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1
Investor Presentation August 2013
2
. Strategy, business segments and products
. Funding and capital base
. Financial highlights
. Ownership structure
3
89%87%
85%84%
87%86%
86%87%
11%
11%12%
14%
13%14%
14%
13%
Dec/06 Dec/07 Dec/08 Dec/09 Dec/10 Dec/11 Dec/12 Jun/13
Middle Market
Corporate11,762
8,651
6,6605,227
3,045
13,169
6.2%
(BRL million)
15,31816,879
3
Focus on Companies
3
Expanded Credit Portfolio*
Banco ABC Brasil offers commercial banking services to Corporate (annual revenues above BRL 400 mi) and Middle Market clients (annual revenues between BRL 30 and 400 mi). The Bank advises on underwriting activities and mergers and acquisitions, offers commercial loans, treasury services, and international lines of credit.
Distinct strategy for each business segment:
• Increase profitability per client in Corporate, through increased cross-selling of products;
• Grow the number of clients in the Middle Market. Portfolio Mix: increase in Middle Market participation.
* Includes Loans, Guarantees Issued and Corporate Securities portfolios
4
53% 53% 52%
22%18% 18%
16%19% 19%9%10% 11%
Jun/12 Mar13 Jun/13
13,060 13,791 14,608
Corporate (annual revenues above BRL 400 mi)
4
Average Ticket
(BRL million)
Average Tenor
(days)
Total Number
of Clients
Clients with
Credit Exposure
South
Rio de Janeiro
São Paulo Countryside
São Paulo Capital
Corporate Securities
(BRL million)
Loans and
Guarantees Issued
(BRL million)
Strategy: Grow the profitability per client, through increasing cross-selling of products.
Products:
• loans denominated in BRL and foreign currencies
• trade finance
• underwriting and structuring advisory services for capital markets transactions
• arrangement of syndicated loans in Brazil and abroad
• BNDES onlending transactions
• M&A transactions
• treasury products
Jun/12 Mar/13 Jun/13
Jun/12 Mar/13 Jun/13
734 701 726
535 541 534
23.4 24.0 25.8
329 341 362
505 761 852
5
41% 38% 36%
13% 14% 14%9% 8% 8%
27% 26% 27%
10% 14% 15%
Jun/12 Mar13 Jun/13
1,878 2,029 2,271
RO
AC
AM
RR
PA
AP
MA
PI
CE
BA
MG
ES
RJSP
PR
SC
RS
MS
MT
GO
DF
RNPB
PE
AL
SE
TO
ABC Brasil
Offices
Middle Market (annual revenues between BRL 30 and 400 mi)
5
Strategy: Grow the number of clients, mainly in new regions.
Average Ticket
(BRL million)
Average Tenor
(days)
Total Number
of Clients
Clients with
Credit Exposure
Minas Gerais / Midwest
South
Rio de Janeiro
São Paulo Countryside
São Paulo Capital
Loans and
Guarantees Issued
(BRL million)
Jun/12 Mar/13 Jun/13
1,154 1,357 1,337
949 1,007 1,024
2.0 2.0 2.2
212 241 265
7
BUSINESS
PLATFORMS
IN EVOLUTION
(+RMs)
(> Efficiency)
MG
RJ
SC
GO
MT
Campinas
Ribeirão Preto
5
MATURE
BUSINESS
PLATFORMS
(> Efficiency)
SP1
SP2
SP3
PR
RS
6
. Strategy, business segments and products
. Funding and capital base
. Financial highlights
. Ownership structure
7
Funding & Ratings
7
(BRL million)
Diversified funding with access to local and international sources
Local brAA+ Aa1.Br AA
Global BBB- Baa3 BBB-INVESTMENT GRADE
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
2,140 2,226 2,186 2,611 3,390
5,353 5,575 5,542 5,395 5,772
2,279 2,165 1,854 1,856 1,886
2,227 2,347 2,618 2,676 2,781
12,000 12,313 12,199 12,538 13,830 Total
13% 13% 14% 14% 13%
5% 6% 7% 7% 7% Subordinated Debt
Shareholders' Equity
19% 18% 15% 15% 14%BNDES
12% 10% 8% 8% 10%
6% 8% 10% 13%15% Notes, Deposits & Others
Trade Finance
9% 9% 9% 10% 9%
9% 9% 8% 8% 7%
11% 10% 10% 5% 4%
10% 9%9%
9% 9%
6% 8% 10% 11% 12% Local Bonds (LFs)
Individual Investors
Financial Institutions
Institutional Investors
Corporate Investors
41%45% 45% 46% 43%
Internacional
Local
8
Assets & Liabilities by maturity
8 (As of June, 2013)
4,983
3,617
2,707
3,599
758 705
2,494
4,121
3,4063,069
303
1,179
2,490
(504) (699)
530 455 (474)
1-30 days 31-180 days 181-360 days 1-3 years 4-5 years >5 years
Assets Liabilites Gap
2,4901,985
1,2861,817
2,2711,798
Accumulated Gap(BRL million)
9
Basel Index & Shareholders’ Equity
9
10.2% 10.9% 10.6% 10.8% 10.9%
4.0% 4.1% 5.3% 5.0% 5.4%
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Tier II
Tier I (Core Capital)
14.2% 15.0% 15.9% 15.8% 16.3%
Basel 2
2,181 2,257 2,507 2,574 2,691
1,566 1,639 1,680 1,757 1,794
Reference Equity
Shareholders' Equity
(BRL million)
Capital Adequacy (BRL million) Jun/13 Mar/13
Chg 3M
(%) / p.p.Jun/12
Chg 12M
(%) / p.p.
Capital 2,690.8 2,573.7 4.6% 2,180.8 23.4%
Mininum Capital Required 1,819.9 1,791.9 1.6% 1,687.7 7.8%
Capital Surplus 870.9 781.8 11.4% 493.0 76.6%
Basel Ratio 16.3% 15.8% 0.5 14.2% 2.1
Tier I (Core Capital) 10.9% 10.8% 0.1 10.2% 0.7
Tier II 5.4% 5.0% 0.4 4.0% 1.4
10
. Strategy, business segments and products
. Funding and capital base
. Financial highlights
. Ownership structure
11 11
Credit Portfolio Quality
Past Due above 90 days (% of loan portfolio)
Loan Loss Reserve (% of loan portfolio)
0.65% 0.60%0.71%
0.39%0.57%
0.40%0.51% 0.50%
0.87% 1.02% 1.03% 0.95%1.06%
0.76%
0.31% 0.21% 0.21% 0.11% 0.17% 0.15% 0.19% 0.21%
0.57% 0.52% 0.56%
0.36% 0.25% 0.22%
0.23% 0.12% 0.09% 0.05% 0.06% 0.08% 0.09% 0.11%
0.47%0.39% 0.42%
0.17%0.01% 0.05%
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Middle
Total
Corporate
3.33% 3.64% 3.63% 3.60% 3.59% 3.45%3.02% 3.00%
3.68%4.06% 3.99% 4.02% 4.27% 3.83%
1.86% 1.74% 1.64% 1.62% 1.72% 1.69% 1.69% 1.73% 1.95% 2.04% 2.24% 2.15% 1.85%1.98%
1.52% 1.29% 1.17% 1.13% 1.22% 1.18% 1.30% 1.33% 1.41% 1.48% 1.74% 1.54% 1.14% 1.40%
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Middle
Total
Corporate
12 12
Credit Portfolio Quality
Transactions between D-H rating (Resolution 2682 of Brazilian Central Bank)
Write Off in the quarter (% of loan portfolio)
0.37%0.50% 0.46%
0.27%
0.47%0.32%
0.77%0.57%
0.22% 0.21%
0.55% 0.64% 0.55% 0.60%
0.29%0.10% 0.15% 0.08% 0.10% 0.06%
0.24% 0.15%0.06% 0.08%
0.20%0.40% 0.46%
0.15%
0.27%
0.00% 0.07% 0.03% 0.00% -0.01% 0.08% 0.02% 0.01% 0.04% 0.10%
0.32%0.44%
0.00%
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Middle
Total
Corporate
3.1% 3.0%
2.4%
2.1%2.0% 1.9% 2.0%
2.4%
2.7% 2.5%2.6%
3.3% 3.1% 3.2%
Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
D-H
13
Financial Margin
13
NIM (% p.a.)
(BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)
Net Interest Income before Loan Loss Provision (LLP) 145.3 147.1 -1.3% 144.4 0.6% 292.4 285.3 2.5%
Shareholders' Equity Remunerated at CDI Rate 31.4 26.2 19.8% 32.0 -2.1% 57.6 68.8 -16.4%
Financial Margin w ith Clients 97.0 97.4 -0.4% 89.6 8.2% 194.4 174.5 11.4%
Financial Margin w ith Market 16.9 23.6 -28.4% 22.7 -25.7% 40.5 42.0 -3.6%
Loan Loss Provision (LLP) (31.3) (16.9) 85.5% (28.7) 9.4% (48.2) (52.4) -7.9%
Managerial Financial Margin 113.9 130.3 -12.5% 115.7 -1.6% 244.2 232.9 4.8%
5.0% 4.8% 4.7% 4.6% 4.3%5.1%
4.5%
2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13
14
Income from Services
14
Banking Service Fees (BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)
Guarantees Issued 30.2 27.2 11.1% 26.0 16.0% 57.4 50.2 14.3%
Capital Markets and M&A Fees 6.4 1.0 534.6% 2.0 223.7% 7.5 3.9 92.0%
Banking Tariffs 7.9 4.8 65.2% 4.1 92.0% 12.6 7.4 71.0%
Total 44.5 33.0 35.0% 32.1 38.6% 77.4 61.4 26.0%
14.9 16.5 17.4 19.6 20.8 22.6 23.5 23.8 24.2 26.0 27.4 26.6 27.230.2
7.18.1 4.9
6.96.8 5.4 4.2 3.8 3.3
4.14.6 6.3 4.8
7.9
2.41.6
0.5
8.22.0 2.8 2.4
7.2
1.92.0
3.1
7.9
1.0
6.4
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Capital Markets and
M&A Fees
Banking Tariffs
Guarantees Issued
(BRL million)
Income from Services
Total of Revenues20.5% 20.1%
17.6%
23.8%
19.7% 20.3%18.3%
20.6%18.3% 19.0%
20.7%23.2%
19.7%
23.2%
15
Expenses
15
Efficiency Ratio (Cost/Income)
Expenses (BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)
Personnel (34.7) (32.7) 6.0% (32.2) 7.5% (67.4) (63.3) 6.4%
Other Administrativ e Ex penses (18.5) (17.6) 5.1% (19.6) -5.9% (36.0) (35.3) 2.0%
Profit Sharing (20.6) (18.6) 11.0% (13.1) 57.4% (39.2) (23.1) 69.6%
Total (73.8) (68.9) 7.1% (65.0) 13.5% (142.6) (121.8) 17.1%
36.9% 35.3% 38.4% 39.2% 36.4% 35.5% 37.7%
2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13
16
Profitability
16
Net Income (BRL Million) ROAE (% p.a.)
55.0 55.1 59.6 60.1 64.7
111.9124.8
2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13
14.2% 13.8% 14.4% 14.1% 14.6% 14.6% 14.3%
2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13
17
. Strategy, business segments and products
. Funding and capital base
. Financial highlights
. Ownership structure
18
Ownership Structure
18
ABC Brasil
Local Management 10.5%
Voting Capital Total Capital
Free-float 34.4%
Local Management and Directors
58.5% ABC
89.5% ABC
7.1%
59.4% Central Bank of Libya
29.7% Kuwait
Investment Authority
Free-float 10.9%
Arab Banking Corporation (Parent Company)
International bank headquartered in Bahrain
(As of June, 2013)
19
Controlling Shareholder
International bank headquartered in Bahrain
Listed on the Bahrain stock exchange
Main Shareholders
Central Bank of Libya 59.4%
Kuwait Investment Authority 29.7%
Free-float 10.9%
19
Total Assets: US$ 25.3 Bn
Shareholders’ Equity: US$ 3.8 Bn
BIS Ratio: 22.7%
Core capital (Tier I): 18.7%
(As of June, 2013)
20 20
Contact
Website: www.abcbrasil.com.br Phone: +55 (11) 3170-2500
21
Appendix - Expanded Credit Portfolio
21
(BRL million) Jun/13 Mar/13 Chg 3M
(%)
Jun/12 Chg 12M
(%)Loans 8,937.4 8,607.7 3.8% 8,519.8 4.9%
Corporate 6,785.0 6,638.3 2.2% 6,680.2 1.6%
Middle 2,152.4 1,969.4 9.3% 1,839.6 17.0%
Guarantees Issued 7,055.5 6,421.6 9.9% 5,882.3 19.9%
Corporate 6,971.1 6,362.3 9.6% 5,843.8 19.3%
Middle 84.4 59.3 42.3% 38.6 119.0%
Corporate Securities 886.1 790.2 12.1% 536.0 65.3%
Corporate 852.3 760.8 12.0% 505.3 68.7%
Middle 33.8 29.4 15.1% 30.7 10.2%
Expanded Credit Portfolio 16,879.0 15,819.6 6.7% 14,938.1 13.0%
Corporate Total 14,608.4 13,790.8 5.9% 13,059.9 11.9%
Middle Total 2,270.6 2,028.8 11.9% 1,878.2 20.9%
22 22
Appendix - Corporate Structure
(As of June, 2013)
CEO
Anis Chacur Neto
Auditing Commitee
Internal Auditing
Financial Institutions
Human Resources Legal
Treasury & IR VP
Sergio Lulia Jacob
Commercial Middle VP
Gustavo Arantes Lanhoso
Commercial Corporate VP
Jose Eduardo Cintra Laloni
Risk VP
Renato Pasqualin Sobrinho
Financial & Administrative VP
Sergio Ricardo Borejo
Treasury
Products
IR & Marketing
Commercial MiddleCommercial Corporate
Capital Markets
Investment Banking
Credit Corporate
Credit Middle
Risk
Compliance
Financial Control
Back Office
Information Technology
Board of
Directors
Group Audit / Bahrain
Strategic Planning
23 23
Appendix - Board of Directors
Members
Anwar Ali Al Mudhaf (Kuwaiti) ABC Brasil Chairman & Arab Banking
Corporation Board Member
Tito Enrique da Silva Neto (Brazilian) Vice Chairman & Former CEO of
Banco ABC Brasil
Roy Hannay Gardner (Scottish) Arab Banking Corporation Executive
Vernom Handley (British) Arab Banking Corporation Executive
Paul Henry Jennings* (British) Arab Banking Corporation Executive
Ricardo Alves Lima (Brazilian) Independent Member
Edgar Uchôa (Brazilian) Independent Member
(As of June, 2013) * Waiting ratification by the Central Bank of Brazil.
24
Appendix - Brazilian Banking Sector
24
ABC Brasil focuses on the Corporate and Middle Market segments
Lar
ge
Co
rpo
rate
Co
rpo
rate
Ret
ail
Number of Clients
>2,000
400-2,000
30-400
Individuals
and small
companies
Big retail banks
Middle-sized international banks
Big retail banks
Middle-sized international banks
Big retail banks
Middle-sized family owned banks
Big retail banks
Middle-sized international banks
Middle-sized family owned banks
(BRL Million)
Annual Revenues Main Competitors
Mid
dle
Mar
ket
25
IPO
1989 1997 2005 2013 2007
Appendix – History in Brazil
Arab Banking
Corporation and local
management acquire
Roberto Marinho
Group’s shares
The bank’s name
changes to
Banco ABC Brasil S.A.
The bank
structures its
Middle Market
operations
Arab Banking Corporation and
Roberto Marinho Group jointly
initiate Banco ABC Roma S.A.,
acting in the segments of
corporate lending, trade
finance and treasury
25
26
Disclaimer
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 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.
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