1Q16 INSTITUCIONAL PRESENTATION

Transcription

1 1Q16 INSTITUCIONAL PRESENTATION

2 2 Brazilian Credit Market GDP and Credit Growth YoY Loans/ GDP by Type of Financial Institution Credit Portfolio Growth Daycoval and Financial System (%) Foreign Exchange Reserves (USD Billion) Source: Brazilian Central Bank (Banco Central do Brasil BCB) and Daycoval. Methodology Change in Aug/5.

3 3 Historic Developments Upgrade to BBB- by Fitch Begin building commercial banking portfolio Issuance of USD225mn in Eurobonds Upgrade to Bovespa s Level 2 of Corporate Governance Second issuance of Letras Financeiras 1 Public offer for the acquisition of Shares and delisting from Level 2 Syndicated loan (A/B Loan) of approximately US$ 200 million Beginning of activities in Brazil through Daycoval DTVM Beginning of auto loan activities Issuance of USD300mn in Eurobonds Inauguration of Daycoval s 1 st branch I.P.O. Issuance of BRL410mn in convertible bonds Maison Bancaire is founded by Salim Dayan in Lebanon Creation of the Daycoval Asset Management Beginning of payroll-deduction activities Upgrade to Baa3 by Moody s Issuance of USD300mn in Eurobonds Daycoval is the first bank to issue public Letras Financeiras 1 Issuance of USD500mn in bonds 4º Issuance of Local Bonds (Letras Financeiras) of R$ 350mn Acquisition of Banco CIT Brasil Note: 1. Letras Financeiras are a type of local market Bonds issued exclusively by financial institutions

4 4 Corporate Governance Board of Directors Board of Executive Officers Name / Title Years at Daycoval Salim Dayan, Executive Officer 21 Morris Dayan, Executive Officer 20 Carlos Moche Dayan, Executive Officer 19 Regina Maciel Nogueira, Officer 22 Albert Rouben, Officer 21 Nilo Cavarzan, Officer 10 Alexandre Rhein, Officer 9 Alexandre Teixeira, Officer 9 Ricardo Gelbaum, Officer 4 Capital Structure Mar/16 (%) Total Share Common Shares Preferred Shares Free-Float 245,355, ,869,792 84,485,997 61,867,913

5 5 Five Pillars: Launch of the new corporate website of Banco Daycoval Daycoval seeks to be recognized as an economically strong, socially responsible and environmentally sustainable company. Daycoval s sustainability project was translated in well-defined strategies and started to be applied as a strategic plan. The plan is based in five great pillars. Efficiency Knowledge Quality of Life Sustainability Social Assistance Being a bank with sustainable performance and customer satisfaction Maximize shareholder return, aiming at the organization's growth

6 6 Highlights Recurring Net Income R$ 93.8 million -3.2% (1Q16/4Q15) ROAE -Adjusted and Recurring (p.a.) 13.4% -0.6 p.p. (1Q16/4Q15) Net Income of R$ 85.2 million in the quarter, reduction of 46.1 % compared to 4Q15. ROAE was 12.2 % p.a. and the net interest margin (NIM) was 11.9 % p.a. NIM-AR (1) (p.a.) 12.7% 1.0 p.p. (1Q16/4Q15) The Expanded credit portfolio was R$ 13.1 billion, a reduction of 6.7% in the quarter. Expanded Loan Portfolio Personnel and administrative expenses ended 1Q16 with R$ million, lower 12.8% compared to 4Q15. R$ 13.1 billion -6.7% (1Q16/4Q15) Shareholder's Equity We closed 1Q16 with Shareholders Equity of R$ 2,830.9 million and a Basel III index of 18.2%, which demonstrates our low leverage and high capital level. R$ 2.8 billion 1.6% (1Q16/4Q15) (1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights and portfolio transfers to other banks and excludes matched operations repurchase agreements-tri-party repos outstanding.

7 7 Expanded Loan portfolio reaches 13.1 billion, reduced of 1.9% compared to 1Q15. Expanded Loan Portfolio R$ mn Expanded Loan Portfolio (R$ mn) 1Q16 4Q15 Chg. % 1Q15 Chg. % Companies 5, , % 5, % Receivables Purchas e , % 1, % Leas ing % 0.0 n.a. Avals and Sureties % % Total Expanded Companies 7, , % 7, % Payroll Loans 5, , % 4, % Payroll Card % Total Payroll Loans 5, , % 4, % Total Auto Loans % % Total DCC/Other % % Total Expanded Loan Portfolio 13, , % 13, % Expanded Loan Portfolio- (R$ mn) Expanded Loan Portfolio R$ mn Concentration of Credit 1Q16 (*) Breakdown Loan Portfolio (*) 1Q16 Breakdown Loan Portfolio 1Q16 1% 13,384 13,263 13,093 14,074 13,129 5% Companies Payroll Loans 40% 54% Auto Loans DCC (*) The largest customer represents less than 1.5% in the 3 analyzed years.

8 8 Companies Portfolio: 94% of active clients with sales less than R$ 300 mn/year. Highlights 39 Branches 65% of the balance due is from clients with sales up to R$ 300 mn/year 94% of active clients with sales less than R$ 300 mn/year 86% of the tickets are lower than R$ 500,000 94% of the clients have a balance due lower than R$ 5 mn Diversification of clients and sectors: Companies Portfolio R$ mn Companies Portfolio- (R$ mn) 8,064 7,572 7,328 7,138 7,043 Provision: 8.7% and NPL: 1.7% Collateral Breakdown Collateral Loans to Companies - Outstanding Operation - (March/16) Loan Portfolio Outstanding Operation - (March/16) 4% 3%2% 6% Receivables Real Estate 16% 3% 7% 16% 62% Agricultural Products Financial Investments Vehicles 33% 48% Maturity of 48% 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

9 9 Companies Portfolio: Diversification of the sectorial breakdown. Breakdown Companies R$(mn) 1Q16 Chg. % 4Q15 Worki ng Ca pi ta l 3, % Gua ra nteed Account 1, % Receivables Purchase % Tra de Fi na nce % BNDES Cross % Lea s i ng Selling % Avals and Sureties % Total Companies 7, % 10% 13% Sectors Breakdown-1Q16 Companies Portfolio Breakdown 4Q15 5% 3% 5% 64% Working Capital/Guaranteed Account Receivables Purchase Trade Finance Aval and Sureties Leasing Concentration by Sector Commerce 20.8% Food and Cereal Wholesaler 3.3% Services 31.7% Highway Transportation 3.8% Industry 41.8% Sugar and Alcohol Mill 3.6% Supermarket and hypermarket 1.2% Real Estate Development 3.4% Air Chambers 1.8% Department Store 1.1% Holding Company 2.5% Vehicles and Auto parts 1.5% Export and import of Sugar 1.0% Managing its own assets 2.5% General Electronic Products 1.5% Pharmaceutical and Cosmetic Products Wholesaler 0.9% Passenger Air Transport 2.0% Auto Parts and Accessories 1.4% (1) (1) (1) Others 13.3% Others 17.5% Others 32.0% (1) Others represent a lower share than the last ones cited in the sub-sector

10 10 Payroll Loans: Balance of R$ 5,255 million. Highlights Number of contracts in the portfolio: 1Q16: 1.138,000 Average ticket: R$ 5,000 Portfolio Duration: 24 months Total Payroll Loan R$ mn Payroll Portfolio (R$ mn) 4,908 5,031 5,059 5,137 5,255 Average Interest Rate (year): 34.15% Number of Promoters: Refinancing Origination (Refin): 41% 41 own stores-ifp: 18.1% share of sales Payroll Card: 169,000 Provision: 2.6% and NPL: 0.5% Payroll Origination Portfolio Média Origination da Originação Monthly - (R$ Average MM) Breakdown Breakdown Payroll of Loan Payroll - R$ -5,255 1Q16 mn (includes credit assignments) Net Origination Gross Origination Net Origination Gross Origination 11.6% 1.0% 0,2% 2.1% 6.5% 8.6% 0.1% 28.3% 41.6% INSS State Government Government /SIAPE Municipalities Army Courts Others Debit Account Private

11 11 Daycred Auto Loans: Represents only 5% of the credit portfolio. Highlights Number of contracts in the portfolio 1Q16: 110,800 Auto Loan Portfolio R$ mn Carteira de Veículos (R$ MM) Average ticket: R$ 7,500 with minimum down payment of 30% Portfolio Duration: 15 months Average Interest Rate (year): 42.6% Vehicle average age: 12 years Number of Promoters: 114 Portfolio distribution: 73% small vehicles Focused on the Southeast Provision: 10.5% and NPL: 2.4% Carteira de Veículos (R$ MM) Origination of Auto Loan Portfolio R$ mn Loans Auto - Outstanding Operation - Loans (March/16) Auto - Outstanding Operation (March/16) 2% 21% % Maturity of 98% over the next 3 years 40% Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years

12 points of Sale and diversified products. Manages 40 funds; Funds Administered / managed totaling R$ 1.8 billion. 36 Exchange Bureaus; 84,100 operations and turnover of R$ million in the quarter. 41 stores operating throughout in Brazil; 18.1% share of sales; 250 employees. 37 service units in the state of São Paulo; Processed 1,372,000 payment slips in 1Q16 versus 1,470,000 payment slips in 1Q15.

13 13 Funding: Payment of US$ 300 million in Daycoval Bonds in Jan/16. Funding (R$ mn) 1Q16 4Q15 Chg. % 1Q15 Chg. % Deposits 4, , % 4, % Letter of Credit - LCI + LCM 1, % % Total Deposits + LCI + LCM 5, , % 4, % Individuals % % Institutional 3, , % 2, % Institutional - Public Offerings % % Local Bonds (Letras Financeiras) 3, , % 3, % Loan Portfolio by Segment 1, , % 2, % Bonds Issued Abroad (Private Placement) - - n.a n.a Foreign Issuances 1, , % 2, % Foreign borrowings 2, , % 2, % Domestic onlendings % % Borrowing and Onlending 2, , % 2, % Total 13, , % 13, % Funding R$ mn 1Q16 Breakdown of Time Deposits

14 14 Available cash of R$ 3.3 billion. 3,907 4,831 5,763 3,577 3,379 2,066 1, Up to 3 months From 3 to 12 months Funding From 1 to 3 years From 3 to 5 years Loan Portfolio Over 5 years Outstanding Operations (Loan Portfolio) - 1Q16 -% Outstanding Operations (Funding) 1Q16 - % 10% 4% 3% 16% 27% 31% Maturity of 59% over the next 12 months 44% 37% Maturity of 53% over the next 12 months 28% Loan Portfolio by Segment Average term to Maturity (1) days Companies 195 Trade Finance 117 Payroll Loans 750 Auto Loans 422 DCC + Other 334 Leasing 338 BNDES 425 Total Loan Portfolio 432 (1) From March 31,2016 Funding Average term to Maturity (1) days Total Deposits 217 Interbank Deposits 272 Local Bonds (letras financeiras) 340 (LCA) Letter of Credit Agribusiness 134 LCI (Letter Home Mortgage) 222 Foreign Issuances 1,012 Borrowing and Onlending (2) 328 BNDES 339 Total Funding 415 (1) From March 31,2016 (2) Funding with not liquidity to criteria weighting

15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q15 3Q15 4Q15 1Q16 15 Ratio of the loan portfolio provision at 6.3%. Total Provision Total / Provision Loan Portfolio / Loan (1) Portfolio(%) - (%) Evolution LLP / Portfolio by Segment (%) Companies Portfolio Provision (1) -(%) Total Middle Market Provision(%) Total Payroll Payroll Provision-(%) Provision(%) Total Auto Provision (%) Auto Provision- (%) (1) Includes Receivables purchase

16 16 Credit Recovery totaling R$ 37.9 million during the quarter. Balance and Estabilishment of Provision R$ mn Loan Portfolio E-H - R$ Mn Companies (1) Payroll Auto DCC + Other (1) Total LLP Balance/Portfolio EH - (%) 109.9% 108.7% 110.6% 102.4% 82.7% Balance and Estabilishment of Provision (*) - R$ mn Créditos Recuperados- (R$ MM) Recovered Loans , Write-offs - R$ Mn Companies (67.2) (43.7) (42.7) 69.7 (62.5) Retail (35.3) (35.5) (36.9) 41.8 (45.7) Total (102.5) (79.2) (79.6) (108.2) (1) Includes Receivables purchase to Companies Portfolio and DCC. Includes Leasing from 4Q15. (*) Unconsolidated

17 NPL, loans overdue by more than 90 days reaches 1.3% in 1Q16, below the market average. Overdue Loans (1) 1Q15 Chg. % 4Q15 Chg. % 1Q16 Overdue Loans more than 90 days past due- R$mn % % Companies Portfolio % % Payroll % % 25.1 Auto % % 17.8 DCC + Other % % 9.6 LLP Balance / Overdue Loans > 90 days (%) 499.4% 605.1% 472.7% Overdue Loans > 90 days/loan Portfolio 0.7% 0.9% 1.3% Companies Portfolio 0.8% 1.0% 1.7% Payroll 0.3% 0.4% 0.5% Auto 1.6% 2.3% 2.4% Past due operations more than 90 days (%) Past due operations more than 90 days % % 3% % 0.8% 0.7% 0.8% 1.0% 2% 1% -40 3Q14 4Q14 1Q15 2Q15 3Q15 0% Past due operations > 90 days (R$mn) Past due operations > 90 days / Loan Portfolio (1) Includes Receivables purchase to Companies Portfolio and DCC. 17

18 18 Personnel and administrative expenses: Reduced of 12.8% compared to 4Q15. (*) Recurring Efficiency Ratio (R$ mn) 1Q16 4Q15 1Q15 Personnel Expenses (67.4) (75.3) (62.3) Administrative Expenses (56.1) (66.3) (65.0) Personnel and Administrative Expense (123.5) (141.6) (127.3) Commission Expenses (Total) (51.9) (50.8) (53.3) Payroll (40.0) (38.5) (38.9) Auto Loans (8.1) (8.4) (10.6) Direct Credit to Consumer (DCC) + Others (0.9) (0.8) (0.5) Daytravel (2.9) (3.1) (3.3) Total (175.4) (192.4) (180.6) Recurring Efficiency Ratio (%) 31.5% 34.7% 35.8% Recurring Efficiency Ratio (considering Profit Sharing) (%) 33.7% 34.9% 38.5% Recurring Efficiency Ratio% Índice de Eficiência Recorrente% (*) Personnel and administrative expenses include leasing since 4T15.

19 19 Basel Index and Shareholder s Equity Basel Index III-% (1) - Tier I BIS Ratio (%) Shareholder's Equity (R$ mn) Shareholder's Equity (R$ mn) 2,595 2,646 2,665 2,787 2,831 Change in Shareholder s Equity 1Q16 (1) Basel Index 3 minimum 11% required by the Central Bank.

20 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 20 NIM-AR of 12.7 % in 1Q16. Recurring Adjusted Net Interest Margin (NIM-AR) (R$ mn) 1Q16 4Q15 1Q15 Income from Financial Intermediation Reported Hedge/MTM Hedge Interest rate (DI) (R$ mn) (22.1) Adjusted Income from Financial Intermediation (A) Average Remunerated Assets 18, , ,309.5 (-) Expenses of financial intermediation add back provisions (1,096.2) (560.7) (967.6) Average Remunerated Assets (B) 17, , ,341.9 Recurring Adjusted Net Interest Margin (NIM-AR) (%p.a.) (A/B) 12.7% 11.7% 12.1% Margem Financeira Líquida Ajustado e Recorrente (NIM-AR) - (% a.a.) Adjusted Net Interest Margin and Recurring-(NIM-AR) (*) - (%) (1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights and portfolio transfers to other banks and excludes matched operations repurchase agreements-tri-party repos outstanding.

21 21 Recurring Net Income of 93.8 million and Recurring Return on Average Equity (ROAE) of R$ 13.4% in 1Q16. Net Income Adjusted and Recurring-(RS mn) Recurring Net Income (R$ mn) Recurring Key Figures (R$ mn) 1Q16 4Q15 1Q15 Net Income Majoração CSL Hedge/MTM R$ (mn) Hedge Interest rate (DI) (R$ mn) (13.3) Equivalence Exchange Variation (9.8) (1.8) - Adjusted Net Income Return on Average Equity (ROAE) Adjusted and Return on Average Asset (ROAA) Adjusted and Recurring-(% p.a.) Return on Average Equity (ROAE) Adjusted and Recurring-(%) Return on Average Assets Recurring-(% (ROAA) Adjusted p.a.) and Recurring - (%) Net Income-(R$ mn) Net Income (R$ mn) Return on Average Equity (ROAE)-(% p.a.) Return on Average Equity (ROAE)-(%)

22 22 Balance Sheet ATUALIZAR Atualizar Amounts in R$ 000 Assets 1Q16 4Q15 1Q15 Current Assets 11,859,767 13,800,516 11,618,786 Cash and Cash Equivalents 96, , ,705 Interbank Investments 3,425,726 3,787,816 2,287,770 Securities and Derivatives 275, , ,463 Interbank Accounts 131, , ,404 Lending Operations 5,731,972 6,123,791 5,660,252 Leasing Operations 190, , Other Receivables 1,842,741 2,586,288 2,531,887 Other Assets 165, , ,305 Long-Term Assets 8,421,481 8,103,154 8,135,051 Interbank Investments 10,195 12,914 - Securities and Derivatives 1,778,680 1,521,440 1,649,154 Lending Operations 4,657,799 4,694,475 4,776,590 Leasing Operations 114, , Other Receivables 1,653,735 1,520,681 1,443,843 Other Assets 206, , ,464 Permanent 22,037 26,385 29,393 Investments Property and Equipment in Use 21,147 25,492 28,526 Intangible Total Assets 20,303,285 21,930,055 19,783,230 Liabilities 1Q16 4Q15 1Q15 Current Liabilities 9,548,182 10,990,503 9,607,481 Deposits 3,088,973 3,191,542 2,725,156 Money Market Funding 1,427, ,545 1,368,025 Funds from Acceptance and Issuance of Securities 3,002,498 4,163,395 3,295,717 Interbank Accounts 10,782 3,537 10,103 Interbranch Accounts 30,637 41,093 49,291 Borrowings and Onlendings 1,412,804 1,657,466 1,589,240 Derivatives 17,051 9,363 24,956 Provisions of Insurance and Pension Plans 47,389 41,249 37,317 Other payables 510, , ,676 Long-term Liabilities 7,840,372 8,058,389 7,571,365 Deposits 1,490,690 1,550,016 1,313,061 Funds from Acceptance and Issuance of Securities 3,587,022 3,818,847 4,119,154 Borrowings and Onlendings 1,058,105 1,127, ,315 Derivatives 961 1,934 4,298 Other Payables 1,703,594 1,559,639 1,382,537 Deferred Income 82,932 93,554 8,997 Minority Interest Shareholders Equity 2,830,929 2,786,751 2,594,600 Capital of Brazilian Residents 1,892,143 1,892,143 1,892,143 Capital Reserves ,309 Revaluation Reserves Profit Reserves 977, , ,616 ( - ) Treasury Stocks -11,568-11,568-15,143 Adjustments of Shareholders' Equity Evaluation - Securities and Derivatives Available for Sale -28,026-38,239-20,204 Total Liabilities 20,303,285 21,930,055 19,783,230

23 23 Income Statement Amounts in R$ 000 Income Statement 1Q16 4Q15 Var. % 1Q15 Var. % Income from Financial Intermediation 651, , % 1,648, % Lending Operation 710, , % 688, % Leasing Operations 65,190 45, % - n.a Securities Operations 155, , % 124, % Derivatives (289,793) (29,737) n.a. 686,420 n.a Foreign Exchange Operations 10,434 18, % 149, % Expenses of Financial Intermediation (612,985) (559,640) 9.5% (1,376,154) -55.5% Funding Expenses (368,235) (332,701) 10.7% (944,216) -61.0% Borrowing and Onlendings (27,643) (10,825) n.a. (312,170) n.a Leasing Operations (46,891) (31,930) 46.9% - n.a Operations Sale or Transfer of Financial Assets (6,236) (8,260) -24.5% (6,086) 2.5% Loan Losses Provisions (163,980) (175,924) -6.8% (113,682) 44.2% Gross Profit from Financial Intermediation 38, , % 272, % Other Operating Income (Expenses) 92,807 (144,320) n.a. (102,062) n.a. Income from Services Provided 24,777 28, % 27, % Income from Insurance (215) (1,760) -87.8% 1,087 n.a Personnel Expenses (67,410) (75,301) -10.5% (62,330) 8.2% Other Administrative Expenses (108,039) (117,129) -7.8% (118,270) -8.7% Tax Expenses (32,152) (31,776) 1.2% (27,960) 15.0% Other Operating Income 401,563 99,556 n.a. 133,576 n.a Other Operating Expenses (125,717) (46,835) n.a. (55,918) n.a Income from Operation 131, , % 170, % Non-operating Expenses 6,630 1,023 n.a. (2,933) n.a. Income before Taxes and Minority Interest 137, , % 167, % Income and Social Contribution Taxes (40,741) (90,686) -55.1% (48,817) -16.5% % - 0.0% Provision for Income Tax (60,483) (41,135) 47.0% (40,972) 47.6% Provision for Social Contribution Tax (49,435) (38,470) 28.5% (24,672) n.a. Deferred Taxes 69,177 (11,081) n.a. 16,827 n.a. Profit-Sharing (11,999) (1,226) n.a. (13,261) -9.5% Minority Interest (19) (18) 5.6% (18) 5.6% Net Income 85, , % 105, % Interest on Shareholders Equity (51,267) (43,992) 16.5% (34,094) 50.4% Earnings per Share n.a n.a. Number of Shares 244,130, ,130,241 n.a. 243,751,481 n.a.

24 24 1Q16 Institutional Presentation 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."