3 q11 investor presentation
DESCRIPTION
TRANSCRIPT
1
Investor Presentation 3Q11
2
. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
3
Ownership Structure
3
ABC Brasil
Local Management11.8%
Voting CapitalTotal Capital
Free-float33.8%
Local Managementand Directors
57.9%ABC
88.2%ABC
8.3%
Arab Banking Corporation(Parent Company)
59.4%CentralBank of Libya
29.7%Kuwait
InvestmentAuthority
Free-float10.9%
Local Global
Aa1.Br Baa3
AA- BB+
Investment grade
International bankheadquartered in Bahrain
4
89%
86%84%
84%
86%86%
11%
11%
12%
14%
14%14%
2006 2007 2008 2009 2010 Sep/11
Middle Market
Corporate
11,588
8,509
6,485
4,992
2,911
12,5298.1%
(BRL Million)
4
Focus on Companies
4
ABC Brasil strongly focuses on providing loans and structured products to mid-sized and large companies
Credit PortfolioIncluding Guarantees Issued
5
Geographical Presenceand Expansion Plan
5
Business Platforms
Corporate Middle
São Paulo Capital 3 4
São Paulo Countryside 1 2
South 1 3
Rio de Janeiro 1 1
Minas Gerais - 1
Midwest - 1
TOTAL 6 12
Presence in 23 citiesOffices
São Paulo Capital São Paulo
São PauloCountryside
Araçatuba, Bauru, Campinas, Ribeirão Preto, São José do Rio Preto, Sorocaba and Taubaté.
SouthCuritiba, Londrina, Blumenau, Criciúma, Caxias do Sul, Novo Hamburgo, Passo Fundo and Porto Alegre
Rio de Janeiro Rio de Janeiro
Minas Gerais Belo Horizonte and Uberlândia
Midwest Brasília, Goiânia, Campo Grande and Cuiabá
Note: Cities in bold indicate where there was office opened in 2011
Presence in 23 cities and 9 newOffices opened in 2011
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 BrasilOffices
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. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
7
Business Segments
7
Loan Portfolio
CorporateCompanies with annual revenues
over BRL 250 million
Loan Portfolio
Middle MarketCompanies with annual revenues
from BRL 30 to 250 million
Total Portfolio Total Portfolio
28.4%
5.1%
3.7%
3.6%
28.7%
4.6%
9,323.9 10,023.8 10,314.3 10,522.1 10,729.3
3Q10 4Q10 1Q11 2Q11 3Q11
1,401.7 1,564.5 1,611.3 1,712.6 1,799.7
3Q10 4Q10 1Q11 2Q11 3Q11
5,784.0 6,109.0 5,905.2 5,788.7 5,997.3
3Q10 4Q10 1Q11 2Q11 3Q11
1,365.3 1,520.4 1,573.9 1,680.0 1,756.6
3Q10 4Q10 1Q11 2Q11 3Q11
(BRL Million)
15.1%
2.0%
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Segments Highlights
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Minas Gerais / Goiás
South
Rio de Janeiro
São Paulo Countryside
São Paulo Capital
Corporate Middle Market
Average Ticket
(BRL Million)
Average Tenor
(days)
Total Number
of Clients
Clients with
Credit Exposure
Sep/10 Jun/11 Sep/11 Sep/10 Jun/11 Sep/11
Credit Portfolio
(BRL Million)
BRL million
667 728 738
564 524 520
16.5 20.1 20.7
376 367 362
869 1,040 1,104
654 840 839
2.1 2.0 2.1
257 234 225
57% 54% 55%
21% 20% 19%14%
17% 16%8%10% 10%
Sep/10 Jun/11 Sep/11
45% 43% 42%
10%12% 12%10%10% 9%30%
28% 28%6%
7% 9%
Sep/10 Jun/11 Sep/11
1,402 1,713 1,8009,354 10,522 10,729
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. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
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Brazilian Banking Sector
ABC Brasil focuses on the Corporate and Middle Market segments
Larg
e
Corp
orate
Corp
orate
Mid
dle
Market
Reta
il
Number of Clients
2,000+
250-2,000
30-250
Individuals andsmall 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
10
BRL million
(BRL Million)
Annual Revenues Main Competitors
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. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
1212
Credit Portfolio Quality
Loan Loss Reserves (% portfolio)
Write Off in the quarter (% portfolio)
Past Due above 90 days (% portfolio)
Transactions between D-H rating(Resolution 2682 of Brazilian Central Bank)
0.66%
1.27%
0.95%
1.84%
2.28%
1.04%
0.69%0.60%
0.71%
0.39%0.57%
0.40%0.51%
0.21%0.34%
0.64%
1.18%
0.65%0.57%
0.11% 0.17% 0.15%0.19%
0.12% 0.10%0.38%
0.98%
0.52%0.51%
0.05% 0.06% 0.08% 0.09%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Middle
Total
Corporate
2.30% 2.24%
4.03%
5.54%
3.65%3.33%
3.60% 3.59% 3.45%3.02%
1.03% 1.05%
2.23%2.98%
2.25%1.92% 1.62% 1.72% 1.69% 1.69%
0.79%0.74%
1.80%2.29%
1.83%
1.13% 1.22% 1.18% 1.30%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Middle
Total
Corporate
0.08%
0.26%
0.13%
0.75%0.69%
0.21%
0.50%
0.27%
0.47%
0.32%
0.77%
0.04%
0.11%0.04% 0.04%
0.16%
0.28%
0.09%
0.32%
0.12%0.16%
0.08%0.10%0.06%
0.21%
0.03% 0.08%0.01% 0.00%
0.13%0.04%
0.27%
0.00%0.07%
0.03% 0.00% -0.01%0.05%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Middle
Total
Corporate
0.5% 0.6% 0.7%0.6%
2.4%
4.1%
6.1%
5.0%
4.1%
3.1% 3.0%2.4% 2.1% 2.0% 1.9% 2.0%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
D-H
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Funding
13
(BRL Million)
3Q10 4Q10 1Q11 2Q11 3Q11
1,924.5 1,723.3 1,792.5 1,938.8 2,156.3
3,113.9 3,314.7 3,271.6 3,525.7 3,798.3
2,140.5 2,386.7 2,387.7 2,240.9 2,317.3
1,827.6 1,836.3 1,872.9 1,886.1 2,065.7
9,006.4 9,261.0 9,324.7 9,591.5 10,337.6 Total
16% 14% 14% 14% 14%
6% 6% 5% 5% 6%Subordinated Debt
Shareholders' Equity
20% 24% 26% 23% 22%BNDES
21% 19% 19% 20% 21% International
10% 11% 11% 10% 12%
9% 9% 9% 10%10%
6% 6% 7% 7%7%10% 10% 8% 10%8%
Individual Investors
Financial Institutions
Institutional Investors
Corporate Investors
35%36% 35% 37%
37%
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Basel Index & Shareholders´ Equity
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12.1% 11.7% 11.6% 11.6% 11.4%
4.8% 4.3% 4.1% 3.8% 4.4%
3Q10 4Q10 1Q11 2Q11 3Q11
Tier II
Tier I (Core Capital)
Shareholders' Equity(BRL Million)
16.9% 16.0% 15.7% 15.4%15.8%
1,312.1 1,347.9
1,384.3 1,424.2
1,460.2
Capital Adequacy (BRL million) 3Q11 2Q11 3Q10Chg(%)/p.p.
3Q11/2Q11
Chg(%)/p.p.
3Q11/3Q10
Capital 2,025.7 1,886.4 1,833.0 7.4% 10.5%
Mininum Capital Required 1,410.9 1,346.9 1,195.9 4.7% 18.0%
Capital Surplus 614.9 539.5 637.1 14.0% -3.5%
Basel Index 15.8% 15.4% 16.9% 0.4 -1.1
Tier I (Core Capital) 11.4% 11.6% 12.1% -0.3 -0.7
Tier II 4.4% 3.8% 4.8% 0.6 -0.4
15
Financial Margin
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NIM (% p.a.)
(BRL million) 3Q11 2Q11 Chg (%) 3Q10 Chg (%) 9M11 9M10 Chg (%)
Net Interest Income before Loan Loss Provision (LLP)146.8 133.5 9.9% 116.9 25.6% 415.7 338.7 22.7%
Financial Margin w ith Clients 137.2 118.7 15.6% 109.7 25.0% 377.7 308.2 22.5%
Financial Margin w ith Market 9.6 14.9 -35.2% 7.2 33.7% 38.0 30.5 24.7%
Managerial Loan Loss Provision (LLP) (21.9) (5.7) 284.5% (8.7) 152.8% (40.3) (33.6) 19.9%
Published Loan Loss Prov ision (LLP) (24.6) (1.7) 1343.2% (8.9) 175.1% (38.6) (31.7) 21.7%
Gain (Loss) w ith Assets Held for Sale* 2.7 (4.0) -166.6% 0.3 904.9% (1.7) (1.9) -10.0%
Managerial Financial Margin 124.9 127.8 -2.3% 108.2 15.4% 375.3 305.1 23.0%
5.1% 5.4% 5.6% 5.5% 5.7% 5.4% 5.6%
3Q10 4Q10 1Q11 2Q11 3Q11 9M10 9M11
*Gain (loss) with assets received in lieu of payment and foreclosed assets.
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Income from Services
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Banking Service Fees (BRL million) 3Q11 2Q11 Chg (%) 3Q10 Chg (%) 9M11 9M10 Chg (%)
Guarantees Issued 23.5 22.6 3.8% 17.4 34.5% 66.9 48.8 36.9%
Capital Markets and M&A Fees 2.4 2.8 -16.5% 0.5 413.3% 7.2 4.5 60.8%
Banking Tariffs 4.2 5.4 -22.3% 4.9 -14.4% 16.5 20.2 -18.3%
Total 30.0 30.9 -2.7% 22.8 31.5% 90.5 73.5 23.2%
7.49.9
12.4 14.1 14.9 16.5 17.4 19.6 20.8 22.6 23.5
2.63.1
3.75.1
7.18.1 4.9
6.96.8 5.4 4.2
0.3
0.5
0.0
0.62.4
1.6 0.5
8.22.0 2.8 2.4
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Capital Markets and M&A Fees
Banking Tariffs
Guarantees Issued
(BRL million)
14.0% 14.4%15.9% 17.3%
20.5% 20.1%17.5%
23.4%19.6% 19.1% 19.4%
Income from ServicesTotal of Revenues
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Expenses
17
Efficiency Ratio
Expenses (BRL million) 3Q11 2Q11 Chg (%) 3Q10 Chg (%) 9M11 9M10 Chg (%)
Personnel (28.2) (27.4) 3.0% (23.1) 22.0% (81.7) (66.4) 23.0%
Other administrativ e ex penses (16.6) (16.9) -1.8% (13.7) 21.0% (48.9) (41.6) 17.5%
Profit Sharing (17.0) (16.8) 1.3% (15.0) 13.4% (51.4) (45.9) 12.0%
Total (61.8) (61.1) 1.2% (51.8) 19.2% (182.0) (153.9) 18.2%
37.0% 37.9% 37.7% 38.8% 36.4% 37.5% 37.6%
3Q10 4Q10 1Q11 2Q11 3Q11 9M10 9M11
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Profitability
18
Net Income (BRL Million) ROAE (% p.a.)
51.1 54.0 56.7 60.2 58.5
148.2175.4
3Q10 4Q10 1Q11 2Q11 3Q11 9M10 9M11
15.8% 16.3% 16.6% 17.2% 16.2% 15.7% 16.7%
3Q10 4Q10 1Q11 2Q11 3Q11 9M10 9M11
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Sergio Lulia Jacob Financial Vice-President
Alexandre Sinzato, CFA Head of Investor Relations
Web Site: www.abcbrasil.com.br/irEmail: [email protected]: +55 (11) 3170-2186
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Investor Relations
20
IPO
1989 1997 2005 20112007
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
20
21
Appendix – Controlling Shareholder
International bank headquartered in Bahrain
Listed in the Bahrain stock exchange
Present in 22 countries
Main Shareholders
Central Bank of Libya 59.4%
Kuwait Investment Authority 29.7%
Free-float 10.9%
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Total Assets: US$ 25.8 Bn
Shareholders’ Equity: US$ 3.6 Bn
BIS Ratio of 23.9% | Core capital (Tier I) of 19.1%
69% of deposits in liquid assets
22
Disclaimer
The following material, on this date, is a presentation containing general information about theBanco 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 accordingto the regulations of the Brazilian and International securities and exchange commissions.These statements are based on certain assumptions and analyses by the Company that reflectits experience, the economic environment, future market conditions and expected events bythe company, many of which are beyond the control of the Company. Important factors thatmay lead to significant differences between the actual results and the statements ofexpectations about future events or results include the company’s business strategy, Brazilianand International economic conditions, technology, financial strategy, financial marketconditions, uncertainty regarding the results of its future operations, plans, objectives,expectations and intentions, among others. Considering these factors, the actual results of thecompany may be significantly different from those shown or implicit in the statement ofexpectations about future events or results.
The information and opinions contained in this presentation should not be understood as arecommendation to potential investors and no investment decision is to be based on theveracity, current events or completeness of this information or these opinions. No advisors tothe company or parties related to them or their representatives should have any responsibilityfor any losses that may result from the use or contents of this presentation.