Banco do Brasil 1Q09

Transcription

1 Banco do Brasil 1

2 Disclaimer This presentation may include references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the management s belief, they also involve imprecision and high difficult risks to be foreseen, consequently, they may conduct to a different result than the one anticipated here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market one. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation. 2

3 R$ billion Assets Banco do Brasil reaches R$ 592 billion in assets, after Nossa Caixa Deposits Loan Portfolio Customers - million

4 Net income met expectations and reflected the current economic environment ,944 2,347 1,559 1,644 1,463 2,037 1,867 1,626 1,665 1,357 2Q08 3Q08 Net Income R$ million ROE - % Recurring Net Income R$ million Recurring ROE - % 4

5 R$ 309 million of one-off off items. R$ million Net Income 1,665 Main One-Off Items 309 Tax Credits 1,213 Taxes and Profit Sharing over One-Off Items 557 Provision for Legal Claims 1,367 Economic Plans Recurring Net Income 1,357 5

6 With changes in the asset mix and under seasonal effects, net interest income recorded a slight drop in the quarter... R$ billion Q08 3Q08 Net Interest Income Interest Expenses Other Interest Revenues Loan Revenue 6

7 ... and put pressure on the NIM Q08 3Q08 Selic¹ - % NIM² - % Annualized NIM by Loan Portfolio - % (1) Annualized Selic (end of period) (2) Annualized Net Interest Income over Earning Assets 2Q08 3Q08 Individuals Businesses Agribusiness 7

8 Banco do Brasil keeps its competitive funding cost¹... Total Funding Total Deposits = 42.1% 42.1% = 60.7% 60.7% Saving Deposits Time Deposits = 46.7% 46.7% = 96.3% 96.3% Balance R$ billion Cost - % Selic (1) Not considering Nossa Caixa 8

9 ... what allowed loan growth above the financial system % over R$ billion (2.6) 13.9 (2.4) Q08 Market Share¹ - % Businesses 3Q08 Individuals Agribusiness - Individuals Agribusiness - Businesses Abroad (1) Domestic loan portfolio 9

10 Growth above the financial system even when considered only organic growth. R$ billion Total % 40.0 % 7.6 Banco do Brasil Individuals Businesses Agribusinesses Abroad Nossa Caixa Individuals Businesses Agribusinesses BESC Loan Portfolio Acquisition Car Loans Payroll Loan Financial System , ,

11 Consumer finance is the loan growth main driver... % over R$ billion (1.2) Q08 3Q08 Payroll Loan Others Credit Card Car Loan Consumer Finance backed by Direct Deposits Overdraft Account 11

12 ... and the businesses loan portfolio surpassed R$ 100 billion. % over R$ billion Q08 3Q08 Middle and Large Companies SME 12

13 15% of the financial system loan operations¹ were contracted in Banco do Brasil branches. R$ billion Q08 3Q08 Financial System BB Q08 3Q08 Businesses (1) Contracted operations loan as reference for interest rate Individuals 13

14 Individual loan operations are back to their uptrend line. R$ million Businesses Working Capital Businesses Advance on Export Contracts 6,079 11,562 5,491 6,504 5,370 3,840 5,638 6,436 7,972 5,488 2Q08 3Q08 2Q08 3Q08 Individuals Car Loan Individuals Payroll Loan 886 1, ,168 3,952 3, ,717 2,673 2Q08 3Q08 2Q08 3Q08 14

15 Provisions level consistent with harder times Q Q Provisions for Loan Losses¹ - R$ billion Net Interest Income - R$ billion Expenses for Loan Losses / Loan Portfolio² - % (1) With no one-off effects (2) Average loan portfolio and expenses (LTM) Q08 3Q08 Additional + Required Provision / Loan Portfolio - % Required Provision / Loan Provision - % Past Due Loans + 90 days / Loan Portfolio - % Losses / Loan Portfolio - % 15

16 BB s delinquency is under the financial system records. Business Delinquency¹ - % Q08 3Q08 Past Due 90 FS Past Due 90 BB Past Due 15 FS Past Due 15 BB Individual Delinquency¹ - % Agribusiness Delinquency - % Q08 3Q08 Past Due 90 FS Past Due 90 BB Past Due 15 FS Past Due 15 BB 2Q08 3Q08 Past Due 90 BB Required Provision/Loan Portfolio 16 (1) Loans as reference for interest rate

17 Newest vintage lines present lower delinquency levels. Delinquency 90 days Annual Vintage Analysis (since 2003) Client Risk: A.B.C.D and E Delinquency: 90 days Months (1) Individual Loan Operations except overdraft account, credit cards and car loans 17

18 Delinquency in the car loan vintage reflects the learning curve. Car dealers origination Delinquency 90 days Delinquency 90 days Months BB s network origination Months 18

19 Banco Votorantim loan portfolio maintains its good quality. Car Loan Portfolio 86.4% of the loan portfolio is compounded by second-hand cars. In Mar/09, the average term contracted of vintage was 43 months Loan to Value of 67,2% Dec/2008 Mar/2009 Past Due Loans + 90 days / Loan Portfolio - % Losses¹ / Loan Portfolio - % annualized Provision for Loan Losses / Loan Portfolio - % Expenses for Loan Losses / Average Loan Portfolio (12 months) - % Financed cars average age is 6.4 years. 2.0% average interest rate in Mar/09 vintage. (1) Net of Recovery 19

20 Cost to Price ratio for soybean and corn implies adequate remunerating level for next crop. Relation % Cost/Price - Soybean Relation % Cost/Price- Corn % % /05 05/06 06/07 07/08 08/09 09/10 Crop 04/05 05/06 06/07 07/08 08/09 09/10 Crop R$/kg Relation Price Cost - Soybean R$/kg 0.25 Relation Price Cost - Corn /05 05/06 06/07 07/08 08/09 09/10 04/05 05/06 06/07 07/08 08/09 09/10 Crop Price Cost Crop (1) Annual average prices and costs (December) - soybean MS and corn PR 09/10 Crop costs in March 31st 2009 and expected prices for Mar/

21 65% of the 08/09 crop were insured. Agri Insurance Contracted 08/09 Crop 08/09 Crop 07/08 Crop 06/07 Crop 4% 11% 35% 65% 50% 50% 42% 58% 14% 56% Insured Not Insured 15% Agricultural Costs Investments Marketing Livestock Costs Agroindustrial Credit Reinsurance % IRB 25 SCOR 15 SWISS RE 15 PARTNER RE 15 MUNICH RE 10 DEMAIS 10 Total 90 21

22 Fee income reflects seasonal effects. Fee Income¹ Accounts Holders¹ R$ billion million Q08 3Q08 2Q08 3Q08 Assets under Management¹ Cards Billing¹ R$ billion R$ billion Q08 3Q08 2Q08 3Q08 ¹ Not considering Nossa Caixa figures. 22

23 Administrative expenses¹ under control and in line with expectations,... R$ million % over 3,535 3,662 3,817 4,344 3, (9.5) 1,734 1,672 1,797 2,043 1, (7.5) 1,801 1,989 2,020 2,301 2, (11.8) 2Q08 3Q08 Personnel Expenses Administrative Expenses (1) Not including legal claims and one-off items 23

24 ... helping the maintenance of productivity ratios at good levels Q08 3Q08 Cost-income Ratio¹ - % Coverage Ratio¹ ² - % (1) YTD ratio and without one-off items (2) Fee Income / Personnel Expenses 24

25 BIS Ratio allows the continuous growth of business BIS Ratio Pro forma Q08 3Q08 Tier I Tier II BIS Ratio 25

26 2009 Guidance ¹ Guidance Fee Income 1.0% 5% - 8% Recurring ROE 19.1% 19% - 22% Loan Portfolio Domestic Portfolio 32.0% 13% - 17% Individuals 39.7% 23% - 25% Businesses 42.8% 16% - 19% Agribusinesses 12.3% 2% - 5% Deposits 41.4% 10% - 14% NIM 6.6% 6.8% - 7.2% Provisions for Loan Losses 3.8% 3.8% - 4.2% Administrative Expenses 11.2% 9% - 12% Tax Rate² 29.8% 26% - 29% ¹ Not considering Nossa Caixa. ² Under review 26

27 Investor Relations Unit SBS - Quadra 1 - Bloco C - Ed. Sede III 5th floor Brasília (DF) Phone: 55 (61) Fax: 55 (61) bb.com.br ri@bb.com.br For further information access bb.com.br/ir 27