Banco Santander (Brasil) S.A.

Banco Santander (Brasil) S.A.
March, 2011
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business
- Results in IFRS and Asset Quality
- Additional Information
Annexes
2
3
Santander – Worldwide
Santander is one of the largest financial groups worldwide and has a long
track record of profit generation, specially during the crisis
Solid results allowed Banco Santander to
rank 3rd worldwide* by accrued profit
¹ 1
2007-2010 (e) Attributable profit (EUR MM.)
Mkt Cap.: EUR
66,033 MM.
# 10 worldwide
(# 12 in 2006)
# 1 in the
Eurozone
2010 profit: EUR
8,181 MM.
# 3 worldwide
(# 3 in 2008; # 5
in 2007)
# 1 by international branch network: ~14,082
# 1 by number of shareholders: 3.2 MM
Note: Bloomberg Data as of December 30, 2010.
(1) Attributable profit: Bloomberg in current euros from each year. In 2010, data published by the entities or Bloomberg
estimates
4
Santander – Worldwide
Main financial figures
Sound credit ratings
EUR MM
2010
Assets
1,217,501
Loans
724,154
Shareholders’ equity
75,273
Assets Under Management
1,362,289
Net profit
Outlook
AA
Negative
Aa2
Negative
Fitch
AA
Stable
DBRS
AA
Stable
Standard & Poor’s
Moody’s
8,181
Profits by geographical area
Other LatAm
18%
Brazil
25%
Long term
USA
4%
Assets by geographical area
Retail Spain
15%
Other Retail
Europe
11%
Other
LatAm
9%
Brazil
12%
United
Kingdom
18%
Continental Europe: 37%
Global
Business
Europe
9%
United
Kingdom
30%
USA
4%
Continental
Europe
45%
5
Santander – Worldwide
Santander’s footprint
USA7
UK3
• Branches: 722
• Customers: 1.7 MM
•
•
•
•
Mexico
•
•
•
•
Ranking1: 3rd
Mkt. share1: 15%
Branches: 1,093
Customers: 9.0 MM
Spain2
•
•
•
•
Brazil6
•
•
•
•
Ranking1: 1st
Mkt. share1: 15%
Branches: 4,780
Customers: 12.1 MM
Ranking: 3rd
Mkt. share: 10%
Branches: 3,696
Customers: +24 MM
Chile
•
•
•
•
Ranking1: 4th
Mkt. share1: 12%
Branches: 1,328
Customers: 26.4 MM
Ranking1: 1st
Mkt. share1: 19%
Branches: 500
Customers: 3.0 MM
Portugal2
•
•
•
•
Ranking1: 4th (5)
Mkt. share1: 10%
Branches: 762
Customers: 1.9 MM
Santander Consumer4
• Branches: 523
• Dealers: 135,000
• Customers: 13.7 MM
(1) Loans + deposits (balance sheet funds) + mutual funds
(2) Santander Consumer not included (in Spain: 2.7 million customers and 77 branches; Portugal: 0.3 million customers and 7 branches)
(3) Ranking 3rd by retail deposits and second by mortgages portfolio
(4) Present in 15 countries. Loyalty cards not included under customers
(5) Third largest private bank in Portugal and first by profit in 2009
(6) Excluding public-sector banks.
(7) Only data from Sovereign Bank. Customer-homes data.
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business
- Results in IFRS and Asset Quality
- Additional Information
Annexes
6
7
Solid macroeconomic fundamentals…
International Reserves and External Debt
Interest Rates vs. Inflation
US$ billion
16,5%
17,8% 18,0%
13,3%
289
External
215
debt¹
Reserves 49
201
169
54
53
173
180
86
193
207
198
239
9,3%
247
2004
2005
2006
2007
2008
2009
50,6% 48,2%
47,0% 45,1%
5,7%
4,5%
3,1%
2010
2004
2005
2006
2007
Interest Rates (SELIC)
Net Public Sector Debt / GDP %
54,9%
11,3%
5,9%
2008
2009
2005
2006
2007
Inflation (IPCA)
7,7%
42,9% 40,4%
38,4%
Source: Central Bank, IBGE and Santander Research
1. External debt as of Nov/10
2008
2009
2010
Real GDP Growth %
2003
2004
5,9%
4,3%
2,5%
1,1%
0,7%
2003
10,8%
8,8%
198
2003
2003
7,6%
13,8%
2010E
2,9%
1,7%
2004
2005
Brazil
2006
2007
USA
2008
2009
Euro Zone
2010 E
8
Social dynamics shows a favorable scenario for Brazil
Favorable Demographic Dynamics1
Social Mobility Trends2
90%
∆abc= 36
200
80%
70%
Millions of People
Demographic
Bonus
60%
50%
40%
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
66
+44.0%
100
95
+19.0%
113
47
44
50
49
0
2003
Population in Active Ages= 15-64 years
Dependence Ratio
E
Per capita Income – US$ thousand
31
20
13
150
∆abc= 29
D
40
29
16
2009
2014*
C
A/B
Annual Average Unemployment Rate(%)
CAGR: 6.6%
8,9
7,4
3,5
3,8
1994
2000
4,9
12,3%
8,5
11,5%
9,8%
6,0
10,0%
9,3%
7,9%
8,1%
6,7%
2005
2006
Sources: 1 – IBGE and Santander Research
2 - Ministry of Finance; * estimated
2007
2008
2009
2003
2004
2005
2006
2007
2008
2009
2010
9
Brazil: a country with great opportunities
The banking sector has a big opportunity
The triple Multiplier
The
Thetriple
tripleMultiplier
Multiplier
Differential GDP growth
(not involved in the excesses
of the past cycle)
Increased bancarisation
(development of middle class)
Sound Financial System
(Low leverage, conservative,
good profitability, supervision)
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business
- Results in IFRS and Asset Quality
- Additional Information
Annexes
10
11
Santander Brasil Overview
 The only international retail bank
within top 5 largest banks in Brazil
 3,696 branches nationwide
 Over 24 million
Customers
 3rd largest Brazilian
Top universal
private bank
bank franchise
in Brazil
 Provide a wide range
of commercial banking
products
Focus on
Commercial
banking
 Acquisition of two large
banks in Brazil (Banespa in
2001, and Banco Real in
2007)
Solid franchise
in Brazil through
a successful
process of
acquisition
Risk and asset
quality
management
 Integration converted in
profitability
 Proven risk management
 Approval, monitoring and
control of risks are coordinated
worldwide with the Santander
Group
12
Franchise
Santander is the 3rd largest Brazilian private bank in total assets, with
a market share¹ in loans of 11% in the Brazilian banking system
2010
Market share
R$ million
Loan Portfolio
160,558
Expanded Credit portfolio²
168,232
Funding from Clients³
153,243
Funding from Clients³ + AUM
264,581
North: 5% of GDP
Market Share: 5%
Total Country
Market Share: 12%
Northeast: 13% of GDP
Market Share: 7%
7,382
Net Profit
Strong distribution platform…
Bank with one of the highest numbers of point of
sales in South/Southeast (73% of GDP)
2,201
1,495
18,312
Branches
Mini
branches
ATM’s
 +10.9 million current accounts4, an increment
of 661 thousand current accounts in 12 months
Number of branches
December/2010
Middle-west: 9% of GDP
Market Share: 6%
Southeast: 56% of GDP
Market Share: 16%
South: 17% of GDP
Market Share: 9%
 Opening of 110 new branches in 12 months
Source: The Brazilian Central Bank and IBGE. GDP date: 2008
1. Santander’s market share in total loans of private sector: 17% (Dec/10)
2.Includes others Credit Risk Transactions with clients (Debenture, FIDC, CRI, Floating Rate Notes and Promissory Notes)
3. Demand Deposits + Time Deposits + Savings + Debentures + Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA)
4. Current accounts within 30 days, according to Central Bank as of dec/2010
And a well defined segmentation for each type of customer
13
14
With increasing results¹ per segment
Global Wholesale Banking
R$ MM
6.3%
2.818
2.651
Net Profit before tax
Commercial Banking
2009
2010
Asset Management
and Insurance
R$ MM
Global
Wholesale
Banking
28%
8%
40.6%
592
R$ MM
832
2010
1. Does not consider the fiscal effect of Cayman hedge
6.347
64%
2009
Asset Management
& Insurance
2009
Commercial
Banking
4.895
29,7%
2010
15
Integration Process - Status
3rd Stage
1st and 2nd Stages concluded
Aug/08
Jun/10
1
Senior Management Integrated
2
Centralized areas integrated
Dec/10
1H11
 Risk Management, Human Resources, Marketing
Auditing financial Control, Compliance, etc.
3
Re-branding
Wholesale, Private & Asset integrated
 GB&M, Corporate and Middle
4
Credit card system
5
ATMs integrated
 ATMs platform
 Upgrade on branches infrastructure
6
Insurance System
7
New commercial model
VI
8
Re-branding
9
Unified Customer Services
 95% of volume
10
Tests and Simulations
VI
11
Individuals
Technology migration
Technology migration
16
Customer base
Customer base grows 2.3 million in 12 months to 24.8 million
Increase of 661 thousand current accounts in 12 months
Customers (thousand)
Current accounts¹ (thousand)
6.5%
10.5%
3.1%
2.8%
22.412
Dec.09
24.092
24.757
Sep.10
Dec.10
1. Current accounts within 30 days, according to Central Bank.
10.240
10.571
10.901
Dec.09
Sep.10
Dec.10
17
Partnerships - New Products
Partnership Santander - Cosan
Santander Acquiring
+
Esso Santander Credit Card¹
• Partnership Santander - Cosan to leverage
Credit Card business
• Discount on the purchase of fuel
and products at Esso Gas stations
FINANCIAL
SERVICES
ACQUIRING
SERVICES
• Program Pontos: doubling of accumulated points and
discounts offered at the program website.
Partnership Santander – Century 21
Affiliated Merchants
(thousand)
+
• CredImob21: agreement
between Santander and
Century 21 Brasil to provide
mortgage loans
1. To be released in the first quarter of 2011
New Accounts
(thousand)
Results
2010
Target
2012
104.2
300
34.7%
26.6
150
17.7%
(%)
18
Santander Insurance Highlights
Santander Seguros
Dec/10
• R$ 1.8 bln Gross Written Premiums 2010
• R$ 4.9 bln Previdência Contributions 2010
• R$ 20.1 bln Technical Provisions
• 3.8 mln Clients
• 3.4% Total Insurance Market Share
 8.8% Accidents Insurance Market Share
 6.0% Life Market Share
 20.5% Credit Life Market Share
• 8.7% Previdência (reserves) Market Share
Source: Santander Brasil, SUSEP and Fenaprevi
19
Insurance Partnership
Transaction Rational
 Insurance focused partner, which brings new products and know-how, allows for
insurance revenue growth acceleration in the medium-term.
 Transfer only of insurance underwriting activities and its related core risks. Insurance
distribution activities are maintained by the bank. Also the current commission framework
between the bank and insurance companies is preserved after the deal.
Financials
 As of 2010, 70% of the insurance related IFRS results were booked in the bank and 30% at
the insurance arm.
 Capital Gain: Transaction leads to a 21%¹ capital gain.
Accretive Transaction: proceeds imply a price to book value equal 2.3x².
 Transaction broadly neutral in terms of short-term EPS dynamics.
1. Capital gain calculated based on the terms of the insurance deal that took place by the time of Santander Brasil IPO (refer
to Page 7 in the IPO prospect).
2. Proceeds /(Equity – Goodwill). Equity and Goodwill in BRGAAP as of Dec/2010. Adjusted for spin-off of Capitalização.
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business and Asset Quality
- Results in IFRS
- Additional Information
Annexes
20
21
Managerial Loan Portfolio - IFRS
R$ billion
18.8%
2010
2009
Y-o-Y
Variation
Individuals
50,981
43,200
18.0%
5.6%
Consumer
6,5% Finance
26,969
25,101
7.4%
1.9%
SMEs
38,306
31,448
21.8%
7.1%
Corporate
44,302
38,645
14.6%
1.9%
160,558
138,394
16.0%
4.3%
Others Credit Risk
Transactions¹
7,674
3,230
137.6%
38.5%
Expanded Credit
portfolio¹
168,232
141,624
18.8%
5.4%
Expanded Credit
portfolio¹ including
acquired portfolio²
172,432
143,844
19.9%
5.2%
5.4%
141,6
143,4
152,1
159,5
168,2
8,5%
6,1%
4,9%
3,7%
R$ million
5,4%
4,5%
1,3%
2,5%
0,5%
dec.09
mar.10
jun.10
sep.10
dec.10
Q-o-Q Var.
Corporate
27%
SMEs
24%
Individuals
32%
Consumer
Finance
17%
-1,5%
Total IFRS
1. Includes others Credit Risk Transactions with clients (Debenture, FIDC, CRI, Floating Rate Notes and Promissory Notes)
2. Considers Portfolios acquired from other banks. Total amount of R$ 4,200 million in Dec/10 and R$ 2,220 million in Dec/09
Q-o-Q
Variation
22
Loan by Products - IFRS
Payroll, Mortgage and Credit Cards Loans are the main highlights
Payroll Loans¹
R$ million
Auto Loans to Individuals
R$ million
36.9%
13.800
Dec.09
Dec.10
Credit Cards to Individuals
R$ million
Dec.10
Mortgage
R$ million
27.0%
8.472
24.173
22.575
10.084
Dec.09
7.1%
10.760
33.1%
9.086
3.860
Dec.09
Dec.10
12.090
5.392
5.226
6.698
Dec.09
Dec.10
Individuals
1. Considers Portfolios acquired from other banks. Total amount of R$ 4,200 million in Dec/10 and R$ 2,220 million in Dec/09
Corporate
39.7%
28.2%
23
Quality of Loan Portfolio - IFRS
Delinquency ratio¹ (%)
9,3
7,2
5,3
4Q09
8,8
7,0
5,3
1Q10
Individuals
8,2
7,9
6,6
7,6
6,1
5,8
4,5
4,3
3Q10
4Q10
5,1
2Q10
Coverage ratio² (%)
Corporate
102%
103%
102%
101%
98%
4Q09
1Q10
2Q10
3Q10
4Q10
Total
1. (Nonperforming loans over 90 days + performing loans with high delinquency risk) / managerial loan portfolio
2. Allowance for Loan Losses / nonperforming loans over 90 days + performing loans with high delinquency risk
24
Quality of Loan Portfolio - BR GAAP
Delinquency Over 90¹ (%)
7,8
5,9
4,2
9,2
7,2
5,4
6,7
4,7
6,2
4,2
5,8
1Q10
Individuals
6,8
2,5
2,2
3Q10
4Q10
Corporate
8,0
Total
5,0
Coverage Ratio Over 90³
6,9
113%
120%
128%
1Q10
2Q10
133%
137%
3Q10
4Q10
4,7
4,4
3,6
4Q09
7,4
6,4
3,9
4,7
2Q10
8,7
5,6
3,7
3,0
4Q09
NPL Over 60² (%)
1Q10
Individuals
2Q10
2,9
2,7
3Q10
4Q10
Corporate
Total
1. Nonperforming loans over 90 days / total loans BR GAAP
2. Nonperforming loans over 60 days / total loans BR GAAP
3. Allowance for Loan Losses / (nonperforming loans for over 90 days + performing loans with high delinquency risk)
4Q09
25
Deposits and Assets Under Management (AUM)
R$ billion
10.5%
4.5%
2009
Y-o-Y
Variation
Q-o-Q
Variation
16,131
15,140
6.5%
8.8%
Savings
30,304
25,217
20.2%
8.6%
Time
68,916
75,771
-9.0%
4.5%
Others¹
37,892
24,962
51.8%
2.1%
Funding from
Clients
153,243
141,090
8.6%
5.1%
AUM
111,338
98,407
13.1%
3.8%
Total
264,581
239,497
10.5%
4.5%
239,5
240,3
245,2
253,1
264,6
R$ million
2010
98,4
106,6
109,5
107,3
111,3
Demand
141,1
133,8
135,7
145,8
153,2
dec.09 mar.10
AUM
AUM
42%
jun.10
sep.10
dec.10
Funding from Clients
Demand
6%
Savings
11%
Time
26%
Others¹
14%
1. Debentures repurchase agreement, Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA)
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business and Asset Quality
- Results in IFRS
- Additional Information
Annexes
26
Income Statement – IFRS
R$ Billion
2010
2009
Y-o-Y
4T10
3T10
Q-o-Q
Net Interest Income
24.095
22.167
8,7%
6.360
6.037
5,4%
Net Fee
6.834
6.238
9,6%
1.726
1.776
-2,8%
Other Operating Income
1.351
1.728
-21,8%
137
380
-63,9%
Total Income
32.280
30.133
7,1%
8.223
8.193
0,4%
General expenses¹
(12.467)
(12.196)
2,2%
(3.301)
(3.158)
16,6%
Allowance for loan losses
(8.233)
(9.983)
-17,5%
(1.768)
(1.811)
-2,4%
Net Provisions/Others
(1.856)
(963)
92,7%
(489)
(646)
-24,3%
Net profit before tax
9.724
6.991
39,1%
2.666
2.578
3,4%
Income tax
(2.342)
(1.483)
57,9%
(747)
(643)
16,2%
Net profit
7.382
5.508
34,0%
1.918
1.935
-0,9%
1. Includes depreciation and amortization.
28
Performance Ratios - IFRS
Efficiency Ratio¹ (%)
Recurrence² (%)
3.9 p.p.
-1.5 p.p.
ROAA³(%)
36,3
34,8
2009
2010
60,9
2009
2010
ROAE (adjusted)4 (%)
0.4 p.p.
BIS4 (%)
-2.4 p.p.
2,2%
1,8%
2009
57,0
2010
19,3
2009
1. General Expenses excluding amortization / Total Revenue excluding Cayman hedge
2. Net Fee/General Expenses excluding amortization
3. Net Profit / Average Assets
4. Excludes goodwill on acquired companies (Banco Real and Real Seguros Vida e Previdência)
-3.5 p.p.
16,9
2010
25,6%
2009
22,1%
2010
29
Conclusion

•
•
•

Business
Credit¹: Expansion of 19% in 12 months, driven by SMEs and individuals
Funding: Funding growth acceleration in the 2H10 (R$ 19 Bi Dec/10 X Jun/10)
Infrastructure Expansion: Opening of 110 new branches and growth of 3 thousand
employees in 2010
Results
•
•
Total revenues net of allowance for loan losses grows 19% in 12 months
•
Asset quality improvement (140 b.p. in 12 months)
General expenses grew below inflation with synergies, even considering investments in
the opening of branches (+110), call center and in the middle market
2010 Net Profit growth of 34% in 12 months
1. Expanded Credit Portfolio: Includes others Credit Risk Transactions with clients (Debenture, FIDC, CRI, Floating Rate Notes and
Promissory Notes)
Table of Contents
Santander – Worldwide
Santander – Brazil
- Brazil: Macro Information
- Strategy
- Business
- Results in IFRS and Asset Quality
- Additional Information
Annexes
30
31
Corporate Governance
The Bank is managed by the Board of Directors and the
Executive Board, supported by specialized committees
 Banco Santander believes that a good corporate governance is a competitive advantage and
strategic element supported by two pillars: shareholder rights and transparency
 In line with the corporate governance best practices, Banco
Santander’s units are listed in BM&FBOVESPA and in the NYSE
Level 2 of BM&FBOVESPA with 100% of Tag Along
Board of
Directors¹
3 Executive Board
Members
1 Data as of December, 2010
3 Board Members of
Grupo Santander Spain
3 Independent Board
Members
32
Our Mission
To be the best and most efficient bank in Brazil
To be the
best Brazilian
bank in
Creation of
Shareholder s value
To be the
best bank in
Client satisfaction
To be the
best bank in
Employee satisfaction
To build
the most
Recognized and attractive
brand among banks in Brazil
Santander Brasil Ownership Structure
33
 Santander Group Controls 81,6% of Santander Brazil
 Santander Brasil’s shares are listed in NYSE and in the Brazilian stock, mercantile and futures
exchange BM&FBOVESPA
BANCO
SANTANDER S.A.
(SPAIN)
99.11%
(V/T)
GRUPO
EMPRESARIAL
SANTANDER S.L.
34.7%(T)
35,2%(V)
99,99%
(V/T)
SANTANDER
SEGUROS S.A.
0.2%(T)
0,2%(V)
BANCO
SANTANDER
(BRASIL) S.A.
Date: As of 10/22/2010
Note: “V” denotes percentage of voting shares; “T” denotes percentage of total share capital
100%
(V/T)
STERREBEECK
B.V.
46.6%(T)
46,8%(V)
MINORITY
SHAREHOLDERS
18.4%(T)
17,7%(V)
Table of Contents
Santander – Worldwide
Santander Brasil
- Brazil: Macro Information
- Strategy
- Business and Asset Quality
- Results in IFRS
- Additional Information
Annexes
34
35
Managerial¹ Income Statement – IFRS
R$ million
Income Statements
Var Y-o-Y
2010
2009
ABS
- Interest and Similar Income
40,909
39,343
- Interest Expense and Similar
(16,814)
(17,176)
Interest Income
24,095
Income from Equity Instruments
Income from Companies Accounted for by the Equity Method
%
1,566
4.0%
362
-2.1%
22,167
1,928
8.7%
52
30
22
73.3%
44
295
(251)
-85.1%
Net Fee
6,834
6,238
596
9.6%
- Fee and Commission Income
7,833
7,148
685
9.6%
(89)
9.8%
84
5.5%
(232)
n.a
- Fee and Commission Expense
Gains/Losses on Financial Assets and Liabilities and Exchange Rate Diferences
Other Operating Income (Expenses)
Total Income
(999)
1,603
(348)
(910)
1,519
(116)
32,280
30,133
(11,230)
(10,947)
(283)
2.6%
- Administrative Expenses
(5,304)
(5,436)
132
-2.4%
- Personnel espenses
(5,926)
(5,511)
(415)
7.5%
Depreciation and Amortization
(1,237)
(1,249)
12
-1.0%
Provisions (net)²
(1,974)
(3,481)
1,507
-43.3%
Impairment Losses on Financial Assets (net)
(8,255)
(10,868)
2,613
-24.0%
- Allowance for Loan Losses³
(8,233)
(9,983)
1,750
-17.5%
- Impairment Losses on Other Assets (net)
(22)
(885)
863
-97.5%
Net Gains on Disposal of Assets
140
3,403
(3,263)
9,724
6,991
2,733
(2,342)
(1,483)
7,382
5,508
General Expenses
Net Profit before taxes
Income Taxes
Net Profit
1. Does not consider the fiscal effect of Cayman hedge
2. Includes provision for tax contingencies and legal obligations
3. Includes recovery of credits written off as losses
2,147
(859)
1,874
7.1%
n.a
39.1%
57.9%
34.0%
36
Quarterly Managerial¹ Income Statement – IFRS
R$ million
Income Statements
4Q09
1Q10
2Q10
3Q10
4Q10
- Interest and Similar Income
9,841
9,278
9,839
10,603
11,189
- Interest Expense and Similar
(3,991)
(3,445)
(3,974)
(4,566)
(4,829)
Interest Income
5,850
5,833
5,865
6,037
6,360
Income from Equity Instruments
8
4
14
2
32
Income from Companies Accounted for by the Equity Method
5
10
13
11
10
Net Fee
1,666
1,622
1,710
1,776
1,726
- Fee and Commission Income
1,888
1,841
1,929
2,029
2,034
- Fee and Commission Expense
(222)
(219)
(219)
(253)
(308)
Gains/Losses on Financial Assets and Liabilities and Exchange Rate Diferences
306
608
290
472
233
Other Operating Income (Expenses)
(59)
(45)
(60)
(105)
(138)
Total Income
7,776
8,032
7,832
8,193
8,223
General Expenses
(2,893)
(2,655)
(2,774)
(2,849)
(2,952)
- Administrative Expenses
(1,423)
(1,300)
(1,357)
(1,373)
(1,274)
- Personnel espenses
(1,470)
(1,355)
(1,417)
(1,476)
(1,678)
Depreciation and Amortization
(265)
(286)
(293)
(309)
(349)
Provisions (net)²
(482)
(629)
(290)
(674)
(381)
Impairment Losses on Financial Assets (net)
(2,125)
(2,407)
(2,214)
(1,818)
(1,816)
- Allowance for Loan Losses³
(2,148)
(2,403)
(2,251)
(1,811)
(1,768)
37
(7)
(48)
(60)
- Impairment Losses on Other Assets (net)
23
Net Gains on Disposal of Assets
34
117
48
35
2,045
2,172
2,309
2,578
Net Profit before taxes
Income Taxes
Net Profit
1. Does not consider the fiscal effect of Cayman hedge
2. Includes provision for tax contingencies and legal obligations
3. Includes recovery of credits written off as losses
(454)
1,591
(4)
(409)
1,763
(543)
1,766
(643)
1,935
2,665
(747)
1,918
37
Balance Sheet - Total Assets – IFRS
R$ million
Assets
Cash and Balances with the Brazilian Central Bank
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
27,269
36,835
42,344
53,361
56,800
Financial Assets Held for Trading
20,116
23,133
35,902
23,738
24,821
Other Financial Assets at Fair Value Through Profit or Loss
16,294
15,873
16,213
16,665
17,939
Available - for- Sale Financial Assets
46,406
37,183
42,579
40,627
47,206
152,163
150,003
156,804
169,250
174,107
24,228
20,330
20,282
24,771
22,659
138,005
139,678
146,308
153,994
160,640
(10,070)
(10,005)
Loans and Receivables
- Loans and advances to credit institutions
- Loans and advances to customers
- Impairment losses
Hedging derivatives
(9,786)
(9,515)
(9,192)
163
133
107
104
116
Non-current assets held for sale
171
41
93
86
67
Investments in associates
419
423
429
440
371
3,702
3,835
3,977
4,212
4,518
31,618
31,587
31,630
31,667
31,962
28,312
28,312
28,312
28,312
28,312
3,306
3,275
3,318
3,355
3,650
15,779
14,834
15,250
15,258
14,842
1,872
2,169
1,918
2,223
1,914
315,972
316,049
347,246
357,631
374,663
Tangible Assets
Intangible Assets:
- Goodwill
- Others
Tax Assets
Other Assets
Total Assets
38
Balance Sheet – Total Liabilities and Equity – IFRS
R$ million
Liabilities
Financial Liabilities Held for Trading
Other Financial Liabilities at Fair Value Through Profit or Loss
Financial liabilities at amortized cost
- Deposits from the Brazilian Central Bank
Dec-09
Mar-10
Jun-10
4,435
4,505
4,668
2
2
2
203,567
203,499
232,373
240
117
20,956
Sep-10
Dec-10
5,014
4,785
-
-
237,859
253,341
-
-
-
24,092
47,784
41,361
42,392
149,440
147,287
150,378
159,426
167,949
- Marketable debt securities
11,439
11,271
12,168
14,944
20,087
- Subordinated liabilities
11,304
9,855
10,082
9,432
9,695
- Other financial liabilities
Hedging derivatives
10,188
10,877
11,961
12,696
13,218
10
37
42
17
Liabilities for Insurance Contracts
15,527
16,102
16,693
17,893
19,643
9,480
9,881
9,662
9,910
9,395
Tax Liabilities
9,457
8,516
9,199
10,047
10,530
Other Liabilities
4,228
2,778
2,988
3,812
3,605
246,706
245,320
275,627
284,552
301,299
68,706
70,069
70,942
72,358
72,572
1
1
3
7
8
559
659
674
714
784
69,266
70,729
71,619
73,079
73,364
315,972
316,049
347,246
357,631
374,663
- Deposits from credit institutions
- Customer deposits
Provisions
1
Total Liabilities
Shareholders' Equity
Minority Interests
Valuation Adjustments
Total Equity
Total Liabilities and Equity
1. Includes provision for pension and contingencies
-
39
Reconciliation IFRS x BRGAAP
4Q10
2010
BR GAAP Net Profit
831
3,863
- Reversal of Goodwill amortization / Others
828
3,311
- PPA amortization
(11)
(88)
- Others
270
296
1,918
7,382
R$ Million
IFRS Net profit
40
Managerial¹ Income Statement – BR GAAP
R$ Million
2010
2009
Y-o-Y Var.
4Q10
3Q10
Q-o-Q Var.
Net Interest Income
24,250
22,324
8.6%
6,332
6,016
5.2%
Allowance for Loan Losses
(7,225)
(9,274)
-22.1%
(1,717)
(1,549)
10.8%
7,803
7,380
5.7%
2,046
2,031
0.7%
General Expenses³
(13,109)
(13,046)
0.5%
(3,485)
(3,318)
5.0%
Tax Expenses
(2,341)
(2,331)
0.4%
(637)
(592)
7.6%
Other Income (Expenses)4
(1,669)
(766)
117.8%
(742)
(591)
25.5%
Managerial Net Profit
7,104
4,677
51.9%
1,641
1,826
-10.1%
Net Profit
3,863
1,806
113.9%
831
1,016
-18.2%
Net Fees²
1. Excludes amortization of goodwill. Includes the Cayman tax reclassification, interest on emissions and recoveries of written-off credits
2. Considers Income from Services Rendered and Income from Banking Fees
3. Considers Personnel Expenses, Other Administrative Expenses, and Profit Sharing
4. Considers Other Operating Income (expenses) and Nonoperating (expenses) income
Investor Relations (Brazil)
Avenida Juscelino Kubitschek, 2.235, 10º floor
São Paulo | SP | Brazil | 04543-011
Phone. 55 11 3553-3300
Fax. 55 11 3553-7797
e-mail: [email protected]