Asset Management offers a variety of investment funds and differentiated products such as portfolio administration. At the present time we have eight open funds and twelve closed funds. Asset ended March 2011 with a total of funds generated and/or administered of R$ 1,182.1 million. Profitability Funds Year Assets Under ManagementR$ Million Assets Under Management R$ Million Daycoval Renda Fixa 10.63% % CDI % Multifunds ,158 1,182 Daycoval Multifunds 10.02% % CDI 96.21% Parnamirim 10.81% % CDI % Oasis 2.70% % CDI % Stocks Daycoval Target 0,18% % Ibovespa -2,36% Q11

16 Quality of Loan Portfolio (*) : constitution of the Provision is at appropriate levels Total Provisions 1Q11 Total Loan Portfolio (excludes FIDCs) 1Q11 Portfolio R$ MM % Provision R$ mn Total Provision / Loan (%) Middle Market 3, % % Payroll 1, % % Auto Loans % % DCC Retailers + Other % % Subtotal 5, % % Credit Assignments % % Total 5, % % Total Provision / Loan Porfolio 1Q11 4.5% 3.4% 3.2% 3.1% 3.0% (*) Unconsolidated 16

17 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 17

18 18 Quality of Loan Portfolio (*) LLP / Past due operations > 14 days LLP / Past due operations > 60 days 172% 168% 184% 201% 191% 255% 255% 310% 270% 310% Q10 3Q10 4Q10 4Q10 1Q11 LLP / Past due operations (%) Past due operations LLP / Past due operations (%) Past due operations (*) Unconsolidated

19 19 Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 111.4% of the E-H portfolio Loan E-H - R$ mn 3 T 1Q10 4Q10 1Q11 (%) Loan Middle Market + Trade Finance Payroll Auto DCC Total % Write-offs - R$ mn 1Q10 4Q10 1Q11 (%) Loan Middle Market + Trade Finance (32.3) (3.0) (17.8) 0.5 Retail (32.8) (14.9) (16.8) 0.9 Total (65.1) (17.9) (34.6) 0.6 Recovered Loans - R$ mn 1Q10 4Q10 1Q11 (%) Loan Middle Market + Trade Finance Retail Total (*) Unconsolidated

20 20 Efficiency Ratio: Non-recurring events led to an increase in the ratio, but should return to the previous levels during the next few periods 1Q11 4Q10 Chg. % 1Q10 Chg. % Personnel Expenses (exclude IFP) (26.4) (25.5) 3.5% (21.4) 23.4% Administrative Expenses (exclude IFP) (27.0) (25.0) 8.0% (17.1) 57.9% Subtotal Expenses (exclude IFP) (53.4) (50.5) 5.7% (38.5) 38.7% Personnel and Administrative Expenses - IFP (3.6) (3.8) -5.3% 0.0 n.a. Administrative Expenses - Foreign Issuance (2.3) - n.a. (0.3) n.a. Subtotal (59.3) (54.3) 9.2% (38.8) 52.8% Comission Expenses (total retail) (9.5) (8.4) 13.1% (8.0) 18.8% Total (68.8) (62.7) 9.7% (46.8) 47.0% Efficiency Ratio (%) p.p Efficiency Ratio (considering Profit Sharing) (%) p.p p.p Efficiency Ratio % Efficiency Ratio Average Past 12 months

21 Capital Structure: continuation of low leverage, with a reduction in the Basel index Shareholders Equity R$ Million Basel Index % 1, , , , , Loan Portfolio / Shareholders Equity - times Loan Portfolio Expanded Loan Portfolio 21

22 Profitability: Net Income was impacted by non-recurring events during this quarter, registering a 38.6% decline compared to 4Q10 Net Income R$ million The result was impacted by the events: -Swap DAYC4 - Mark to Market for Foreign Issue - Expenses Foreign Issue - Increase PDD Return on Average Equity (ROAE) - % Return on Average Assets (ROAA) - % Net Interest Margin (NIM-A) (1) - % (1) New methodology excluding repurchase agreements tri-party repos outstanding 22

23 23 Non-recurring events in the quarter 1Q11 1Q11 Excluding nonrecurring events ROAE 10.1% 15.1% 15.1% ROAA 1.8% 2.7% 2.9% NIM-A (*) 9.0% 10.8% 11.3% Efficiency Ratio 37.6% 30.8% 26.9% Average past 12 months Non-recurring events that impacted the results Results of the Mark-to-Market pricing of the Foreign Issue realized in January/11: negative R$ 22.0 million Result of DAYC4 Swap: negative R$ 10.7 million Expenses for the Foreign Issue realized in January/11: R$ 2.3 million (*) New methodology excluding repurchase agreements tri-party repos outstanding

24 1Q11 Highlights Net Income of R$ 43.5 million for the quarter, influenced by the mark-to-market pricing in the derivatives market (swaps and mark to market) Return on Average Equity (ROAE) was 10.1% and Net Adjusted Financial Margin (NIM-A) (1) was 9.0% The expanded Credit Portfolio (2) rose 6.0% this quarter, ending 1Q11 at R$ 6,596.2 million, showing consistent growth over the past seven quarters Total Funding increased by 12.9% during the quarter, with a balance of R$ 5,915.7 million, highlighted the new offshore issue (Eurobond) of US$ 300 million for five years realized during the period The average maturity of funding operations is 592 days, whereas the average maturity of the assets is 410 days, presenting a positive GAP of 182 days The Basel Ratio remained at 18.0%, a reduction of 1.9 p.p. over quarter, continuing at a high level (1) New methodology excluding repurchase agreements tri-party repos outstanding (2) Includes assignments, sureties and avals granted and Receivables purchase 24

25 Conference Call 1Q11 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. 25