1 Banco do Brasil 2006 Results Banco do Brasil 2006 Results.

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1 Banco do Brasil 2006 Results

Transcript of 1 Banco do Brasil 2006 Results Banco do Brasil 2006 Results.

Page 1: 1 Banco do Brasil 2006 Results Banco do Brasil 2006 Results.

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Banco do Brasil2006 Results

Banco do Brasil2006 Results

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3Q06 2005

Net Income 737 907 1,248 4,154 6,044 37.5 45.5

Net Interest Income 4,398 4,403 4,859 16,709 17,980 10.4 7.6

Allowance for Loan Losses¹ (1,498) (1,385) (1,257) (4,527) (5,744) -9.3 26.9

Fee Income 2,001 2,252 2,287 7,648 8,887 1.5 16.2

Administrative Expenses (3,510) (3,443) (3,614) (13,143) (13,744) 5.0 4.6

Sep/06 Dec/05

Total Assets 252,977 281,615 296,356 5.2 17.1

Loan Portfolio 101,789 118,349 133,157 12.5 30.8

Deposits 137,658 144,902 158,841 9.6 15.4

Assets Under Management 153,508 180,629 182,683 1.1 19.0

4Q05 3Q06 4Q06 2005 2006

ROE Annualized - % 18.7 19.8 26.7 26.8 32.1

NIM Annualized - % 9.2 7.9 8.4 8.6 8.0

Efficiency - % 50.0 48.7 50.6 48.1 47.5

Delinquency ² - % 4.0 3.8 2.9

BIS Ratio - % 17.1 17.7 17.3

Customers - million 22.9 24.1 24.4

Employees - thousand 83.8 82.6 82.7

Sep/06Dec/05

4Q05 3Q06Change % over

Dec/06

4Q06 2005 2006

Change % over

(1) Credit Operations characteristics only(2) Past Due Loans + 60 days

R$ million

HighlightsHighlightsHighlightsHighlights

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2002 2003 2004 2005 2006BBAS3 - R$ 7.6 20.0 28.8 38.6 64.0Trading Volume¹ - R$ million 1.6 4.2 4.9 8.6 25.2EPS - R$ 2.8 3.3 3.8 5.2 7.3Price / Earnings 3.3 7.4 8.6 8.1 8.7Price / Book Value 0.7 1.4 1.8 2.0 2.5Dividend Yield - % 10.8 4.2 3.7 4.4 4.6

Payout - % 28.6 31.3 31.5 36.1 40.0

Banco do Brasil SharesBanco do Brasil SharesBanco do Brasil SharesBanco do Brasil Shares

580

2002

746

2003

954

2004

1,498

2005

2,418

2006

(1) Average Daily Trading Volume

Dividends / Interest on Own Capital – R$ million

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Net Interest MarginNet Interest MarginNet Interest MarginNet Interest Margin

(1) Net Interest Margin over Earning Assets

NIM Annualized¹ - %

Selic Rate Annualized - %

6.3 6.1 5.7 5.2 6.4

8.9 8.4 8.9 8.5 8.0

32.2 31.7 33.0 31.4 31.8

AgribusinessBusinessesIndividuals

Spread by Loan Portfolio - %

4Q05 1Q06 2Q06 3Q06 4Q06

9.2 8.5 8.1 7.9 8.4

18.817.2

15.714.6

13.6

4Q05 1Q06 2Q06 3Q06 4Q06

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Sep/06 Dec/05Loan Portfolio 101,789 118,349 133,157 12.5 30.8

Domestic 92,612 107,922 120,975 12.1 30.6Individuals 18,386 23,155 23,996 3.6 30.5Free Funds 16,685 21,681 22,652 4.5 35.8

Payroll Loans 3,810 7,356 8,296 12.8 117.8Car Loans 188 635 894 40.9 375.9

SMEs 15,436 16,813 18,323 9.0 18.7Businesses 23,082 27,630 33,593 21.6 45.5Agribusiness 35,708 40,324 45,064 11.8 26.2

Abroad 9,177 10,427 12,181 16.8 32.7

Dec/05 Sep/06 Dec/06Change % over

Dec/05 - %

R$ million

Loan PortfolioLoan PortfolioLoan PortfolioLoan Portfolio

Dec/06 - %

18.1

15.2

22.7

35.1

9.018.0

13.8

25.2

33.8

9.1

Individuals SME’s Businesses Agribusiness Abroad

Sep/06 - %

19.6

14.2

23.3

34.1

8.8

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AA-C - %

91.090.6

87.6

89.5

88.4

89.5 89.689.6

89.990.7

11.610.5

12.4

9.4 9.0

9.310.1

10.4 10.410.5

4Q05 1Q06 2Q06 3Q06 4Q06

D-H - %

BB Banking Industry

Credit RiskCredit RiskCredit RiskCredit Risk

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90.7

9.3

4Q05

87.5

12.5

1Q06

84.8

15.2

2Q06

81.5

18.5

3Q06

88.2

11.8

4Q06

Agribusiness - %

Allowance for loan losses / Loan Portfolio

Past Due Loans + 15 days / Loan Portfolio

Agribusiness: 220.8%

delinquency covered by

provision

7.7 8.28.9

6.1

5.1 5.6 5.6 5.5

2.8

5.4

AA-C D-H

88.4

11.6

4Q05

88.8

11.2

1Q06

88.9

11.1

2Q06

89.6

10.4

3Q06

90.7

9.3

4Q06

Retail - %

Credit RiskCredit RiskCredit RiskCredit Risk

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211.1 213.9 214.0

177.3 172.7 166.9174.1170.9 173.9171.3

4Q05 1Q06 2Q06 3Q06 4Q06

BB

Banking Industry

5.8

6.36.6 6.8 6.9

6.6

5.4

6.76.2

6.6

Banking Industry

BB

Average Risk - %

Required Provision over Past Due Loans + 90 days - %

Credit RiskCredit RiskCredit RiskCredit Risk

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Delinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit RiskDelinquency and Provision for Credit Risk

(1) Average Portfolio and Expenses of the last 12 months

Quarterly Provision Expenses - R$ million

Provision Expenses / Loan Portfolio¹ - %

1,4981,345

1,757

1,3851,257

4.7 4.95.5 5.6

5.0

4Q05 1Q06 2Q06 3Q06 4Q06

6.67.3 7.4 7.4

6.5

4.04.3

3.6 3.82.9

4Q05 1Q06 2Q06 3Q06 4Q06

Allowance for loan losses / Loan Portfolio - %

Past Due Loans + 15 days / Loan Portfolio - %

Past Due Loans + 60 days / Loan Portfolio - %

5.66.0

5.0 5.2

4.1

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Allowances BreakdownAllowances BreakdownAllowances BreakdownAllowances Breakdown

R$ million

6,9827,662 8,209

7,2385,901

749752

548 1,397

790

7,7318,414 8,757 8,635

6,692

Dec/05 Mar/06 Jun/06 Sep/06 Dec/06

Required Provision Additional Provision Total Provision

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Sep/06 Dec/05Total of Deposits 137,658 144,902 158,841 9.6 15.4

Demand 35,802 32,448 40,059 23.5 11.9Individuals 11,583 11,950 14,082 17.8 21.6Businesses 12,448 11,934 14,510 21.6 16.6Others 11,772 8,564 11,467 33.9 -2.6

Saving 32,844 34,447 36,714 6.6 11.8Time 63,495 72,271 76,900 6.4 21.1

Certificated of Deposits - CD 31,817 34,225 34,399 0.5 8.1Escrow 19,177 22,614 23,610 4.4 23.1Others¹ 12,502 15,432 18,891 22.4 51.1

Interbank and Investment 5,517 5,736 5,167 -9.9 -6.3

Change % overDec/05 Sep/06 Dec/06

FundingFundingFundingFunding

R$ million

(1) Includes special deposits relating to funds and programs

Dec/05 Mar/06 Jun/06 Sep/06 Dec/06

0.74 0.760.81 0.82 0.84

Loans to Deposit Ratio - Times

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3Q06 2005Fee Income 2,001 2,252 2,287 7,648 8,887 1.5 16.2

Customer Relationship 629 713 722 2,426 2,817 1.3 16.1Investment Fund Management 310 380 364 1,219 1,459 -4.4 19.7Credit Operations 144 182 171 600 736 -6.0 22.6Credit Cards 155 178 177 572 685 -0.8 19.6Third Party Payment 55 62 72 216 260 15.7 20.2Settlement and Funds Transfer 208 194 205 773 811 5.2 4.9Others 500 542 577 1,841 2,120 6.5 15.1

2006Change % over

4Q05 3Q06 4Q06 2005

Fee IncomeFee IncomeFee IncomeFee Income

R$ million

2005 2006

Products

Customers

Others

Δ=15.1%

Δ=16.1%

Δ=16.9%

1,841

2,426

3,381

2,120

2,817

3,950 44.4%

31.7%

23.9%

44.2%

31.7%

24.1%

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3Q06 2005Insurance Value Added 245 250 263 889 1,130 4.9 27.0Equity Income 84 75 53 292 292 -29.0 0.1Commission 99 107 108 380 422 0.9 11.0Fees 36 44 70 131 311 60.0 137.1Asset Management 27 25 32 86 104 26.7 21.4

Change % over4Q05 3Q06 4Q06 2005 2006

R$ million

InsuranceInsuranceInsuranceInsurance

Combined Ratio - %

91.1 87.7 89.4 92.3 89.1

4Q05 1Q06 2Q06 3Q06 4Q06

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3Q06 2005Credit Cards Value Added 466 488 558 1,542 1,940 14.3 25.8Fee Income 155 178 177 572 685 -0.8 19.6Financing Income 193 198 205 638 788 3.5 23.6Equity Income 77 52 139 196 273 169.1 39.6Others 41 60 37 137 194 -38.5 41.8

Change % over4Q05 3Q06 4Q06 2005 2006

R$ million

Credit CardsCredit CardsCredit CardsCredit Cards

(1) Includes Credit and Debit Cards

9.1 8.9 9.411.3

9.2

4Q05 1Q06 2Q06 3Q06 4Q06

9.3 9.911.4

14.1

9.5

Credit Cards – million Revenues¹ - R$ billion

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3Q06 2005Administrative Expenses 3,268 3,216 3,396 12,398 13,020 5.6 5.0Personnel Expenses 1,802 1,804 1,846 6,834 7,270 2.3 6.4Other Administrative Expenses 1,428 1,378 1,516 5,417 5,607 10.0 3.5Technology¹ 350 374 371 1,402 1,481 -0.8 5.6Premises and Equipment² 351 366 375 1,348 1,460 2.4 8.3Outsourcing³ 341 343 378 1,287 1,364 10.3 6.0Marketing 132 90 150 451 420 66.0 -6.8Other Expenses 253 204 241 929 882 18.4 -5.0

Other Tax Expenses 39 34 33 147 142 -0.6 -3.4Legal Risk4

281 192 251 783 798 31.1 1.9

Change % over4Q05 3Q06 4Q06 2005 2006

Administrative ExpensesAdministrative ExpensesAdministrative ExpensesAdministrative Expenses

R$ million

(1) Telecommunication and Data Processing(2) Amortization, Depreciation, Expenses with Premises and Equipment(3) Security, Guard and Transport Service and Other Outsourcing(4) legal and Labor Claims

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48.1 48.1 45.5 46.5 47.5

4Q05 1Q06 2Q06 3Q06 4Q06

Coverage¹ Ratio - %

(1) Fee Income / Personnel Expenses - YTD(2) Administrative Expenses / Operating Income - YTD

Efficiency² Ratio - %

Productivity RatiosProductivity RatiosProductivity RatiosProductivity Ratios

4Q05 1Q06 2Q06 3Q06 4Q06

102.3112.1 112.2 113.4 112.9

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(a) Loan portfolio balance as of 12.31.2005 35,708

(b) Expected return for 2006¹ 20,318

(c) Amortizations¹ 13,692

(d) Past due loans 772

(e) Rolling-over (b - c - d) 5,854

(f) Losses 847

(g) Disbursement 23,895

(h) Loan portfolio balance as of 12.31.2006 (a - c - f + g) 45,064

Agribusiness – Rolling-overAgribusiness – Rolling-overAgribusiness – Rolling-overAgribusiness – Rolling-over

(1) Capital + Interest

20% - expected return

for 2007

Rolling-over - %

70.3

29.7

Working Capital Investment

R$ million

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5.1%

7.1%

10.3%

39.4%

38.1%

21.7%

Third Party RiskProagro¹ Agricultural Insurance Agreements Derivatives

Agribusiness – Risk MitigationAgribusiness – Risk MitigationAgribusiness – Risk MitigationAgribusiness – Risk Mitigation

Agribusiness Portfolio – R$ 45.1 billion

(1) Official Insurance

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Retail - StrategyRetail - StrategyRetail - StrategyRetail - Strategy

Payroll and car loans focusing

Non-account holders customers approach

Partnerships with retailers

Mortgage business tackling

Customer relationship improvement, focusing on high income

segment

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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

[email protected]

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