1 gfnorte’s 1q08 results conference call april 25, 2008
TRANSCRIPT
1
GFNorte’s 1Q08 Results
Conference CallApril 25, 2008.
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Yearly Recap
Performing Loan Growth
Net Income
Stock Price
P/BV
Net Interest Margin
ROA
ROE
Book Value
Past Due Loan Ratio
MILLION PESOS
24% 29%
1Q081Q07
1,663 11%
52.30
3.73
7.1%
12%
2.75
7.9%
1,928
46.14
2.7% 2.6%
24.0% 23.2%
14.03 16.79
1.4% 1.6%
20%
16%
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Quarterly Net IncomeMILLION PESOS
1,685
4Q07
1,928
1Q08
1,663
1Q07
Non-recurring
Recurring
237
1,691
286
1,377
4
YoY1Q07 1Q08
Income StatementMILLION PESOS
Net Interest Income
Service Fees
Recovery
Trading
Non Interest Income
Total Income
Non Interest Expense
Net Operating Income
Non Operating Income, Net
Income Tax
Net Income
Provisions
Subs & Minority Interest
FX
11%
64%14%
(81%)
(7%)
21%
10%
36%
103%
16%
16%
284%
(170%)
1,573
190106
92
1,961
7,140
(3,799)
3,341
702
(1,075)
1,928
(1,005)
(34)
1,418
11693
476
2,104
5,925
(3,469)
2,456
345
(926)
1,663
(261)
49
36%5,1793,821
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Non Interest Expense
BILLION PESOS
EFFICIENCY RATIO
Non Interest Expense
1Q07
3.5
1Q08
3.810%
60%
1Q06
58%
1Q07
53%
1Q08
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Net Interest Margin vs CETESPERCENTAGE
CETES
Margin
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07
99% 107%
4Q07
7.6
7.1
7.57.07.07.07.1 7.1 7.2 7.4
7.98.0
7.7 7.5 7.78.2
1Q08
7.4
7.9
7
Core DepositsBILLION PESOS
Mix
Demand
Time
Demand
Time
Total
Deposits 1Q06 1Q081Q07
100%100%100%
81
45
126
64%
36%
21%
18%
27%
95
57
152
63%
37%
9%
9%
11%
103
63
166
62%
38%
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BILLION PESOS
Performing Loan Portfolio
1Q07 4Q07 1Q08 QoQChange
YoY
Commercial
Corporate
Government
Total
Consumer
1Q07 4Q07 1Q08
2% 23%
5% 48%
(2%) 15%
3% 29%
5% 29%
76
39
18
199
67
75
37
18
193
63
62
26
15
155
52
155
193 199
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Performing Consumer Loan PortfolioBILLION PESOS
QoQChange
YoY
Car Loans
Credit Card Loans
Payroll Loans
Consumer
Mortgage Loans
1Q07 4Q07 1Q08
1Q07 4Q07 1Q08
5263 67
3% 11%
8% 39%
2% 20%
5% 29%
5% 32%
7
15
6
67
38
7
14
6
63
36
7
11
5
52
29
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NEW LOANS IN BILLION PESOS
Consumer Loans
AUTO
1,267
1,597 1,589
PAYROLLS &PERSONAL
1,3611,411
1,612
1Q06 1Q07 1Q08 1Q06 1Q07 1Q08
26%(1%)
4%14%
1Q07 1T081Q06
2,402
2,902
2,459
21%(2%)
MORTGAGES
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Credit CardsTHOUSANDS OF NEW CARDS
1Q07 1Q081Q06
147
185
77
91%
26%
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Capitalization Ratio
Tier 1
Tier 2
TOTAL
Percentage Tier 1
PERCENTAGE
10.3%
4.3%
14.6%
1Q08
70%
1Q06
13.0%
2.6%
15.6%
83%
1Q07
11.0%
4.9%
15.9%
69%
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Asset Quality
Past Due Loans
Loan Loss Reserves
RESERVECOVERAGE
PAST DUE LOANRATIO
Total Loan Portfolio
BILLION PESOS
127%
149%
131%
1Q07 4Q07 1Q08
1.6%1.4%
1.5%
1Q07 4Q07 1Q08
1Q07 4Q07 1Q08
2.3
3.4
159
2.9
3.8
196
3.2
4.0
203
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Consumer Loans Asset Quality
CREDIT CARDS
5.9%
4.3%
5.6%
1Q07 4Q07 1Q08
MORTGAGES
2.3%2.3% 2.3%
1Q07 4Q07 1Q08
AUTO
1.9%1.9%2.0%
1Q07 4Q07 1Q08
PAYROLLS
1.9%1.6%
2.0%
1Q07 4Q07 1Q08
PAST DUE LOAN RATIO
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Subsidiaries
16
Recovery Bank
Total
1Q07
131
1Q08
167
NET INCOME IN MILLION PESOS
AUM IN BILLION PESOS
1Q081Q07
7
49
8
51Acquired Loans
Assets
%
14%
4%
1.3 2.6Projects 100%
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Long Term Savings
NET INCOME IN MILLION PESOS
AFORE INSURANCEANNUITIES
Total
1Q06
154
1Q07
132
1Q08
79
46
26
1Q06 1Q07
63
46
1Q06 1Q07
44
59
1Q06 1Q071Q08
33
1Q08
8
1Q08
39
ROE: 27%
ROE: 5%
ROE: 16%
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Other Finance Companies
FACTORING &
LEASINGWAREHOUSING
Total
NET INCOME IN MILLION PESOS
54 6066
ROE: 26%
1Q06 1Q07 1Q08
3 4 5
ROE: 18%
1Q06 1Q07 1Q08
1Q06
61
1Q07
74
1Q08
71
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Brokerage and Microlending
BROKERAGE MICROLENDING
NET INCOME IN MILLION PESOS
4163
1Q06 1Q07 1Q08
71
5
(1)1Q06
1Q07 1Q08
(9)
ROE: 27%
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Banorte USA
MILLION DOLLARS
1Q081Q07
INB
Performing Loans
Efficiency
ROE
Net Income (70%)
Net Interest Margin
1,025
4.2%
4.6
40.3%
22.1%
891
3.9
22.9%
42.8%
4.2%
11%15%
11%18%
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Challenges 2008
Adequate reading of uncertain environment:
Reduced liquidity in international markets.
Slower economic growth and inflation.
Asset quality & profitability.
Initiatives:
Alliance with Comercial Mexicana.
Adjustment of microlending business model.
Infrastructure expansion.
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