Institutional Presentation & Results 2011 (July) · · 2011-09-19Foreign Investor Domestic Investor (Individual) ... Banrisul Bradesco Banco do Brasil Itausa Itau + Unibanco Santander

Institutional Presentation & Results

2011 (July)

1

2

Economic Data RS and Brazil

Rio Grande do Sul Brasil

Population (In million inhabitants) 10.7 190.7 5.6% of population

Area (In million Km2) 281 9 3.3% of Brazil's territory

Number of Municipalties 496 6 8.9% of Municipalties

Population Density (2010) (Inhabitants/Km2) 38 22

Social Indicators

Human Development 0.869 0.813

Life Expectancy 75.3 72.8

Child Mortality Rate (per 1,000 inhabitants) 12.8 15.0

Unemployment Rate 7.8% 11.0%

Illiteracy Rate 6.4% 11.1%

Macroeconomic Indicators

Inflation (IPCA YTD August 2011, %) 4.15 4.42

Demographic Data

3

Economic Data RS and Brazil

Source: IBGE, FEE

Rio Grande do Sul Brazil

GDP per capita (in R$ Thousands) 21.7 19.0

GDP 2011 as of July (preliminary data) 6.7% 4.0%

GDP 2010 (in R$ million) 228.0 3.222,0 6.3%

Exportations (as of July 2011) 11,1 140,5 7.9%

Economic Indicators

2Q2010 3Q2010 4Q2010 1Q2011 2Q2011

ITAP - FEE (State Economic Foundation) 2.8 1.2 0.8 2.9 0.7

Agriculture 28.4 -6.1 -0.8 8.9 5.6

Industry -1.2 2.2 -0.2 1.6 1.1

Services 1.1 2.7 1.2 1.2 1.1

Rio Grande do Sul's GDP - Performance from Previous Quarter

4

Credit Data

Source: BCB – Séries Temporais

5

Banrisul

Founded in September 12, 1928;

First listed in September 16, 1931;

Corporate Governance Level 1 in Bovespa, July 31, 2007;

TAG ALONG of 100% to all classes of shares;

Tickers BRSR3, BRSR5 and BRSR6;

9.762 employees and 2.223 interns – June/11.

6

Banrisul

7

Banrisul Group

In R$ Million

8

Service Network and Market Share

Domestic Rating

Banrisul's Service Network

Branches

Eletronic Sales points

441

539

Total number of Banrisul’s service points 1,259

Services posts 279

State of Rio Grande do Sul population coverage 97.95%

State of Rio Grande do Sul’s GDP Coverage 98.31%

Market Share Jun/11 Mar/11 Dec/10 Dec/10

Demand Deposits 1.8532% 1.9198% 21.0793% 31.1469%

Savings Deposits 1.3272% 1.3884% 17.1849% 18.0788%

Time Deposits 1.7963% 1.6697% 29.4502% 30.0271%

Loan Portfolio 1.0256% 1.0237% 21.5458% 20.9076%

Nº of Branches 2.2123% 2.2051% 25.7605% 25.7792%

Brazil Rio Grande do Sul

Indicators Dec/06 Dec/07 Dec/08 Dec/09 Dec/10 Mar/11

Total Assets 14th 14th 12th 10th 11th 11th

Shareholders' Equity 18th 14th 13th 11th 12th 12th

Total Deposits 12th 11th 10th 8th 8th 8th

No. of Branches 10th 10th 8th 7th 7th 7th

Source: Central Bank of Brazil - Ranking of 50 Largest Banks

9

Corporate Governance

408,974,477 Total Shares

205,043,374 ON3,627,859 PNA

200,303,244 PNB

FREE FLOAT 42.8%

56,818 shareholders

50,596 Individuals

6,222 Companies

Market Capitalization

08/11/2011 R$ 6.2 Billlion

US$ 3.9 Billion

10

Corporate Governance

11

Corporate Governance8

5%

86

%

88

%

89

%

92

%

94

%

93

%

95

%

95

%

96

%

96

%

95

%

96

%

95

%

95

%

96

%

14% 13% 11% 9% 7% 6% 5% 5% 4% 3% 3% 4% 3% 4% 4% 3%

Ju

n/

10

Ju

l/1

0

Au

g/

10

Sep

/1

0

Oct/

10

No

v/

10

Dec/

10

Jan

/1

1

Feb

/1

1

Mar/

11

Ap

r/1

1

May/

11

Ju

n/

11

Ju

l/1

1

Au

g/

11

Sep

/1

1

BANRISUL PNB (BRSR6) - Shareholding per shareholder (%) FREE FLOAT

Foreign Investor Domestic Investor (Individual) Domestic Investor (Non-Individual)

12

Corporate GovernanceJu

n-1

0

Ju

l-1

0

Au

g-1

0

Sep

-10

Oct-

10

No

v-1

0

Dec-1

0

Jan

-11

Feb

-11

Mar-

11

Ap

r-1

1

May-1

1

Ju

n-1

1

Ju

l-1

1

Au

g-1

1

Sep

-11

BANRISUL PNB (BRSR6) - Shareholder Profile

FREE FLOAT

Domestic Investor (Individual) Foreign Investor Domestic Investor (Non-Individual)

13

Corporate Governance2

98

,99

7

30

1,9

30

29

7,1

67

28

6,0

92

28

5,4

55

29

0,8

34

29

4,5

12

29

5,9

29

29

7,1

61

29

2,0

53

29

4,3

59

28

7,2

15

28

5,4

35

84

,55

8

76

,58

1

66

,77

3

61

,69

4

37

,63

3

41

,03

1

29

,68

0

33

,28

1

37

,83

7

43

,02

9

38

,02

3

50

,41

5

39

,76

8

1,2

48

1,2

41

1,1

96

1,1

61

1,1

65

1,1

56

1,0

25

1,0

40

1,1

38

1,1

87

1,2

14

1,2

68

1,2

37

se

t-1

0

ou

t-1

0

no

v-1

0

de

z-1

0

jan

-1

1

fev-1

1

ma

r-1

1

ab

r-1

1

ma

i-1

1

jun

-1

1

jul-

11

ag

o-1

1

se

t-1

1

Banrisul PNB (BRSR6) Average Shareholding by Type of Investor

Foreign Investor Domestic Investor (Non-Individual) Domestic Investor (Individual)

14

Capital Market

-40%

-30%

-20%

-10%

0%

10%

20%

30%

09-S

ep-1

0

23-S

ep-1

0

07-O

ct-1

0

21-O

ct-1

0

04-

No

v-1

0

18-

No

v-1

0

02-D

ec-1

0

16-D

ec-1

0

30-D

ec-1

0

13-J

an-1

1

27-J

an-1

1

10-

Feb-

11

24-

Feb-

11

10-

Ma

r-1

1

24-

Ma

r-1

1

07-A

pr-1

1

21-A

pr-1

1

05-M

ay-1

1

19-M

ay-1

1

02-J

un-1

1

16-J

un-1

1

30-J

un-1

1

14-J

ul-1

1

28-J

ul-1

1

11-

Au

g-1

1

25-

Au

g-1

1

08-S

ep-1

1

Performance Banrisul PNB X Financial Institutions X SELIC Rate (12-Month Performance)

Banrisul Bradesco Banco do Brasil Itausa Itau + Unibanco Santander SELIC

15

Capital Market

3.34%

-2.52%

8.28%

-3.52% -4.82% -5.03%6.32%

54.55%

178.69%

0.17%

-2.16%

3.79% -7.66%-15.46% -19.41% -17.22% -4.86%

16.45%

-30%-20%-10%

0%10%20%30%40%50%60%70%80%90%

100%110%120%130%140%150%160%170%180%190%

Day WeeK Month Quarter Semester Year 12 Months 24 Months 36 Months

PNB IBOV IGC ITAG IBRX IFNC MLCX IGTC IBRA

Banrisul PNB X Bovespa IndexUntil 9/15/2011

16

Rate of Growth

In R$ Million

54.4%

32.5%

13.0%

Other Assets

Securities

Loans

17

Total Assets

31,098.8

32,339.332,127.7

32,951.0

34,755.0

35,266.7

Jun10 Sep10 Dec10 Mar11 Jun11 Jul11

D% - Jun/11

3M 6M 12M5.5% 8.2% 11.8%

In R$ Million

18

Total Funding

23,163.7

24,095.2

25,090.825,289.8

26,092.7 26,418.3


+ 1.2%

3.2% 4.0% 12.6%

3M 6M 12M

D% - Jun/11

In R$ Million

9,034.4 9,533.0 9,680.3 10,935.0

11,936.4 12,331.1

6,037.6 6,295.7 5,580.0 5,336.7 5,158.8 5,131.4

2,028.9 2,108.9 3,779.9

2,778.5 2,695.1 2,571.5

6,019.0 6,141.1 6,037.8 6,227.6 6,291.8 6,372.1 0. 0

10, 000. 0

20, 000. 0

30, 000. 0

40, 000. 0

50, 000. 0

60, 000. 0

0. 0

2, 000. 0

4, 000. 0

6, 000. 0

8, 000. 0

10, 000. 0

12, 000. 0

14, 000. 0

Jun10 Sep10 Dec10 Mar11 Jun/11 Jul/11

Time Deposits Savings Deposits

Demand Deposits Assets under Management

19

Funds Raised and Under Management

FUNDING

Cost of FundingIn proportion to the Selic Rate

94.7%

91.2%92.2%

87.7% 88.5%

78.2%

74.6%73.2%

72.2%74.2%

70. 0%

75. 0%

80. 0%

85. 0%

90. 0%

95. 0%

100. 0%

Jun10 Sep10 Dec10 Mar11 Jun/11

Time Deposits Total Funding

Jul/11 Jun/11 Mar11 D% Jul11-Mar11 D% Jul11-Jun11

Depósitos a Prazo 46.7% 45.8% 43.3% 12.8% 3.3%

Depósitos de Poupança 19.4% 19.8% 21.1% -3.8% -0.5%

Depósitos à Vista 9.7% 10.3% 11.0% -7.5% -4.6%

Recursos de Terceiros 24.1% 24.1% 24.6% 2.3% 1.3%

TOTAL 100.0% 100.0% 100.0% 0.8% 3.2%

In R$ Million

20

Credit Portfolio – Allowance for Loan Losses

15,442.016,237.1

17,033.217,939.6

18,809.3 19,196.7

1,117.5 1,122.7 1,101.9 1,156.0 1,214.7 1,243.7


Lending Operations Allowance for Loan Losses

7.2% 6.9% 6.5% 6.4% 6.5% 6.5%

In R$ Million

21

Credit Breakdown

Commercial

14,872.4 77.5%

Real State

1,521.8 7.9%

Rural1,316.7 6.9%

Other1,485.9 7.7%

Individuals8,361.2

Companies6,511.2

Working Capital4,757.9 73.1%

Oher -Companies

1,753.3 26.9%

Payroll Loans6,188.0 74.0%

Other -Individuals

2,173.2 26.0%

Acquired2,512.0

Own3,676.0

In R$ Million

22

Commercial Credit Portfolio (Breakdown)

6,895.37,218.2 7,398.4

7,796.48,211.4 8,361.2

4,965.85,296.4

5,732.26,042.1

6,363.8 6,511.2


Individuals Companies

5.3% 11.0% 19.1%

3M 6M 12M

D% - Individuals (jun/11)

5.3% 11.0% 28.2%

3M 6M 12M

D% - Companies (jun/11)

23

Credit Portfolio - Indicators

269.3%297.3% 286.3% 281.1% 273.2%

226.4% 230.1%

263.6%241.7% 243.5% 235.6%

89.2% 89.4% 89.5% 89.1% 89.1% 89.1%

Cover Ratio > 90 Days

Cover Ratio > 60 Days

Normal Risk (AA to C)

7.2%6.9%

6.5% 6.4% 6.5% 6.5%

2.6%2.2% 2.3% 2.3% 2.4%

3.2% 3.0%2.5% 2.7% 2.7% 2.7%


Total Provisions / Loan Book

NPL > 90 Days

NPL > 60 Days

In R$ Million

24

Securities

Net of Repos

10,150.4 10,014.19,573.9 9,789.3 9,965.9 9,674.6


1.8% 4.1% -1.8%

3M 6M 12M

D%- Jun/11

-2,9%

In R$ Million

25

Revenues from Credit and Leasing Operations

1,165.41,298.2 1,310.4 1,299.9

1,436.5

499.6

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

2,233.2

2,736.4

3,227.9

1H10 1H11 7M11

+ 22,.0%

+ 17.9%

In R$ Million

26

Allowance for Loan Losses

127.1111.2

126.6138.5 143.1

59.4

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

280.5 281.5

340.6

1H10 1H11 7M11

+ 0.3%

+ 20.9%

In R$ Million

27

Funding Expenses

329.9387.5 381.3 391.5

447.8

161.2

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

633.9

839.3

1,010.4

1H10 1H11 7M11

+ 20.4%

+ 32.4%

In R$ Million

28

Financial Margin

710.9769.7 786.7 755.3

832.6

286.3

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

1,358.2

1,587.9

1,853.3

1H10 1H11 7M11

+ 16.7%

+ 16.9%

In R$ Million

29

Administrative Expenses

D%

2Q11/1Q10

2.9%

10.5%

D%

1S11/ 1S10

-12.3%

14.7%

227.9 245.5 279.0 240.9 266.2

92.6

186.3 182.6165.3

170.7175.7

62.7

414.2 428.1 444.3411.6

441.9

155.3

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

Personnel Expenses Other Administrative Expenses Total

442.0507.1

596.8

395.3346.4

402.2

837.3 853.5

999.0

1H10 1H11 7M11

In R$ Million

R$ 0.1567

R$ 0.1761 R$ 0.1719

R$ 0.1565

R$ 0.1770

R$ 0.2286

R$ 0.1632 R$ 0.1510

R$ 0.2025

R$ 0.1817

R$ 0.1841

R$ 0.1898

R$ 0.1914

Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11

30

Net Income

Earnings per Share

183.1206.4

229.9 211.3227.2

78.3

2Q10 3Q10 4Q10 1Q11 2Q11 Jul11

305.0

438.5

516.8

1H10 1H11 7M11

+43,8

+17,9

In R$ Million

31

Interest on Capital / Dividends

•3Q11 gross

amount.

74.5

48.6

137.4

53.1

113.5

58.3

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

In R$ Million

32

Shareholders’ Equity

3,590.1 3,746.4 3,855.2 4,009.0 4,118.1 4,195.7


2.7% 6.8% 14.7%

3M 6M 12M

D% - Jun/11

33

Formation of Quarterly Results (3Q11 – July)

91

3.3

26

5.4

34

7.1

13

8.4

15

7.7

23

9.0

14

0.0

14

4.5

2.2

11

3.9

21

1.3

98

9.1

29

0.4

39

1.7

14

2.8

15

8.6

26

5.2

14

4.7

14

4.8

0.2

12

1.6

22

7.2

35

3.2

10

7.4

14

0.5

59

.4

51

.1

92

.6

53

.3

45

.1

0.5

42

.0

78

.3

34

Key Ratios

50.5% 48.5% 47.8% 45.8% 45.0% 44.6%

16.2% 15.8% 16.1% 15.8% 15.6% 14.9%

18.2% 19.5% 20.4%23.3% 23.2% 23.0%

2.4% 2.6% 2.9% 2.6% 2.7% 2.6%


Efficiency Ratio Basel Ratio (Tier I) ROE ROA

1,138.5 1,199.01,439.2

1,215.5 1,321.1

448.4

2Q10 3Q10 4Q10 1Q11 2Q11 Jul-11

35

Banricompras

Financial Turnover(in R$ million)

Transactions(in million)

16.817.8

20.1

18.0 18.6

6.3

2Q10 3Q10 4Q10 1Q11 2Q11 Jul-11

2,180.8

2,536.6

2,747.9

1H10 1H11 7M11

33.0

36.642.9

1H10 1H11 7M11

+17.2

36

Competitors

RoAA RoAECost of

Funding

NPL (as% of

Loan Book)

Coverage

Ratio

NPL > 60

days

Provision

Cost Oves

Loan Book

(YTD)

Efficiency

RatioBasel Ratio Net Income

1H11 2.7% 23.2% 4.4% 6.5% 243.5% 2.7% 1.5% 45.0% 15,6 44%

1H10 2.4% 18.2% 3.7% 7.2% 226.4% 3.2% 1.8% 50.0% 16,2 45%

1H11 1.7% 22.9% 5.5% 5.8% 129.3% 4.5% 1.7% 44.2% 14,7 22%

1H10 1.7% 22.1% 4.3% 6.4% 131.0% 4.9% 1.8% 47.2% 15,9 12,1%

1H11 1.9% 23.7% 4.9% 6.6% 120.0% 5.5% 2.6% 39.1% 16,1 11%

1H10 2.0% 25.7% 4.3% 7.7% 137.2% 5.6% 2.6% 40.9% 15,7 40%

1H11 0.9% 5.7% 5.9% 6.1% 118.3% 5.2% 3.3% 44.3% 21,4 -10%

1H10 1.1% 6.3% 5.0% 6.0% 106.9% 5.6% 2.9% 47.7% 23,4 100%

1H11 1.5% 25.4% 4.8% 4.6% 186.1% 2.5% 1.4% 43.6% 14,4 24%

1H10 1.4% 28.7% 4.0% 5.5% 176.2% 3.1% 1.7% 45.6% 12,8 27%

37

Competitors

Credit

Operations

Loan Book

FundingCredit

Revenues

Financial

Margin

Personal

Expenses

Average 20% 16% 19% 21% 13%

1H11 18,809 19,801 2,019 1,588 -507

1H10 15,442 17,145 1,618 1,358 -442

22% 15% 25% 17% 15%

1H11 298,329 213,561 22,681 20,705 -5,041

1H10 245,895 178,452 18,861 16,532 -4,358

21% 20% 20% 25% 16%

1H11 360,107 208,914 30,555 26,915 -6,578

1H10 294,350 189,671 26,472 22,453 -5,896

22% 10% 15% 20% 12%

1H11 175,837 121,677 16,547 15,042 -2,654

1H10 150,837 102,515 14,503 12,223 -2,407

17% 19% 14% 23% 10%

1H11 383,378 396,151 30,951 20,638 -6,802

1H10 326,522 343,961 25,908 17,381 -6,125

17% 15% 19% 19% 11%

In R$ Million

38

Guidance

Credit Portolio 15% to 20% 21.8%

Commercial Credit - Individuals 12% to 17% 19.1%

Commercial Credit - Companies 16% to 21% 28.2%

Real Estate Loans 18% to 23% 26.0%

Provision Cost/Average Credit Portfolio 3% to 4% 3.1%

Allowance for Loan Losses/Average Credit Portfolio 6% to 8% 6.5%

Funding 15% to 20% 12.6%

Time Deposits 35% to 40% 32.1%

Return on Average Shareholders' Equity 19% to 23% 23.2%

Efficiency Ratio 44% to 48% 45.0%

Net Financial Margin/Interest-Earning Assets 10% to 11% 10.6%

Estimate BanrisulGuidance

20111H11/1H10

39

This presentation contains forward-lookingstatements relating to the prospects of thebusiness, estimates for operating and financialresults, and those related to growth prospectsof BANRISUL. These are merely projectionsand, as such, are based exclusively on theexpectations of BANRISUL’s managementconcerning the future of the business and itscontinued access to capital to fund theCompany’s business plan. Such forward-looking statements depend, substantially, onchanges in market conditions, governmentregulations, competitive pressures, theperformance of the Brazilian economy and theindustry, among other factors and risksdisclosed in BANRISUL’s filed disclosuredocuments and are, therefore, subject tochangewithout prior notice.

BANCO DO ESTADO DO RIO GRANDE DO SUL S.A.

Investor Relations

E-mail: [email protected] Site: www.banrisul.com

Phone: +55 51 - 3215-3232Fax: +55 51- 3215-3200

40

Documents

Institutional Presentation & Results 2011 (July) · · 2011-09-19Foreign Investor Domestic Investor (Individual) ... Banrisul Bradesco Banco do Brasil Itausa Itau + Unibanco Santander