Earnings Conference Call. 2 nd Quarter of August 4 th, 2017

Transcription

1 Earnings Conference Call 2 nd Quarter of 2017 August 4 th, 2017

2 Highlights Recurring Net Income reached BRL million in 2Q17, down 3.6% in relation to BRL million presented in 1Q17 and up 2.9% in comparison to BRL million recorded in 2Q16. In 1H17, Recurring Net Income was BRL million, an increase of 9.3% in relation to BRL million posted in 1H16. Recurring Return on Average Equity (ROAE) was 14.0% pa in 2Q17, a reduction of 1.1 p.p. in relation to 15.1% posted in the previous quarter and down 1.7 p.p. compared to 15.7% pa presented in the same period of the previous year. The Expanded Credit Portfolio reached BRL 22,905.5 million at the end of June 2017, flat in relation to the previous quarter and hiking 9.0% over the last 12 months. Credit Portfolio Quality: 92.8% of the loans transactions and 98.8% of the guarantees issued transactions were rated between AA and C at the end of June 2017, in accordance with Brazilian Central Bank Resolution No. 2,682. Considering both portfolios, the ratio was 95.5%. 2 Estratégia, segmentos e produtos

3 Expanded Credit Portfolio (BRL million) Jun/17 Chg 3M Chg 12M Chg 6M Loans 11, % 13.9% 1.7% Large Corporate 8, % 10.9% -1.7% Corporate 3, % 22.6% 12.0% Guarantees Issued 9, % 2.2% 1.5% Large Corporate 9, % 0.7% 0.8% Corporate % 77.2% 23.8% Corporate Securities 1, % 18.0% -6.8% Large Corporate 1, % 19.0% -7.3% Corporate % -0.4% 3.9% Expanded Credit Portfolio 22, % 9.0% 0.9% Large Corporate 19, % 6.4% -1.0% Corporate 3, % 25.3% 12.7% 3 Estratégia, segmentos e produtos

4 Segments Highlights Large Corporate Jun/16 Mar/17 Jun/ Total Number of Clients Clients with Credit Exposure Corporate Jun/16 Mar/17 Jun/17 1,132 1,107 1, Average Ticket (BRL million) Average Tenor (days) Credit Portfolio Loans and Guarantees Issued (BRL million) 16,756 17,850 17,666 13% 12% 11% 15% 16% 15% 25% 23% 24% 47% 49% 50% South SP Countryside, Midwest and North Rio de Janeiro, Minas Gerais and Northeast SP Capital Midwest Minas Gerais Rio de Janeiro SP Countryside South 2,818 3,341 3,550 8% 7% 6% 4% 7% 6% 10% 8% 8% 19% 20% 20% 21% 22% 23% 38% 36% 37% Jun/16 Mar/17 Jun/17 SP Capital Jun/16 Mar/17 Jun/17 Large Corporate: Clients with annual revenues above BRL 800 million. Corporate: Clients with annual revenues between BRL 100 and 800 million. 4 Estratégia, Strategy and segmentos business esegments produtos

5 Credit Portfolio Quality Loans overdue for more than 90 days (includes falling due and overdue installments) % of loan portfolio 1.7% 1.7% 1.3% 1.7% 1.9% 1.9% 1.8% 1.0% 1.5% 0.8% 1.0% 1.7% 1.1% 1.2% 1.3% 0.6% 0.5% 0.4% 0.7% 0.7% 1.3% 0.7% 1.0% 1.2% 1.9% 1.4% 1.1% 0.7% 0.7% 0.6% 0.7% 0.7% 0.6% 0.8% 1.0% 1.1% 0.5% 1.2% 0.2% 0.4% 0.0% 0.0% Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 Corporate Total Large Corporate Loans Loss Reserve % of loan portfolio 3.4% 3.6% 3.1% 2.9% 2.6% 2.7% 3.1% 3.5% 4.2% 4.2% 3.6% 3.9% 3.9% 4.2% 1.9% 1.9% 1.8% 2.0% 2.4% 2.6% 2.4% 2.9% 3.4% 3.9% 3.6% 3.7% 3.9% 4.0% 3.4% 1.4% 1.3% 1.4% 1.7% 2.3% 2.5% 2.7% 3.1% 3.8% 3.6% 3.6% 3.9% 2.2% Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 Corporate Total Large Corporate Loans rated D and E-H (Brazilian Central Bank Resolution No. 2682) % of loan portfolio 2.9% 3.1% 4.0% 3.9% 4.5% 4.0% 4.0% 1.5% 1.4% 1.5% 2.3% 2.5% 2.4% 2.6% 1.4% 1.3% 1.2% 1.2% 2.0% 2.1% 1.6% 1.6% 2.5% 3.2% 2.7% 1.4% 1.7% 3.2% Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 E-H D 5 Financial highlights

6 Funding & Ratings Diversified funding with access to local and international sources Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 25% 24% 26% 22% 21% International 9% 9% 9% 9% 9% Trade Finance 15% 17% 16% 13% 12% Notes, Deposits & Others 4,734 5,626 5,819 5,262 5,206 46% 44% 11% 7% 10% 11% 13% 13% 48% 8% 12% 13% 53% 6% 54% 4% 15% 18% 15% 15% 12% 13% 15% 17% 17% 9,186 9,549 11,433 12,671 13,323 Domestic Financial Institutions (LF & DI) Institutional Investors (CDB & LF) Individual Investors (LCA & LCI) Corporate Investors (CDB) Ratings Moody s Fitch Ratings Standard & Poor s ABC Brasil Local Global Aa2.Br Ba2 AA+ BB+ braa- BB Brasil Soberano Ba2 BB BB 10% 10% 9% 8% 8% 1,927 2,206 2,105 1,929 1,874 7% 7% 6% 4% 4% 1% 1% 1% 2% 2% 6% 6% 5% 2% 2% 1,451 1,553 1, BNDES Subordinated Debt Basel 3 Basel 2 13% 13% 12% 13% 13% Shareholders' Equity 2,689 2,831 2,893 3,032 3,090 19,986 21,765 23,814 23,770 24,465 Total (BRL million) 6 Funding and capital base

7 BIS Ratio & Shareholders Equity Capital Adequacy (BRL million) Jun/17 Mar/17 Chg 3M Chg 12M Jun/16 (%) / p.p. (%) / p.p. Referential Equity 3, , % 3, % Required Referential Equity 1, , % 1, % Capital Surplus 1, , % 1, % Basel Ratio 16.18% 15.62% % Tier 1 (Core Capital) 14.43% 14.33% % 0.01 Tier % 1.29% % ,355 3,533 3,613 3,292 3,450 2,689 2,831 2,893 3,032 3,090 Referential Equity Shareholders' Equity (BRL million) 18.08% 18.42% 17.82% 2.62% 2.54% 2.45% 15.62% 16.18% 1.02% 1.16% 1.14% 1.29% 1.75% Tier 2 (Basel 2) 14.44% 14.72% 14.23% 14.33% 14.43% Tier 2 (Basel 3) Tier 1 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 7 Funding and capital base

8 Net Interest Income (BRL million) 2Q17 2Q17 Chg 2Q16 Chg 1H17 1H16 Chg Net Interest Income % % % Shareholders' Equity Remunerated at CDI Rate % % % Financial Margin with Clients % % % Financial Margin with Market % % % Loan Loss Provision (LLP) (56.6) (57.9) -2.3% (54.1) 4.6% (114.6) (103.1) 11.2% Net Interest Income after LLP % % % Net Interest Income (BRL million) NIM (% p.a.) 10.0% 3.8% % % 4.6% 4.7% 4.2% 4.3% 4.3% 4.3% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 11 Financial highlights

9 Service Revenues Service Fees (BRL million) 2Q17 2Q17 Chg 2Q16 Chg 1H17 1H16 Chg Guarantees Issued % % % Capital Markets and M&A Fees % % % Commercial Banking Tariffs % % % Total % % % 20.9% 19.5% 20.5% 20.6% 18.9% 20.1% 16.2% 19.5% 19.3% 21.5% 22.1% 21.6% 23.5% 23.0% Services Revenue Total Revenue (BRL million) Commercial Banking Tariffs Capital Markets and M&A Fees Guarantees Issued 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 9 Financial highlights

10 Expenses & Efficiency Ratio Expenses (BRL million) 2Q17 2Q17 Chg 2Q16 Chg 1H17 1H16 Chg Personnel Expenses (adjusted) (51.2) (48.4) 5.9% (44.1) 16.3% (99.6) (89.3) 11.5% Other Administrative (51.2) (48.4) 5.9% (44.1) 16.3% (99.6) (97.3) 2.3% Personnel Expenses (adjusted) Other Administrative (26.7) (25.9) 3.3% (25.5) 4.8% (52.6) (49.6) 6.1% Subtotal (77.9) (74.3) 5.0% (69.6) 12.0% (152.2) (138.9) 9.6% Profit Sharing (29.5) (30.1) -2.1% (26.7) 10.5% (59.6) (52.2) 14.1% Total (107.4) (104.4) 2.9% (96.2) 11.6% (211.8) (191.1) 10.8% * Adjustment from non-recurring expenses due to the downsizing set in the first quarter of Recurring Efficiency Ratio (Expenses/Revenues) 29.5% 29.6% 31.3% 29.9% 30.4% 29.9% 30.1% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 10 Financial highlights

11 Profitability Recurring Net Income (BRL million) 9.3% 2.9% -3.6% Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 Recurring ROAE (% p.a.) 15.7% 15.0% 15.2% 15.1% 14.0% 15.3% 14.5% 2Q16 3Q16 4Q16 1Q17 2Q17 1H16 1H17 11 Financial highlights

12 Guidance 2017 Guidance Realizado até Jun/17 Expanded Credit Portfolio* 8% to 12% 0,9% Personnel and Other Administrative Expenses 5% to 7% 9,6% * Includes Loans, Guarantees Issued and Corporate Securities. 12

13 Investor Relations Website: Phone: +55 (11)

14 Disclosure The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future factors, operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.