prbc apresentacao call_en_final
TRANSCRIPT
Disclaimer
All financial information herein is presented on a consolidated basis, and includes the financial
statements of the Bank, its subsidiaries, JMalucelli Seguradora, JMalucelli Seguradora de Crédito,
JMalucelli Re., JMalucelli Agenciamento and Paraná Administradora de Consórcio. All
information, except when otherwise indicated, is expressed in Brazilian currency (Reais) and was
prepared based on the accounting practices pursuant to Brazilian Corporate Law, associated with
the regulations and instructions issued by the National Monetary Council (CMN), the Brazilianthe regulations and instructions issued by the National Monetary Council (CMN), the Brazilian
Central Bank (BACEN), the Brazilian Securities and Exchange Commission (CVM), the National
Council of Private Insurance (CNSP), the Brazilian Private Insurance Authority (SUSEP) and the
Accounting Standards Committee (CPC), as applicable.
The information contained in this material regarding future events is exposed to risks and
uncertainties and subject to changes resulting from, but not limied to, market behavior, economic
and political situation of Brazil and legislative and regulatory changes. The information herein is
entirely based on the Bank Administration’s performance expectations and is no guarantee of
future results.
2
Qualidade da Carteira de Crédito
PDD 70.649 62.331 13,3% 51.469 37,3%
Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%
Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%
Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%
Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.
Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)
PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.
Créditos Baixados a Prejuízo (b)8.754 13.250 (33,9%) 7.856 11,4%
Nível de perda (b/a)0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
4T09 x
4T08R$ 4T09 3T09
4T09 x
3T094T08
Main
Highlights 3Q10
3
* Inclui saldo da cessão com coobrigação.
Inadimplência SFN
PF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%
Inadimplência Paraná Banco
Consignado (>90 dias) = 5,9%PME (>90 dias) = 0,8%
Nível de perda (b/a)0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
Key Financial Numbers (Consolidated)
Net Income:
R$ 29.5 million39.6% x 3Q09
Profitability:
Total Deposits:
R$ 1,372.0 million46.7% x 3Q09
Total Assets: Profitability:
ROAE: 15.4%
ROAA: 3.8%
NIM: 11.7%
4
Total Assets:
R$ 3,260.2 million
22.5% x 3Q09
Loan portfolio:
R$ 1,518.0 million25.9% x 3Q09
Portfolio from AA to C :
95.1% of Parana Banco consolidated portfolio.
Insurance Group
Seguradora’s Net Income :
R$ 9.2 million in 3Q10ROAE of 30.1%
46.5% x 3Q09
Resseguradora’s Net Income :
R$ 5.5 million in 3Q10ROAE of 24.4%
352.2% x 3Q09
Market share - September:Insurance business share :
Seguradora’s Combined Ratio:
45.6%22.8 p.p. x 1Q10
5
Market share - September:
JM Seguradora: 37.9%JM Re: 37.7%
PremiumsJM Seguradora + JM Re:
R$ 189.5 million50.5% x 3Q09
Insurance business share :
51.5% of Net Income
Financial Performance
252,128 303,176
14.0% 11.9%
-5,0%
0,0%
5,0%
10,0%
15,0%
0
100000
200000
300000
88,205 98,905 113,697
(41,500)
15.8%
12.0% 11.7%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
-
50,000
100,000
150,000
200,000
250,000
6
Income from financial operations
Expenses from financial operations
Net Interest Margin - NIM
(109,444)(147,373)
-15,0%
-10,0%
-5,0%
-200000
-100000
0
9M09 9M10
(41,500) (48,881) (57,394)
-25.0%
-20.0%
-15.0%
-10.0%
(150,000)
(100,000)
(50,000)
3Q09 2Q10 3Q10
Net Income from Financial Operations 46,705 50,024 56,303 20.6% 12.6% 142,684 155,803 9.2%
3Q10 x
2Q109M09 9M10
9M10 X
9M09R$ mil 3Q09 2Q10 3Q10
3Q10 x
3Q09
Net Income(R$ thousand)
52.4% 51.5%39.3%
50.2%
39.6%
21,123
31,836 29,479
75,23583,675
-7.4%
11.2%
Financial Performance
35.7%52.4% 51.5%
3Q09 2Q10 3Q10 9M09 9M10
Participation of insurance sector
7
3.3%
4.3%
3.1%
4.4%3.8%
3Q09 4Q09 1Q10 2Q10 3Q10
ROAA
10.9%
15.3%
11.7%
16.9%15.4%
3Q09 4Q09 1Q10 2Q10 3Q10
ROAE
Credit Portfolio Quality
SME12.5%
Storeowner Consumer
Credit2.0%
Others1.3%
4.6%4.8%
5.2%
4.3%
4.0% 3.9%
2.8%3.0%
3.4%
2.7%
2.4% 2.4%800.0
1,000.0
1,200.0
1,400.0
1,600.0 Loan Portfolio
(R$ million)
8
FIDC I and II Effect
Payroll Deductible
Loan84.2%
1,158.2 1,205.3 1,297.0 1,338.2 1,431.4 1,518.0
2.4% 2.4%
-
200.0
400.0
600.0
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Loan Operations Allowance for Doubtful Accounts (PDD)/Loan Portfolio Level H/Loan Portfolio
Credit Portfolio Quality
Allowance for Doubtful Accounts (PDD) 61,377 58,805 4.4% 62,331 (1.5%)
Portfolio overdue (> 60 days) 68,743 67,595 1.7% 73,839 (6.9%)
Portfolio overdue (> 90 days) 56,973 54,251 5.0% 59,231 (3.8%)
Total Portfolio* (a) 1,554,435 1,483,493 4.8% 1,347,703 15.3%
Portfolio Coverage Index (PDD / > 60 days) 89.3% 87.0% 2.3 p.p. 84.4% 4.9 p.p.
Portfolio Coverage Index (PDD / > 90 days) 107.7% 108.4% (0.7 p.p.) 105.2% 2.5 p.p.
Allowance for Doubtful Accounts (PDD) / Total Portfolio 3.9% 4.0% (0.0 p.p.) 4.6% (0.7 p.p.)
Written-off credits (b)8,541 10,530 (18.9%) 12,032 (29.0%)
Loss rate (b/a)0.5% 0.7% (0.2 p.p.) 0.9% (0.3 p.p.)
3Q10 x
3Q09R$ 3Q10 2Q10
3Q10 x
2Q103Q09
9
* Includes balance of assignment with co-obligation.
Delinquency rate - Brazilian Financial System (“SFN”)
Individuals (>90 days) = 6.0%Corporations (>90 days) = 3.5%
Delinquency rate - Paraná Banco
Payroll deductible (>90 days) = 4.0%Small and Mid Enterprises (>90 days) =
2.7%*
Loss rate (b/a)0.5% 0.7% (0.2 p.p.) 0.9% (0.3 p.p.)
Performance – Payroll
182.8 202.9
233.6
340.4 325.1
Payroll-Deductable Loan Origination(R$ million)
-4.5%
46.0%
30.1%
20.0%
3.7% 0.3%
Payroll-Deductible Loan Origination
States
Municipality
INSS
Federal Entities
Others
Payroll Deductible loan portfolio distribution
10
1,071 1,091 1,132
1,206
1,278
3Q09 4Q09 1Q10 2Q10 3Q10
Payroll-Deductible Loan(R$ million)
6.0%
3Q09 4Q09 1Q10 2Q10 3Q10
95.1%
2.5% 2.5%
Quality of the Payroll-Deductible Loan Portfolio
AA - C
D-G
H
Performance – SME
Strategy: To invest in structuring this product in
order to increase the share in this type of credit.
117.0130.0
161.0177.0
189.4
SME Portfolio(R$ million) 7,0%
11
97.0%
2.8% 0.1%
Quality of the SME Portfolio
AA - C
D-G
H
73.5%
8.7%
17.8%
Sector Distribution - SME
Services
Commerce
Industry
3Q09 4Q09 1Q10 2Q10 3Q10
Distribution
7 PLATFORMS
•CURITIBA/PR
•SÃO PAULO/SP
PAYROLL-DEDUCTIBLEPAYROLL-DEDUCTIBLESmall and medium-sized enterprises
- SMESmall and medium-sized enterprises
- SME
12
•SÃO PAULO/SP
•PONTA GROSSA/PR
•MARINGÁ/PR
•LONDRINA/PR
•JOINVILLE/SC
•FLORIANÓPOLIS/SC
84 FRANCHISES
470 BROKERS
14 OWN STORES
Funding
37.7 232.3
1,372.0
Funding Sources(R$ million)
52.4%
12.8%
27.7%
Deposits breakdown
Institutional Investors
Related Parties
Individuals
Other companies
13
Medium Term Notes - MTN
2006 2007 2008 2009 1Q10 2Q10 3Q10
Loans Assigment MTN Deposits
7.1%
12.8%Corporate investors
100,000 December/2009 December/2012 7.375% 100%
35,000 August/2008 August/2011 7.750% 100% + interest rate
Tranche
(US$ thousand)Maturity
Coupon
(p.a.)HedgeGranting Date
Other companies
Capital Structure
Initial Balance 796,534 805,585
Net Income 29,479 31,836
Interest on Equity (5,439) (13,145)
Treasury shares (4,317) (27,892)
Adjustment to market value - Marketable securities 441 150
IRB´s equity quotas updating 28 -
Final Balance 816,726 796,534
Equity Changes (R$ thousand) 3Q10 2Q10
14
37.4% 38.9%36.0%
33.9% 33.2%
3Q09 4Q09 1Q10 2Q10 3Q10
Basel Index
1.491.64 1.66
1.80 1.86
3Q09 4Q09 1Q10 2Q10 3Q10
Portfolio / Shareholder's Equity
Corporate Governance
1Q10 5,506,435.92 0.06 0.57
2Q10 10,645,443.84 0.12 1.41
3Q10 7,938,857.88 0.09 0.84
Total 24,090,737.64 0.27 -
Distributed Gross Value
(R$)
Interest on Equity
per share (R$)
Dividend Yield
(%)
July 2010 July 2010July 2010
Low Credit Risk
Rating
A-
Rating Rating / Ranking Rating
brA- 11.56 A+
Low Credit RiskLow Credit Risk -
Medium term
August 2010
Low Credit Risk
July 2010 July 2010July 2010
Low Credit Risk
Rating
A-
July 2010
Low Credit Risk
Rating
A-
Low Credit Risk
Rating
A-
Rating Rating / Ranking Rating
brA- 11.56 A+
Low Credit RiskLow Credit Risk -
Medium term
August 2010
Low Credit Risk
15
IOE: R$ 24.1 million, equivalent to R$ 0.27 per share and 29% pay-out.
S&P upgrade from “brBBB+” to “brA-”
IOE: R$ 24.1 million, equivalent to R$ 0.27 per share and 29% pay-out.
S&P upgrade from “brBBB+” to “brA-”
Qualidade da Carteira de Crédito
PDD 70.649 62.331 13,3% 51.469 37,3%
Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%
Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%
Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%
Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.
Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)
PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.
Créditos Baixados a Prejuízo (b)8.754 13.250 (33,9%) 7.856 11,4%
Nível de perda (b/a)0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
4T09 x
4T08R$ 4T09 3T09
4T09 x
3T094T08
Insurance3Q10
16
* Inclui saldo da cessão com coobrigação.
Inadimplência SFN
PF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%
Inadimplência Paraná Banco
Consignado (>90 dias) = 5,9%PME (>90 dias) = 0,8%
Nível de perda (b/a)0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
Equity R$ 816.7 MM*
JM HoldingJM Holding OthersOthers
50.2 % 49.8 %
Strategic Partnership
Equity R$ 100.8 MM* Equity R$ 20.2 MM* Equity R$ 140.7 MM*
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JM SeguradoraJM SeguradoraJM Seguradora de
CréditoJM Seguradora de
CréditoJM ResseguradoraJM Resseguradora
99.9 %
56.6% 43.4%
This operation is subject to SUSEP’s approval.* Equity on September 30, 2010, w/out Travelers’ investment.
R$ 625 MM investmentR$ 110 MM Dividends
In Brazil:
•Consolidating surety bond operations performance;• Develop Property and Casualty.
Benefits
In Latin America:
• Develop the Surety Bond Reinsurance platform in Latin America;• Jointly seek new business opportunities in Latin America.
• Increase capital through stronger capital structure, enhanced companies’ soundness and premium retention capacity;• Joint use of a world-renowned and respected brand;• Access to higher reinsurance capacity and increased business power.• Know how synergy
18
42,4%
3,4%13,1%
3,5%
Market Share - reinsurance premiumsFinancial risk category
IRB BRASIL RESSEGUROS
JMALUCELLI RESSEGURADORA
MAPFRE RE DO BRASIL CIA DE RESSEGURO
MUNICH RE DO BRASIL
187,768 167,452 192,364
346,089
499,334
703,109
518,978
Market Share
Market share evolution – direct premium(R$ thousand)
37,7%
MUNICH RE DO BRASIL RESSEGURADORA
XL RESSEGUROS BRASIL
29.2% 37.0% 42.3% 50.4% 43.0% 32.2% 37.9%
2004 2005 2006 2007 2008 2009 Sep-10
JMalucelli Seguradora Market
19
JMalucelli Seguradora: market leadership, profitable operation, low loss ratio, prompt credit analysis, customer selectivity and attractiveness for reinsurers.
Belo Monte: Performance Bond issued in August 2010 totalled R$ 1.05 billion.
JMalucelli Resseguradora: 37.7% of the financial risks group.
JMalucelli Seguradora: market leadership, profitable operation, low loss ratio, prompt credit analysis, customer selectivity and attractiveness for reinsurers.
Belo Monte: Performance Bond issued in August 2010 totalled R$ 1.05 billion.
JMalucelli Resseguradora: 37.7% of the financial risks group.
Financial Performance
29.5%
46.3%
30.1%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
8.000
10.000
12.000
14.000
JMalucelli Seguradora
23.3% 24.4%25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
8,000
10,000
12,000
14,000
JMalucelli Resseguradora
20
Net Income (R$ thousand) ROAE
6,217
12,492
9,254
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
0
2.000
4.000
6.000
8.000
3Q09 2Q10 3Q10
4,319 3,8115,494
17.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
2,000
4,000
6,000
3Q09 2Q10 3Q10
Operational Performance (Insurance)
76,155 76,004
184,291
46,126
Insurance Claims(R$ thousand)
21
JM Seguradora has a specialized’ claim department that mediates and regulates all notifications received from customers. The basic principle is legal defense of involved parties and plenty of opportunities for discussion on the issues in question.
JM Seguradora has a specialized’ claim department that mediates and regulates all notifications received from customers. The basic principle is legal defense of involved parties and plenty of opportunities for discussion on the issues in question.
38,273 29,950
16,146
46,126
253 4,025 2,372 6,457 9,056 7,960 6,083
2004 2005 2006 2007 2008 2009 Sep-10
Market JMalucelli Seguradora
Investment Policy
279.544.6
401.328.6 7.1%
Financial Investment Portfolio(R$ million)
DPGE = R$ 164.7DPGE = R$ 164.7DPGE = R$ 164.7DPGE = R$ 164.7
4,0%
22
Profitability: R$ 12.6 million income in 3Q10.Profitability: R$ 12.6 million income in 3Q10.
77.2
19.2%
69.6%
Government Bonds
Fixed Income Equity Investments
Multi-market funds
Total
CDB = R$ 114.8CDB = R$ 114.8CDB = R$ 114.8CDB = R$ 114.8CD
Investor Relations
Marianne C. BaggioIR Analyst
Mauricio N. G. Fanganiello IR Supervisor
Phone: +55 (41) 3351-9765
Cristiano Malucelli IR Officer
Phone: +55 (41) 3351-9950
e-mail: [email protected] website: www.paranabanco.com.br/ir
23
This material may include estimates and forward-looking statements. These estimates and forward-looking statements are mostly based on current expectations andprojections of future events and financial trends which impact or may impact our business. Many important factors may have a negative impact on Banco Parana Banco’sresults, such as those anticipated in our estimates and forward-looking statements. These factors include, but are not limited to, domestic and international economicconditions, fiscal, foreign exchange and monetary policies, increased competition in the consigned credit sector, Banco Parana Banco’s funding capacity to support itsoperations, and changes in Central Bank’s standards. The words “believe”, “can”, “may”, “aims”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and other similarwords are intended to identify estimates and projections. The considerations on estimates and forward-looking statements include information concerning results andprojections, strategy, competitive position, sector circumstances, growth opportunities, future regulation and competition impacts.
These estimates and projections refer only to the date that they were expressed, and no undertaking has been made to publicly update or revise them resulting from newinformation, future events or any other factors. Due to the risks and uncertainties set forth herein, the estimates and forward-looking statements in this material many notmaterialize. Considering these limitations, the shareholders and investors should not make any decisions based on the estimates, projections and forward-lookingstatements contained herein.
Phone: +55 (41) 3351-9645IR website: www.paranabanco.com.br/ir