gfnorte 3q11 results · 2011. 11. 23. · 3q11 results conference call october 28, 2011. 2 material...
TRANSCRIPT
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
Billing grows 28% YoY vs. 22% for the market.
Point of Sale Terminals (POS´s)
Distribution Network
18
Asset Quality and Capitalization
19
Asset Quality
COVERAGE RATIO PAST DUE LOAN
RATIO
133%
3Q11
2.4%
3Q11
136%
3Q10
2.2%
3Q10
2.4%
2Q11
135%
2Q11
20
Past Due Loan Ratio
3Q10 4Q10 1Q11 2Q11
Payroll
Car Loans
Mortgage
Credit Cards
Commercial
Corporate
Government
9.3%
1.9%
1.4%
1.9%
4.1%
0.1%
0%
2.2%
8.5%
1.8%
1.0%
1.7%
3.9%
2.5%
0%
2.5%
9.1%
1.5%
0.8%
1.2%
4.1%
2.4%
0%
2.3%
3Q11
9.4%
1.8%
1.0%
1.4%
4.0%
2.4%
0%
2.4%
8.2%
1.8%
1.2%
1.7%
3.7%
2.2%
0.8%
2.4% GFNorte’s NPL Ratios
*Includes Ixe since 2Q11.
21
Capitalization
Tier 1
Tier 2
TOTAL
% Tier 1
3Q10 4Q10 1Q11 2Q11
12.1%
4.5%
16.6%
73%
12.1%
4.0%
16.1%
75%
12.2%
3.9%
16.1%
76%
3Q11
11.7%
15.6%
11.9%
3.6%
15.5%
77% 75%
3.9%
22
Subsidiaries
23
Recovery Bank
Total
3Q10 YoY
Change 3Q11
Propietary Assets
Aquired Assets (4%)
10%
28.0
40.7
Total 25% 88.1
Managed Assets “Su Casita” - 6.5
Ixe Assests - - 6.3
Investment Projects 52% 6.5
29.1
36.9
4.3
70.3
-
9M11
610
9M10
534
AUM
BILLION PESOS
* Since May 2011, the business related to investment projects are managed by Wholesale Banking.
Net Income in Million Pesos *
24
Long Term Savings
AFORE INSURANCE ANNUITIES
11
9M11
133
9M11 9M11
249
Total
9M10
156
9M10
1
9M10
184
9M10
341
9M11
393
1000%
(15%)
35%
ROE
29% ROE
20%
ROE
25%
ROE
20%
ROE
3%
Net Income in Million Pesos
15%
25
Subsidiaries - Banorte
LEASING AND
FACTORING
465
9M11
333
9M10
ROE
27%
ROE
29%
40%
WAREHOUSING
32
9M11
ROE19%
40
9M10
ROE33% (19%)
Net Income in Million Pesos
9M10 9M11
BROKER DEALER
219 25%
ROE
15%
273
63
Banorte
Ixe
ROE
19%
26
Inter National Bank
(17%)
9M10 9M11
Pre-Tax Net Income*
Provisions
Net Income
NIM
ROE
ROA
Efficiency
Total Deposits
Performing Loans
PDL Ratio USGAAP
Coverage Ratio USGAAP
0.1%
18.1 23.2
19.8 14.6
(0.8) 5.9
3.4% 3.2%
(0.3%) 2.0%
(0.1%) 0.4%
67.6% 61.5%
1,702 1,701
915 759
8.2% 4.5%
35.1% 61.7%
Million Dollars
* Income before Taxes and Provisions.
27