Post on 14-Dec-2015
1
Banco do Brasil2Q07 Results
Banco do Brasil2Q07 Results
2
Recurring Net Income growsRecurring Net Income grows......Recurring Net Income growsRecurring Net Income grows......
647
2Q06
832
3Q06
1,248
4Q06
1,409
1Q07 2Q07 1H06 1H07
Recurring Net Income – R$ million
1,546
907
1,464
3,889
2,923
1,0681,586
2,477
Net Income – R$ million
Δ Recurring Net Income - 84.4%
Δ Recurring Net Income - 126.2%
36.319.8
26.7 29.4
20.9
47.8
24.3
ROE (Annualized) - %
14.2 18.0
29.4 18.4
29.0
Recurring ROE (Annualized) - %
......and ROE goes into a positive trendand ROE goes into a positive trend..
3
Net Income 1Q07 1,409
Higher Interest Income 355
Less Credit Risk Expenses 195
Other Administrative Expenses Growth 119
Provisions for Legal Risk Strengthening 152
Higher Taxes Expenses 195
Other Effects 29
Recurring Net Income 2Q07 1,464
Early Retirement Plan and Previ Effects 396
Net Income 2Q07 1,068
Net Interest Income and less provisions...Net Interest Income and less provisions...Net Interest Income and less provisions...Net Interest Income and less provisions...
R$ million
...compensated higher expenses, taxes and legal risk....compensated higher expenses, taxes and legal risk.
( )
( )
4
R$ billion
6.8
10.4
0.9
9.4
6.2
12.2
1.3
9.6
3.3
5.3
0.6
4.93.4
5.4
0.3
4.7
3.3
5.8
0.4
4.6
3.0
6.1
0.5
4.8
3.2
6.1
0.8
4.8
2Q06 3Q06 4Q06 1Q07 2Q07 1H06 1H07
Security Revenues
Loan Revenues
Other Interest RevenuesInterest Expense
Net Interest Income
4.3 4.4 4.8 4.8 5.2
8.7
10.1
Net Interest Income grows...Net Interest Income grows...Net Interest Income grows...Net Interest Income grows...
... on the back of loan revenues.... on the back of loan revenues.
5
(1) Net Interest Income over Earning Assets
NIM Annualized¹ - %Average Selic Annualized - %
AgribusinessesBusinessesIndividuals
Annualized NIM by Loan Portfolio - %
NIM kept stable...NIM kept stable...NIM kept stable...NIM kept stable...
8.1 7.9 8.4 7.9 7.9
15.714.6
13.612.9 12.3
2Q06 3Q06 4Q06 1Q07 2Q07
5.7 5.2 6.4 7.0 6.6
8.9 8.5 8.0 7.3 7.0
33.031.4 31.8
28.9 28.8
2Q06 3Q06 4Q06 1Q07 2Q07
... despite the Selic easing cycle.... despite the Selic easing cycle.
6
Related to Selic - %
...helps to protect the NIM....helps to protect the NIM.
117.8 112.6127.2 124.8 128.1
23.827.7
22.918.2
12.7
21.919.0
29.936.1
46.4
2Q06 3Q06 4Q06 1Q07 2Q07
62.7 58.1 62.1 62.0 61.5 Funding Interest Rate
Investment Interest Rate
Floating Rate Fixed Rate
Domestic Long Net Exposure - R$ billion
Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...Growth in the long fixed rate exposure...
7
R$ billion
Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...Strong growth in the Loan Portfolio...
Businesses
Agribusinesses
Individuals
Abroad
Δ % over2Q06 1Q07
28.4 3.5
23.5 (0.8)
29.0 6.8
22.2 4.3
35.3 2.141.7
39.9
21.6
9.9
2Q06
113.1
44.4
40.3
23.2
10.4
3Q06
118.3
51.9
45.1
24.0
12.2
4Q06
133.2
55.2
46.8
26.1
12.3
1Q07
140.4
56.3
48.8
27.9
12.2
2Q07
145.2
...explains the Net Interest Income performance....explains the Net Interest Income performance.
8
R$ billion
Focus on Individuals Portfolio...Focus on Individuals Portfolio...Focus on Individuals Portfolio...Focus on Individuals Portfolio...
Cars Loan
Credit Card
Overdraft Account
Payroll Loan Others
Δ % over2Q06 1Q07
29.0 6.8
(0.3) 2.8
8.2 (0.5)
28.9 7.9
68.4 8.9
320.4 33.7
2Q06 3Q06 4Q06 1Q07 2Q07
2.72.6
9.9
6.0
21.6
0.4 2.82.3
7.4
10.1
23.2
0.63.1
2.2
8.3
9.5
24.0
0.93.2
2.7
9.3
9.6
26.1
1.33.4
2.6
10.2
9.9
27.9
1.7
... highlighting cars and payroll loans.... highlighting cars and payroll loans.
9
BB
Banking Industry
Banking Industry
BB
Stable Credit Risk...Stable Credit Risk...Stable Credit Risk...Stable Credit Risk...
Average Risk - %
Required Provision / Past Due Loan + 90 days - %
214.0
170.1
222.7
173.1
221.9
166.2
213.9
175.1
211.1
179.6
2Q06 3Q06 4Q06 1Q07 2Q07
6.8
6.8
5.4 5.4
6.9
5.4
6.76.2 6.0
6.2
... better than the industry...... better than the industry...
10
...allows provisions to recede......allows provisions to recede......allows provisions to recede......allows provisions to recede...
(1) Average Portfolio and Expenses of the past 12 months
Provision Expenses - R$ million
Provision Expenses / Loan Portfolio¹ - %
Provision / Loan Portfolio - %
Past Over Due Loans + 15 days / Loan Portfolio - %
Past Over Due Loans + 60 days / Loan Portfolio - %
1,757
1,3851,257
1,4311,236
2Q06 3Q06 4Q06 1Q07 2Q07
7.4 7.4
6.5 6.5 6.5
5.0 5.2
4.1 4.2 4.1
3.6 3.8
2.9 2.8 2.8
2Q06 3Q06 4Q06 1Q07 2Q07
...with delinquency under control....with delinquency under control.
5.5 5.65.0
4.8
4.1
11
Provisions...Provisions...Provisions...Provisions...
8,2097,238 7,551 7,7867,662
5481,397
1,582 1,655752
8,757 8,6359,133 9,441
8,414
Jun/06 Sep/06 Dec/06 Mar/07 Jun/07
Required Provision Additional Provision
Total Provision
... denoting conservative approach.... denoting conservative approach.
R$ million
12
Funding still growing.... Funding still growing.... Funding still growing.... Funding still growing....
R$ billion
Saving Deposits Demand Deposits
Time Deposits Others
Δ % over2Q06 1Q07
17.6 2.4
(9.0) 3.3
17.4 0.7
17.5 3.5
22.9 4.933.2
31.4
69.4
6.0
Jun/06
34.4
32.4
72.3
5.7
Sep/06
36.7
40.1
76.9
5.2
Dec/06
38.9
35.6
80.9
5.3
Mar/07
40.8
36.8
81.4
5.4
Jun/07
139.9 144.9158.8 160.7 164.5
... highlighting saving and demand deposits.... highlighting saving and demand deposits.
13
Fees from products and customers...Fees from products and customers...Fees from products and customers...Fees from products and customers...
R$ million
Products Customers Others
Δ % over2Q06 1Q07
8.5 2.5
(10.9) (9.8)
8.0 4.0
14.0 4.6
2Q06
2,246
1,211
715
320
3Q06
2,252
1,217
713
322
4Q06
2,287
1,216
722
349
1Q07
2,377
1,319
742
316
2Q07
2,437
1,381
772
285
... still growing.... still growing.
14
171.2 180.6 182.7 193.1208.9
2Q06 3Q06 4Q06 1Q07 2Q07
Assets under Management - R$ billion
Individuals Companies
Market Share - %
Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...Assets under Management surpass R$ 200 billion...
Customers - million
Δ= 8.2%
Δ= 22.0%
19.7 19.7 19.1 19.1 19.1
23.7
22.2
1.5
2Q06
24.1
22.6
1.5
3Q06
24.4
22.8
1.6
4Q06
24.6
23.0
1.6
1Q07
23.3
1.6
2Q07
24.9
...and the customer basis reach 25 million....and the customer basis reach 25 million.
15
316
2Q07
245
2Q06
250
3Q06
300
4Q06
315
1Q07
Value Added¹ - R$ million
Insurance reaches a new level of performance...Insurance reaches a new level of performance...Insurance reaches a new level of performance...Insurance reaches a new level of performance...
(1) Includes equity income, fee income, brokage and asset management income
Δ= 0.5%
Δ= 28.9%
16
...so does credit card business....so does credit card business....so does credit card business....so does credit card business.
Value Added¹ - R$ million
(1) Includes fee income, financing income, equity income and others
454
2Q06
486
3Q06
558
4Q06
508
1Q07
559
2Q07
Δ= 10.1%
Δ= 23.1%
17
8.9
2Q06
9.4
3Q06
10.9
4Q06
11.2
1Q07
11.5
2Q07
Great expansion in the credit card basis...Great expansion in the credit card basis...Great expansion in the credit card basis...Great expansion in the credit card basis...
Revenue¹ - R$ billion
Credit Cards - million(1) Includes Credit Cards and Debit Cards
Δ= 3.4%
Δ= 29.9%
9.9
14.1 14.4 15.7
11.4
...6 million new cards in 12 months....6 million new cards in 12 months.
18
Costs under control...Costs under control...Costs under control...Costs under control...
R$ million
(1) Legal risk and extraordinary items are not included.
Personnel Expenses¹ Other Administrative Expenses¹
Δ % over2Q06 1Q07
0.5 2.6
9.9 8.5
(6.9) (2.0)1,839
1,383
2Q06
1,804
1,378
3Q06
1,846
1,516
4Q06
1,748
1,401
1Q07
1,713
1,519
2Q07
3,2163,2533,396
3,186 3,268
...in line with the business pace....in line with the business pace.
19
Early Retirement Plan and Previ...Early Retirement Plan and Previ...Early Retirement Plan and Previ...Early Retirement Plan and Previ...
Early Retirement Plan
Eligible Employees: those above 50 years old or able to receive INSS pension and over 15 year contribution to Previ
6.9 thousand people joined
Impacts in the 2Q07: R$ 445.9 million, after taxes
Forecasted saving for 2008: R$ 158 million, after taxes
Suspension of the Contributions to Previ
Suspension of the contributions to the Benefit Plan #1
Impacts in the 2Q07: R$ 50 million, after taxes
Forecasted saving for 2008: R$ 200 million, after taxes (subject of revaluation every 12 months)
...bring future cost savings and......bring future cost savings and...
20
Employees Interns
Branches Others
...reduction in the workforce....reduction in the workforce....reduction in the workforce....reduction in the workforce.
Points of Service - thousand
Workforce - thousand
82.9
10.5
2Q06
82.6
10.2
3Q06
82.5
10.1
1Q07
79.3
9.8
2Q07
3.9 4.0 4.0 4.0 4.0
11.0 11.1 11.1 11.2 11.2
2Q06 3Q06 4Q06 1Q07 2Q07
15.0 15.0 15.1 15.1 15.2
82.7
4Q06
9.9
21
Fee Income...Fee Income...Fee Income...Fee Income...
Fee Income
Personnel ExpensesCoverage Ratio¹ - %
R$ billion
2Q06 3Q06 4Q06 1Q07 2Q07
(1) Year to Date
2.22.0
2.2
1.9
2.32.0
2.4
1.9
2.4 2.5
Recurring Coverage Ratio¹ - %
112.2 113.4 112.9127.9
110.1
130.2
...covers more than 130% of personnel expenses....covers more than 130% of personnel expenses.
22
Administrative Expenses
Operating IncomeEfficiency Ratio¹ - %
R$ billion
(1) Year to Date
2Q06 3Q06 4Q06 1Q07 2Q07
3.4
8.0
3.4
7.1
3.6
7.1
3.3
7.5
4.2
7.7
Recurring Efficiency Ratio¹ - %
...to keep efficiency on the track....to keep efficiency on the track.
Expenses control allows...Expenses control allows...Expenses control allows...Expenses control allows...
45.5 46.5 47.544.1
49.1
44.7
23
%
BIS Ratio allows...BIS Ratio allows...BIS Ratio allows...BIS Ratio allows...
...a R$ 88 billion leverage margin....a R$ 88 billion leverage margin.
Tier IITier I
11.6
5.7
Jun/06
17.3
11.9
5.8
Sep/06
17.7
11.6
5.6
Dec/06
17.3
11.6
5.5
Mar/07
17.2
10.6
5.3
Jun/07
15.9
24
Investor Relations UnitSBS - Quadra 1 - Bloco C - Ed. Sede III - 5° floor
70073-901 - Brasília (DF)Phone: 55 (61) 3310.3980
Fax: 55 (61) 3310.3735
www.bb.com.brri@bb.com.br
DisclaimerDisclaimer - This presentation contains references and statements, planned synergies, increasing estimates, projections of results and future strategy for Banco do Brasil, it’s Associated and Affiliated Companies and Subsidiaries. Although these references and statements reflect the
management’s belief, it also involves imprecision and high difficult risks to be foreseen, consequently, it may conduct to a different result than the one anticipated here. These expectations are highly depended on market conditions, on the Brazilian economic performance, on the sector and the
international market. Banco do Brasil is not responsible for bringing up to date any estimate in this presentation.
For further information access www.bb.com.br/ri