Download - BI&P- Indusval - 3Q13 Results Presentation
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Results Presentation
3Q13
Disclaimer
This presentation may contain references and statements representing future
expectations. plans of growth and future strategies of BI&P. These references and
statements are based on the Bank’s assumptions and analysis and reflect the
management’s beliefs. according to their experience. to the economic environment
and to predictable market conditions.
As there may be various factors out of the Bank’s control. there may be significant
differences between the real results and the expectations and declarations herewith
eventually anticipated. Those risks and uncertainties include. but are not limited to
our ability to perceive the dimension of the Brazilian and global economic aspect.
banking development. financial market conditions. competitive. government and
technological aspects that may influence both the operations of BI&P as the market
and its products.
Therefore. we recommend the reading of the documents and financial statements
available at the CVM website (www.cvm.gov.br) and at our Investor Relations page in
the internet (www.bip.b.br/ir) and the making of your own appraisal.
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Highlights
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Volume of origination by the Banco BI&P commercial team: the Expanded Credit Portfolio, including the loans assigned
to Banco Intercap, totaled R$3.4 billion, +3.9% in the quarter and +12.2% from September 2012. Including the Banco
Intercap portfolio, the consolidated Expanded Credit Portfolio totaled R$3.6 billion, +21.5% in the year.
The Emerging Companies and Corporate segments accounted for 48.7% and 50.5%, respectively.
Loans rated between AA and B corresponded to 84.5% of the expanded credit portfolio of Banco BI&P. Noteworthy are
the loans granted during the period: 99.9% were rated between AA and B
The Managerial Expense with ALL in 3Q13 (annualized) was 0.75% of the expanded credit portfolio (1.1% in 2Q13), in line
with the conservative credit policy adopted by the Bank and lower than Management’s expectations.
Funding volume totaled R$3.1 billion and Free Cash totaled R$657.9 million at the end of 3Q13, in line to the growth of
the loan portfolio.
Adjusted Revenue from Credit Operations and Agro Bonds (CPR), which reflects the Bank's core business, totaled
R$78.0 million in the period, increasing 12.7% in the quarter and 32.7% in 12 months.
Income from Services Rendered, which includes fees for structuring corporate finance operations, increased 16.7% in
3Q13 and 31.6% in 12 months.
Net Income from the quarter was R$2.0 million, mainly due to the increase in revenues from credit operations and CPR.
In the beginning of November, we announced the launch of guide investimentos, which will provide asset management
services for high-income individuals through an investment platform that includes investment consulting and advice,
financial content and intelligence, and a tailor-made product offering selected by analysts and economists.
On November 4, 2013, we concluded the acquisition of Banco Intercap S.A. and, consequently, announced a capital
increase of R$107 million, to be subscribed by the shareholders of Banco Intercap. Messrs. Roberto de Rezende Barbosa
and Afonso Antônio Hennel will join the Bank BI&P’s controlling group, and also, after approval by the extraordinary
shareholders’ meeting, the Board of Directors of the Bank as Vice Chairman and Director, respectively.
Banco BI&P Strategic Layout
COMMERCIAL BANK
82% ASSET GROWTH
STRONG QUALITY ASSET GENERATION
FUNDING DIVERSIFICATION
WELL PROVISIONED, SOLID CREDIT
PORTFOLIO
New Management
New Commercial Team
New Credit and HR Policies
New Structure of Controls
Business Repositioning
Multiproduct Offering
Treasury and Derivatives Desk
Active/Creative
JOINT VENTURES
FOR
ASSET GENERATION
MORE THAN R$400 MILLION OF
ASSETS ORIGINATED
New Joint Ventures
3 new partnerships in
negotiation, focusing the
following segments:
- Agriculture
- Real Estate
New Team Acquired
New Strategy in Course
Robust Pipeline and Backlog
Partnership with Moelis & Co.
(global investment bank)
INVESTMENT BANK
STRUCTURING AND FIXED-
INCOME DISTRIBUTION
52 MANDATES IN PROGRESS
MORE THAN 65 PROPOSALS
PRESENTED
BROKERAGE HOUSE
DISTRIBUTION
RETAIL FUNDING
NEW DISTRIBUTION PLATFORM
100% INCREASE IN THE CLIENT BASE
IN THE LAST 12 MONTHS
New Management Hired
Business Strategy and Model
Redefined
New Systems Acquired
Launched in November 2013
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guide investimentos
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guide investimentos: innovative investments platform
Operates in allocation and distribution of financial assets to high net worth individuals. Focus
Investment Funds (of third parties), fixed-income, credit, real estate funds, pension funds,
structured products, stocks, future markets and commodities.
Products
Portfolio
Tailor-made portfolio recommendation for each client without charging for rebates, eliminating
any eventual conflict of interest and allowing the recommendation of products that are more
suitable to each investment profile.
Value
Proposition
investment consulting and advice, financial content and intelligence, and a tailor-made product
offering selected by analysts and economists. Services
Acquisition of Banco Intercap
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Concluded in November 2013
R$107 million, to be subscribed by Banco Intercap shareholders Capital
Increase
Shareholders of 2 solid groups will join the controlling group and the Board of Directors: Afonso
Hennel (Semp Group) and Roberto de Rezende Barbosa (NovAmerica / Cosan)
Corporate
Governance
Intercap operations has been absorbed into Banco BI&P technological infrastructure, expected
to be ended on January 1, 2014 Technology
Integration taking place, estimated to end in December 2013
By the end of the process, Banco BI&P will have a smaller team compared to June 2013 People
Index of 15.4%, in case of the acquisition had been concluded in September 2013 Basel Index
2,991 3,068 3,048 3,229 3,355
3,635
3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*
R$ m
ilhões
Expanded Credit Porfolio Intercap Expanded Credit Portfolio BI&P
Portfolio assigned to Intercap Private Credit Bonds (PN and Debentures)
Agricultural Bonds (CPR, CDA/WA and CDCA) Guarantees Issued (L/G and L/C)
Trade Finance Loans and Financing in Real
Expanded Credit Portfolio Growth of 21.5% in 12 months.
7 * Considers the consolidated Expanded Credit Portfolio, which includes the expanded credit portfolio of Banco Intercap.
1,253 1,200
1,445 1,538 1,586
3Q12 4Q12 1Q13 2Q13 3Q13
R$ m
illion
Emerging Companies
1,682 1,820 1,567 1,659 1,644
3Q12 4Q12 1Q13 2Q13 3Q13
R$
mill
ion
Corporate
Client Segmentation Emerging Companies and Corporate segments participation in the expanded
portfolio of Banco BI&P near the strategic mix of 50%-50%...
8 Note: Other Credits includes Consumer Credit Vehicles. Acquired Loans and Non-Operating Asset Sales Financing.
Migration of clients from Emerging Companies to Corporate = ~R$260mn as of Sept. 30. 2012
Annual revenues from R$80mn to R$400mn Annual revenues of between R$400mn and R$2bn
Average exposure per client |
R$ million 2Q13 3Q13
Corporate 8.1 8.4
Emerging Companies 3.6 3.2
47.6%
48.7%
51.4%
50.5%
1.0%
0.8%
2Q13
3Q13
Emerging Companies Corporate Other
Expanded Credit Portfolio Development ...focusing on higher quality assets...
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687 728 589
773 685
3Q12 4Q12 1Q13 2Q13 3Q13
R$ m
illion
New Transaction
3,229 3,258 685 (582)
(63) (11)
2Q13 AmortizedCredits
CreditExits
Write offs NewOperations
3Q13
R$ m
illion
99% of the new
transactions in the
last 12 months are
classified between
AA and B.
Loans 30.8%
Credit Assignments
5.7%
Confirming 0.0%
Discount Receivables
0.3%
NCE 5.9%
CCE 3.3%
CCBI 2.5%
Loans & Discounts in
Real 49%
Trade Finance
12%
BNDES Onlendings
10%
Guarantees Issued
6% Agricultural Bonds 21%
Private Credit Bonds
0.9%
Other 1%
3Q13
Loans 32.8%
Credit Assignments
16.5%
Confirming 0.6%
Discount Receivables
0.2%
NCE 1.9%
CCE 2.2%
CCBI 1.8%
Expanded Credit Portfolio ...and increasing the new products share in the portfolio...
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Loans & Discounts in
Real 56%
Trade Finance
16%
BNDES Onlendings
10%
Guarantees Issued
6% Agricultural Bonds 10%
Private Credit Bonds
1.4%
Other 1%
3Q12
NCE: Export Credit Notes; CCE: Export Credit Certificate; CCBI: Real Estate Credit Bank Note.
12.8%
1.8%
2.3%
2.4%
2.6%
2.6%
2.7%
3.4%
3.7%
3.7%
4.3%
4.4%
5.5%
7.5%
7.9%
8.7%
23.6%
Other industries*
Financial Activities
Metal Industry
Education
Raw Materials
Chemical & Pharmaceutical
Textile, Apparel & Leather
Power Generation & Distribution
Transportation & Logistics
Commerce - Retail & Wholesale
Livestock
Infrastructure
Automotive
Oil, Biofuel & Sugar
Food & Beverage
Construction
Agriculture
3Q13
7.5% 1.4% 1.5% 1.8% 2.0% 2.4% 2.8% 3.0% 3.0% 3.4% 3.5% 3.9% 3.9% 3.9% 4.0%
5.2% 6.9%
7.6% 8.1%
8.9% 15.3%
Other industries*
Information, Comunication and I.T.
Electronics
Machines and Equipment
Power Generation & Distribution
Education
Chemical & Pharmaceutical
International Comerce
Textile, Apparel & Leather
Transportation & Logistics
Infrastructure
Pulp and Paper
Commerce - Retail & Wholesale
Financial Activities
Metal Industry
Oil, Biofuel & Sugar
Food & Beverage
Livestock
Automotive
Construction
Agriculture
3Q12
Expanded Credit Portfolio ...with relevant exposure in agriculture...
11 * Other industries with less than 1.4% of share.
Expanded Credit Portfolio ...and promoting risk dilution.
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18.5%
13.3%
11.7%
32.0%
29.6%
28.6%
26.9%
27.0%
26.0%
22.2%
30.0%
33.7%
3Q11
3Q12
3Q13
Client Concentration
Top 10 11 - 60 largest 61 - 160 largest Other
The reduction of concentration is one of the results
of the new credit policy adopted since April 2011.
Credit Portfolio Quality 99.9% of loans granted in the quarter were rated from AA to B
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Credits rated between D and H totaled R$317.8
million at the end of 3Q13:
− R$247.6 million (78% of Credit Portfolio
between D-H) in normal payment course;
− Only R$70.1 million overdue +60 days; and
− 66.2% covered. 6%
3%
2%
37%
42%
36%
35%
38%
42%
14%
7%
7%
8%
11%
13%
3Q12
2Q13
3Q13
AA A B C D - H
79.7%
81.7%
78.4%
AA 2%
AA 2%
AA 3%
A 36%
A 42%
A 3%
B 42%
B 48%
B 11%
C 7%
C 4%
C 23% D - H
13% D - H 3%
D - H 60%
3Q13
* New Credit Policy: adopted since April 2011.
New Credit Policy* Clients
Loan Portfolio
Previous Credit Policy Clients
Loan Portfolio
In Sept 2013, 66.2%
of credits rated
between D-H covered
Operating Performance and Profitability
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Adjusted Revenues from Credit Operations and CPR 3Q13 2Q13 3Q13/2Q13 3Q12 3Q13/3Q12
A. Revenues from Credit Operations and agro bonds (CPR) 79.4 60.0 32.4% 62.9 26.3%
B. Recoveries of written-of operations 3.0 1.7 75.2% 5.9 49.1%
C. Discounts granted on settled operations (1.6) (11.0) 85.5% (1.8) -11.4%
Adjusted Revenues from Credit Operations and CPR (A-B-C) 78.0 60.7 12.7% 74.3 32.3%
5.8% 5.3% 5.4% 3.2% 5.6% 5.9% 4.7%
4.5% 4.4% 4.1% 4.1% 4.1% 4.8% 4.1%
3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13
Net Interest Margin (NIM)
NIM without effects of discontinuance of designation of hedge accounting and discounts *
Managerial NIM with Clients *
* Includes revenues from agro bonds (CPR)
Credit Portfolio Quality
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1 Managerial Expense with Allowance for Loan Losses (ALL) = ALL expenses + Discounts granted upon settlement of loans – Revenues from
recovery of loans written off. | * New Credit Policy: adopted since April 2011.
5.5% 4.5%
8.5% 8.2%
12.4%
1.9% 1.2% 2.2% 2.1% 2.6%
0.3% 0.1% 0.4% 0.5% 0.6%
3Q12 4Q12 1Q13 2Q13 3Q13
NPL 90 days / Credit Portfolio
Clients Previous Credit Policy Total
Clients New Credit Policy*
7.5%
4.9%
9.4% 10.6%
14.0%
3.1% 1.5%
2.3% 2.6% 2.9%
1.1% 0.4% 0.4% 0.5% 0.6%
3Q12 4Q12 1Q13 2Q13 3Q13
NPL 60 days / Credit Portfolio
Clients Previous Credit Policy Total
Clients New Credit Policy*
Managerial Allowance for Loan Losses (ALL)
Expense1 in 3Q13, annualized, was 0.75% of
the Expanded Credit Portfolio
1.10%
0.75%
2Q13 3Q13
Managerial ALL Expense 1
Time Deposits (CDB) 23%
Insured Time
Deposits (DPGE)
30%
LCA 19%
LF and LCI 3%
Interbank & Demand Deposits
2%
Onlandings 11%
Foreign Borrowings
12%
3Q13
2,936 2,999 3,170 3,142 3,082
3Q12 4Q12 1Q13 2Q13 3Q13
R$ m
illion
In Local Currency in Foreign Currency
Funding Product mix helps with cost reduction
16
Time Deposits (CDB) 23%
Insured Time
Deposits (DPGE)
35% LCA 11%
LF and LCI 1%
Interbank & Demand Deposits
5%
Onlandings 10%
Foreign Borrowings
15%
3Q12
Operating Performance and Profitability
17 n.r.= not representative
3.1 3.6 2.0
3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13
R$ m
illion
Net Profit
-110.1
2.2 2.5 1.4
2.4
3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13
Return on Average Equity (ROAE) %
n.r.
-91.4
n.r.
-20.6
n.r.
10.8
587.6 587.2 498.4
569.6 574.5
683.0
3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*
R$ m
illion
Shareholders’ Equity
15.82% 14.94% 14.17% 14.55% 14.48% 15.4%
3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*
Basel Index (Tier I)
5.1x 5.2x 6.1x
5.7x 5.7x 5.3x
3Q12 4Q12 1Q13 2Q13 3Q13 3Q13*
Leverage Expanded Credit Portfolio / Equity
Capital Structure and Ratings
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Agency Rating Last
Report
Standard & Poor’s
Global: BB/Negative/ B
National: brA+/Negative/brA-1 Aug/13
Moody’s Global: Ba3/Negative/Not Prime
National: A2.br/Negative/BR-2 Jul/13
Fitch
Ratings National: BBB/Stable/F3 Set/13
RiskBank Index: 9.80
Low Risk Short Term Oct/13
* Simulation of the conclusion of the merger with Banco Intercap at the end of 3Q13.
BI&P+
Intercap
BI&P+
Intercap
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Intercap
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