2Q10 Conference Call Presentation (Only in Portuguese)

Transcription

1 2Q10 Conference Call Presentation (Only in Portuguese)

2 Agenda Funding Page 3 Daycred Auto Loans Page 10 Foreign Currency Funding Page 4 Daycred DCC Retailers Page 11 Liquidity Page 5 Quality of Loan Portfolio Page 15 Distribution Page 6 Efficiency Ratio Page 16 Loan Portfolio Page 7 Profitability Page 17 Middle Market and Trade Finance Page 8 Capital Structure Page 18 Daycred Payroll Page 9 2Q10 Highlights Page 19

3 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% 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 3

4 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 4

5 Liquidity: high capitalization and positive gap in duration between credit and funding operations Cash Evolution - R$ Million Cash / Total Deposits % 1, , , , , % 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 5

6 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 6

7 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 Loan Portfolio (includes Avals and Sureties) Credit assignments DCC (*) includes credit assignments 7

8 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 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 8

9 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 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 - % % 15.1% 3.3% 0.8% INSS 44.4% 28.1% Army State Government Law Courts and Legislative Bodies Municipalities Private + Other 9

10 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 (*) 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% Liquidity of the Auto Loans Portfolio % Outstanding PMT s Total Amount 1, % 10

11 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%

12 Quality of Loan Portfolio (*) : significant decrease in ratio of LLP to total credit portfolio, down 4.1 p.p year over year Total Provisions 2Q10 Total Provision / Loan Portfolio 2Q10 Total Loan Portfolio (excludes FIDCs) 2Q10 Portfolio R$ Provision % MM R$ MM Middle Market 2, % 82.0 Payroll 1, % 27.1 Auto Loans % % 7.4% 5.4% 4.5% 3.4% DCC Retailers % 2.0 Subtotal 4, Credit Assignments % 0.6 Total 4, % Total Provisions / Portfolio 3.4% (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 12

13 Quality of Loan Portfolio (*) Establishment of Provision - R$ MM 1H09 1H10 Middle Market + Trade Finance (4.1) Payroll Auto Loans Direct Credit to Consumers Total Balance and Establishment of Provision - R$ Million H09 1H10 Balance of Provision Establishment of Provision (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 13

14 Quality of Loan Portfolio (*) : significant fall in past-due loans LLP / Past due operations > 14 days - % Past due operations > 14 days - R$MM Middle Market + Trade Finance Payroll Auto Loans Q09 1Q10 2Q10 Past due operations LLP / Past due operations DCC Total LLP / Past due operations > 60 days - % Past due operations > 60 days - R$MM Middle Market + Trade Finance Payroll Auto Loans DCC Q09 1Q10 2Q10 Past due operations LLP / Past due operations Total (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 14

15 Quality of Loan Portfolio (*) : debt recovery remains high in 2Q10 Loan D-H - R$ MM 3 T Middle Market + Trade Finance Payroll Auto DCC Total Loan D-H / Total Loan Portfolio (%) 12.4% 11.0% 7.6% 6.3% 5.1% Write-offs - R$ MM 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 Total (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties 15

16 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 16

17 Profitability: net income up 17.4% and ROAE rises to 16% Net Income - R$ Million Return on Average Equity (ROAE) - % H09 1H10 1H09 1H10 Net Interest Margin (NIM-A) (1) - % Net Interest Margin (NIM) - % H09 1H10 1H09 1H10 (1) New methodology excluding repurchase agreements tri-party repos outstanding. 17

18 18 Capital Structure: leverage remains low despite fall in Basel ratio Shareholders Equity R$ Million Basel Index - % 1, , , , , Loan Portfolio (*) / Shareholders Equity - times (*) Unconsolidated: excludes FIDCs, Credit assignments and Avals and Sureties

19 19 2Q10 Highlights Net income of R$64.2 million, rising 17.4% compared with previous quarter ROAE rises to 16% and NIM- A (1) reaches 11.7% Operating profit of R$100.3 million, rising 39.3% growth compared with previous quarter Balance of Credit Portfolio up 11.8% to R$4,786.8 million, rising 31% in last 12 months Middle Market Portfolio up 17.3% compared with previous quarter, increasing share of total credit portfolio to 62% Debt Recovery continues, reaching R$13 million, up from R$6.1 million in previous quarter Total Funding up 13.3% compared with previous quarter, boosted by US$165 million four-year syndicated loan from IFC (World Bank Group) Efficiency Ratio of 24.1%, demonstrating adequate management of operating costs

20 2Q10 Results Conference Call 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. 20