ubs roundtable oct. 2003

of 31/31
UBS Roundtable Conference October 27, 2003 Walter Bayly Head of Wholesale Banking Banco de Credito del Perú

Post on 03-Jul-2015

147 views

Category:

Documents

2 download

Embed Size (px)

TRANSCRIPT

  • 1. UBS Roundtable Conference October 27, 2003 Walter BaylyHead of Wholesale Banking Banco de Credito del Per

2. CONTENTS

  • PERUVIAN ECONOMY AND BANKING SYSTEM
  • CREDICORP
  • BCP
  • OTHER CREDICORPS MAJOR SUBSIDIARIES
  • CREDICORP OVERVIEW 2Q 2003

3.

  • PERUVIAN ECONOMY AND BANKING SYSTEM

4. Mxico BrazilColombiaChile Per2 003* ** ** ** ** GDP (US$ Bn) 623.4 516.6 83.9 67.8 60.2 GDP Growth (%) 0.9 1.5 1.9 2.1 4.5 Inflation (%) 5.7 12.5 7.0 2.8 1.8 Devaluation (%) 11.0 53.0 22.0 5.0 2.2 Deposits/GDP (%) 19.5 24.9 23.0 40.3 22.8 Fiscal Deficit (%of GDP) (1.3) (5.4) (4.6) (0.8) (1.8) Current Account (%of GDP)(2.7) (1.4) (2.3) (1.1) (2.0) Int. Reserves/Mthly Imports 3.3 9.6 10.1 10.5 14.6 Country Risk (bps)+ 227 822 465 143 491 * As of June 2003 **As of Dec.2002+JP Morgan Index EMBI : Spread of Government Bonds over US Treasury Bonds as of June 30, 2003 PERUVIAN ECONOMY vs. OTHER LATIN AMERICAN ECONOMIES Source: Latin Focus, IMF 5. Brasil Mxico Chile Colombia Per* ** ** ** ** Assets320.5163.268.226.317.6Loans 90.390.042.316.510.6Deposits 128.8121.827.319.313.5Equity 25.316.35.72.61.8Past Due Loan/ Loans 12.5% 4.8% 2.0% 10.2% 8.0% Reserves/Past Due Loans 105.4% 136.2% 135.2% 77.8% 127.5% Cost/Income 53.9% 64.5% 51.5% 84.7% 60.5% ROE 16.75% 12.8% 15.8% 19.3% 9.9% PERUVIAN BANKING SYSTEM vs. OTHER LATIN AMERICAN BANKING SYSTEMS * As of June 2003 ** As of Dec 2002 Source : Fitch Ratings , IMF, ASBANC US$ Bn 6.

  • Reduced growth of 3.5% of GDP for 2003- 2004, and marginal improvement in fiscal position
  • Low growth of loans and deposits in line with the economy
  • Slight increase ofprivate investment
  • Gradual reduction of interest rates of spreads due to increased competition (Banks and Cap. Markets) as well as excess of liquidity
  • Continued improvement of loan quality ratios
  • Lower growth of non-financial revenues due to banking transaction taxes
  • Reduction ofbanks operating costs

MOST LIKELY SCENARIO FOR THE ECONOMY AND THE PERUVIAN BANKING SYSTEM FOR 2003- 2004 7. 8. CREDICORPS ORGANIZATION BCP accounts for 85% of Credicorps assets IcINV.CREDITO SECURITIES 9.

  • One of the top 20 financial institutionsin Latin America
  • Established in Bermuda in 1995
  • Presence in Peru, Bolivia, Colombia,USA (Miami) and Cayman
  • Total Assets US$ 8,234 MM, Net EquityUS$ 856 MM
  • 346 offices, 469 ATMs
  • 9,242 employees
  • Listed in the NYSE

CREDICORP HIGHLIGHTS June 2003 10. CREDICORP vs. LARGEST BANKS OF OTHER LATIN AMERICAN COUNTRIES ** ** ** ** Assets 41.8 39.3 15.1 4.4 8.2 Loans 24.2 14.0 11.1 2.2 4.2 Deposits 30.9 15.5 8.6 3.2 6.4 Funds Administered 25.9 12.5 1.5 n.a. 1.3 Net Equity 5.6 3.0 1.4 0.6 0.8 Net Income 651 557 221 79 31 RATIOS Past Due/ Loans4.4% 3.1% 2.3% 2.3% 7.9% Reserves/Past Due Loans 112.8% 181.0% 98.0% 175.5% 113.1% Cost/Income56.5% 54.6% 44.9% 69.5% 52.1% ROE12.4% 18.7% 19.0% 13.3% 7.3% BBVA Mxico Bradesco Brazil Banco de Colombia Santander Chile * As of June 2003 ** As of Dec. 2002 Source : Banks Annual Reports US$ Bn Credicorp* 11. CREDICORP vs. LARGEST BANKS OF OTHER LATIN AMERICAN COUNTRIES (Cont.) ** ** ** ** Branches1,665 5,460 347 364 346 ATMs 3,752 21,210 1,119 760 469 Employees25,704 74,393 8,314 6,364 9,242 Market Share - Loans 25.5% 19.4% 23.9% 12.4% 34.3%*** - Deposits 28.8% 15.5% 23.4% 11.7% 36.3%*** BBVA Mxico Bradesco Brazil Banco de Colombia Santander Chile * As of June 2003 ** As of Dec. 2002 ***BCPs Market Share Source : Banks Annual Reports Credicorp* 12. Credicorp Overview

  • Summary of Results (USMN) 2Q02 2Q03 6M02 6M03
  • Net Interest Income 86.1 89.0 170.3 177.9
  • Provisions 30.3 19.7 55.7 53.9
  • Other Income 93.8 109.6 185.3 221.9
  • Claims on Insurance Activities 26.9 26.4 47.9 51.6
  • Operating Expenses 100.5 112.4 201.0 221.5
  • Merger Costs - 2.0 - 17.5
  • Translation Result -0.1 2.6 -2.0 -4.1
  • Earnings before Taxes and Min. Int. 22.2 40.7 49.0 51.4
  • Income Tax -9.1 -9.8 -17.8 -16.6
  • Minority Interest -2.1 -2.6 -5.4 -4.0
    • NET INCOME 11.0 28.3 25.8 30.8
    • EPS*0.140.350.320.39

* Based on 79.8 million net outstanding shares in all periods The total number of shares is 94.4 million, 14.6 million are held by affiliates as treasury shares 13. Credicorp Overview Earnings Contribution (USMN)2Q022Q03 6M02 6M03 Banco de Credito 13.3 27.2 27.2 35.2 Pacifico 1.4 5.6 3.6 6.7 Atlantic 0.1 1.6 1.4 2.2 Tequendama* -0.5 0.9 -0.3 -0.2 Credicorp & Others** -3.3 -7.0 -6.1 -13.1 TOTAL INCOME 11.0 28.3 25.8 30.8 Total Assets 7,291 8,234 7,291 8,234 Net Equity 801 856 801 856 BIS Ratio (%) 12.0 11.412.0 11.4 * Excludes transfers to Credicorp and others **Includes income from ICSA 14. Credicorp Overview, Break down 15. 16. HIGHLIGHTS June 2003

  • Largest bank in Peru
  • 114 years old
  • Total Assets US$ 6.7 Bn, Net Equity US$ 578 Mn
  • Market share of 36.3% in deposits and 34.3% in loans
  • More than 1.2 million of customers (40% of the market)
  • 250 offices, over 417 ATMs
  • BCP 5,472 employees, BCP consolidated 7,570 employees,

Considered in year 2002 by LatinFinance as the best bank in Latin America Consolidated 17. BUSINESS SCOPE Wholesale Banking : Commercial Banking, Investment Banking and transactional products offered to corporate and middle market companies. Retail Banking : Wide range of products and services for individuals, small businesses and non-profit institutions. Capital Markets : Brokerage, mutual funds, foreign exchange trading, custody, asset management, securitization and trusts. Distribution Network : 250 offices, 417 ATMs, over 6,000 POS, telephone banking and home banking for over 1.2 million clients. Consolidated 18.

  • Positive outlook for the bank during 2003 year:
    • - Lower provisioning requirement
    • - Significant growth of our non interest income. Second Quarter 2003 amounted $90.3 Mn,16% higherthan in the same period of 2002. Fees continue to have a positive trend
    • - Increased revenues from the merger and marginal increase of personnel expenses
  • We experienced a strong recovery of written- off loans in BCP and BSCH Per
  • Market share consolidated with a slight reduction in loans after BSCH Peru acquisition
  • NIM continued falling due to the excess liquidity in the market and increased competition in middle market and retail segment, as wellas from domestic capital market
  • The umbrella T-3 project of technological transformation seeks simplicity in our systems.
  • -As of June 2003, general expenses in this project were $3.8 Mn, still in budget for the rest of the year are $3.9Mn
  • Focus on the informal sector, which is not banked. The expansion has been aimed on the perimeters of Lima, which have a large population density and a dynamic economic activity in small businesses .

Consolidated 19. Consolidated

  • Key Figures (US$MN)2Q022Q036M026M03
  • Deposits5,0925,7665,0925,766
    • Mkt Share (%)31.436.331.436.3
  • Total Loans3,756 4 ,2123,7564,212
    • Mkt Share (%)27.2 34.327.234.3
  • Net Interest Income80.3 81.9160.5163.1
  • Provisions29.919.155.252.3
  • Non-Interest Income54.661.2107.4132.7
  • Operating Expenses85.185.7169.0175.5
  • Merger Costs- 2.0-17.4
  • Gains on Inflation Adjustment6.9 1.17.0-6.1
  • OPEX / Income(%)54.853.056.353.7
  • CONTRIBUTION13.3 27.227.235.2

20. DEPOSIT & LOAN STRUCTURE Total Loans US$ 4,212Mn US$ 5,766 Mn Deposits Consolidated 21. Loan Quality Consolidated 22. CREDICORPS MAJOR SUBSIDIARIES 23. OTHER MAJOR SUBSIDIARIES OF CREDICORP * AIG 25% ** Total Premiums market share 2002 24. Key Figures (US$MN)6M02 6M03 Equity 105 129 Net Loans 167 157 Investments 312 360 Deposits 504 584 Managed Funds 502 560 NIM (%)3.32.4PDLs/ Loans (%) 0 0 OPEX / Income (%) 31.2 18 CONTRIBUTION1.42.2 Atlantic Security BankEquity as of Jun. 2002:USD 105 Equity as of Dec. 2002:USD 110 Equity as of Jun. 2003 USD 129 -Share Capital 40.1 -Share Capital 40.1 -Share premium-Share premium account0.6 account0.6 -Reserve for valuation for -Net unrealized gain/loss sale financial assets (7.4) on investment 10.6 -Retained earnings 77.1 -Dividends (5.0) -Retained earnings77.1 -Net income 5.4 25.

  • Key Figures (US$MN)6M02 6M03
  • Assets 529 463
  • Equity 57 57
  • Deposits
    • Market % 13.5 12.5
  • Loans
    • Market % 11.9 12.1
  • PDLs / Loans (%) 25.3 23.4
  • Reserves / PDLs (%) 47.9 69.9

26.

  • Key Figures (US$MN)6M02 6M03
  • Assets 334 267
  • Equity 33 29
  • Deposits
    • Market % 0.70.8
  • Loans
    • Market % 1.41.5
  • PDLs / Loans (%) 4.32.0
  • Reserves / PDLs (%) 67 122

CONTRIBUTION -0.3 -0.2 27.

  • Key Figures (US$MN)6M02 6M03
  • Equity 98104
  • Net Premiums84 105
  • -General Insurance 39 39
  • -Health Insurance 12 13
  • -Life Insurance 36 53
  • Market Share (%)35.2 29.3
  • Net Loss Ratio (%) 58.1 48.4
  • Combined Ratio* (%) 80.9 69.4
    • CONTRIBUTION 3.6 6.7

*S um of net claims, general expenses and commissions / net premiums 28. Credicorp Overview 2Q03

  • 1. Good results for Credicorp during the second quarter:
    • Significant increase in BCPs revenues with control on costs
    • Positive trends in most subsidiaries
  • 2. BCB
    • Improved results during the quarter with lower provisions
    • Loan portfolio clean-up almost concluded
    • Focus on restructure operations following BCPs business model
  • 3. ASB
    • Improved results with increased non- realized gains in the investmentportfolio
    • Reduction ofrisk profile of investment portfolio
    • Increased concentration on wealth management business
  • 4. Tequendama
    • Refocus its business to the retail and middle-market segments
    • Additional support expected of close to US$4.5MMfor the year

29. Credicorp Overview 2Q03

  • 5.PPS
    • Results benefited fromgrowth in premiums relative to net claims and operating costs but are still affected by growth in reserves for life insurance
    • Lower margins in property & casualty business due to increasedcompetition and higher reinsurance costs
    • Attractive growth opportunities in life insurance with short-term increase on
    • reserves
  • 6. BCP
    • Gradual recovery in loan demand
    • Continued pressure on margins due to increased competition in middlemarket and retail segments
    • Positive outlook based on:
    • - Lower provisioning requirements
    • - Significant growth in non-financial income
    • - Increased revenues frompurchase of BSCH- Per and fullownership of Financiera Solucion
    • - Reduction in personnel expenses with increased businessvolumes

30. Safe Harbor for forward-looking statements This material includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934.All statement other than statements of historical information provided herein are forward-looking and may contain information about financial results, economic conditions, trends and known uncertainties.The Company cautions readers that actual results could differ materially from those expected by the Company, depending on the outcome of certain factors, including, without limitation: (1) adverse changes in the Peruvian economy with respect to the rates of inflation, economic growth, currency devaluation, and other factors, (2) adverse changes in the Peruvian political situation, including, without limitation, the reversal of market-oriented reforms and economic recovery measures, or the failure of such measures and reforms to achieve their goals, and (3) adverse changes in the markets in which the Company operates, including increased competition, decreased demand for financial services, and other factors.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof, including, without limitation, changes in the Companys business strategy or planned capital expenditures, or to reflect the occurrence of unanticipated events. 31. Credicorp Overview

  • Summary of Results (USMN) 6M02 6M03
  • Net Interest Income 170.3 177.9
  • Provisions 55.7 53.9
  • Other Income 185.3 221.9
  • Fee Income 81.0 93.7
  • Netgain on securities sale 7.4 7.3
  • Net gain exchange operations 10.1 12.2
  • Net premiums gain 63.0 64.9
  • Other Income 24.3 43.8
  • Claims on Insurance Activities 47.9 51.6
  • Operating Expenses 201.0 221.5
  • Merger Costs - 17.5
  • Translation Result -2.0 -4.1
  • Earnings before Taxes and Min. Int. 49.0 51.4
  • Income Tax -17.8 -16.6
  • Minority Interest -5.4 -4.0
    • NET INCOME 25.8 30.8
    • EPS*0.32 0.39

* Based on 79.8 million net outstanding shares in all periods The total number of shares is 94.4 million, 14.6 million are held by affiliates as treasury shares