4 q10 conference call presentation
DESCRIPTION
TRANSCRIPT
1
Conference Call about 4th Quarter 2010 Earnings Results
Anis Chacur Neto Sergio Lulia JacobCEO Director Vice-President and IRO
Feb | 14 | 2011
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Highlights
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Net Income in 2010 totaled BRL 202.2 million and BRL 54.0 million in the quarter
Annualized Return on Equity (ROAE) in 4Q10 reached 16.3% p.a.
The credit portfolio including guarantees issued, reached BRL 11,588.4 million
Income from services rendered grew 81.3% in the year and 52.0% in the quarter.
The number of clients at the end of 2010 was 1,411, an increase of 197 over December 2009.
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Credit Portfolio
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Loan Portfolio
Total Portfolio
36.2%
8%
4T09 1T10 2T10 3T10 4T10
4T09 1T10 2T10 3T10 4T10
Corporate
Middle Market
35.2%
4.5%
7,157.2 8,079.8 8,790.8 9,323.9 10,058.7
1,242.0 1,314.3 1,388.0 1,401.8 1,529.7
4,410.4 4,950.3 5,426.1 5,784.0 6,109.0
1,173.7 1,252.2 1,346.1 1,365.3 1,520.4
8,509.2 9,484.5 10,251.3 10,725.7 11,588.4
5,644.7 6,293.0 6,844.6 7,149.4 7,629.5
84%
15%
85%
14%
86%
14%
87%
13%
87%
13%
78%
21%
79%
20%
79%
20%
81%
19%
80%
20%
4Q09 1Q10 2Q10 3Q10 4Q10
4Q09 1Q10 2Q10 3Q10 4Q10
BRL million
4
Business Segments
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Total Portfolio
Loan Portfolio
40.1%
CorporateCompanies with annual revenues
over BRL 250 million
Total Portfolio
Loan Portfolio
Middle MarketCompanies with annual revenues
from BRL 30 to 250 million
7.5%
38.5%
5.6%
26.0%
11.6%
29.5%
11.4%
BRL million
7.157,2 8.079,8 8.790,8 9.323,9 10.023,8
4Q09 1Q10 2Q10 3Q10 4Q10
4.410,4 4.950,3 5.426,1 5.784,0 6.109,0
4Q09 1Q10 2Q10 3Q10 4Q10
1.242,0 1.314,3 1.388,0 1.401,8 1.564,6
4Q09 1Q10 2Q10 3Q10 4Q10
1.173,7 1.252,2 1.346,1 1.365,3 1.520,4
4Q09 1Q10 2Q10 3Q10 4Q10
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Segments Highlights
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Corporate Middle Market
12,0 12,0 12,9 13,7 14,7
342 346 360
376 390
596
675 679 682 683
2,0 2,0 2,0 2,0 2,1
258 256 261
257
246
618 652
695 717 728
Exposure
per Client
Duration
(days)
Groups
BRL million
4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10
4T09 1T10 2T10 3T10 4T104T09 1T10 2T10 3T10 4T10
9%
12%
20%
58%
9%
12%
22%
57%
9%
13%
21%
57%
8%
14%
21%
57%
10%
14%
20%
56%
9%
24%
9%
9%
49%
8%
24%
9%
10%
49%
6%
27%
9%
11%
48%
6%
30%
10%
10%
45%
5%
31%
10%
11%
44%
4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10
7,157 8,080 8,791 9,324 10,024 1,242 1,314 1,388 1,402 1,565
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ROAC
AM
RR
PA
AP
MA
PI
CE
BA
MGES
RJ
SP
PR
SC
RS
MS
MT
GO
DF
RN
PB
PE
ALSE
Geographical PresenceAnd Expansion Plan
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TO
BUSINESS PLATFORMS
CORPORATE MIDDLE
SP Capital 3 4
SP Countryside 1 2
South 1 3
RJ 1 1
MG - 1
GO - 1
TOTAL 6 12
ABC Brasil offices
New Middle Market Business Platforms
Middle-West
Ribeirão Preto
São Paulo IV
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Credit Portfolio Quality
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Loan Loss Reserves (% portfolio)
Write offs Brazilian Central Bank Resolution no. 2,682
Past Due(90 days)
AA-C 97.9%
D-H 2.1%
BRL million
1,0% 1,0% 1,0%
1,1%
2,2%
2,8% 3,0%2,6%
2,3%1,9% 1,8%
1,6%1,6%
0,8% 0,7% 0,7%0,7%
1,8%2,3% 2,3%
2,2%1,8%
1,5%1,3% 1,2%
1,1%
2,3% 2,4% 2,3%2,2%
4,0%
5,2%5,5%
4,4%
3,7%3,3%
3,6% 3,6% 3,6%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
0,2% 0,2%0,3%
0,3%
0,6%
1,2%
0,9%
0,6%
0,3%0,2% 0,2%
0,1%0,1%
0,1%
0,1%0,1%
0,4%
1,0%
0,6%0,5%
0,5%
0,2%0,1% 0,1% 0,0%
0,7%
1,3%
1,0%
1,4%
1,8%
2,2% 2,3%
1,0%
0,7% 0,6% 0,6%0,7%
0,4%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
0,0%
0,1%
0,0% 0,0%
0,1% 0,1%
0,2%
0,1%
0,2%
0,1%0,1%
0,1%
0,0% 0,0%
0,1%
0,0%
0,3%
0,0%0,0%
0,1%
0,3%
0,2%
0,1% 0,1%
0,7%
0,7%
0,2%
0,4%
0,5%0,5%
0,3%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
total corporate middle
8
Funding
8
BRL million
9
Basel Index & Shareholders Equity
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Capital Adequacy (BRL million) 4Q10 3Q10 4Q09Var 4Q10
- 3Q10
Var 4Q10 -
4Q09
Capital 1,841.8 1,833.0 1,228.3 0.5% 49.9%
Mininum Capital Required 1,263.4 1,195.9 922.9 5.6% 36.9%
Capital Surplus 578.4 637.1 305.4 -9.2% 89.4%
Basel Index 16.0% 16.9% 14.6% -4.9% 9.6%
Tier I 11.7% 12.1% 14.6% -2.8% -19.8%
Tier II 4.3% 4.8% 0.0% -10.3% 0.0%
1.218,4 1.312,1 1.347,9
Shareholders' Equity
BRL million
14,6%12,1% 11,7%
4,8% 4,3%
4Q09 3Q10 4Q10
Tier II
Core Capital (Tier I)
16.0%16.9%14.6%
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Financial Margin
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NIM (% p.a.)
BRL million
4Q10 3Q10 Var.(%) 4Q09 Var.(%) 2010 2009 Var.(%)
Financial Margin with Clients 113.3 109.7 3.2% 87.9 28.8% 421.5 348.3 21.0%
Financial Margin with Market 13.1 7.2 82.3% 10.8 21.4% 43.6 27.7 57.5%
Net Interest Income before Loan-Loss Provisions (LLP) 126.4 116.9 8.1% 98.7 28.0% 465.1 376.0 23.7%
Loan Loss Provision (LLP) (12.7) (8.9) 42.4% (4.1) 0.0% (44.4) (53.1) -16.4%
LLP (Brazilian Central Bank resolution nº 2,682) (12.7) (9.4) 35.4% (10.8) 17.3% (47.5) (63.2) -24.8%
Additional LLP - 0.5 0.0% 6.8 0.0% 3.1 10.1 -69.4%
Managerial Financial Margin 113.7 108.0 5.3% 94.6 20.1% 420.6 322.8 30.3%
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Income from services
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7,412 9,886
12,355 14,050 14,882
16,509 17,436 19,570
2,587
3,069
3,729
5,113 7,105
8,119 4,947
6,905
303
485
29
634
2,444
1,589
459
8,183
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Capital Markets & M&A Fees
Banking Fees
Guarantees Issued
14.0% 14.4%
15.9%
17.3%
20.5% 20.1%
17.5%
23.4%
Income from services rendered (BRL million) 4Q10 3Q10 4Q09 2010 2009Var 4Q10 -
3Q10
Var 2010 -
2009
Guarantees issued 19.6 17.4 14.1 69.8 43.7 12.2% 59.8%
Capital Markets and M&A Fees 8.2 0.5 0.6 12.7 1.5 0.0% 773.5%
Banking Fees 6.9 4.9 5.1 25.6 14.5 40.9% 76.8%
Total 34.7 22.8 19.8 108.1 59.7 52.0% 81.3%
BRL million
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Expenses
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Efficiency Ratio
BRL million
Expenses (BRL million) 4Q10 3Q10 4Q09 2010 2009Var 4Q10 -
3Q10
Var 2010 -
2009
Personnel (25.7) (23.1) (20.3) (92.1) (77.9) 11.1% 18.2%
Other administrativ e ex penses (16.1) (13.7) (15.7) (57.7) (55.2) 17.0% 4.5%
Profit Sharing (19.2) (15.0) (13.5) (65.1) (42.1) 28.4% 54.8%
Total (61.0) (51.8) (49.4) (214.9) (175.2) 17.7% 22.6%
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Profitability
13
BRL million
44,5 46,9 50,2 51,1 54,0
141,9
202,2
3Q09 4Q09 1Q10 2Q10 3Q10 2009 2010
*
*
14,8% 15,2% 15,9% 15,8% 16,3%
12,1%
15,8%
3Q09 4Q09 1Q10 2Q10 3Q10 2009 2010
**
NET INCOME ROAE(p.a.)
* Excluding extraordinary effects of divestment of CETIP and joining of program for settlement of tax debits published by the Federal Government
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Guidance Realized 2010
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Estimated Realized
Credit Portfolio 25% - 30% 36%
Corporate 22% - 25% 40%
Middle Market 30% - 40% 26%
Personnel & Other Administrative Expenses 5% - 10% 12%
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Guidance 2011
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Estimated
Credit Portfolio 21% - 25%
Corporate 18% - 23%
Middle Market 35% - 40%
Personnel & Other Administrative Expenses 12% - 15%
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Investor Relations
Sergio Lulia Jacob Director Vice-President and IRO
Alexandre Sinzato, CFA Head of Investor Relations
Web Site: www.abcbrasil.com.br/irEmail: [email protected]: +55 (11) 3170-2186
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Disclaimer
The following material, on this date, is a presentation containing general information about theBanco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly orexplicitly, as to the accuracy, completeness or scope of this information.
This presentation may include forward-looking statements of future events or results accordingto the regulations of the Brazilian and International securities and exchange commissions.These statements are based on certain assumptions and analyses by the Company that reflectits experience, the economic environment, future market conditions and expected events bythe company, many of which are beyond the control of the Company. Important factors thatmay lead to significant differences between the actual results and the statements ofexpectations about future events or results include the company’s business strategy, Brazilianand International economic conditions, technology, financial strategy, financial marketconditions, uncertainty regarding the results of its futureoperations, plans, objectives, expectations and intentions, among others. Considering thesefactors, the actual results of the company may be significantly different from those shown orimplicit in the statement of expectations about future events or results.
The information and opinions contained in this presentation should not be understood as arecommendation to potential investors and no investment decision is to be based on theveracity, current events or completeness of this information or these opinions. No advisors tothe company or parties related to them or their representatives should have any responsibilityfor any losses that may result from the use or contents of this presentation.