0
Conference Call Conference Call
1Q10 Results1Q10 Results
1
�� Credit Behavior in BrazilCredit Behavior in Brazil
� Loan Portfolio
� Funding and Liquidity
� Result from Operations
� Indusval Multistock Corretora de Valores
� Share Performance
2
733607
2005 2006 2007 2008 2009 31/mar
Nonearmarked Resources Earmarked Resources
Volume of Credit OperationsR$ billion
Credit to individuals growth supported by payroll lending, vehicle and real state
financing.
In Corporate Credit earmarked resources from BNDES still stand out.
Improved participation of private institutions from March.
936
1,2271,410
29%
71%
29%
68%
32%
71%
16.814.234.04.620.124.318.6In 12 months2.61.22.50.44.46.33.7In the year2.61.22.50.44.46.33.7In the quarter1.10.20.20.22.22.82.0In the month
TotalEarmarked Resources
Non earmarked Resources
TotalEarmarked Resource
Non earmarked Resource
Mar/10Total Credit
CorporatesIndividualsVariation%
1,452
67%
33%
Total Credit Volume and SegmentationTotal Credit Volume and Segmentation
Source: Central Bank of Brazil – Credit Information System - SCR
3
0
1
2
3
4
5
6
7
8
9
10
Dec Dec Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
2006 2007 2008 2009 2010
Corporate Individuals Total
Sou
rce
BA
CE
N
%
Gradual decline in Corporate Credit Back to Dec 2007 levels for credit to Individuals
7.0%
5.2%
3.6%
Default Rate on Loans to Individuals: Fast retreat from June 2009, returning to the levels of Dec/07.
Default Rate on Corporate Loans: Accelerated increase until September/09, with slow decline from November 2009.
Credit Default RateCredit Default Rate
4
� Credit Behavior in Brazil
�� Loan PortfolioLoan Portfolio
� Funding and Liquidity
� Result from Operations
� Indusval Multistock Corretora de Valores
� Share Performance
5
Slightly over R$ 1.7 billion *Slightly over R$ 1.7 billion *
� Increased origination partially dissipated by write offs
� Local currency loans respond for 80% of loan portfolio
� 94% of Loan Portfolio allocated to midsized companies
� Mainly Export financing (ACC/ACE) and, in lesser amount, import financing
� Trade Finance portfolio in foreign currency:• US$ 116.7 million in 1Q09• US$ 173.7 million in 4Q09• US$ 186.9 million in 1Q10
� Growth reflects the retake of exports with reaction from December/09
Local Currency Loans Trade Finance
332.7293.3270.1
1Q09 4Q09 1Q10
R$ Million
+23.1%1,398.6 1,342.6 1,322.9
1Q09 4Q09 1Q10
-5.4%
R$ Million
* Including guarantees and L/Cs
6
61 to 160 24%
11 to 60 31%
10 largest 18%
Other 27%
Industry54%
Commerce12%
Services25%
Individuals9%
Local Currency
80%
Foreign Currency
20%
Above 360 days 29%
181 to 360 14%
91 to 180 20%
Up to 90 days37%
The average of contracts final tenors is 442 days
By Client Concentration
By Economic Activity By Currency
By Tenor
Credit Portfolio BreakdownCredit Portfolio Breakdown
7
22%
10%5%5%
4%4%
3%1%
14%
13%
3%
4%
4%
4%
4%
Food, Beverage and Tobacco
Agribusiness
Construction
Automotive
Transportation & Logistics
Metal Industry
Education
Financial Institutions
Chemical and Pharmaceutical
Textile, Clothing & Leather
Individuals
Financial Services
Oil and Biofuel
Paper & Pulp
Other Industries
Loan Portfolio breakdown by Industry Loan Portfolio breakdown by Industry
8
Allowance for Loan LossesNPL(*) / Total Loan (%)
Asset Quality
Middle Market loans are 81% collateralized, being, 54% in receivables and securities
5.9
4.23.5
1Q09 4Q09 1Q10
Collateral Structure
Aval PN19%
Vehicles2%
Pledge/Lien6%
Real State9%
Monitored Pledge
10%
Securities3%
Receivables50%
RisK Rating
A31%
D-H14%
B28%
C27%
133.4
97.8110.7
1Q09 4Q09 1Q10
+13.2%
Quality of Loan PortfolioQuality of Loan Portfolio
(*) Total amount of contracts with any installment overdue above 60 days
9
� Credit Behavior in Brazil
� Loan Portfolio
�� Funding and LiquidityFunding and Liquidity
� Result from Operations
� Indusval Multistock Corretora de Valores
� Share Performance
10
Time Deposits
37%
DPGE(*)30%
Interbank Deposits
2%
Foreign Borrowings
22%
BNDES Onlending
6%
LCA1%
Demand Deposits
2%
R$ Million
� Moderate growth in funding compared to 4Q09
� Increasing average tenor of deposits to 497 days:
• CDBs R$ 698,5 million 363 days
• DPGE R$ 572,0 million 692 days• CDI R$ 42,5 million 69 days
• LCA R$ 8,7 million 90 days
Total Funding Funding Breakdown
1,880.71,793.2
1,555.7
1Q09 4Q09 1Q10
+20.9%
� Funding in Insured Time Deposits (DPGE) privileged in the quarter due to longer terms, defined maturities and total costs lower than foreign funding
� Funding in local currency equivalent to 78% of total funding
Longer Funding TenorsLonger Funding Tenors
(*) Fundo Garantidor de Crédito (FGC) - Insured Time Deposits
11
332
245
516
733
375
127
659674
90 days 180 days 360 days Above 360 days
Assets Liabilities
Liquidity to RetakingLiquidity to Retaking
436
696 708
1Q09 4Q09 1Q10
Free Cash (*)R$ Million
R$ Million
Assets and Liabilities Management
� Management of liquidity, interest rate, currencies and tenor mismatch risks is our Treasury’s main task
� Free Cash:
� 52% of Total Deposits
� 164% of Shareholder’s Equity
(*) Cash, Liquid Financial Assets (CDI), Securities and Derivatives (–) Open Market Funds and Derivatives
12
� Credit Behavior in Brazil
� Loan Portfolio
� Funding and Liquidity
�� Result from OperationsResult from Operations
� Indusval Multistock Corretora
� Share Performance
13
114.4
93.3
117.7
1Q09 4Q09 1Q10
� Results from Financial Intermediation recovery:
• Increased Financial Intermediation Income
• Lower Loan Loss Provision Expenses
� Gross margin improved to 5.3% from 4.1% in the 4Q09
R$ MillionR$ Million
� Evolution of Income from Financial Intermediation of 22.7% in the quarter due to:
• Small increase in revenues from loans and financing
• Higher Foreign Exchange Operations Income
• FX variation on trade finance operations
Income from Financial Intermediation Gross Profit from Financial intermediation
Gradual recovery of income, lower default benefitsGradual recovery of income, lower default benefits
-2.8%
35.227.428.4
1Q09 4Q09 1Q10
+23.4%
14
24.423.323.0
1Q09 4Q09 1Q10
� Operating expenses under control
� Stable income from fees and commissions
� Lower other operating income during the quarter
In %R$ Million
Net Operating Expenses
Slight improvement in EfficiencySlight improvement in Efficiency
Efficiency Ratio
61.063.2
44.5
1Q09 4Q09 1Q10
S&
P M
odel
� The 2.2 percentage points improvement in the quarter resulted from:
• Reduced operating expenses, and
• Small increase in financial intermediation revenues
+6.0%
+16.5 p.p.
15
R$ Million
Net Profit
8.0
4.4
7.3
1Q09 4Q09 1Q10
Recovering Profitability Recovering Profitability
� 66% Net Profit increase in the quarter results from:
� The evolution in the Intermediation Financial Result
� The 30% drop Loan Loss Provision expenses
Net Interest Margin (NIM)
12.5%
10.6%9.8%
6.1% 6.7% 7.0%
0.9%
5.1%4.9%
8.5%
5.3%
4.1%
4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
NIM GFM
� Financial Margin confirms recovery trend started 4Q09
� Maintenance of liquidity levels also impacts NIM
-8.8%
GFM = Gross Financial Margin
16
� Credit Behavior in Brazil
� Loan Portfolio
� Funding and Liquidity
� Result from Operations
�� Indusval Multistock Indusval Multistock CorretoraCorretora de de ValoresValores
� Share Performance
17
� The modernization and restructuring of the Brokerage House included:
� Relocation of facilities closer to target market
� Hiring new professionals
� Development of new products, including fixed income offerings
� Business management specialized tools deployment
� Construction of a new homebroker system, in progress
� DMA – Direct Market Access
� Acquisition of the Execution Broker Seal from BM&FBOVESPA
� Repositioning in the BM&F Market Ranking� 2008: 52th position� 2009: 44th position� 1Q10: 17th position
� Strategic Objectives:
� Expansion of the institutional and qualified individual investors client base
� Extending services to retail investors
� Becoming a liquidity center for institutional clients
Positive results from restructuringPositive results from restructuring
18
� Credit Behavior in Brazil
� Loan Portfolio
� Funding and Liquidity
� Result from Operations
� Indusval Multistock Corretora de Valores
�� Share PerformanceShare Performance
19
� Capital:
Common Shares 27,000,000
Preferred Shares 15,475,101
Total 42,475,101
� Treasury Shares(*): 829,279 preferred shares – 5.4% of preferred and 1.9% of total capital
� Preferred shares Free Float (*): 13.4 million – free float = 31.7%
� Stock Options Program: 916,521 options granted, not exercise or cancellation
� Shareholder Remuneration: Anticipated payment of Interest on Own Equity for 1Q10 of R$ 6,3 million equivalent to R$ 0,15015 per share in March 2010
(*) Posição em 31.03.2010
Free Float and Remuneration Free Float and Remuneration
20
IDVL4 X IBOV IDVL4 X IBOV -- 20102010
+0.1%
+2.4%
+2.6%
+5.0%
+3.1%
1Q10
+79.9%
+78.9%
+71.9%
+73.3%
+57.2%
In 12 months
Earnings Adjusted
ITAG
IGC
IBOV
IDVL4
Performance
80
90
100
110
120
130
30/1
2/20
0909
/01/
2010
19/0
1/20
1029
/01/
2010
08/0
2/20
1018
/02/
2010
28/0
2/20
1010
/03/
2010
20/0
3/20
1030
/03/
2010
09/0
4/20
1019
/04/
2010
29/0
4/20
10IBOVESPA IDVL4
21
� Credit Behavior in Brazil�Private Financial Institutions slowly retaking share in credit volume
�Reducing of default contributes to growth retake
� Loan Portfolio�Focused in midsized companies, origination was retaken and, as delinquency sets back along the
year, credit portfolio shall develop gradual growth
� Funding and Liquidity� There is availability at satisfactory costs to resume growth
� Result from Operations�Default ratios decline and expense management contribute to result recovery
� Indusval Multistock Corretora de Valores� Investments in new facilities, new professionals and expansion of activities with DMA, fixed income
and retail investors
�Acquisition of Execution Broker Seal contributes to its positioning upgrade
In SummaryIn Summary
22
Please note that this is the English version of the presentation. The original version is in Portuguese. If there is any discrepancy between such versions, the Portuguese version shall prevail. Banco Indusval Multistock’s full financial statements will be available on our website at www.indusval.com.br/ir, under Financial Information – Financial Statements, as soon as they are filed with the CVM – Brazilian Securities and Exchange Commission. Any reference or statement regarding Banco Indusval Multistock - or its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies are just estimates. Although these forward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to, our ability to realize the amount of the projected synergies and in the timetable projected, as well as economic, competitive, governmental and technological factors affecting Banco Indusval Multistock’s operations, markets, products and prices, and other factors detailed in Banco Indusval Multistock’s filings with the CVM – Brazilian Securities and Exchange Commission which, readers are urged to read carefully, in analyzing the forward-looking statements that are contained herein. Banco Indusval Multistock undertakes no obligation to update any of the projections contained herein.
Questions and AnswersQuestions and Answers
23
Investor Relations Investor Relations –– Contact InformationContact Information
Ziro Murata Jr.
IRO
Phone: (55 11) 3315-6961
E-mail: [email protected]
Maria Angela R. Valente
Head of IR
Phone: (55 11) 3315-6821
E-mail: [email protected]
Banco Indusval S/A
Rua Boa Vista, 356 – 7º andar
01014-000- São Paulo – SP
Brasil
IR Site:
www.indusval.com.br/ir
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