Institutional Presentation December 2010

Transcription

1 Institutional Presentation December 2010

2 Agenda Brazilian Credit Market Key Figures Corporate Governance and Financial System Ranking Page 3 Page 5 Page 6 Foreign Currency Funding Liquidity Asset Management Page 16 Page 17 Page 18 Distribution Loan Credit Portfolio Middle Market Portfolio Daycred - Payroll Daycred Auto Loans Daycred DCC Funding Page 7 Page 9 Page 11 Page 12 Page 13 Page 14 Page 15 Quality of Loan Portfolio Page 19 Efficiency Ratio Page 23 Capital Structure Page 24 Profitability Page 25 Peers Page 26 2

3 Overview of the Brazilian Credit Market Credit Evolution in Brazil (% of GDP) Nov/10 Total credit operations of the financial system - R$Billion Loan to Companies up to R$ 100 million R$ Billion 1, % % % % 71% % 30% 31% 30% 29% 30% 28% Nov Nov-10 Up R$ From R$ to R$ 10 million Source: Brazil Central Bank 3

4 Brazilian Credit Market vs. Banco Daycoval Total Loan Portfolio - R$ Million Financial System Total Credit Operations vs. Banco Daycoval (% p.a.) CAGR 04-10: 45.3% 6, % ,680 3,574 4,020 4,033 67% 51% 40% 19% 22% 21% 28% 31% 15% 15% 17% 53% % Banco Santos Crisis / Beginning of Payroll Loans IPO World Crisis Brazilian Credit Volume Daycoval Loan Portfolio Branch Expansion Program 4

5 5 Key Figures 4Q10 Total Assets R$ 8,938.5 million Loan Portfolio R$ 6,222.5 million Funding R$ 5,241.1 million Shareholders Equity R$ 1,777.8 million Basel Index 19.9% 4Q Net Income R$ 70.9 million R$ million ROAE 17.0% 16.0% ROAA 3.1% 3.3% NIM-A (*) 12.1% 11.9% Efficiency Ratio 27.8% 24.6% (*) New methodology excluding repurchase agreements tri-party repos outstanding

6 Corporate Governance and Financial System Ranking Board of Directors Representative of the Controlling Shareholder Rony Dayan Ranking Daycoval Chairman Representative of the Controlling Shareholder Sasson Dayan Independent Member Gustavo Henrique de Barroso Franco Independent Member Peter M. Yu Board of Executive Officers Name / Title Years on Daycoval Sasson Dayan, CEO 42 Morris Dayan, Executive and Investor Relations Officer Salim Dayan, Executive Officer 19 Carlos Moche Dayan, Executive Officer 17 Regina Maciel Nogueira, Officer 20 Nilo Cavarzan, Officer 6 Albert Rouben, Officer 11 Rating 18 Ranking Daycoval (*) Private National Banks Net Income 12º Global Scale Global Scale Low Risk Mid-Term Shareholders Equity 16º Long Term BB Long Term BB Index Total Deposits 19º Total Assets 23º Short Term B National Scale Long Term braa- Short Term B National Scale Long Term A+ (bra) General Rank: Março/10 8 Source: Brazil Central Bank September 2010 Short Term bra 1 Positive December 2010 Short Term F1 (bra) Stable November 2010 July

7 More than 100 points of distribution 30 Branches SÃO PAULO SP HD Av. Paulista SP - ALPHAVILLE RJ - RIO DE JANEIRO PR - LONDRINA SP - BOM RETIRO AL - MACEIÓ RS - CAXIAS DO SUL SP - BRÁS BA - SALVADOR SC - FLORIANÓPOLIS SP - CAMPINAS CE - FORTALEZA DF - BRASÍLIA SP - FARIA LIMA PE - BOA VIAGEM GO - GOIÂNIA SP - GUARULHOS PE - RECIFE MS - CAMPO GRANDE SP - RIBEIRÃO PRETO RN - NATAL MT - CUIABÁ SP - SÃO BERNARDO RS - PORTO ALEGRE AM - MANAUS ES - VITÓRIA SE- ARACAJU PA - BELÉM MG - BELO HORIZONTE PR - CURITIBA 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 3 exchang in São Paulo and 2 correspondent foreign exchange desks distributed strategically in São Paulo and Rio de Janeiro 7

8 Daycoval s Market Capital and Ownership Breakdown Stock Performance December 2010 Ownership Breakdown December 2010 DAYC4 (R$) 4Q10 3Q10 Chg. % Chg. % Closing Quotation % % High for the quater % % Average for the quarter % % Low for the quarter % % Book Value % % Market Value (R$)Million 2, , % 2, , % 0.4% 25.4% 8.4% 65.8% Daycoval Holding Financeira S/A Controlling Shareholders (Family) + Daycoval Expert Treasury Free-Float Total Shares: million shares. Free Float: 54.9 million shares. First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 18 local and international brokerage firms. 8

9 9 Loan Portfolio: robust growth of 53.2% during the last 12 months Loan Portfolio R$ Million As of December, 2010 % of Credit Portfolio Middle Market Payroll Loans Auto Loans Direct Credit To Consumers Total 67.1% 23.7% 8.5% 0.7% 100.0% 53.2 % 12.2% Portfolio (R$ mn) 4, , , ,062 4, ,932 4,210 5,546 4, ,765 5,485 6, ,031 Growth Products 15.2% vs 3Q % vs 4Q09 Working Capital, Receivables financing, trade finance, BNDES sureties & avals 6.7% vs 3Q % vs 4Q09 Loans to INSS, Armed Forces, Courts, Private Companies, Federal Gov, Municipalities, among other 5.1% vs 3Q % vs 4Q09 Loans to Small Vehicles, Motorcycles, Heavy-duty Vehicles 20.7% vs 3Q % vs 4Q09 In-store financing 12.2% vs 3Q % vs 4Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Loan Portfolio Credit Assignments

10 Loan Portfolio: growth in the Middle Market portfolio over the last 12 months Breakdown Loan Portfolio (*) 4Q09 Breakdown Loan Portfolio (*) 4Q10 0.6% 15.7% 57.8% 25.9% Middle Market Payroll Loans Auto Loans DCC 8.5% 0.7% 23.7% 67.1% Middle Market Payroll Loans Auto Loans DCC Breakdown Portfolio Middle Market 4Q10 (million) Working Capital R$ 2, % Guaranteed Account R$ 1, % Trade Finance R$ % BNDES R$ % Avals and Sureties R$ % Receivables Purchase R$ % TOTAL R$ 4, % (*)Includes Credit Assignments 10

11 11 Middle Market: significant increase of 77.8% over the last 12 months, currently representing 67.1% of the total portfolio Middle Market Portfolio R$ Million Guarantees Breakdown 4Q10 2,349 2,587 3,055 3,627 4, % 7.0% Receivables 11.6% 55.3% 5.7% Vehicles / Real Estate Agricultural Products Financial Investments 4Q09 1Q10 2Q10 3Q10 4Q % Equipments / Foreign goods Other Sectors Breakdown Middle Market 4Q10 Geographic Distribution Middle Market 4Q10 18% 6% 34% 42% Industry Services Commerce Other 10% 5% 15% 13% 57% Southeast South Northeast Mid-West North

12 12 Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) R$ Million Total Loan Portfolio (*) R$ 1,476 mn 4Q10 - % 1,383 1,476 1,238 1,052 1,126 4Q09 1Q10 2Q10 3Q10 4Q10 (*) Includes credit assignments in all of the quarters (R$ million in 4Q10) Total Origination R$ Million Q09 1Q10 2Q10 3Q10 4Q10 5.3% 2.6% 0.5% 8.1% 38.1% 12.5% 32.9% Total Origination R$ 386 mn 4Q10- % 7.6% 0.4% 1.3% 8.1% 39.6% 43.0% INSS Army State Government Law Courts and Legislative Bodies Municipalities Other Private INSS Army State Government Law Courts and Legislative Bodies Municipalities Private + Other

13 13 Daycred Auto Loans: reverse contraction in this portfolio Total Loan Portfolio (*) R$ Million Total Origination R$ Million Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 (*) Includes credit assignments in all of the quarters (R$ 23.5 million in 4Q10) Liquidity of Auto Loans Portfolio 4Q10 R$ Million Liquidity Receiving Paid Past due more than 90 days Ratio Liquidity Total Loan Loan Portfolio 1,355 1, % Old Loan 1,249 1, % New Loan %

14 Direct Credit to Consumers (DCC): product that complements the Bank s operations for individuals Direct Credit to Consumers Financing of goods and services through partnerships with a number of retailers, such as home furnishings, Appliances, etc. Payment guaranteed by pre-dated checks at rates and Terms that are competitive with the market. Partnerships with many shops, seeking to increase sales, offering the end consumer greater purchasing facilities. Total Loan Portfolio - R$ Million Q09 1Q10 2Q10 3Q10 4Q10 14

15 Funding: focus on the diversification of sources of funding and control of costs Funding R$ Million Breakdown of Funding R$ Million 3,631 4,310 21% 10% 24% 21% 66% 44.4 % 4,842 15% 28% 5,175 Funding (R$ mn) 4Q10 3Q10 Chg. % Total Deposits 3, , % Demand Deposits + Other Deposits % Time Deposits 2, , % Interbank Deposits n.a. Borrowing and Onlending 1, , % Foreign Issuances % Banknotes % Total 5, , % Total Deposits Breakdown R$ 3,193.9 Million 7.7% 12% 13% 25% 26% 58% 57% 63% 61% 4Q09 1Q10 2Q10 3Q10 4Q10 Total Deposits Borrowing and Onlending Foreign Issuances 1.3% 5, % Corporates + Demand Deposits Individuals 26.5% 20.0% 39.5% Investment Funds Institutional Financial Institutions + Interbank Deposits 15

16 Foreign Currency Funding: greater than expected demand with attractive rates Foreign Issuances and Borrowing and Onlending - R$ Million 1, , , , , % 66% 66% 68% 70% 30% 50% 34% 34% 32% 4Q09 1Q10 2Q10 3Q10 4Q10 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 Borrowing and Onlending November/15 (due of last tranche) Foreign Issuances 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 16

17 Liquidity: positive gap in duration between credit and funding operations Outstanding Operations (Loan Portfolio) 4Q10 - % Outstanding Operations (Funding) 4Q10 - % 7.3% 0.7% 0.9% 3,9% 32.2% 20,7% 17,7% 25.3% 34.5% 29,5% 27,3% 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: 407days Average Term of Funding Portfolio: 515 days 17

18 18 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 seven open funds and ten closed funds. Asset ended the year 2010 with a total of funds generated of R$ 1,157.8 million. Profitability Funds Year Assets Under ManagementR$ Million Assets Under Management R$ Million Daycoval Renda Fixa 10.01% % CDI % Multifunds ,158 Daycoval Multifunds 9.53% % CDI 97.81% Parnamirim 10.44% % CDI % Oasis 11.19% % CDI % Stocks Daycoval Target 5.78% % Ibovespa 4.74% 27.8

19 Quality of Loan Portfolio (*) : constitution provisions return to historic levels Total Provisions 4Q10 Total Loan Portfolio (excludes FIDCs) 4Q10 Portfolio R$ mn % Provision R$ mn Total Provision / Loan (%) Middle Market 3.713,1 66,4% 106,4 2,9% Payroll 1.308,4 23,4% 31,6 2,4% Auto Loans 339,6 6,1% 29,5 8,7% DCC Retailers + Other 42,6 0,8% 2,3 5,4% Subtotal 5.403,7 96,7% 169,8 3,1% Credit Assignments 191,4 3,3% 1,0 0,5% Total 5.595,1 100,0% 170,8 3,1% Total Provision / Loan Porfolio 4Q10 5.4% 4.5% 3.4% 3.2% 3.1% 4Q09 1Q10 2Q10 3Q10 4Q10 (*) Unconsolidated 19

20 Quality of Loan Portfolio (*) Establishment of Provision - R$ mn 4Q09 1Q10 2Q10 3Q10 4Q Middle Market + Trade Finance (4.1) Payroll Auto Loans Direct Credit to Consumers Total Balance and Establishment of Provision - R$ Million Q09 1Q10 2Q10 3Q10 4Q10 Balance of Provision Establishment of Provision (*) Unconsolidated 20

21 21 Quality of Loan Portfolio (*) LLP / Past due operations > 14 days LLP / Past due operations > 60 days 156% 184% 201% 212% 310% 270% Q09 3Q10 4Q10 LLP / Past due operations (%) Past due operations 4Q09 3Q10 4Q10 LLP / Past due operations (%) Past due operations (*) Unconsolidated

22 22 Quality of Loan Portfolio (*) recover debts continue in hight level during the 4Q10 Loan D-H - R$ mn 3 T 4Q09 3Q10 4Q10 (%) Loan Middle Market + Trade Finance Payroll Auto DCC Total % Write-offs - R$ mn 4Q09 3Q10 4Q10 (%) Loan Total (72.1) (45.5) (17.9) 0.3 Recovered Loans - R$ mn 4Q09 3Q10 4Q10 (%) Loan Total (*) Unconsolidated

23 23 Efficiency Ratio: remains a low-level, showing a constant effort to make lending operations profitable 4Q10 3Q10 Chg. % 4Q09 Chg. % Chg. % Personnel Expenses (28.3) (22.7) 24.7% (17.8) 59.0% (94.3) (63.9) 47.6% Outher Administrative Expenses (26.0) (23.0) 13.0% (17.5) 48.6% (84.7) (65.9) 28.5% Subtotal (54.3) (45.7) 18.8% (35.3) 53.8% (179.0) (129.8) 37.9% Comission Expenses (total retail) (8.4) (7.1) 18.3% (9.3) -9.7% (29.9) (43.6) -31.4% Total (62.7) (52.8) 18.8% (44.6) 40.6% (208.9) (173.4) 20.5% Efficiency Ratio (%) ,4 p.p ,2 p.p p.p Efficiency Ratio (considering Profit Sharing) (%) ,9 p.p 25.8% 6,4 p.p p.p Efficiency Ratio % Q09 1Q10 2Q10 3Q10 4Q

24 24 Capital Structure: continuation of low leverage, with a reduction in the Basel index Shareholders Equity R$ Million Basel Index % 1, , , , , Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 Loan Portfolio / Shareholders Equity - times Q09 1Q10 2Q10 3Q10 4Q10

25 Profitability: Net Profits reached 70.9 million and ROAE was 17.0% during the quarter Net Income R$ million Return on Average Equity (ROAE) - % Q09 1Q10 2Q10 3Q10 4Q Return on Average Assets (ROAA) - % 4Q09 1Q10 2Q10 3Q10 4Q Net Interest Margin (NIM-A) (1) - % Q09 1Q10 2Q10 3Q10 4Q Q09 1Q10 2Q10 3Q10 4Q (1) New methodology excluding repurchase agreements tri-party repos outstanding 25

26 Peer Analysis 9M10 Shareholders Equity (R$ Million) 1 Basel Index (%) 1 1, , , Bic banco Daycoval ABC Pine Sofisa Indusval Daycoval Indusval Pine Bic banco ABC Sofisa Loan Portfolio / Shareholders Equity times Daycoval Sofisa Indusval Pine Bic banco ABC 1 Source: Bank s reports as of September

27 Peer Analysis 9M10 Loan Portfolio (R$ Million) 1 13, , , , , ,769.1 Bic banco ABC Pine Daycoval Sofisa Indusval Net Income - R$ mn 1 278,9 203,8 148,2 103,4 61,1 23,0 Bic banco Daycoval ABC Pine Sofisa Indusval 1 Source: Bank s reports as of September 2010

28 Peer Analysis 3Q10 Net Interest Margin (NIM) - % 1 Return on Average Equity (ROAE) - % (2) (2) Daycoval Bic banco Sofisa Indusval Pine ABC Bic banco Daycoval Pine ABC Sofisa Return on Average Assets (ROAA) - % 1 Efficiency Ratio - % Daycoval Bic banco Pine ABC Sofisa Daycoval Pine Bic banco ABC Sofisa Indusval (1) Source: Bank s reports as of September 2010 (2) NIM-A: New methodology excluding repurchase agreements tri-party repos outstanding 28

29 Daycoval s Strengths Growth capability with reduced costs Recognized as one of the best Brazilian Middle Market Banks Conservative profile and solid capital structure Experienced management team compromised with corporate governance Strict credit policy Access to diversified funding sources Low leverage level

30 4Q10 Institutional Presentation 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. 30