1 q11 investor presentation
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Transcript of 1 q11 investor presentation
1
Investor Presentation 1Q11
2
. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
3
Ownership Structure
3
ABC Brasil
Local Management11.8%
Voting CapitalTotal Capital
Free-float34.3%
Local Management, Directors and Employees
57.8%ABC
88.2%ABC
7.9%
Arab Banking Corporation(Parent Company)
59.4%CentralBank of Libya
29.7%Kuwait
InvestmentAuthority
Free-float10.9%
Local Global
Aa1.Br Baa3
AA- BB+
Investment grade
4
89%
86%84%
84%
86%86%
11%
11%
12%
14%
14%14%
2006 2007 2008 2009 2010 1Q11
Middle Market
Corporate
11,588
8,509
6,485
4,992
2,911
11,9262.9%
4
Focus on Companies
4
ABC Brasil strongly focuses on providing loans and structured products to mid-sized and large companies
Credit PortfolioIncluding Guarantees Issued
BRL million
5
RO
AC
AM
RR
PA
AP
MA
PI
CE
BA
MG
ES
RJSP
PR
SC
RS
MS
MT
GO
DF
RNPB
PE
ALSE
Geographical Presenceand Expansion Plan
5
TO
Business Platforms
Corporate Middle
São Paulo Capital 3 4
São Paulo Countryside 1 2
South 1 3
Rio de Janeiro 1 1
Minas Gerais - 1
Goiás - 1
TOTAL 6 12
ABC Brasil Offices
New Middle Market Business Platforms
Middle-West
Ribeirão Preto
São Paulo IV
Presence in 19 Cities
6
. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
7
Business Segments
7
BRL million
Loan Portfolio
CorporateCompanies with annual revenues
over BRL 250 million
Loan Portfolio
MiddleCompanies with annual revenues
from BRL 30 to 250 million
8.079,8 8.790,8 9.323,9 10.023,8 10,314.3
1Q10 2Q10 3Q10 4Q10 1Q11
Total Portfolio
27.7%
2.9%
4.950,3 5.426,1 5.784,0 6.109,0 5,905.2
1Q10 2Q10 3Q10 4Q10 1Q11
1.314,3 1.388,0 1.401,8 1.564,6 1,611.3
1Q10 2Q10 3Q10 4Q10 1Q11
Total Portfolio
22.6%
3.0%
1.252,2 1.346,1 1.365,3 1.520,4 1,573.9
1Q10 2Q10 3Q10 4Q10 1Q11
19.3%
-3.3%
25.7%
3.5%
8
Segments Highlights
8
BRL million
1Q10 2Q10 3Q10 4Q10 1Q111Q10 2Q10 3Q10 4Q10 1Q11
Corporate Middle Market
Exposure per
Client
Duration
(days)
Clients
9%
12%
21%
57%
9%
13%
21%
57%
8%
14%
21%
57%
10%
14%
20%
56%
10%
15%
21%
54%
8%
24%
9%
10%
49%
6%
29%
10%
10%
45%
5%
31%
10%
10%
44%
5%
29%
10%
13%
43%
8,080 8,791 9,324 10,024 10,314 1,314 1,388 1,402 1,565 1,611
346360
376 390 385256 261 257
246234
1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11
2,0 2,0 2,0 2,1 2,1
6%
27%
9%
11%
47%
Minas Gerais / Goiás
South
Rio de Janeiro
São Paulo Countryside
São Paulo Capital
12,0 12,9 13,7 14,7 16.9
675679 682 683 706
652695 717 728 818
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. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
10
Brazilian Banking Sector
ABC Brasil focuses on the Corporate and Middle Market segments
Larg
e
Corp
orate
Corp
orate
Mid
dle
Market
Reta
il
Number of Clients
Revenues Range
2,000+
250-2,000
30-250
Individuals andsmall companies
Main Competitors
Big retail banks
Middle-sized international banks
Big retail banks
Middle-sized international banks
Big retail banks
Middle-sized family owned banks
Big retail banks
Middle-sized international banks
Middle-sized family owned banks
10
BRL million
11
. Who we are
. Business Segments
. Competitive Environment
. Financial Highlights
12
Credit Portfolio Quality
12
Loan Loss Reserves (% portfolio)
Write Off
Past Due (90 days)
AA-C 98.0%
D-H 2.0%
Brazilian Central BankResolution no. 2,682
0.66%
1.27%
0.95%
1.84%
2.28%
1.04%
0.69%0.60% 0.71%
0.39%0.57%
0.21%0.34%
0.64%
1.18%
0.65%0.57%
0.11% 0.17%
0.12% 0.10%0.38%
0.98%
0.52% 0.51%
0.05% 0.06%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
MiddleTotalCorporate
2.30% 2.24%
4.03%
5.54%
3.65%3.33%
3.60% 3.59%
1.03% 1.05%
2.23%
2.98%
2.25%1.92% 1.62% 1.72%
0.79%0.74%
1.80%2.29%
1.83%
1.13%1.22%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Middle
Total
Corporate
0.08%
0.26%
0.13%
0.75% 0.69%
0.21%
0.50%
0.27%
0.47%
0.04%0.11%
0.04% 0.04%
0.16%
0.28%
0.09%
0.32%
0.12%0.16%
0.08% 0.10%
0.03% 0.08%0.01% 0.00%
0.13%
0.04%
0.27%
0.00%0.07% 0.03% 0.00%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Middle
Total
Corporate
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1Q10 2Q10 3Q10 4Q10 1Q11
1,531.0 1,862.6 1,924.5 1,723.3 1,792.5
3,474.5 3,583.6 3,113.9 3,314.7 3,271.6
1,440.7 1,796.1 2,140.5 2,386.7 2,387.7
1,247.1 1,816.2 1,827.6 1,836.3 1,872.9
7,693.4 9,058.6 9,006.4 9,261.0 9,324.7 Total
16% 14% 14% 14% 15%
6% 6% 5% 5% Subordinated Debt
Shareholders´ Equity
19% 20% 24% 26% 26%BNDES
20% 20% 21% 19% 19% International
16% 12% 10% 11% 11%
12% 11%9% 9% 9%
9% 9%6% 6% 7%
8% 8%
10% 10% 8% Individual Investors
Financial Institutions
Institutional Investors
Corporate Investors
Funding
13
BRL million
35%36%35%40%45%
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Basel Index & Shareholders Equity
14
Capital Adequacy (BRL million) 1Q11 4Q10 1Q10Change (%)
1Q11/4Q10
Change (%)
1Q11/1Q10
Capital 1,866.1 1,841.8 1,257.2 1.3% 48.4%
Mininum Capital Required 1,305.8 1,263.4 1,037.9 3.4% 25.8%
Capital Surplus 560.3 578.4 219.4 -3.1% 155.4%
Basel Index 15.7% 16.0% 13.3% -0.3 17.9%
Tier I (Core Capital) 11.6% 11.7% 13.3% -0.1 -12.9%
Tier II 4.1% 4.3% -0.2
13.3% 12.5% 12.1% 11.7% 11.6%
5.2% 4.8% 4.3% 4.1%
1Q10 2Q10 3Q10 4Q10 1Q11
Tier II
Tier I (Core Capital)
Shareholders´Equity(BRL million)
17.7% 16.9% 16.0% 15.7%
1,247.1 1,279.1
1,312.1 1,347.9
1,384.3
15
Financial Margin
15
BRL million
NIM (% p.a.)
5.7% 5.3% 5.1% 5.4% 5.6%
1Q10 2Q10 3Q10 4Q10 1Q11
1Q11 4Q10 Chg (%) 1Q10 Chg (%)
Financial Margin with Clients 121.8 113.3 7.6% 93.8 29.9%
Financial Margin with Market 13.5 13.1 3.0% 14.7 -8.1%
Net Interest Income before Loan-Loss Provisions (LLP) 135.4 126.4 7.1% 108.5 24.8%
Loan Loss Provision (LLP) (12.3) (12.7) -3.1% (13.8) -10.7%
Managerial Financial Margin 123.0 113.7 8.3% 94.7 29.9%
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Income from Services
16
BRL million
7,4129,886
12,355 14,050 14,882 16,509 17,43619,570 20,826
2,587
3,069
3,7295,113
7,1058,119 4,947
6,9056,804
303
485
29
6342,444
1,589 459
8,1832,013
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Capital Markets & M&A Fees
Banking Fees
Guarantees Issued
14.0% 14.4%15.9%
17.3%
20.5% 20.1%
17.5%
23.4%
19.6%Income from Services
Total Income
Income from services rendered (BRL million) 1Q11 4Q10 Chg (%) 1Q10 Chg (%)
Guarantees issued 20.8 19.6 6.4% 14.9 39.9%
Capital Markets & M&A Fees 2.0 8.2 -75.4% 2.4 -17.6%
Banking Fees 6.8 6.9 -1.5% 7.1 -4.2%
Total 29.6 34.7 -14.5% 24.4 21.3%
17
Expenses
17
BRL million
Efficiency Ratio
Expenses (BRL million) 1Q11 4Q10 Chg (%) 1Q10 Chg (%)
Personnel (26.2) (25.7) 1.9% (20.9) 24.9%
Other administrativ e ex penses (15.4) (16.1) -4.5% (14.3) 7.0%
Profit Sharing (17.6) (19.2) -8.4% (15.4) 14.0%
Total (59.1) (61.0) -3.0% (50.7) 16.5%
38.0% 37.6% 37.0% 37.9% 37.7%
1Q10 2Q10 3Q10 4Q10 1Q11
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Profitability
18
BRL million
Net Income ROAE (p.a.)
46.9 50.2 51.1 54.0 56.7
1Q10 2Q10 3Q10 4Q10 1Q11
15.2% 15.9% 15.8% 16.3% 16.6%
1Q10 2Q10 3Q10 4Q10 1Q11
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Sergio Lulia Jacob Financial Director Vice-President
Alexandre Sinzato, CFA Head of Investor Relations
Web Site: www.abcbrasil.com.br/irEmail: [email protected]: +55 (11) 3170-2186
19
Investor Relations
20
IPO
1989 1997 2005 20112007
Appendix – History in Brazil
Arab Banking
Corporation and local
management acquire
Roberto Marinho
Group s shares
The bank s name
changes to
Banco ABC Brasil S.A.
The bank
structures its
Middle Market
operations
Arab Bank Corporation and
Roberto Marinho Group jointly
initiate Banco ABC Roma
SA, acting in the segments of
corporate lending, trade
finance and treasury
20
21
Credit Middle Market
Credit Corporate
CEOAnis Chacur Neto
Auditing Committee
InformationTechnology
Financial Control
Group Audit / Credit Group
Bahrein
Internal Auditing
Board
Commercial Corporate VPJose Eduardo C. Laloni
Legal
Risk
Compliance
Capital Markets
Investment Banking
CFO / COOSergio R. Borejo
Treasury & IR VPSergio Lulia Jacob
Commercial Middle VPGustavo A. Lanhoso
CommercialMiddle Market
Back Office
HR & Marketing
CommercialCorporate
International / FI
Treasury
Investor Relations
Products
21
Business Intelligence
Appendix – Corporate Structure
22
Appendix – Controlling Shareholder
International bank headquartered in Bahrain
Listed in the Bahrain stock exchange
Present in 22 countries
Main Shareholders
Central Bank of Libya 59.4%
Kuwait Investment Authority 29.7%
Free-float 10.9%
22
Total Assets: US$ 28.3 Bn
Shareholders’ Equity: US$ 3.5 Bn
BIS Ratio of 23.1% | Core capital (Tier I) of 18.9%
More than 70% of liquid assets to deposits ratio
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Disclaimer
The following material, on this date, is a presentation containing general information about theBanco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly orexplicitly, as to the accuracy, completeness or scope of this information.
This presentation may include forward-looking statements of future events or results accordingto the regulations of the Brazilian and International securities and exchange commissions.These statements are based on certain assumptions and analyses by the Company that reflectits experience, the economic environment, future market conditions and expected events bythe company, many of which are beyond the control of the Company. Important factors thatmay lead to significant differences between the actual results and the statements ofexpectations about future events or results include the company’s business strategy, Brazilianand International economic conditions, technology, financial strategy, financial marketconditions, uncertainty regarding the results of its futureoperations, plans, objectives, expectations and intentions, among others. Considering thesefactors, the actual results of the company may be significantly different from those shown orimplicit in the statement of expectations about future events or results.
The information and opinions contained in this presentation should not be understood as arecommendation to potential investors and no investment decision is to be based on theveracity, current events or completeness of this information or these opinions. No advisors tothe company or parties related to them or their representatives should have any responsibilityfor any losses that may result from the use or contents of this presentation.