3q03 earnings
DESCRIPTION
3Q03 Earnings. efficiency reflected in numbers. Highlights. R$ million. Change%. 3Q02. 2Q03. 3Q03. s/3Q02. s/2Q03. Total Assets. 213,412. 205,762. 215,134. 0.8. 4.6. 1. Credit Operations. 62,930. 68,662. 72,601. 15.4. 5.7. Security Portfolio. 75,770. 72,746. 74,055. - PowerPoint PPT PresentationTRANSCRIPT
3Q03 Earnings3Q03 Earnings
efficiency reflected in numbersefficiency reflected in numbers
HighlightsR$ million
1- Credit operations, Leasings operations and others credits, according Res. 2682/992 - Demand, Time, Savings and Interbank3 - Net Income included4 - Annualized
3Q02 2Q03 3Q03 s/3Q02 s/2Q03
Total Assets 213,412 205,762 215,134 0.8 4.6
Credit Operations 1
62,930 68,662 72,601 15.4 5.7
Security Portfolio 75,770 72,746 74,055 -2.3 1.8
Deposits 2
96,238 99,881 103,071 7.1 3.2
Asset Management - R$ bi 56.0 83.2 91.8 63.9 10.3
Shareholders’ Equity 3
8,410 10,872 11,687 39.0 7.5
Market Capitalization 5,629 9,582 11,712 108.1 22.2
Net Income 605 600 665 9.9 10.8
ROE % 4
32.9 24.8 25.7
Earnings Per Share - R$ 0.83 0.82 0.91
Change%
2
adding value to shareholders...adding value to shareholders...
Net Profit and Return On EquityR$ million
1,428
1,744
22.8
22.9
9M02 9M03
3
605 600
479
600665
32.930.2
21.3
24.8 25.7
3Q02 4Q02 1Q03 2Q03 3Q03
Net Profit ROE %
solid resultssolid results
Income Statement
3Q02 2Q03 3Q03 on 3Q02 on 2Q03
Gross Financial Margin 3,688 3,524 3,888 5.4 10.3
Provision for NPL -834 -863 -747 -10.5 -13.5
Net Financial Margin 2,854 2,661 3,141 10.1 18.1
Service Fees 1,118 1,343 1,412 26.4 5.2
Administrative Expenses -2,503 -2,466 -2,931 17.1 18.9
Income before Profit Sh,Taxes Ext.Items 930 1,058 1,231 32.4 16.4
Profit Sharing -25 -49 -50 101.0 2.2
Net Income 605 600 665 9.9 10.8
Change% Change%
Turnover Tax Expenses -136 -241 -242 78.3 0.1
Contribution Margin 3,836 3,763 4,312 12.4 14.6
Commercial Income 1,333 1,297 1,381 3.6 6.5
Operating Income 902 1,016 1,213 34.6 19.4
Income Tax and Social Contribution -300 -409 -516 72.0 26.2
Recurrent Result 605 600 665 9.9
Extraordinary Items 0 0 0 0
10.8
0
R$ million
Including Reallocations
4
Analysis of volume and Spread
ready to a new environmentready to a new environment
Gross Financial Margin 3,688 3,524 3,888 5.4
Assets (-) Permanent * 189,979 198,267 209,071
Spread Annualized 8.00 7.30 7.60
* Average balance
10.0
3Q02 2Q03 3Q02 on 3Q03Change%R$ million
Volume - R$ million
3Q03 1.859773 %
3Q02 1.941189 %3Q
02 1
89,9
79
3Q03
209
,071
Spread - %
(155) (16)
3713,688
Loss on spread decrease Loss due to spread decrease and volume increase
Gain due to volume increase
5
asset quality preservedasset quality preserved
3Q02 2Q03 3Q03Total Credit Portfolio 63,017 68,662 72,601
Overdue Loans 3,879 3,610
Overdue more than 15 days 3,683 3,497
Overdue more than 60 days 2,190 2,228
Write-offs 537 574
Credit Recovery 162 207
Losses Balance 374 367
Losses Balance/Total Credit Portfolio -% 2.22.4
3,596
3,494
2,333
534
286
247
1.4
R$ million
%
Gross Financial Margin 3,688 3,524 3,888 5.4
3Q02 2Q03 3Q03 on 3Q02Change%
Provision for NPL -834 -863 -747
Net Financial Margin 2,854 2,661 3,141
-10.4
10.1
R$ million
834 855
636
863747
1.3% 1.4%
1.0%
1.3%
1.0%
3Q02 4Q02 1Q03 2Q03 3Q03
NPL Expenses Expenses Portfolio
6
6.2 6.0
5.65.3
5.05.8 5.9
5.5
5.14.8
3.53.3
3.03.2 3.2
3Q02 4Q02 1Q03 2Q03 3Q03
Overdue Loans/Total Credit Portfolio
Overdue more than 15 days/Total Credit Portfolio
Overdue more than 60 days/Total Credit Portfolio
R$ million
customers’ loyalty and asset management leadershipcustomers’ loyalty and asset management leadership
Customer Base - in Thousands
3Q02 2Q03 3Q03Change %
on 3Q02 Service Fees 1,118 1,343 1,412 26.3Customer Relationship Fees 326 402 407 24.8Management of Investment Funds. 163 183 214 31.3Loan Operations 93 137 142 52.7Collection 103 120 130 26.2Services to Related Companies 90 95 104 15.6Credit Cards 100 115 109 9.0Others 219 253 273 24.7
Net Financial Margin 2,854 2,661 3,141 10.1
3Q02 2Q03 3Q03 on 3Q02Change.%
Services Fees 1,118 1,343 1,412
Turnover Tax Expenses -136 -241 -242
26.3
77.9
Contribution Margin 3,836 3,763 4,312 12.4
R$ millionR$ million
14,001 14,399 14,90515,645 15,937
975992
1,005
1,0731,112
3Q02 4Q02 1Q03 2Q03 3Q03
Individuals Companies
14,976 15,391
15,910
16,718 17,049
7
Asset ManagementR$ billion
56.0
66.2
78.083.2
91.8
15.7
17.418.6 18.7 18.8
3Q02 4Q02 1Q03 2Q03 3Q03
Asset Management Market Share %
Contribution Margin 3,836 3,763 4,312 12.43Q02 2Q03 3Q03 on 3Q02
Change%
Administrative Expenses -2,503 -2,466 -2,931
Commercial Income 1,333 1,297 1,381
17.1
3.6
Change %3Q02 2Q03 3Q03 on 3Q02
Employees Expenses -1,410 -1,481 -1,681 19.2
Salaries -645 -771 -802 -24.3
Social Charges and Benefits -393 -482 -496 26.2
Training -7 -8 -10 42.9
Labor Suits -105 -73 -80 -23.8
Prov. for Vacation/Leaves -257 -146 -292 13.6
Other Administ. Expenses -1,061 -955 -1,221 15.1
Administrative Expenses -2,503 -2,466 -2,931 17.1
Points of Service - in Thousands Human Resoucers - in Thousands
cost structure suitable with business generationcost structure suitable with business generation
R$ millionR$ million
8,1
24
8,4
96
9,0
41
9,1
69
9,3
62
9,5
46
9,7
12
3,0
50
3,0
77
3,1
34
3,1
64
3,1
83
3,2
09
3,2
18
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
Others Branches
11,174 11,57312,175 12,333 12,545 12,755 12,930
78.0 78.6 79.5 79.5 79.7
10.3 9.5 10.6 10.5 10.8
3Q02 4Q02 1Q03 2Q03 3Q03
Employees Interns
8
productivity equation completed by technologyproductivity equation completed by technology
Automatization
73.9
76.276.9
78.6
81.482.5 82.4
84.1 84.6 85.0 85.2
mar/01 jun/01 set/01 dec/01 mar/02 jun/02 set/02 dec/02 mar/03 jun/03 set/03
Eletronic Transation / Operating Income - %
52.5 51.2
11.6
14.1 16.0
17.6 14.8
9.1
3.3 4.1
sep/02 sep/03
ATM Internet Financial Manager POS Cashier
9
Efficiency Ratio - %
59.3
60.9
57.7 58.0
56.7
54.0
57.5
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
Coverage Ratio - %Service Income/Personnel Expenses
79.4
86.0
79.3
77.1
80.7
90.7
84.0
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
Change.% Sep/02 Jun/03 Sep/03 on Sep/02 on Jun/03
Total Assets 213,412 205,762 215,134 0.8 4.6
Liquid Assets 94,377 79,381 91,627 -2.9 15.4
Credit Operations 51,330 56,686 60,442 17.8 6.6Tax Credit 12,461 10,433 9,897 -20.6 -5.1
Others Assets 55,245 59,261 53,168 -3.8 -10.3Total Liabilities 213,412 205,762 215,134 0.8 4.6
Deposits 96,238 99,881 103,071 7.1 3.2Other Liabilities 108,764 95,009 100,376 -7.7 5.6Stockholders Equity 8,410 10,872 11,687 39.0 7.5
R$ million
BB - the bank that most invests in BrazilBB - the bank that most invests in Brazil
Market Funding – R$ billionAssets Composition - %
43.3 42.5 44.2 44.2 42.2 38.6 42.6
25.4 27.4 24.1 25.2 25.6 27.5 28.1
24.2 23.1 25.9 24.9 27.0 28.8 24.7
4.65.15.85.87.07.1 5.2
mar/02 jun/02 sep/02 dec/02 mar/03 jun/03 sep/03
Liquidity assets Credit Operations
Tax Credit Other Assets
5.6
21.4
26.3 43
.0 49.7
145.
9
5.4
21.2
26.4
46.8
41.5
141.
3
6.4
20.5
26.6
49.6
46.5
149.
5
Interbank
Deposits
Demand
Deposits
Savings
Deposits
Time
Deposits
Open Market
Funds
Total
sep/02 jun/03 sep/0310
Securities Portfolio
liquidity preservedliquidity preserved
3Q02 2Q03 3Q03
R$ million
Cost Mark V. Cost Mark V. Cost Mark V.
Available for Trading 3,712 3,710 5,371 5,393
Available for Sale 48,936 45,990 43,159 43,157
Held to Maturity 25,669 22,571 25,109 23,837
Total 78,317 72,271 73,639 72,387
Maturity - %
19.3 25.4 22.8 26.9 21.6 18.8
47.645.7
61.0 58.1 64.1 70.6
13.2 13.4 12.622.6 20.5
3.0 1.7 1.7 1.8
8.410.4
8.7
jun/02 sep/02 dec/02 mar/03 jun/03 sep/03
Up to 1 year Up 5 to 1 years Up 10 to 5 years Up to 10 years
2,104 2,104
42,752 42,515
27,640 25,974
72,495 70,594
11
well balanced credit portfoliowell balanced credit portfolio
- R$ 72.6 billion
Credit Portfolio Profile
Sep/02 - R$ 63.0 billion Sep/03
12
19.7%
21.9%
21.9%
12.6%
20.3%
3.6%20.6%
20.4%
34.1%
10.4%
11.4%3.0%
Retail Commercial Agribusiness International Abroad Others
Retail Portfolio HighlightsR$ biillion
strong position in retail portfoliostrong position in retail portfolio
Working capital operations
increased 60%,
reaching
R$ 2.4 billion.
Retail portfolio increased
20.8%,
to R$ 15.0 billion
from R$ 12.4 billion
(sep/02 - sep/03)2.5
7.36.8
2.1
1.5
2.4
1.11.5
0.9 1.4
sep/02 dec/02 mar/03 jun/03 sep/03
Consumer Credit Overdraft Accounts Working Capital
Credit Card Others
13
Products for CompaniesR$ billion
all the time with companiesall the time with companies
Receivables are
responsable for 50.3% of
companies operations
Portfolio for companies
increased 7.1%, to
R$ 14.8 billion from
R$ 13.8 billion (sep/02 -
sep/03)
7.5
6.0
1.9 1.9
2.6 2.72.0
1.41.3 1.3
sep/02 dec/02 mar/03 jun/03 sep/03
Receivables Guaranteed account
Investment Working Capital - Others
Others
14
Agribusiness ProductR$ billion
BB contributes to Brazilian agribusiness growthBB contributes to Brazilian agribusiness growth
Leadership in Brazilian agribusiness.
Market share: 70.5%
Rural portfolio increased 79.5%
to R$ 24.8 billion from R$ 13.8 billion (sep/02 - sep/03)
15
8.7
2.72.2
2.94.2
2.9
sep/02 dec/02 mar/03 jun/03 sep/03
Saving MCR 6.2 PROGER/PRONAF
Strengthening foreign tradeStrengthening foreign trade
Foreign Exchange ProductsR$ billion
Leadership in foreign Exchange - export
operations.
International Portfolio
decreased to R$ 7.5
billion from R$ 7.9 billion
(sep/02 - sep/03)
6.36.7
0.7
1.5
0.10.1
sep/02 dec/02 mar/03 jun/03 sep/03
ACC Import Financing Others
16
BB NFS
Credit Portfolios by Risk Level
Participation % - september/03
evolution with responsability...evolution with responsability...
77.2
14.3
8.5
85.6
9.4
4.9
BB SFN
AA-B C-D E-H
82.3 88.3 88.2 81.4
15.7
1.5 2.9
6.39.1 10.3
11.4 2.6
Retail Commercial Agrobusiness International
AA-B C-D E-H
17
ability to increase businesses with customersability to increase businesses with customers
Capital AdequacyR$ million
3Q02 2Q03 3Q03Risk weighted assets 107,797 105,974 109,121
PLE 12,472 12,350 12,705
Required on weighted assets 11,858 11,657 12,003
Required on Swap 144 166 173
Required on exchange exp 0 0 0
Required on Interest rate exp 470 528 529
Required Shareholders’ Equity 12,389 15,479 16,520
Level I 8,375 10,847 11,663
Capital and other items 10,100 11,041 11,706
Adjustment to market value -1,724 -194 -43
Level II 4,014 4,632 4,858
Shareholders’ Equity surplus/deficit -82 3,128 3,815
Laverage surplus/deficit -749 28,439 34,680
K Coeficient % 10.9 13.8 14.3 .
BIS Ratio -%
18
7.4 8.4 9.3 9.7 10.1
3.53.8
4.1 4.1 4.2
sep/02 dec/02 mar/03 jun/03 sep/03
Level I Level II
10.912.2
13.4 13.8 14.3
insurance and private pensioninsurance and private pension
19
Insurance RevenueR$ million
99
135143
17 20 22
5158
66
19
4135
7 11 15
1 14 5 5
3Q02 2Q03 3Q03
Total Auto Life and Others Capitalization Private Pension Health Management Insurance Funds
Insurance / Net Value Insurance / Net Value AggregatedAggregated
3Q023Q02 3Q033Q031.9%
71.1%
27.0%
2.5%
68.4%
29.1%
1,9%
71,1%
27,0%
Insurance MFB Others
commitment to disclosurecommitment to disclosure
Meeting with analysts
November 17thNovember 17th Brazil Day 2003 - NYBrazil Day 2003 - NY
November 19thNovember 19th
November 27thNovember 27th
December 01thDecember 01th
December 03thDecember 03th
V Foro Latibex - MadriV Foro Latibex - Madri
APIMEC - Rio de JaneiroAPIMEC - Rio de Janeiro
APIMEC - FlorianópolisAPIMEC - Florianópolis
APIMEC - RecifeAPIMEC - Recife
20
Investor Relations DivisionSBS - Quadra 1 - Bloco C - Ed. Sede III - 17° floor
70073-901 - Brasília (DF)Phone: 55 (61) 310.5920
Fax: 55 (61) 310.3735
DisclaimerDisclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.