1 gfnorte 4q08 results conference call january 30, 2008
TRANSCRIPT
1
GFNORTE 4Q08 Results
Conference CallJanuary 30, 2008.
2
Yearly Recap
Net Income
Net Interest Margin
ROA
ROE
Book Value
Past Due Loan Ratio
BILLION PESOS
Efficiency Ratio
Reserve Coverage
20082007
6.81 11%
130.9%
16.42
7.6%
18.77
6.8%
7.01
135.2%
2.6% 1.9%
22.7% 19.7%
1.5% 2.0%
3%
56.3% 51.0%
3
Income StatementMILLION PESOS
Net Interest Income
Service Fees
Recovery
Non Interest Income
Total Income
Non Interest Expense
Net Operating Income
Income Tax
Net Income
Provisions
Subs & Minority Interest
FX & Trading
QoQ YoY3Q08
5,756
1,682
223
2,028
7,784
3,736
4,048
(982)
2,007
(1,653)
1
123
4Q07
5,065
1,666
164
83
1,914
6,979
3,841
3,138
(694)
1,685
(921)
(36)
4Q08
6,460
1,625
205
559
2,389
8,849
4,369
4,480
(592)
1,272
(2,983)
(7)
28%
(2%)
25%
573%
25%
27%
14%
43%
(15%)
(24%)
224%
(81%)
Non Operating Income, Net 593198 375 89%
12%
(3%)
(8%)
354%
18%
14%
17%
11%
(40%)
(37%)
81%
(800%)
(37%)
4
7,662
2008
GFNorte’s Recurring Net Income
6,185
2006
MILLION PESOS
6,512
2007
5
Non Recurring Items 2008MILLION PESOS
20,924
21,908
21,376 21,376
7,662
7,014
286
60
(240)
(665)
Recurring Net
Income
ReportedNet
Income
SE
CU
RIT
IES
VIS
A/L
EH
MA
N
346
IND
EV
AL
CO
ME
RC
IAL
ME
XIC
AN
A
BR
OK
ER
D
EA
LE
RPROVISIONS
(994)
CO
RP
OR
AT
EL
OA
NS
(42)
BR
AN
CH
ME
RG
ER
S
(47)
6
Non Interest Expense
BILLION PESOS
EFFICIENCY RATIO
Total Income
4Q07
6.9
4Q08
8.8
Non Interest Expense 3.8 4.4
55%
4Q07
48%
3Q08
27%
14%
YoYQoQ3Q08
7.7
3.7
14%
17%
49%
4Q08
7
PERCENTAGE
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Net Interest Margin vs CETES
4Q08
* Includes repos reclassified as assets in the balance sheet.* Includes repos reclassified as assets in the balance sheet.
7.1
7.0 7.17.2 7.4
7.5 7.7
8.2
7.4
7.97.5
7.5
8.1
7.77.7
6.1
7.9 *NIM
101%
Cetes
79%
Cetes
NIM
8
Deposits
Demand
Time
Total
4Q08
128
75
260
Core Deposits 203
Money Market 57
BILLION PESOS
QoQChange
YoY
16%
18%
32%
16%
100%
19%
13%
9%
17%
(15%)
3Q08
108
67
241
174
67
4Q07
111
64
204
175
29
9
BILLION PESOS
Performing Loan Portfolio
QoQChange
YoY
Commercial
Corporate
Government
Total
Consumer
4Q07 3Q08 4Q08
193230
240
4Q08
93
45
27
240
75
4Q07
75
37
18
193
63
3Q08
85
45
25
230
74
8% 24%
-% 23%
6% 50%
4% 24%
1% 18%
10
Performing Consumer Loan PortfolioBILLION PESOS
Car Loans
Credit Card Loans
Payroll Loans
Consumer
Mortgage Loans
YoYChange
QoQ
4Q07 3Q08 4Q08
6374 75
8 (3%) 5%
15 (8%) 9%
7 (6%) 10%
75 1% 18%
45 6% 26%
7 8
14 16
6 7
63 74
36 43
4Q084Q07 3Q08
11
Loan Portfolio Breakdown
4Q07 4Q083Q08
Mortgage
Credit Card
Payroll /Personal
Car
Commercial
Corporate
Government
19
4
7
3
39
19
9
19
3
7
3
37
20
11
19
3
6
3
39
19
11
PERCENTAGE
Loans to Deposits Ratio
TOTAL LOANS /TOTAL DEPOSITS
97%
4Q07
98%
3Q07
103%
1Q08
99%
2Q08
95%
2Q07
90%
1Q07
97%
3Q08
12
93%
4Q08
13
Asset Quality
Past Due Loans
Loan Loss Reserves
RESERVECOVERAGE
PAST DUE LOANRATIO
Total Loan Portfolio
BILLION PESOS
4Q07 3Q08 4Q08
4.9
6.7
242
2.9 4.0
3.8 4.9
196 233
135%131% 123%
4Q07 3Q08 4Q08
2.0%
1.5% 1.7%
4Q07 3Q08 4Q08
14
Provisions
1.8%
2007
1.1%
2006
3.2%
2008
As a % of Average Gross Loans
2.6%
Comerci
15
Past Due Loans
Payroll
Car
Mortgage
Credit Cards
Commercial
Corporate
Government
15
4Q07
2.1%
1.8%
2.3%
5.6%
3Q08
2.2%
2.0%
1.6%
9.0%
4Q08
12.4%
2.8%
2.2%
1.4% 1.7%
0% 0%
0% 0%
1.6%
2.0%
0%
0%
Banorte
2.0%1.5% 1.7%
4Q07 3Q08 4Q08
Past Due Loans
BBVA - Bancomer
3.2%2.3%
2.9%
4Q07 3Q08 4Q08
Banamex - Citi
4.1%
2.8%3.9%
4Q07 3Q08 4Q08
HSBC
6.2%4.0%
5.2%
4Q07 3Q08 4Q08
Santander
3.1%
1.8%2.6%
4Q07 3Q08 4Q08
Scotia
3.5%2.9% 3.0%
4Q07 3Q08 4Q08
Source: CNBV 16
17
Capitalization
Tier 1
Tier 2
TOTAL
% Tier 1
17
9.4%
4.9%
14.3%
2006 2007 2008
65%
12.2% 10.2%
5.1% 3.6%
17.4% 13.8%
70% 74%
Capitalization Strategy for 2009
Objectives.
Maintain robust regulatory capitalzation ratios.
Reinforce our future growth capacity.
Main uses of capital.
Increase in risk weighted assets.
Payment of old subordinated debt.
February 17: US 300 million.
Reinforce Banorte’s credibility as an issuer in global markets.
Main sources of capital.
Reinvestment of profits.
Issuance of new subordinated debt in local markets.
18
Subsidiaries
19
Recovery Bank
Net Income
2007
766
2008
701
MILLION PESOS
AUMBILLION PESOS
20082007
41
16
34
23Banorte’s Assets
Acquired Assets
%
(17%)
44%
2 3Investment Projects 50%
61 62Total 2%
2 2IPAB 0%
20
Long Term Savings
MILLION PESOS
AFORE
82
2007
INSURANCE
170
2007
ANNUITIES
136
2008
94
2008
17
2008
243
Total
2007
388
2008
354
178
136
Non RecurringRecurring
(42)
2007
15%43%
21
Subsidiaries
BROKERAGE HOUSE
OTHER FINANCE COMPANIES
NET INCOME IN MILLION PESOS
288
2007
183
2008
271
2007
336
2008(30)
2007
(120)
2008
MICROLENDING
(36%)
24%
22
23
Inter National Bank
Net Income (100%)
Loan Loss Reserves
MILLION DOLLARS IN US GAAP
Change
23
2007
23.7
4.9
2008
27.3
5.3
15%
8%
Net Interest Income 58.8 65.9 12%
Non Interest Income 11.3 15.6 37%
Total Income 70.2 81.4 16%
Non Interest Expense 29.2 34.6 19%
Demand Deposits 712 617 (13%)
Performing Loans 966 1,108 15%
Past Due Loans 16 23 39%
Time Deposits 694 762 10%
24
Inter National Bank
Reserve Coverage
PDL Ratio
FINANCIAL RATIOS
%
Changepp
24
2007
60.1
1.6
2008
62.4
2.0
2.3
0.3
NIM 4.4 4.2 (0.2)
ROE 21.5 20.4 (1.0)
ROA 1.7 1.6 (0.1)
Efficiency Ratio 41.6 42.5 0.9
Leverage Ratio 7.4 8.0 0.7
Capitalization Ratio 11.3 12.5 1.2
25