Transcript

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Investors Presentation March 2013

2

. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

3

89%87% 85%

84%87% 86%

86%

11%

11%12%

14%

13%14%

14%

Dec/06 Dec/07 Dec/08 Dec/09 Dec/10 Dec/11 Dec/12

Middle Market

Corporate11,762

8,651

6,6605,227

3,045

13,169

16.3%

(BRL Million)

15,318

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Focus on Companies

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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

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55% 53% 53%

19%20% 18%

16%18% 19%10%9% 10%

Dec/11 Sep/12 Dec/12

10,950 12,412 12,579

Corporate (annual revenues above BRL 400 mi)

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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

717 752 703

518 523 532

21.1 23.7 23.6

364 332 355

314 526 605

Dec/11 Sep/12 Dec/12

Dec/11 Sep/12 Dec/12

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40% 41% 41%

12% 12% 11%10% 9% 9%

29% 27% 27%

9% 11% 12%

Dec/11 Sep/12 Dec/12

1,905 1,946 2,134

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)

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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)

Dec/11 Sep/12 Dec/12

1,162 1,168 1,295

892 917 997

2.1 2.1 2.1

211 214 227

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BUSINESS

PLATFORMS

IN EVOLUTION

(+RMs)

(> Efficiency)

MG

RJ

SC

GO

MT

SP4

Campinas

Ribeirão Preto

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MATURE

BUSINESS

PLATFORMS

(> Efficiency)

SP1

SP2

SP3

PR

RS

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. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

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Funding & Ratings

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(BRL Million)

Diversified funding with access to local and international sources

Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

1,647 1,782 2,140 2,226 2,186

4,045 4,977 5,353 5,575 5,542

2,181 2,060 2,279 2,165 1,854

2,085 2,137 2,227 2,347 2,618

9,960 10,956 12,000 12,313 12,199 Total

15% 14% 13% 13% 14%

6% 6% 5% 6% 7% Subordinated Debt

Shareholders' Equity

22% 19% 19% 18% 15%BNDES

16% 16% 18% 18% 18% International

10% 9% 9% 9% 9%

11% 10% 9% 9% 8%

10% 13% 11% 10%10%

10%10% 10% 9%

9%

3% 6% 8% 10%

Local Bonds (Letras Financeiras)Individual Investors

Financial Institutions

Institutional Investors

Corporate Investors

46%

41%

45%45% 45%

Local brAA+ Aa1.Br AA

Global BBB- Baa3 BBB-INVESTMENT GRADE

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Assets & Liabilities by maturity

8 (As of December, 2012)

4,136

3,384

2,264

2,730

594362

1,786

4,283

2,104 2,268

282

1,064

2,350

(899) 159 462 312

(702)

1-30 days 31-180 days 181-360 days 1-3 years 4-5 years >5 years

Assets Liabilites Gap

2,350

1,451 1,6112,072

2,385

1,682

Accumulated Gap(BRL Million)

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Basel Index & Shareholders’ Equity

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11.3% 11.1% 10.2% 10.9% 10.6%

4.3% 4.1% 4.0% 4.1% 5.3%

Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

Tier II

Tier I (Core Capital)

15.6% 15.2% 14.2% 15.0% 15.9%

2,072 2,092 2,181 2,257 2,507

1,500 1,536 1,566 1,639 1,680

Reference Equity

Shareholders' Equity

(BRL Million)

Capital Adequacy (BRL million) Dec/12 Sep/12Chg 3M

(%) / p.p.Dec/11

Chg 12M

(%) / p.p.

Capital 2,507.3 2,257.2 11.1% 2,072.5 21.0%

Mininum Capital Required 1,735.4 1,654.1 4.9% 1,457.9 19.0%

Capital Surplus 771.9 603.2 28.0% 614.5 25.6%

Basel Ratio 15.9% 15.0% 0.9 15.6% 0.3

Tier I (Core Capital) 10.6% 10.9% -0.3 11.3% -0.7

Tier II 5.3% 4.1% 1.1 4.3% 0.9

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. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

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%

0.31% 0.21% 0.21% 0.11% 0.17% 0.15% 0.19% 0.21%

0.57% 0.52% 0.56%

0.36%

0.23% 0.12% 0.09% 0.05% 0.06% 0.08% 0.09% 0.11%

0.47%0.39% 0.42%

0.17%

Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

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%

1.86% 1.74% 1.64% 1.62% 1.72% 1.69% 1.69% 1.73% 1.95% 2.04% 2.24% 2.15%

1.52% 1.29% 1.17% 1.13% 1.22% 1.18% 1.30% 1.33% 1.41% 1.48% 1.74% 1.54%

Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

Middle

Total

Corporate

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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%

0.29%0.10% 0.15% 0.08% 0.10% 0.06%

0.24% 0.15%0.06% 0.08%

0.20%0.40%

0.27%

0.00% 0.07% 0.03% 0.00% -0.01% 0.08% 0.02% 0.01% 0.04% 0.10%

0.32%

Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

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%

Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

D-H

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Financial Margin

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NIM (% p.a.)

(BRL million) 4Q12 3Q12 Chg (%) 4Q11 Chg (%) 2012 2011 Chg (%)

Net Interest Income before Loan Loss Provision (LLP) 148.1 147.6 0.4% 143.8 3.0% 580.1 559.5 3.7%

Shareholders´ Equity remunerated at CDI rate 26.8 28.4 -5.9% 39.0 -31.4% 124.0 156.2 -20.6%

Financial Margin w ith Clients 98.7 98.0 0.7% 92.1 7.1% 370.2 352.6 5.0%

Financial Margin w ith Market 22.7 21.1 7.5% 12.7 78.7% 85.9 50.7 69.4%

Loan Loss Provision (LLP) (25.6) (32.8) -22.1% (13.8) 85.2% (110.8) (52.4) 111.4%

Managerial Financial Margin 122.5 114.7 6.8% 130.0 -5.7% 469.2 507.0 -7.5%

5.5% 5.3% 5.0% 4.8% 4.7%5.6%

4.9%

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

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Income from Services

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14.9 16.5 17.419.6 20.8 22.6 23.5 23.8 24.2 26.0 27.4 26.6

7.18.1 4.9

6.96.8

5.4 4.2 3.8 3.34.1

4.6 6.3

2.41.6

0.5

8.22.0 2.8 2.4

7.2

1.9

2.03.1

7.9

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

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%

Banking Service Fees (BRL million) 4Q12 3Q12 Chg (%) 4Q11 Chg (%) 2012 2011 Chg (%)

Guarantees Issued 26.6 27.4 -3.1% 23.8 11.6% 104.2 90.7 14.9%

Capital Markets and M&A Fees 7.9 3.1 152.3% 7.2 9.6% 15.0 14.4 3.7%

Banking Tariffs 6.3 4.6 36.9% 3.8 67.0% 18.3 20.3 -9.7%

Total 40.8 35.2 16.1% 34.8 17.2% 137.4 125.4 9.6%

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Expenses

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Efficiency Ratio (Cost/Income)

Expenses (BRL million) 4Q12 3Q12 Chg (%) 4Q11 Chg (%) 2012 2011 Chg (%)

Personnel (36.3) (31.0) 17.0% (32.3) 12.4% (130.6) (114.0) 14.6%

Other Administrativ e Ex penses (18.5) (17.7) 4.1% (16.0) 15.3% (71.5) (64.9) 10.1%

Profit Sharing (15.3) (14.0) 8.9% (18.0) -15.3% (52.5) (69.4) -24.4%

Total (70.0) (62.8) 11.5% (66.3) 5.5% (254.5) (248.3) 2.5%

37.9%33.9% 36.9% 35.3% 38.4% 37.7% 36.3%

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

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Profitability

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Net Income (BRL Million) ROAE (% p.a.)

16.4%15.0% 14.2% 13.8% 14.4%

16.6%14.3%

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

60.6 56.9 55.0 55.1 59.6

236.0 226.6

4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012

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. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

18

Ownership Structure

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ABC Brasil

Local Management 11.4%

Voting Capital Total Capital

Free-float 34.2%

Local Management and Directors

58.0% ABC

88.6% ABC

7.8%

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 December, 2012)

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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%

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Total Assets: US$ 24.5 Bn

Shareholders’ Equity: US$ 3.8 Bn

BIS Ratio: 23.6%

Core capital (Tier I): 18.6%

(As of December, 2012)

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. Strategy, business segments and products

. Funding and capital base

. Financial highlights

. Ownership structure

. Key attributes

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Key Attributes

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Expertise in Corporate

Credit Risk Assessment

Agile Decision Making &

Experienced Management

Sophisticated

and

Diversified

Products

Investment

Grade

Ratings

Strong Business Origination

Capacity

Strong Sponsor &

Independent Management

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Sergio Lulia Jacob Financial Vice-President

Alexandre Sinzato, CFA Head of Investor Relations

Web Site: www.abcbrasil.com.br/ir Email: [email protected] Phone: +55 (11) 3170-2186

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Investor Relations

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Appendix - Expanded Credit Portfolio

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(BRL million) Dec/12 Sep/12 Chg 3M (%) Dec/11 Chg 12M (%)

Loans 8,480.9 8,470.4 0.1% 7,673.9 10.5%

Corporate 6,404.5 6,580.0 -2.7% 5,807.6 10.3%

Middle 2,076.4 1,890.4 9.8% 1,866.3 11.3%

Guarantees issued 6,232.4 5,888.1 5.8% 5,180.9 20.3%

Corporate 6,174.8 5,832.4 5.9% 5,142.2 20.1%

Middle 57.6 55.7 3.4% 38.7 48.8%

Loans + guarantees issued 14,713.3 14,358.5 2.5% 12,854.8 14.5%

Corporate 12,579.3 12,412.4 1.3% 10,949.8 14.9%

Middle 2,134.0 1,946.1 9.7% 1,905.0 12.0%

Corporate securities (Corporate) 604.8 525.6 15.1% 314.2 92.5%

Total Corporate 13,184.1 12,938.0 1.9% 11,264.0 17.0%

Expanded credit portfolio 15,318.1 14,884.1 2.9% 13,169.0 16.3%

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Appendix - Corporate Structure

CEO

Anis Chacur Neto

Auditing Commitee

Internal Auditing

Financial Institutions

Human Resources Business Inteligence

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

Dealing Desk

Capital Markets

Investment Banking

Credit Corporate

Credit Middle

Risk

Compliance

Legal

Financial Control

Back Office

Information Technology

Board of

Directors

Group Audit / Bahrain

(As of December, 2012)

25 25

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

Ricardo Alves Lima (Brazilian) Independent Member

Edgar Uchôa (Brazilian) Independent Member

(As of December, 2012)

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Appendix - Brazilian Banking Sector

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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

27

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

27

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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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