1Q11 Conference Call Presentation

Conference Call • 1Q11
(Only in Portuguese)
Agenda
Key Figures
Page 3
Foreign Currency Funding
Page 13
Financial System Ranking
Page 4
Liquidity
Page 14
Distribution
Page 5
Asset Management
Page 15
Loan Portfolio
Page 6
Quality of Loan Portfolio
Page 16
Middle Market Portfolio
Page 8
Efficiency Ratio
Page 20
Daycred - Payroll
Page 9
Capital Structure
Page 21
Daycred – Auto Loans
Page 10
Profitability
Page 22
Funding
Page 11
1Q11 Highlights
Page 24
Total Deposits
Page 12
2
Key Figures
1Q11
Total Assets
R$ 9,787.1 million
Expanded Loan Credit Portfolio
R$ 6,596.2 million
Funding
R$ 5,915.7 million
Shareholders’ Equity
R$ 1,791.2 million
Net Income
R$ 43.5 million
Basel Index
18.0%
1Q11
Average past 12 months
ROAE
10.1%
15.1%
ROAA
1.8%
2.9%
NIM-A (*)
9.0%
11.3%
Efficiency Ratio
37.6%
26.9%
(*) New
methodology excluding repurchase agreements – tri-party repos outstanding
3
Financial System Ranking
Ranking Daycoval
Ranking Daycoval (*)
Private National Banks
Net Income
12º
Shareholders’ Equity
16º
Total Deposits
22º
Total Assets
25º
Source: Brazil Central Bank – December 2010
Rating
Global Scale
Global Scale
Long Term BB
Long Term BB
Short Term B
Short Term B
National Scale
National Scale
Long Term brAA-
Long Term A+ (bra)
Short Term brA‐1
Short Term F1 (bra)
Positive
Stable
December 2010
May 2011
Low Risk – Mid-Term
Index 11.40
General Rank:
Março/10
8
July 2010
4
Distribution: More than 100 points os Sale
31 Branches
SÃO PAULO – SP HD Av. Paulista
SP - ALPHAVILLE
SP - BOM RETIRO
SP - BRÁS
SP - CAMPINAS
SP - FARIA LIMA
SP - GUARULHOS
SP - RIBEIRÃO PRETO
SP - SÃO BERNARDO
SP - SOROCABA
SP - UBERLÂNDIA
IFP Promotora de
Serviços de
Intermediação
Financeira Ltda, is a
financial intermediation
company created to
promote operations for
individuals. It has 57
stores in operation
throughout Brazil.
ES - VITÓRIA
MG - BELO HORIZONTE
RJ - RIO DE JANEIRO
PR - LONDRINA
PR - CURITIBA
RS - CAXIAS DO SUL
RS - PORTO ALEGRE
SC - FLORIANÓPOLIS
AL - MACEIÓ
BA - SALVADOR
CE - FORTALEZA
PE - BOA VIAGEM
PE - RECIFE
RN - NATAL
SE- ARACAJU
DF - BRASÍLIA
MS - CAMPO GRANDE
MT - CUIABÁ
AM - MANAUS
PA - BELÉM
11 Daypag Offices
in major cities of São
Paulo State: Osasco,
Barueri, Guarulhos,
Americana, Atibaia,
Campinas, Ribeirão
Preto, Mogi Guaçu e
Detran São Paulo
4 exchang in São
Paulo and
correspondent
foreign exchange
desks distributed
strategically in São
Paulo and Rio de
Janeiro
5
Loan Portfolio: growth higher than the market average
Loan Portfolio – R$ Million
1Q11
4Q10
Chg. %
3,564.1
3,380.6
5.4%
375.8
332.5
13.0%
Total Portfolio Middle Market
3,939.9
3,713.1
6.1%
Payroll Loans
1,486.1
1,308.4
13.6%
559.1
545.9
2.4%
5,985.2
5,567.4
7.5%
Mi ddl e Ma rket
Tra de Fi na nce
Auto Loans / DCC / Other
Total Loan Portfolio
Expanded Loan Portfolio – R$ Million
1Q11
4Q10
Chg. %
3,564.1
3,380.6
5.4%
Tra de Fi na nce
375.8
332.5
13.0%
Ava l s a nd Sureti es Gra nted
247.7
249.4
-0.7%
214.7
214.3
0.2%
4,402.3
4,176.8
5.4%
1,486.1
1,308.4
13.6%
130.7
167.9
-22.2%
1,616.8
1,476.3
9.5%
513.9
503.3
2.1%
18.0
23.5
-23.4%
531.9
526.8
1.0%
45.2
42.6
6.1%
6,596.2
6,222.5
6.0%
Mi ddl e Ma rket / Other
Recei va bl es purcha s e
Total Portfolio Middle Market
Pa yrol l Loa ns
Pa yrol l Loa ns Portfol i o As s i gnments
Total Payroll Loans
Auto Loa ns
Auto Loa ns Portfol i o As s i gnments
Total Auto Loans
Direct Credit to Consumers (DCC)
Total Expanded Loan Portfolio
6
Expanded Credit Portfolio: strong growth of 52.9% over the past 12 months
Loan Portfolio – R$ Million
52.9%
6.0%
6,222
4,845
4,314
80
104
4,210
4,765
1Q10
2Q10
Loan Portfolio
Breakdown Loan Portfolio
8.5%
(*) 4Q10
0.7%
Middle Market
Payroll Loans
23.7%
67.1%
Auto Loans
DCC
6,596
149
5,546
191
5,485
6,031
6,447
3Q10
4Q10
1Q11
61
Credit Assignments
Breakdown Loan Portfolio (*) 1Q11
8.1%
0.7%
Middle Market
Payroll Loans
24.5%
66.7%
Auto Loans
DCC
(*)Includes Credit Assignments, sureties and avals granted and the purchase of credit reghts
7
Middle Market: strong increase of 70.1% over the past 12 months, currently representing
66.7% of the total portfolio
Middle Market Portfolio – R$ Million
4,177
3,627
3,055
2,587
1Q10
2Q10
3Q10
4Q10
1Q11
Guarantees Breakdown – 1Q11
9.9%
R$ 2,176.2
R$ 1,098.1
R$ 375.8
R$ 289.8
R$ 247.7
R$ 214.7
R$ 4,402.3
49.4%
24.9%
8.5%
6.6%
5.7%
4.9%
100.0%
Geographic Distribution – 1Q11
Receivables
Vehicles / Real Estate
12.2%
Agricultural Products
14.8%
Working Capital
Guaranteed Account
Trade Finance
BNDES
Avals and Sureties
Receivables Purchase
TOTAL
Sectors Breakdown – 1Q11
5.6%
6.2%
Breakdown Portfolio Middle Market 1Q11 (million)
4,402
51.3%
Financial Investments
Equipments / Foreign goods
6%
17%
42%
35%
Industry
6%
Services
15%
Commerce
Other
9%
Southeast
South
58%
12%
Northeast
Mid-West
North
Other
8
Daycred Payroll: INSS and Army continue to drive growth
Total Loan Portfolio (*) – R$ Million
Total Loan Portfolio (*) – R$ 1,617 mn – 1Q11 - %
1,617
1,383
1,476
4.6%
2.8% 0.4%
Army
8.2%
1,238
1,126
38.1%
12.1%
2Q10
3Q10
4Q10
Other
1Q11
(*) Includes credit assignments in all of the quarters (R$ 130.7million in 1Q11)
Private
Total Origination – R$ 419 mn – 1Q11- %
Total Origination – R$ Million
416
386
419
8.8%
0.2% 3.0%
36.3%
215
41.4%
2Q10
3Q10
4Q10
1Q11
INSS
Army
10.3%
301
1Q10
State Government
Law Courts and
Legislative Bodies
Municipalities
33.8%
1Q10
INSS
State Government
Law Courts and
Legislative Bodies
Municipalities
Private + Other
9
Daycred Auto Loans: maintenance of production
Total Loan Portfolio (*) – R$ Million
Total Origination – R$ Million
76
575
524
501
527
59
532
28
1Q10
2Q10
3Q10
4Q10
1Q11
1Q10
72
37
2Q10
3Q10
4Q10
1Q11
(*) Includes credit assignments in all of the quarters (R$ 18.0million in 1Q11)
Liquidity of Auto Loans Portfolio 1Q11 – R$ Million
Liquidity
Receiving
Paid
Past due more
than 90 days
Origination Last 12 months (*)
Ratio Liquidity
Total Loan
Loan
Portfolio
1,483
1,324
159
10.7%
Old Loan
1,340
1,190
150
11.2%
118
113
5
4.3%
New Loan
Small Vehicles
25.7%
74.3%
Heavy-duty
Vehicles
(*) We have not financed motorcycles since October 2009 10
Funding: strong growth of 12.9% during the quarter
Funding (R$ mn)
1Q11
4Q10
3,422.4
3,193.9
7.2%
230.0
204.2
12.6%
2,935.4
2,790.8
5.2%
257.0
198.9
n.a.
Borrowing and Onlending
1,411.4
1,379.7
2.3%
Foreign Issuances
1,074.6
664.3
61.8%
7.3
3.2
220.0%
5,915.7
5,241.1
12.9%
Total Deposits
Demand Deposits + Other Deposits
Time Deposits
Interbank Deposits
Banknotes
Total
Chg. %
Funding – R$ Million
37.2%
4,310
21%
4,842
15%
28%
12.9%
5.175
5,241
12%
13%
25%
26%
5,916
18%
24%
21%
58%
1Q10
57%
2Q10
63%
3Q10
Foreign Issuances
61%
58%
4Q10
1Q11
Borrowing and
Onlending
Total Deposits
11
Total Deposits: growth of 36.6% over the past 12 months
Total Deposits - R$ Million
3,248
2,775
2,506
1Q10
2Q10
3Q10
Total Deposits Breakdown – 4Q10
6.3%
Corporates + Demand
Deposits
Individuals
7.7%
39.5%
26.5%
3,422
3,194
4Q10
1Q11
Total Deposits Breakdown – 1Q11
4.7%
Investment Funds
27.0%
Institutional
20.0%
Financial Institutions +
Interbank Deposits
Corporates + Demand
Deposits
Individuals
7.7%
41.8%
Investment Funds
Institutional
18.8%
Financial Institutions +
Interbank Deposits
12
Foreign Currency Funding: Without any relevant maturities in the upcoming months
Foreign Issuances and Borrowing and Onlending - R$ Million
2,066.9
1,804.5
2,044.0
1,925.8
2,486.0
57%
50%
66%
50%
34%
1Q10
Eurobond
International Finance
Corporation (IFC)
Syndicated Loan (IFC)
Eurobond
Syndicated Loan (IIC)
Eurobond
66%
68%
34%
32%
2Q10
3Q10
Borrowing and Onlending
Date of
Transaction
Maturity
Amount (US$ mn)
July/2008
July/2011
100
December/2007
January/13
(due of last tranche)
115
June/2010
June/14
(due of last tranche)
165
March/2010
March/2015
300
November/2010
November/15
(due of last tranche)
112.5
January/2011
January/2016
300
43%
4Q10
1Q11
Foreign Issuances
Eurobond held in January /2011
Issuer
Banco Daycoval S.A.
Issuer Rating
(S&P) BB Positive / (Fitch) BB Stable
Issue Denominations
US$ 300 million
Term
January 2016 (5 years)
Ranking Status
Euro Medium Term Note Programme
Yield
6,37% p.a
Coupon
6,25% p.a
Interest
Semi- annual (30/360)
Listing
Irish Stock Exchange
Joint Bookrunners
Co-Manager
13
Liquidity: positive gap of 182 days between the duration of the credit and funding
operations
Outstanding Operations (Loan Portfolio) 1Q11 - %
Outstanding Operations (Funding) 1Q11 - %
1.0%
0.9%
7.7%
25.2%
33.4%
Maturity of 65.7%
over the next 12
months
25.7%
32.3%
Up to 3 months
From 1 to 3 years
Over 5 years
Average Term of Loan
Portfolio: 410 days
From 3 to 12 months
From 3 to 5 years
26.3%
3.9%
15.2%
28.4%
No maturity
From 3 to 12 months
From 3 to 5 years
Maturity of 47.5%
over the next 12
months
Up to 3 months
From 1 to 3 years
Over 5 years
Average Term of
Funding Portfolio:
592 days
14
Daycoval Asset Management
Daycoval Asset Management offers a variety of investment funds and differentiated products such as portfolio
administration. At the present time we have eight open funds and twelve closed funds.
Asset ended March 2011 with a total of funds generated and/or administered of R$ 1,182.1 million.
Year
Assets Under
ManagementR$
Million
10.63%
100.29%
166.13
Daycoval Multifunds
% CDI
10.02%
96.21%
13.96
Parnamirim
% CDI
10.81%
103.84%
360.99
Oasis
% CDI
2.70%
102.40%
Profitability Funds
Daycoval Renda Fixa
% CDI
Assets Under Management – R$ Million
1,158
1,182
Multifunds
69.4
Stocks
Daycoval Target
% Ibovespa
643
36
91
138
241 238
2004 2005 2006 2007 2008 2009 2010 1Q11
0,18%
-2,36%
27.21
15
Quality of Loan Portfolio (*): constitution of the Provision is at appropriate
levels
Total Provisions – 1Q11
Total Loan Portfolio (excludes FIDCs)
Portfolio R$
MM
1Q11
Provision R$
mn
%
Total Provision /
Loan (%)
Middle Market
3,939.9
65.7%
113.1
2.9%
Payroll
1,486.2
24.8%
33.2
2.2%
Auto Loans
377.3
6.3%
28.6
7.6%
DCC Retailers + Other
45.2
0.8%
2.9
6.4%
5,848.6
97.6%
177.8
3.0%
148.6
2.4%
0.9
0.6%
5,997.2
100.0%
178.7
3.0%
Subtotal
Credit Assignments
Total
Total Provision / Loan Porfolio 1Q11
4.5%
3.4%
1Q10
2Q10
3.2%
3.1%
3.0%
3Q10
4Q10
1Q11
(*) Unconsolidated
16
Quality of Loan Portfolio (*)
Establishment of Provision - R$ mn
1Q10
Middle Market + Trade Finance
Payroll
Auto Loans
Direct Credit to Consumers
Total
2Q10
3Q10
4Q10
1Q11
17.2
12.2
37.1
14.2
24.5
7.1
7.5
8.6
7.9
9.8
12.8
9.1
5.8
4.8
7.0
0.7
0.7
0.6
0.9
1.3
37.8
29.5
52.1
27.8
42.6
Balance and Establishment of Provision - R$ Million
176
38
1Q10
153
30
2Q10
Balance of Provision
160
52
3Q10
170
178
43
28
4Q10
1Q11
Establishment of Provision
(*) Unconsolidated
17
Quality of Loan Portfolio (*)
LLP / Past due operations > 60 days
LLP / Past due operations > 14 days
172%
102
1Q10
168%
91
2Q10
184%
201%
87
85
3Q10
4Q10
LLP / Past due operations (%)
191%
93
1Q11
Past due operations
310%
310%
255%
270%
255%
69
60
52
63
57
1Q10
3Q10
4Q10
4Q10
1Q11
LLP / Past due operations (%)
Past due operations
(*) Unconsolidated
18
Quality of Loan Portfolio (*) the coverage level of the PDD balance represents 111.4% of the
E-H portfolio
Loan E-H - R$ mn
3
1Q10
T
4Q10
1Q11
(%) Loan
Middle Market + Trade Finance
95.0
95.2
94.1
2.4
Payroll
22.5
30.0
29.5
2.0
Auto
63.1
33.4
32.7
8.7
DCC
2.1
2.7
3.3
7.3
182.7
161.3
159.6
2.7%
Total
Write-offs - R$ mn
1Q10
4Q10
1Q11
(%) Loan
Middle Market + Trade Finance
(32.3)
(3.0)
(17.8)
0.5
Retail
(32.8)
(14.9)
(16.8)
0.9
Total
(65.1)
(17.9)
(34.6)
0.6
Recovered Loans - R$ mn
1Q10
4Q10
1Q11
(%) Loan
Middle Market + Trade Finance
3.3
1.6
1.2
0.0
Retail
2.8
4.6
3.2
0.2
Total
6.1
6.2
4.4
0.1
(*) Unconsolidated
19
Efficiency Ratio: Non-recurring events led to an increase in the ratio, but should
return to the previous levels during the next few periods
1Q11
4Q10
Chg. %
1Q10
Chg. %
Personnel Expenses (exclude IFP)
(26.4)
(25.5)
3.5%
(21.4)
23.4%
Administrative Expenses (exclude IFP)
(27.0)
(25.0)
8.0%
(17.1)
57.9%
Subtotal Expenses (exclude IFP)
(53.4)
(50.5)
5.7%
(38.5)
38.7%
Personnel and Administrative Expenses - IFP
(3.6)
(3.8)
-5.3%
0.0
n.a.
Administrative Expenses - Foreign Issuance
(2.3)
-
n.a.
(0.3)
n.a.
(59.3)
(54.3)
9.2%
(38.8)
52.8%
(9.5)
(8.4)
13.1%
(8.0)
18.8%
(68.8)
(62.7)
9.7%
(46.8)
47.0%
Efficiency Ratio (%)
37.6
27.8
9.8
27.3
10.3 p.p
Efficiency Ratio (considering Profit Sharing) (%)
41.8
32.3
9.5 p.p
31.2
10.6 p.p
Subtotal
Comission Expenses (total retail)
Total
Efficiency Ratio %
37.6
27.3
24.1
23.8
24.2
1Q10
2Q10
Efficiency Ratio
27.8
23.2
20.4
3Q10
24.6
26.9
4Q10
1Q11
Average Past 12 months
20
Capital Structure: continuation of low leverage, with a reduction in the Basel index
Shareholders’ Equity – R$ Million
Basel Index %
1,777.8
1,791.2
27.2
1,735.6
1,723.6
22.3
1,668.0
1Q10
2Q10
3Q10
4Q10
1Q10
1Q11
2Q10
21.2
3Q10
19.9
4Q10
18.0
1Q11
Loan Portfolio / Shareholders’ Equity - times
2.9
2.5
2.6
3.2
3.5
2.9
3.0
3Q10
4Q10
3.7
3.3
2.2
1Q10
2Q10
Loan Portfolio
1Q11
Expanded Loan Portfolio
21
Profitability: Net Income was impacted by non-recurring events during this quarter,
registering a 38.6% decline compared to 4Q10
The result was
impacted by the
events:
Net Income – R$ million
85.0
54.6
1Q10
70.9
64.2
43.5
2Q10
3Q10
4Q10
-Swap DAYC4
- Mark to Market
for Foreign Issue
- Expenses Foreign
Issue
- Increase PDD
3.2
3.8
21.4
17.0
16.0
13.5
10.1
1Q10
1Q11
2Q10
3Q10
4Q10
1Q11
Net Interest Margin (NIM-A) (1) - %
Return on Average Assets (ROAA) - %
3.3
Return on Average Equity (ROAE) - %
14.8
11.3
3.1
12.1
11.7
9.0
1.8
1Q10
2Q10
3Q10
4Q10
1Q10
1Q11
(1) New
2Q10
3Q10
4Q10
1Q11
methodology excluding repurchase agreements – tri-party repos outstanding
22
Non-recurring events in the quarter
1Q11 Excluding non-
1Q11
recurring events
Average past 12 months
ROAE
10.1%
15.1%
15.1%
ROAA
1.8%
2.7%
2.9%
NIM-A (*)
9.0%
10.8%
11.3%
Efficiency Ratio
37.6%
30.8%
26.9%
Non-recurring events that impacted the results
Results of the Mark-to-Market pricing of the Foreign Issue realized in
January/11: negative R$ 22.0 million
Result of DAYC4 Swap: negative R$ 10.7 million
Expenses for the Foreign Issue realized in January/11: R$ 2.3 million
(*) New
methodology excluding repurchase agreements – tri-party repos outstanding
23
1Q11 Highlights
Net Income of R$ 43.5 million for the quarter, influenced by the mark-to-market pricing in the derivatives
market (swaps and mark to market)
Return on Average Equity (ROAE) was 10.1% and Net Adjusted Financial Margin (NIM-A) (1) was 9.0%
The expanded Credit Portfolio (2) rose 6.0% this quarter, ending 1Q11 at R$ 6,596.2 million, showing consistent
growth over the past seven quarters
Total Funding increased by 12.9% during the quarter, with a balance of R$ 5,915.7 million, highlighted
the new offshore issue (Eurobond) of US$ 300 million for five years realized during the period
The average maturity of funding operations is 592 days, whereas the average maturity of the assets is 410
days, presenting a positive GAP of 182 days
The Basel Ratio remained at 18.0%, a reduction of 1.9 p.p. over quarter, continuing at a high level
(1) New methodology excluding repurchase agreements –tri-party repos outstanding
(2) Includes assignments, sureties and avals granted and Receivables purchase
24
Conference Call 1Q11
Investor Relations
Phone: +55 (11) 3138.1024/1025/1039
[email protected]
“This report may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and
projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Banco Daycoval as
described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures,
fiscal, foreign-exchange and monetary policies, higher competition in the middle-market segment, the ability of Banco Daycoval to obtain funding for its operations, and
amendments to Central Bank regulations.
The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying estimates and
projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the
environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on
which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future
events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given
these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report”.
25