Institutional Presentation June 2010

Transcription

1 Institutional Presentation June 2010

2 Agenda Brazilian Credit Market Overview and Strategy Page 3 Page 8 2Q10 Results Page 17 Appendix Page 34 2

3 Agenda Brazilian Credit Market Overview and Strategy Page 3 Page 8 2Q10 Results Page 17 Appendix Page 34 3

4 Overview of the Brazilian Credit Market Credit Evolution in Brazil (% of GDP) Jun/10 Loan to Companies up to R$ 100 million R$ Billion Total credit operations of the financial system - R$Billion % 70% % 70% 69% 71% 70% 30% 31% 30% 29% 29% 30% 30% , , , May-10 Up R$ From R$ to R$ 10 million Jun-10 Source: Brazil Central Bank March

5 Brazilian Credit Market vs. Banco Daycoval Total Loan Portfolio (1) - R$ Million Financial System Total Credit Operations vs. Banco Daycoval (% p.a.) 112% 4,787 3,574 4,020 4,033 67% 51% 39% 40% 1,680 29% 28% 31% % 14% 3% 9% 19% 22% 21% 15% 15% 8% 19% H10-1% H10 Banco Santos Crisis / Beginning of Payroll Loans World Crisis Brazilian Credit Volume Daycoval Loan Portfolio (1) Includes Avals and Sureties Branch Expansion Program IPO 5

6 Consistent Funding in Good and Bad Times Total Funding 1 - R$ Million 4,725 CAGR 00 09: 39.1% 2,977 3,273 3,509 1, , H10 Banco Santos Crisis / Creation of Daycoval Asset Management Eurobond US$ 120 mn / FIDC Middle Eurobond US$ 225 mn / World Crisis Eurobond US$ 300 MM / Syndicated Loan (IFC) US$165 MM 1 Funding = Total Deposits + Foreign Issuances + Borrowing and Onlendings (does not include FIDC) Eurobond US$ 65 mn IPO / AB Loan-IFC US$ 115 mn Private Placement R$ 410 mn 6

7 Financial System Ranking Daycoval Ranking Private National Banks Total Assets 25º Total Funding 26º Shareholders Equity 14º Net Income 16º Source: Brazil Central Bank March 2010 Tradicional Bank, with over 40 years of operation. Recognized in the market for its conservative profile, solid stance, credibility and excellence in the management of its businesses. 7

8 Agenda Brazilian Credit Market Overview and Strategy Page 3 Page 8 2Q10 Results Page 17 Appendix Page 34 8

9 Distribution and New Service Outlets National Presence Recently opened two exchange bureaus on Avenida Paulista, Brazil s major business hub. Seven Daypag offices in major cities of São Paulo State: Osasco, Barueri, Guarulhos, Atibaia, Campinas, Ribeirão Preto, Mogi Guaçu, and Detran São Paulo 29 Branches São Paulo SP - HQ 690 employees Alphaville Bom Retiro Faria Lima Brás Aracaju - SE Belém - PA Belo Horizonte - MG Brasília - DF Campinas - SP Campo Grande - MS Caxias do Sul - RS Cuiabá - MT Curitiba - PR Florianópolis - SC Fortaleza - CE Goiânia - GO Guarulhos - SP Londrina - PR Maceió - AL Manaus - AM Natal - RN Porto Alegre - RS Recife - PE Ribeirão Preto - SP Rio de Janeiro - RJ Salvador - BA São Bernardo - SP Vitória - ES 9

10 Daycoval s Market Capital and Corporate Structure Stock Performance 2Q10 Capital Structure June/10 DAYC4 (R$) 2Q10 1Q10 Chg. % 2Q09 Chg. % Closing Quotation % % High for the quarter % % Average for the quarter % % Low for the quarter % % 0.6% 25.2% 8.4% 65.8% Daycoval Holding Financeira S/A Controlling Shareholders (family) + Daycoval Expert Treasury Book Value % % Free Float Market Value(RS) Million 1, , % 1, % Total Shares: million shares. Free Float: 54,4 million shares. First middle market bank to implement a ADR Level I Program. Coverage by research analysts from 16 local and international brokerage firms. 10

11 Daycoval s Strategy Pursue higher returns with the lowest possible risk Middle Market Focus and expected share gain along next years Maintain Low Leverage and High Liquidity policy Maintain the quality of collaterals Payroll Participate in the market expansion Long term funding to match the growing payroll portfolio strategy Auto Grow origination 11 11

12 Loan: agile and efficient Executive Board Committee Aproves operations above R$ 1 million. Credit Committee Define the approval of limits and hierarchies, monitor the performance of the credit portfolio and approve operations of up to R$ 1 million. Credit Director and Analyst Conducts the company s economic-financial analysis, analyzes documentation and issues opinions as the Director of Credit. Together, they discuss the risks of each operation and propose them to the Credit Committee. Sales Manager Visits clients, prepares the credit visit report, the structure of the operation and the interaction with the internal analysis team. Is not in the credit hierarchy. Partnership posture with the clients, with special solutions for each requirement. Cross selling ofcredit products and financial services. Proactive in the management of portfolio risks, with strict control of guarantees. Expertise and flexibility to structure transactions. Centralized back-office at headquarters. Strong and specialized front-office team. 12

13 Business Strategy : New Products Credit to individuals Daypag meets the financing needs of car license agents, expediters and driving schools in São Paulo State by extending loans for clients to pay vehicle registration fees (road tax, compulsory third-party liability insurance, fines etc.) and facilitating payments by wire transfer. Prepaid card, rechargeable in another currency that allows withdrawals and purchases in licensed establishments to VISA worldwide. New Exchange Bureau, partners with travel agencies, brokers and other financial instituion s. 13

14 Business Strategy : New Credit Products and Technology to companies Long-term financing for investment in the business. Acquisition of new machinery and equipment. Practicality in controlling costs for company, with benefits package and benefits. Makes it possible companies and individuals to electronically received all bank payment slips, facilitating day-to-day operations. Internet Banking: secure, modern, efficient and easy navigation. 14

15 Created in 2004 to service clients of the Bank who wanted sophisticated products designed according to their individual profiles. Each Fund has its own manager who has deep understanding of the capital markets and is fully dedicated to obtaining the maximum returns possible. In June/2010, net assets totaled approximately R$ 785 million. Profitability Funds Assets Under Mannagement R$ Million Year Assets Under Management R$ MM Daycoval Renda Fixa 5.45% 73.8 % CDI % Multifunds Daycoval Multifunds 4.77% 17.7 % CDI 90.66% Parnamirim 5.84% % CDI % Stocks Daycoval Target -0.91% 22.0 % Ibovespa -0.05% H10 15

16 Ratings Global Scale Long Term BB Short Term B National Scale Long Term braa- Short Term bra 2 Global Scale Long Term BB Short Term B National Scale Long Term A+ (bra) Short Term F1 (bra) Low Risk Mid-Term Index General Rank: march/10 8 Stable November 2009 Stable December 2009 July

17 Agenda Brazilian Credit Market Overview and Strategy Page 3 Page 8 2Q10 Results Page 17 Appendix Page 34 17

18 Key Figures (R$ MM) June 2010 Total Assets R$ 8,813.5 million Loan Portfolio R$ 4,786.8 million Funding R$ 4,725.5 million Net Income (quarter) R$ 64.2 million Shareholders Equity R$ 1,668.0 million ROAE (quarter) 16.0% NIM-A (1) (quarter) 11.7% Efficiency Ratio 24.1% BIS Index 22.3% (1) New methodology excluding repurchase agreements tri-party repos outstanding 18

19 Funding: strong growth of funding with diversification of sources Funding R$ Million 44.8 % 13.3 % 3,567 3,264 3,509 18% 18% 21% 20% 17% 11% 4,725 4,172 18% 26% 22% 15% 62% 65% 68% 60% 59% 2Q09 3Q09 4Q09 1Q10 2Q10 Total Deposits Borrowing and Onlending Foreign Issuances Total Deposits Breakdown R$ 2,775.0 Million Breakdown of Funding Funding (R$ MM) 2Q10 1Q10 Chg. % Total Deposits 2, , % Demand Deposits + Other Deposits % Time Deposits 2, , % Interbank Deposits % Foreign Issuances % Borrowing and Onlending 1, % Total 4, , % 9.2% 2.2% Corporates Individuals 19.0% 20.6% 49.0% Investment Funds Institutional Financial Institutions 19

20 Foreign Currency Funding demand exceeds expectations with attractive rates even at times of economic turbulence Date of Transaction Maturity Amount (US$ MM) Eurobonds June/2008 June/ Paid Inter-American Investment Corporation (IIC) September/2007 September/2010 (due date of last tranche) 52.5 Eurobonds July/2008 July/ International Finance Corporation (IFC) December/2007 January/2013 (due date of last tranche) 115 Syndicated Loan (IFC) June/2010 June/2014 (due date of last tranche) 165 Eurobonds March/2010 March/ Foreign Issuances and Borrowing and Onlending - R$ Million % 66.7% 76.7% 33.3% 1, % 51.8% 1, % 33.1% 1, , % 63.5% 54.2% 36.5% Q10 2Q10 Foreign Issuances Borrowing and Onlending 20

21 Liquidity: high capitalization and positive gap in duration between credit and funding operations Cash Evolution - R$ Million Cash / Total Deposits % 1, , , , , Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 % Loan Portfolio - Outstanding Operations 2Q10 % Funding - Outstanding Operations 2Q10 6.9% 0.8% 26.7% 31.9% 33.7% Average Term of Loan Portfolio: 400 days 1.0% 24.7% 32.3% 3.5% 18.5% 20.0% Average Term of Funding Portfolio: 561 days Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years No maturity Up to 3 months From 3 to 12 month From 1 to 3 years From 3 to 5 years Over 5 years 21

22 Loan Portfolio: robust growth, reaching 31% in past 12 months Loan Portfolio - R$ Million Breakdown of Loan Portfolio 2Q10 (*) R$ Million 3,654 3, ,455 3, % 4, ,903 4, % 4,787 4, , % 0.5% 25.9% 62.6% Middle Market + TradeFinance + Avals and Sureties Payroll Auto Loans 2Q09 3Q09 4Q09 1Q10 2Q10 Loan Portfolio (includes Avals and Sureties) Credit assignments DCC (*) includes credit assignments 22

23 Middle Market: growth of 17.3% compared with 1Q10, and increased share of total portfolio Middle Market + Trade Finance - R$ Million 1,965 2, ,810 1, % 2, , ,131 2,338 2, ,715 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Avals and Sureties Trade Finance Sectors Breakdown Middle Market 2Q % Average Ticket Middle Market + Trade Finance 2Q10 Final Balance R$ Per Volume Per Client < 500, % 61.4% 500,000 to 1 million 6.7% 12.0% 1 to 3 million 21.7% 16.5% 3 to 5 million 13.1% 4.4% 5 to 10 million 19.6% 3.6% > 10 million 33.0% 2.1% Total 100.0% Geographic Distribution Middle Market 2Q10 18% 7% 31% 44% Industry Services Commerce Other 8% 8% Southeast 13% 57% South Northeast 14% Mid-West North 23

24 Daycred Payroll: INSS and Army continue to drive growth Total Loan Portfolio (*) - R$ Million Total Loan Portfolio 2Q10 R$ 1,238 MM- % 37.7 % ,052 1, % 1, % 0.7% 6.5% 8.8% 14.0% 37.5% INSS Army State Government Law Courts and Legislative Bodies Municipalities 29.2% Other 2Q09 3Q09 4Q09 1Q10 2Q10 Private (*) Includes credit assignments in all of the quarters (R$ 42.0 million in 2Q10) Total Origination R$ Million Total Origination 2Q10 R$ 301 MM - % Q09 3Q09 4Q09 1Q10 2Q10 8.3% 15.1% 3.3% 0.8% INSS 44.4% 28.1% Army State Government Law Courts and Legislative Bodies Municipalities Private + Other 24

25 Daycred Vehicles: new strategy to grow origination of auto loans Total Loan Portfolio (*) R$ Million Total Loan Portfolio 2Q10 - R$ 524 MM -% -32.3% % % Small Vehicles 21.0% 67.0% Heavy-duty Vehicles 2Q09 3Q09 4Q09 1Q10 2Q10 (*) Includes credit assignments in all of the quarters (R$ 38 million in 2Q10) Motorcycles Total Origination - R$ Million Liquidity of Auto Loans Portfolio - Aug/06 to Mar/10 R$ MM % % Accum. PMT s received in advance % 34% PMT s received on date of maturity % 46% PMT s received with delay of 30 days % 76% PMT sreceived with delay of 60 to 120 days % 88% PMT s received with delay over 120 days % 90% PMT s overdue % 100% 2Q09 3Q09 4Q09 1Q10 2Q10 Liquidity of the Auto Loans Portfolio % Outstanding PMT s Total Amount 1, % 25

26 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 74.9% 7.1% Q09 3Q09 4Q09 1Q10 2Q10 26

27 Quality of Loan Portfolio (*) : debt recovery remains high in 2Q10 Establishment of Provision - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 Middle Market + Trade Finance (4.1) Payroll Auto Loans Direct Credit to Consumers Total Write-offs - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance (26.4) (29.8) (37.6) (32.3) (26.1) Retail (21.9) (29.7) (34.5) (32.8) (25.7) Total (48.3) (59.5) (72.1) (65.1) (51.8) Write-offs / Total Loan Portfolio (%) Recovered Loans - R$ MM 2Q09 3Q09 4Q09 1Q10 2Q10 Total (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 27

28 Overdue Loans (*) - R$ MM - significant fall in past-due loans Past due operations > 14 days - R$MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance Payroll Auto Loans DCC Total Past due operations > 60 days - R$MM 2Q09 3Q09 4Q09 1Q10 2Q10 Middle Market + Trade Finance Payroll Auto Loans DCC Total (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 28

29 Credit Portfolio Quality (*) Required Provision June/2010 Rating Required Banco Daycoval - R$ MM Provision Loans % Provision AA 0.0% % - A 0.5% 1, % 9.9 B 1.0% 1, % 19.0 C 3.0% % 5.1 D 10.0% % 5.6 E 30.0% % 15.0 F 50.0% % 16.7 G 70.0% % 10.3 H 100.0% % 71.7 Subtotal 4, % Credit Assignments % 0.6 Total 4, % Total Provision / Loans 3.4% (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 29

30 Efficiency Ratio: down 3.2 p.p in 2Q10, evidencing profitability of operations 2Q10 1Q10 Chg. % 2Q09 Chg. % 1H10 1H09 Chg. % Personnel Expenses (21.8) (21.4) 1.7% (15.5) 40.6% (43.2) (30.7) 40.8% Other Administrative Expenses (18.3) (17.4) 5.4% (17.2) 6.7% (35.7) (32.6) 9.3% Subtotal (40.1) (38.8) 3.4% (32.7) 22.8% (78.9) (63.3) 24.5% Payroll (3.6) (4.9) -26.8% (6.0) -40.2% (8.5) (12.6) -32.6% Auto Loan (2.5) (2.8) -10.7% (4.8) 47.9% (5.3) (10.2) -48.5% DCC (0.4) (0.3) 33.3% (0.3) 33.3% (0.7) (0.5) n.a. Comission Expenses (total) (1) (6.5) (8.0) -18.5% (11.1) -41.3% (14.5) (23.3) -37.6% Total (46.6) (46.8) -0.4% (43.8) 6.5% (93.4) (86.6) 7.7% Efficiency Ratio - % Q09 1Q10 2Q10 1H09 1H10 Quartely Last 12 months 30

31 Profitability: net income up 17.4% and ROAE rises to 16% Net Income - R$ Million Return on Average Equity (ROAE) - % Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 Net Interest Margin (NIM-A) (1) - % Net Interest Margin (NIM) - % Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 2Q09 3Q09 4Q09 1Q10 2Q10 1H09 1H10 (1) New methodology excluding repurchase agreements tri-party repos outstanding. 31

32 32 Capital Structure: leverage remains low despite fall in Basel ratio Shareholders Equity R$ Million Basel Index - % 1, , , , , Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Loan Portfolio (*) / Shareholders Equity - times Q09 3Q09 4Q09 1Q10 2Q10 (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

33 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 33

34 Agenda Brazilian Credit Market Overview and Strategy Page 3 Page 8 2Q10 Results Page 17 Appendix Page 34 34

35 Daycoval s Financial Highlights Total Assets (R$ MM) & ROAA (%) BIS Ratio (%) ,814 7,972 8,085 7,633 6,557 7,199 6,8316,728 6,196 6,177 7, Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Total Assets ROAA Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Net Interest Margin (NIM) % Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q Net Income(R$ mn) & ROAE (%) Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Net Income ROAE

36 Breakdown of the Middle Market Credit Portfolio by Sectors Serasa June 2010 COMMERCE 18.4% INDUSTRY 43.5% Commerce of Pharmacy products 1.3% Sugar and Alcohol Mill 5.6% Commerce of Imp/Exp of Soyvean 0.9% Ind of Small Vehicles 5.0% Wholesale Trading of Foodstuffs and Cereals 1.2% Ind. of Clothes in General 1.4% Commerce of Agricultural Products 1.9% Ind. of Electronic Products in General 4.0% Commerce of Clothes in General 1.1% Ind. of Flooring and Tiles 1.4% Other 12.0% Ind. of Fuel and Lubricant 1.0% Ind. of Plastics 1.0% Ind. of Meat 1.0% Other 26.1% SERVICE 31.3% FINANCIAL 2.2% Transportation 4.7% Electricity Distribution 1.9% PRIMARY 1.4% Holding 3.1% Mixed Cooperative 1.6% INDIVIDUALS 2.8% Real Estate and Home Builders 1.5% Medical Services 1.6% THIRD SECTOR 0.4% Contractor 1.7% 36

37 Middle Market: Assets Geographic Distribution June 2010 São Paulo 46.7% Rio de Janeiro 3.0% Amazonas 6.0% Mato Grosso 3.0% Santa Catarina 5.1% Ceará 2.2% Pernambuco 4.9% Pará 1.9% Paraná 4.6% Bahia 1.6% Rio Grande do Sul 4.5% Distrito Federal 0.8% Minas Gerais 4.5% Sergipe 0.6% Goiás 3.6% Rondônia 0.3% Alagoas 3.3% Paraíba 0.2% Espírito Santo 3.0% Other States 0.5% 37

38 Balance Sheet June 2010 Amounts in R$

39 Income Statement Amounts in R$

40 2Q10 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. 40