4 - Banco Nacional de Costa Rica

Transcription

Banco Nacional de Costa Rica
Presentation for Bank of America Merrill Lynch 2015 EM Corporate
Conference Miami Beach, FL, 27-29, 2015
2015
March
Disclaimer
The information contained herein has been prepared by Banco Nacional de Costa Rica (“The Company”) solely for use at JP Morgan´s 6th Global Emerging
Markets Corporate Conference to be held in Miami Beach, FL from February 25th through February 25th, 2015.
The information herein is only a summary and does not purport to be complete. This presentation is strictly confidential and may not be disclosed to any other
person.
This presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any
contract or commitment whatsoever.
No representation or warranty, either express or implied, is made as to the accuracy, reliability or completeness of the information presented herein. This
material should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinion expressed herein is subject to change without
notice, and the Company is not under any obligation to update or keep current the information herein. The Company accept no liability whatsoever for any loss
or damage of any kind arising out of the use of all or any part of this material.
2
Banco Nacional de Costa Rica at a Glance
Company Overview
Business Segment Overview

Dominant market position in assets, loans, and obligations with
the public, capturing a 23%, 21%, and 24% market share,
respectively

Autonomous and legally independent public institution wholly
owned by the Costa Rican government

Rated Ba2 by Moody’s Investor Services and BB+ by Fitch
Ratings

Personal /
Consumer
Banking
Established in 1914 in San Jose; one of the oldest financial
institutions in Costa Rica
SME

Corporate
Banking
Profile
Operates three major business units: corporate banking,
personal/consumer banking, and small and micro-enterprises
banking (“SME”)
Corporate Structure
Pension funds
4
BN Valores
100% owned
Stockbrokers
BN Fondos
100% owned
Investment
funds
BN Seguros
100% owned
Insurance
brokerage
 Products : savings and checking accounts, credit cards,
mortgages, and consumer loans
 Target Market: economically active middle-class customers
 Access: via electronic, telephone, mobile, or internet platforms
 Target Market: SMEs with
 < 100 employees
 up to US$1.5 million in sales
 Products: loans, automatic charges, and credits cards
Award Winning Bank
Republic of
Costa Rica
BN Vital
100% owned
 Provides services to clients who satisfy two of four criteria:
1. > US$2.5 million in sales
2. > 300 people employed
3. > US$4 million in credit balances
4. Maintain deposit balance of US$2.0 million or more
BICSA
49% owned
International
banking

2012, 2009: Performance Excellence Award

2011, 2008, 2007, 2006, 2005, 2004: Quality
Recognition Award; 2011, 2008, 2007 and
2006: Bank of the year

2011, 2008-2004, 2013: U.S. Dollar Clearing

2010: Best bank in Costa Rica

2010, 2013: Performance Excellence Award

2008, 2007: Best bank in Costa Rica
Company Overview (Cont’d)
Management Team
Summary Financials (year-end)
(US in MM)
Management Structure
BNCR and Subsidiaries
2010
2011
2012
2013
2014
Board of
Directors
Balance sheet
Juan C. Corrales
CEO
Juan C. Corrales
SME´s, Consumer
and Channels
Head
Gerardo Ulloa
Corporate Bank
Head
Bernardo Alfaro
Risk and Finance
Director
Total Assets
Total Loans
Total Deposits
Equity
Manrique Chacón
Operations Head
Work Flow Structure
IT Committee
Audit
BNCR
Compliance
Institutional
BoD
Supporting
Committees
Corporate
ALM Committee
Risk Committee
BN Vital
Investment Committee
Surveillance Committee
(FHIPO)
Risk
BN SAFI
Investment Committee
(1) Net consolidated income, ROAE, and ROAA were calculated on an annualized basis.
5
Income Statement
Net Interest Income
Net Commissions
Net Foreclosed Assets (Exp)
Net FX Income
Other Revenues (Exp)
Total Revenues
Administrative Expenses
Pre-Tax Income
Net Consolidated Income
Key ratios
NPL Ratio
Coverage
Regulatory Capital
ROAE
ROAA
$6,880 $7,276 $8,215 $10,291 $10,378
4,004 4,633 5,147
6,126
6,332
5,538 5,854 6,473
9,383
9,512
$722 $765 $854
$918
$938
$283
126
(23)
34
(45)
$375
285
90
$62
$299
145
(57)
36
(44)
$379
312
67
$51
$341
166
(27)
39
(93)
$426
339
87
$89
2.4% 3.0% 3.4%
64.7% 58.9% 48.0%
12.8% 12.3% 11.9%
8.8% 6.9% 11.8%
0.9% 0.7% 1.2%
$365
$174
($45)
$42
($163)
$373
366
53
$51
2.5%
40.0%
10.9%
6.0%
0.6%
$367
$181
($27)
$46
($128)
$439
347
119
$74
2.2%
45.7%
(1)
12.9%
(1)
8.5%
0.8% (1)
Highlights
Highlights
7
1
Macroeconomic fundamentals
2
BNCR in Costa Rica´s Financial System
3
Financial performance
4
Balance sheet structure and asset/liability management
5
Capitalization and liquidity
Highlights
8
1
2
3
4
5
Costa Rica´s Economy in Central America…
1
Real GDP Growth
Average Annual Change in Consumer Prices (2014)
5.1%
6.3%
6.1%
4.4%
5.1%
4.1%
3.4%
3.5%
3.1%
3.4%
3.5%
3.2%
1.81%
1.2%
El Salvador Guatemala Panama Costa Rica CR-abr-15 Honduras Nicaragua
2011
2012
2013
2014
mar-15
2015
2016
Source: IMF.
Source: IMF.
CR. International Reserves / External Debt (%)
CR. Foreign Direct Investment (as % GDP)
60
50
5.3%
5.0%
5.2%
40
4.4%
4.2%
4.3%
44.4
49.9
48.8
54.2
44.4
41.1
47.3
42.3
43
2013
2014
35.5
30
20
10
0
2005
2011
Source: EIU.
9
2012
2013
2014
2015
2006
2016
Source: World Bank
2007
2008
2009
2010
2011
2012
1 External stability
Costa Rican Colon Per US Dollar Evolution
Comparative Macroeconomic Indicators
Balance
558.7
Country
550.1
GDP
(US$bn)
Real GDP
2014
GDP
per Capita
Consumer
Prices
on
Current
Account
533.3
507.9
2008
2009
2010
505.4
2011
502.1
2012
526.3
495.0
2013
2014
abr-15
Source: BCCR.
Costa Rica
$49.6
3.5
$10.184.6
5.1%
-4.5%
Guatemala
53.7
4.0
3,477.9
3.4
-2.3
Panama
42.6
6.2
11,036.8
2.6
-12.0
El Salvador
24.2
2.0
3,826.1
1.1
-5.0
Honduras
18.5
3.1
2,290.8
6.1
-7.4
Nicaragua
11.2
4.5
1,851.1
6.0
-6.2
Source: IMF
Remittances
Population
(USD in MM)
658
689
555
501
547
563
547
579
626
634
(In MM)
5.20
5.0
5.00
4.80
407
4.60
4.40
4.3
4.4
4.5
4.5
4.6
4.7
4.7
4.8
4.9
4.9
4.20
4.00
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
3.80
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: EIU.
10
Source: EIU.
Highlights
11
1
2
3
4
5
Highlights
12
1
2
3
4
5
2 Dominant Banking Position in Costa Rica…
Total Loans and Market Share
Deposits with the
Public
and MarketinShare
Capitalization
by the
Government
2008
(USD in MM)
(As March 2015)
(USD in MM)
(As
March 2014)
AsofMarch
2015
$6,333
$8,879
$4,730
$6,065
$3,274
$3,285
21
16
11
11
BNCR
BCR
Banco Popular
BAC
$3,416
25
17
10
9
BNCR
BCR
Banco Popular
BAC
% Market Share
% Market Share
Corporate Loan Portfolio
Mortgage Portfolio
(USD in MM)
(As of March 2015)
$3,626
(USD in MM)
(As of March 2015)
$2,148
$3,531
$2,714
$1,334
$1,132
$896
$1,150
$771
BNCR
BCR
Source: BCCR, SUGEF.
Note: all charts based on stand-alone figures.
13
Banco Popular
BAC
BNCR
BCR
Banco Popular
BAC
2
…with a Nationwide Footprint
Extensive Reach
Broadest Distribution Network in the Country
 Serves over 1.8mm people nationwide
 4 out of 10 Costa Ricans are BNCR customers
 Most extensive distribution network than any bank in
Costa Rica, with

183 branches

465 ATMs located throughout the country

Access to an additional 409 ATMs through
commercial agreements with other banks
 Offers basic banking transactions via “BN Servicios”;
partnered with local retailers in 2,614 service points
across the country
 In 2014, BNCR will celebrate 100 years of providing
quality financial services to Costa Ricans
Branches
14
Highlights
15
1
2
BNCR in Costa Rica´s financial system
3
4
5
Balance sheet Growth Over Time
3
Total Assets
Total Loans
(USD in MM)
2015 proyection: 9.2%
$10,291
$10,378
(USD in MM)
2015 proyection: 11%
$10,428
$6,126
$6,332
$6,333
2013
2014
March 2015
$5,147
$8,215
$6,880
$7,276
Dec 10
Dec 11
$4,633
$4,004
Dec 12
Dec 13
Dec 14
March 2015
2010
2011
Net Equity
Deposits from the Public
(USD in MM)
$9,383
$9,512
2012
(USD in MM)
$8,950
$854
$722
$6,473
$5,538
Dec 10
$938
$966
2013
2014
March 2015
$765
$5,854
2010
16
$918
Dec 11
Dec 12
Dec 13
Dec 14
March 15
2011
2012
3
Loan Portfolio breakdown and NII
Loan Portfolio Breakdown
Banco Nacional De Costa Rica (USD in Bn)
US$4.0
8.5%
39.4%
US$4.6
8.2%
40.1%
Peer Comparison as of Mar 31th, 2015
US$5.1
US$6.1
US$6.3
US$6.3
8.7%
9.8%
10.5%
10.3%
35.4%
34.2%
33.9%
33.7%
10.3%
14.4%
30.5%
33.9%
28.2%
49.1%
34.5%
27.4%
52.1%
51.7%
55.9%
55.9%
55.8%
55.8%
55.8%
57.4%
23.5%
2010
2011
2012
Commercial
2013
Mortgage
2014
march 2015
BNCR
BCR
Commercial
Consumer
POPULAR
Mortgage
35.0%
BAC
Consumer
Net Interest Income
Peer Comparison as of Dec 31th, 2014 (USD in MM)
Banco Nacional De Costa Rica (USD in MM)
2015 proyection: $12.6
$409
$365
$409
$367
$331
$341
$283
$299
$272
$167
Dec 10
Dec 11
Dec 12
Dec 13
Dec 14
March 15
(1) For BNCR, “Consumer” includes both consumer and credit card portfolios.
17
BNCR
BCR
POPULAR
BAC
3
Profitability ratios
ROAA
ROAE
1.2%
11.8%
1.0%
0.9%
9.5%
0.8%
0.7%
8.8%
0.7%
8.5%
6.9%
6.0%
2010
2011
2012
2013
2014
March 2015
2010
2011
Efficiency Ratio
2013
2014
March 2015
Net Interest Margin
82.2%
6.1%
78.5%
2012
5.4%
78.9%
2015 forecast: $5.1
6.1%
5.1%
76.1%
4.8%
4.9%
2014
March 2015
71.6%
68.7%
2010
18
2011
2012
2013
2014
March 2015
2010
2011
2012
2013
Highlights
19
1
2
3
4
5
4
Conservative Investment Management Practices

BNCR’s investment strategy aims at keeping an adequate level of liquidity while maintaining conservative credit exposures

There is no explicit objective to rely on a trading portfolio for a significant portion of income

The main investment management objectives are:

Control of liquidity

Improvement of liquidity indicators

Control and improvement of the capital adequacy ratio
Investment Portfolio by Issuer
Portfolio Distribution by Maturity
(USD in MM)
Foreign
Local
1,010
Other;
1%
Financi
al;
16%
Other;
22%
Gover
nment;
83%
Gover
nment;
34%
Financ
ial;
44%
538
227
1- Month
US$1,418 MM
Note: Figures as of December 31st, 2014
20
US$ 519 MM
164
1 -3 Month
3 Mont - 1 Year
Duration = 0.89 Years
> 1 Year
4
Sources of Funding
Balance Sheet Structure
Deposits with the Public / Loans Evolution
(USD in MM)
(As of March 2015)
5%
9%
13%
7%
(As of March2015)
138%
126%
126%
14%
119%
119%
118%
2013
2014
March
2015
21%
2010
2012
Total Loans / Funding (2)
70%
61%
2011
74%
73%
(As of March 2015)
68%
65%
Assets (%)
Loan Portfolio
Investments
Cash
Other Assets
(1)
66%
67%
Liabilities + SE Equity
Equity
(1)
Other Liabilities
Long Term Debt
Deposits with Public
Includes deferred tax, provisions, and operations pending settlement.
21 (2) Obligations with the public, obligations with entities, and payable for securities services.
2010
2011
2012
2013
2014
March
2015
A Strong Deposit Base
4
Deposits Breakdown by Product Type
Deposits Breakdown by Client Type
17%
22%
27%
45%
33%
Savings
Demand
23%
Term
33%
Retail
Long Term debt
Corporate
Government
Deposits Breakdown by Market Share
Checking Deposits
Savings Deposits
28%
20%
38%
22
20%
35%
37%
62%
25%
11%
13%
Long Term Debt
Term Deposits
24%
9%
17%
17%
30%
2%
BCR
Banco Popular
BAC
Private Banks
37%
11%
9%
17%
4
Healthy and Diversified Loan Portfolio…
Loan Portfolio Breakdown by Economic Sector
4%
Loan Portfolio Breakdown by Risk Category (1)
3% 2% 2% 1% 0%
3%
0%
32%
5%
4%
3%
5%
10%
8%
10%
10%
Housing
Trade
Tourism
Construction
Mining
(1)
23
78%
20%
Services
Electricity and other
Financial Services
Livestock
Consumer
Manufacturing
Agriculture
Transport -Telcom
Per risk categories determined by the Superintendency General of Financial Entities for Costa Rica.
A
B1
B2
C
D
E
Delinquency Levels and Coverage Ratios
4
NPLs (1) and Coverage Ratios
NPL Ratio by Activity
(USD in MM)
$270
(As of March 2015)
100%
90%
80%
72%
8.0%
69%
65%
$180
70%
4.1%
60%
3.6%
50%
2.9%
40%
2.4%
3.9%
63%
59%
$179
6.0%
$160
$136
$138
48%
$133
4.0%
$90
$96
3.4%
30%
2.7%
20%
2.0%
NPL
Ratio
2.38%
10%
2.4
%
3.0
%
3.4
%
2010
2011
2012
2.48
%
2.2
%
2.2
%
2014
March 2015
0.3%
0.0%
0%0.0%
$0
NPL
(1)
(2)
24
2013
Coverage ratio
(2)
Past due loans over 90 days and legal collections.
Allowance for loan losses as a percentage of past due loans over 90 days and legal collections.
2010
Commercial
2011
Credit Card
2012
2013
Consumer
2014
Housing
March 2015
Total portfolio
Highlights
25
1
Macroeconomic Fundamentals
2
BNCR in Costa Rica’s Financial System
3
4
5
5
Strong Capitalization
Capitalization during 2014

Total Regulatory Capital Evolution
Last year BNCR negotiated two subordinated loans with
IADB (USD 100 mm) and CABEI (USD 30 mm) intended to
improve its Tier II ratio. The tenor of both loans is 10 years
and are the first of its kind signed for a Costa Rican state
owned bank.
Additional efforts include improving efficiency and credit
quality of portfolios.
Tier II ratio target is 12,5% to be achieved by the end of
2015 (regulatory requirement is 10%).


(As of March 2015)
(USD in MM)
$444
$234
$271
$280
$403
$439
($110)
2010
$723
$569
$620
$644
($119)
($129)
($143)
($152)
($154)
2011
2012
2013
2014
March 2015
Tier 1
RWA Evolution
Tier 2
Reductions
Capital Adequacy
(As of March 2015)
(As of March 2015)
(USD in MM)
5,994
6,330
6,492
12.8%
5,142
4,081
$387
$245
12.9%
12.95%
2014
March
2015
12.3%
4,510
11.9%
10.9%
26
2010
2011
2012
2013
2014
March
2015
2010
2011
2012
2013
5
Liquidity
Cash and Due From Banks and Liquid Securities Available for Sale
(USD in MM)
$1,153
$1,314
$1,412
$1,709
$1,552
$1,399
2013
2014
March 2015
$1,176
$1,293
$982
$1,079
$1,176
$1,329
2010
2011
2012
Cash and due from Banks
Liquid Securities Available for Sale
Liquid Assets / Total Deposits
43%
37%
27
2010
2011
39%
2012
31%
30%
2013
2014
31%
March 2015
Roadshow Presentation
2015
February

4 - Banco Nacional de Costa Rica

Transcription

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