gfnorte 3q11 results · pdf file 2011. 11. 23. · 3q11 results conference call...

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  • GFNORTE

    3Q11 Results

    Conference Call October 28, 2011.

  • 2

    Material Events

    On October 17th, the Extraordinary and Ordinary Shareholders’ Meetings were held.

    The most important resolutions adopted were:

     Changes to the Dividend Policy, with a payout of the recurring net income as

    follows:

    • 16% if it grows between 0% and 10%.

    • 18% if it grows between 11% and 20%.

    • 20% if it grows more than 21%.

     Payment of a cash dividend of Ps. 0.17 per share, being the first of three

    payments for a total of Ps. 0.52 per share, which was paid on October 24.

     The increase of the amount of the Share Repurchase Fund to Ps. 1.85 billion.

  • 3

    Material Events

    In October, GFNorte informed about its participation in the debt refinancing of the

    states of Coahuila, Aguascalientes and Sonora. The total amount of the refinanced

    debt with these three States amounts to Ps. $13.21 billion pesos, which represents

    4% of the total Loan Portfolio of 3Q11. The main goal to refinance these liabilities

    was to provide the States with better terms and financial conditions, which will

    provide them with flexibility in the management of their fiscal resources.

    The CNBV modified the methodology to rate federal and municipal entities’ loans.

    This methodology rates and reserves the portfolio based on expected losses.

     GFNorte applied the new methodology for Banorte’s Loan portfolio as of

    September 30th 2011, resulting in a release of loan loss reserves amounting to

    Ps 87 million pre-tax.

  • On October 20, Banco Mercantil del Norte signed a purchase agreement to acquire

    Prudential’s shareholdings in Afore XXI, as a result of the agreement held between

    GFNorte and the Mexican Social Security Institute (IMSS) to merge their respective

    Afores. This purchase agreement is still subject to meeting certain conditions and

    the customary regulatory approvals.

    In October, Banco Mercantil del Norte, exercised its option to redeem its Non

    Convertible Subordinated Notes issued in 2006, due in 2016, in a principal amount of

    US $400 million dollars, which were paid on October 13th, 2011. This prepayment

    demonstrates Banorte’s financial strength in spite of recent weakness in other

    banking systems and the volatile conditions in the international financial markets.

    In September, Banorte signed a collaboration agreement with Banco Nacional del

    Ejército Fuerza Aérea y Armada (Banjercito) that will allow its staff to have access to

    Banorte’s infrastructure and several financial products.

    Sergio García Robles Gil was appointed Corporate Managing Director, in charge of

    the Regional Boards, and Rafael Arana de la Garza was appointed Chief Financial

    Officer in his place.

    Material Events

    4

  • 5

    Results 3Q11

  • 6

    8.0%

    3Q10

    2.19

    4.1%

    1,711

    47.71

    1.2%

    15.8%

    21.75

    2.2%

    49.9%

    Banorte: 1,940

    Ixe: 202

    W/out Ixe: 15% 28.0%

    3Q11

    1.39

    4.0%

    2,142

    41.16

    1.1%

    12.6%

    29.61

    2.4%

    53.9%

    36%

    (14%)

    25%

    Performing Loan Growth

    P/BV

    Net Interest Margin

    Net Income

    Stock Price (pesos)

    ROA

    ROE

    Book Value per Share

    Past Due Loan Ratio

    Efficiency

    Million Pesos

    Yearly Recap GFNorte

  • 7

    QoQ YoY Change

    3Q10 3Q11

    Service Fees

    Recoveries

    FX & Trading

    Other Income (expenses)

    Total Income

    Non Interest Expense

    Net Operating Income

    Income Tax

    Net Income

    Provisions

    Subs & Minority Interest

    5,661 7,232 (2%)

    2,949 3,564 20%

    1,717 1,796 3%

    260 260 (8%)

    331 859 291%

    642 649 (12%)

    8,610 10,795 4%

    (4,296) (5,814) (3%)

    4,314 4,981 14%

    (1,905) (1,650) 25%

    (628) (888) 10%

    (70) (302) 46%

    1,711 2,142 5%

    Million Pesos

    Income Statement

    2Q11

    7,369

    1,741

    284

    2,979

    10,348

    (5,965)

    4,382

    (810)

    2,048

    (1,318)

    (207)

    219

    734

    28%

    21%

    5%

    0%

    160%

    1%

    25%

    35%

    15%

    (13%)

    41%

    329%

    25%

    Net Interest Income

    Non Interest Income

  • 8

    Quarterly Net Income

    1,711 1,758 1,815

    2,048

    Million Pesos

    3Q10 4Q10 1Q11 2Q11

    5% 2,142*

    3Q11

    202

    1,940

    Ixe

    Banorte

    25%

    *Net Income without restructuring charges was Ps 2.2 in 3Q11 and Ps 6.3 for 9M11.

    171

    1,877

  • 9

    Net Interest Margin

    Average

    NIM

    Average

    TIIE

    With

    Repos

    9M10

    6.4%

    9M11 9M10

    4.9%

    9M11

    4.8% (0.1 pp)

    4.1 %

    (0.7 pp)

    5.7%

    4.1%

  • 3Q10 3Q11

    10

    Non Interest Expense Billion Pesos

    EFFICIENCY RATIO

    Non Interest Expense 4.3 5.8

    Recurring Non Interest Expense 4.3 5.7

    2Q11

    6.0

    5.7

    QoQ YoY

    35%

    33%

    49.9%

    3Q10

    53.9%

    3Q11

    57.6%

    2Q11

    52.9%

    Recurring

    3Q11

    (3%)

    (0.5%)

  • 11

    Deposits

    Billion Pesos

    3Q11

    171

    115

    286

    60%

    40%

    100%

    3Q09

    59%

    41%

    100%

    206

    122

    84

    3Q10

    60%

    40%

    100%

    223

    134

    89

    29%

    30%

    28%

    Mix

    Demand

    Time

    Deposits

    Core Deposits

    Demand

    Time

    w/out Ixe: +13%

    6%

    9%

    8%

  • 12

    QoQ

    Change

    YoY

    Total 5 %

    3Q11 2Q11 3Q10

    Commercial 1%

    Corporate 4%

    Government 14%

    Consumer 4 %

    W/out Ixe

    85

    44

    44

    254

    81

    311

    114

    51

    55

    91

    326

    115

    54

    63

    94

    28%

    35%

    23%

    42%

    16%

    5%

    1%

    2%

    14%

    4%

    15%

    7%

    14%

    34%

    14%

    Billion Pesos

    2Q11 3Q11

    326 311

    3Q10

    254

    Performing Loan Portfolio

    QoQ YoY

  • 13

    Performing Consumer Loan Portfolio

    Consumer 94

    2Q11 3Q10 QoQ

    Change YoY

    3Q11

    Card

    Credit Card*

    Payroll

    Mortgage

    9

    11

    12

    62

    91

    9

    11

    11

    60

    8

    11

    8

    81

    54

    4%

    3%

    2%

    11%

    3%

    16%

    14%

    (1%)

    52%

    15%

    Billion Pesos

    2Q11 3Q11

    94

    3Q10

    81

    91

    * Excludes the SOFOM’s portfolio

  • 14

    Interbank

    Loans

    Demand

    Time

    Money

    Markets

    $377 Billion Pesos

    FUNDING LOAN PORTFOLIO

    $ 334 Billion Pesos

    Funding and Loan Portfolio Structure

    45%

    31%

    16%

    8%

    35%

    19%

    19%

    17%

    10%

    Consumer

    Corporate

    Mortgage

    Government

    Commercial

  • 15

    As part of the institutional efficiency strategy, 42 branches were merged during the

    quarter, but 8 new branches were opened.

    1,108 1,134

    1,142 165

    1,311

    Ixe

    Banorte

    3Q10 4Q10 1Q11 2Q11 3Q11

    165

    1,277

    15%

    (3%)

    1,146 1,112

    Branches

    Distribution Network

  • 16

    6,222

    4,846 5,004

    5,014

    1,000

    6,014

    6,019

    203 Ixe

    Banorte /

    Cardtronics

    27%

    3Q10 4Q10 1Q11 2Q11 3Q11

    6,176

    5,974

    202

    (1%)

    The decrease of 46 ATMs during the quarter is mainly due to the merger of 42 branches. In spite

    of this, Banorte’s market share increased to 17% in 3Q11, becoming the second largest network.

    Automated Teller Machines (ATM´s)

    Distribution Network

  • 17

    3Q10 4Q10

    7%

    1Q11 2Q11

    79,885

    54,369 58,336

    62,856

    57%

    Ixe

    Banorte

    3Q11

    85,229

    6%

    7%

    12,331

    67,554

    13,087

    72,142