Apimec Meetings Banco do Brasil

Transcription

1 Apimec Meetings Banco do Brasil

2 Disclaimer This presentation may include references and statements, planned synergies, estimates, projections of results, and future strategy for Banco do Brasil, its Associated and Affiliated Companies, and Subsidiaries. Although these references and statements reflect the management s belief, they also involve estimates and unforeseen risks. Consequently, results may differ from those anticipated and discussed here. These expectations are highly dependent on market conditions, on Brazil s economic and banking system performances, as well as on international market conditions. Banco do Brasil is not responsible for updating any estimate in this presentation.

3 Net Income Net Income reached R$ 8,8 billion on the First Half of 2015, corresponding to a ROE of 20.9% 29.3 R$ bilion Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Net income Adjusted Net Income ROE - % Adjusted ROE - %

4 Ownership Structure and Value Creation BB distributes 40% in Dividends and Interest on Own Capital R$ billion Ownership Strucuture(%) Free Float Amount Distributed (Dividends and Interest on Own Capital) National Treasury Previ Foreign Investors Other Treasury Shares H14 1H15

5 Leaderships Strong Financial Performance Assets (R$ billion) Loan Portfolio¹ (R$ billion) Deposits (R$ billion) Branches Jun/ % Market Share¹ 1, % Market Share¹ 1,231 1, % Market Share¹ 24.0% Market Share¹ ,544 3,863 4,628 Bank A Bank B Bank A Bank B Bank A Bank B Bank A Bank B (1) Source: Banco Central do Brasil March/2015 (1) Source: Banco Central do Brasil June/2015 (1) Source: Banco Central do Brasil March/2015 (1) Source: Banco Central do Brasil March/2015

6 Guidelines for 2015 Efficiency and Innovation

7 Profitability Funding Loan Portfolio Other Businesses

8 Commercial Funding Funding Sources Diversification R$ billion % in 12 months LCA + LCI 41.2% in 12 months Dec/12 Dec/13 Dec/14 Interbank Deposits Repo Demand Deposits Savings Deposit LCA + LCI Time Deposits Adj. Net Loan Portfolio/Comm. Funding (%)

9 Foreign Borrowings and Assets Under Management BB DTVM overcomes R$600 billion in assets management Foreign Borrowings Assets Under Management¹ US$ billion st 22.2 % Market Share² R$ billion 12.8% in 12 months Dec/12 Dec/13 Dec/14 Dec/12 Dec/13 Dec/14 Repo + Special Individuals Companies Interbanking Bond issues (1) It does not include Banco Votorantim s figures (2) Source: Anbima June/2015

10 Loan Portfolio¹ Best in Class Loan Portfolio... Market Share (%)² R$ billion 8.0% in 12 months Offshore Agribusiness Individuals Companies Dec/12 Dec/13 Dec/14 (1) Broad Concept. It includes private securities and guarantees provided. (2) Domestic Loan Portfolio/ Bank Industry Total. Source: Banco Central do Brasil.

11 Individuals Loan Portfolio¹... With concentration in loan operations with lower risk R$ billion +11.6% % % Jun/14 Mar/15 Payroll + Salary Loans + Auto Loans + Mortgage Credit cards Other (1) Classified Concept Organic Portfolio. (2) It doe not include Banco Votorantim operations and acquired portfolios.

12 Lower risk lines Payroll (R$ billion) Mortgages (R$ billion) 24.6% Market Share BB had 7.0% of market share, remaining in the second position¹ % % Jun/14 Mar/15 Organic Portfolio Jun/14 Mar/ % Civil Servants 7.4% INSS s Retirees and Pensioners 3.7% Private Sector Employees Companies Individuals (1) Source: Banco Central do Brasil - March/2015.

13 Loan to Companies¹ This portfolio reinforces the commitment with brazilian companies R$ billion +5.4% Working Capital² Investment + Corp. Bonds & Notes Other Guarantees Trade Finance Jun/14 Mar/15 (1) Broad Concept. It includes Private Securities and Guarantees provided. (2) It incluides Working Capital, Receivables, Pre-Aproved-Credit, Credit Card and Overdraft Account

14 Loan to Companies¹ Corporate portfolio by Size SME Portfolio FGO and Fampe¹ R$ billion % % Jun/14 Mar/15 Jun/14 Mar/15 SME² Medium and Large Companies and Government FGO Fampe (1) Broad Concept. (2) Companies with annual revenues of up to R$ 25 million. (1) Operations Guarantee Fund and Fundo de Aval às Micro e Pequenas Empresas.

15 Foreign Trade Finance Absolute Leadership and main partner in Brazilian foreign trade % FCE/ACE Pre-Export Finance 1 st 34.0 % Market Share¹ 1 st 21.1 % Market Share² BB Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 (1) Balance - Source: Banco Central do Brasil June/2015 (2) Source: Banco Central do Brasil June/2015

16 Agribusiness BB is the Agribusiness Bank in Brazil Agribusiness Loan Portfolio¹ (R$ billion) 1 st 60.5 % Market Share² +7.1% Mitigators Use (Working Capital for Input Purchase) Vintage 14/15 () % % 45.1% 54.9% Insured Not Insured Jun/14 Rural Mar/15 Agroindustrial Total disbursement in 14/15 Crop: R$ 73,3 billion (1) Broad Concept. It includes Rural Product Bills and guarantees provided. (2) Source: Banco Central do Brasil June/2015.

17 Banco Votorantim Positive results over the quarters BV Net Income(R$ million) BV Lightweight Vehicles¹ : Production per Business Channel and Delinquency Q14 3Q14 4Q14 1Q15 2Q15 2T14 1T15 2T15 Multi-brand car dealers (R$ billion) Car dealers (R$ billion) NPL 90 - Managerial Loan Portfolio (%) (1) Comprised of CDC veículos (Autos Consumer Credit) and vans.

18 Fee Income Services represent 91.1% of the Fee Income +9.1% 12,768 Highlights on 1H15 R$ million 11,703 Asset Mgmt. Fees R$ 2.3 bi Over 1H % Account Fees R$ 2.1 bi 9.2% 91.1% Capital Market R$ 278 mi 21.9% Fiduciary Services R$ 237 mi 12.8% Consortium R$ 205 mi 41.4% 1H14 1H15

19 BB Seguridade Top-notch Performance in Brazil Adjusted Net Income (R$ million) Insurance s Premiums and Collection¹ +30.1% 1, % ,494 Insurance s Premiums Market Share % Ranking Vehicle nd Life st Mortgage rd Collection Market Share % Ranking Pension Plan st Premium Bond st 2Q14 1Q15 2Q15 1H14 1H15 (1) Source: Susep - June/2015

20 Monitor Delinquencies Asset Quality Indicators

21 Asset Quality Monitoring methodologies reflect in Portfolio stability Average Risk¹ (%) Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 (1) Required Provision / Classified Loan Portfolio BB Banking Industry Coverage Ratio +90 days² (%) Risk Level (%) Banco do Brasil AA-C: 94.2% C D B 17.2 E-H 5.0 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 A 17.1 AA 55.3 Banking Industry BB (2) Required Provision + Additional / Overdue +90 Days

22 Delinquency Ratios lower than the Banking Industry NPL Ratio +90 days (%) Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Banking Industry BB ex BV Banco do Brasil NPL 15 Days (%) NPL 90 Days (%) Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Individuals Companies Agribusiness Individuals Companies Agribusiness

23 Relationship Portfolios focused on long time relationship % Individuals Portfolio¹ SME Portfolio² Jun/14 Mar/15 Jun/14 Mar/15 Up to 5 years From 5 to 10 years More than 10 years (1) Classified Concept. (2) Companies with annual revenues of up to R$ 25 million.

24 Efficiency and Innovation Global Presence Clients and Service Network Channels Technology Human Resources

25 Global Presence Brazil Total Service Network (1) Banking Agents and Postal Bank branches. North 27.9% Own Service Network 18,690 Branches 5,544 MaisBB Network¹ 14,574 Banco Postal 6,166 Shared Service Network 34,898 Total 68,162 Quantity of Bank Branches (Regional Market Share) Northeast 32.0% Midwest 26.2% South 24.3% Southeast 19.7% Total = 23.4% Market Share in Brazil Banco do Brasil in the World Branches 11 Sub-branches 4 Representative Offices 7 Subsidiaries and affiliates 17 Shared Services Units 2 Presence in 24 Countries

26 Transactions Internet - Individuals ATM Clients and Service Network Channels Mobility aligned with business BB Clients can count on several network channels. Clients Specialized Offices 62,1 million Clients 11,4 million Savers 2,3 million SMEs 2,3 million INSS s Pensioners Automated Service Channels 29.6 % Internet 27.6 % Mobile 22.7 % ATM 4.8 % In Person 15.3 % Other million Transactions 12.2 million Users 44.1 thousand 17.5 thousand Bco24h 4.1 thousand BRB+CEF

27 BB Mobile 27.6% of all transactions in 2Q15 were through BB Mobile BB Digital Mobile (million transactions) % over 2Q Q13 2Q14 Registered Users (million) 2Q15 10 th Most Common App in Brazil¹ 1 th Most Common App in Brazilian s home screen among all Brazilian Companies. (1) Source: Mobile Time - May/2015.

28 Portal BB Solução de Dívidas Efficiency improvement in transactions renegotiation R$ 1 billion in deals since the portal launch More than 100 thousand renegotiations Efficiency to the clients

29 Administrative Expenses and Cost to Income Ratio Cost to Income Ratio improving every quarter R$ billion Q14 1Q15 2Q15 1H14 1H15 Personnel Expenses Other Expense Cost to Income Ratio (%)¹ (1) Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations. Quarterly cost to income ratio accumulated in 12 months.

30 Human Resources A strong Company as BB is made of people Changes of BB s Staff (thousand) Jun/14 Set/14 Dez/14 Mar/15 Employees Interns Education s Level Jun/14 0.4% 0.4% Profile of Staff Members Jun/ % 22.8% 33.5% 21.9% 41.6% 58.4% 58.4% 41.6% 45.8% 44.3% High School College Specialization, Master s and Doctorate Others Female Male

31 BIS Ratio¹ ² Robust Capital % Level II Level I Core capital T14 3T14 4T14 1T15 2T15 (1) Financial Consolidated. From 1Q15 on, Prudential Conglomerate. (2) Methodology used since Oct. 01st., 2013, according to CMN Resolution 4.192/2013.

32 Guidance 2015 Guidance 2015 Performance New Guidance Adjusted Return on Equity¹ Net Interest Income Commercial Funding² Domestic Loan Portfolio³ - Broad Concept Individuals Companies Agribusiness Allowance for Loan Losses⁴ Fee Income Administrative Expenses (1) Adjusted ROE estimated for 2015 uses estimated adjusted shareholders equity, free from the effects of: (i) the restatement of assets and actuarial, liabilities arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies. (2) Commercial Funding includes Total Deposits, Agribusiness Letters of Credit, Real Estate Letters of Credit and Repos with Corporate Bonds. (3) It includes private securities and guarantees provided. (4) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

33 Sustainability Sustainability Efficiency and Innovation

34 Agenda 21 BB Business Governance and Process Resolution CMN Social Investment 10 years of Agenda 21 Updated every 2 years Capital Market Acknowledgment: DJSI, ISE, ICO2 DEFINITION OF THE CHALLENGES STAKEHOLDERS PANEL INTERNAL DEBATE RESULTS AND ACTION PLAN VALIDATION AND EXECUTION ACCOUNTABILITY

35 Social Businesses Profitable initiatives searching ways to solve social problems - the social businesses that use market mechanisms to resolve social problems, so as to reduce socioeconomic inequalities in a sustainable manner while ensuring income, productive inclusion and access to public services. 6,072 new transactions 5.1 billion disbursement (R$) 5.7 million in new contracts (R$) 11,680 produced house units 37.7 billion in Portfolio (R$) * 2Q15 information

36 Sustainable Regional Development (DRS) Society Social Inclusion Environmental Care Cultural Respect Employment and Income Generation (2005 to 2015) 22,000 volunteers 1 million seedlings planted 67 million (R$) destined to the program 14 million benefited user branches with Eco-Efficiency waste selective collection business plans 2 million (R$) economized (1H15) cities served

37 Água Brasil 83 thousand Direct beneficiaries + than 14 million Indirect beneficiaries Approximately 1 million of seedlings planted 665 hectares restored 829 hectares with best practices implemented + than 12 thousand people trained in responsible consumption, solid waste and ecologic practices * Programa Água Brasil resources results and local partners

38 Fundação Banco do Brasil Origem dos Recursos 1S15 Investor Relations Av. Paulista, nd floor São Paulo SP CEP Phone: bb.com.br/ir Vetores de Atuação 1S15 (% Investimento Total) 100% de recursos próprios 3,19 6,34 Educação 15,27 38,42 Agroindústria R$35,37 milhões 16,99 19,79 Água Resíduos Sólidos Agroecologia Demais Investimento Social (R$ milhões) 223,90 254,89 80,47 93,99 118,61 136,18 136,16 35, S15