Balance Sheet, March 2001

Transcription

1 HOW TO GROW THE BANK IN THIS ENVIRONMENT Anatol von Hahn, President Scotiabank Inverlat June, 2001 Scotiabank Inverlat Balance Sheet, March 2001 (Billion of Pesos) Cash, securities, banks Loans -Retail - Corporate & Commercial - IPAB Performing loans Non Performing loans Loan loss provisions Other assets TOTAL ASSETS (5.7) Savings / Demand deposits Retail Term deposits Preferential Term deposits Wholesale funding Other liabilities Equity TOTAL LIABILITIES & EQUITY

2 Scotiabank Inverlat Income Statement (Million of Pesos) TOTAL REVENUES Jan - Mar'01 1,300 PROVISIONS (33) EXPENSES Personnel (355) Operating (592) Other costs (37) Total Expenses (984) Net income before taxes 283 Taxes / other (122) Net income Consolidation of the financial system! 3 banks control over 70% of the system.! Potential candidates for consolidation: " Banorte " Bital " Bancrecer! Citibank / Banamex expected to close by Q3. 4

3 Inverlat: 5 th in deposits and 7 th in loans March 2001 ( Billion of Pesos ) Core Deposits * Market Share Performing Loans Market Share Scotiabank Inverlat $43 5% $36 4% BBVA Bancomer $295 36% $240 29% Banamex (Citi) % % Santander Serfin % % Bital 84 10% 55 7% Banorte 42 5% 76 9% Citibank 27 3% 21 3% * Demand, Savings & Term customer deposits 5 We are profitable... March 2001 As a % of Total Assets (Annualized) Operating Expenses per ( Million of Pesos ) Operating Revenue Operating Expenses Operating Profit Branch Employee Scotiabank Inverlat 8.7% 6.5% 2.2% $2.5 $0.1 BBVA Bancomer 7.2% 4.9% 2.3% $2.2 $0.2 Banamex (Citi) 8.0% 4.9% 3.2% Santander Serfin 7.1% 4.6% 2.5% Bital 9.3% 8.4% 0.9% Banorte 8.2% 5.8% 2.4%

4 with a strong delivery network March 2001 # Branches # ATM # Employees Scotiabank Inverlat ,281 BBVA Bancomer 2,234 4,054 30,056 Banamex (Citi) 1,362 3,870 27,489 Santander Serfin 924 1,670 11,643 Bital 1,378 3,746 15,329 Banorte 458 1,473 8,641 Citibank ,774 Bancrecer , strategically placed...! 600 bankable communities! 150 attractive markets! We are in 132 bankable communities! In these 132 markets, we have 5% of branches and 6% of deposits 8

5 a solid capital base, fully reserved March 2001 Scotiabank Inverlat % TIER I Equity 11% Reserves / NPL 102% BBVA Bancomer Banamex (Citi) Santander Serfin Bital Banorte Citibank 10% 11% 14% 10% 11% 8% 111% 104% 490% 108% 101% 77% Scotiabank Inverlat has minimal deferred taxes in its capital base 9 a powerful new brand! Rebranded as Scotiabank in January 2001! National multimedia campaign! New product launches! Increased top of mind awareness 10

6 and capacity to grow. March 2001 ( Million of Pesos ) Assets / Branch Assets / Employee Deposits / Branch Deposits / Employee Scotiabank Inverlat $157 $9 $114 $7 BBVA Bancomer $177 $13 $121 $10 Banamex (Citi) Santander Serfin Bital Banorte Citibank Objective #1: Growth Increase loan assets Build low-cost deposits Implement new business initiatives Improve productivity Maintain cost controls 12

7 Increase lending in three sectors! Immediate high volume " Government lending " Corporate lending! Steady growth " Commercial! Starting from a low base " Retail Credit Card Cars Mortgages! Growth partially offset by IPAB amortization 13 Grow commercial / corporate loans! Leverage BNS relationship with multinationals! 4 commercial banking centers! 8 commercial branches! 55 SME branches! Aggressive calling program 14

8 Grow retail loans! Leverage branch network!... in conjunction with alternate delivery channels: " Credit Card - Telemarketing " Car Loans - Car dealers " Mortgages - Dedicated sales force 15 Increase low cost deposits by 17%! Build retail deposits through: " Assignment of top retail customers to PBOs " Increase advertising and promotional campaigns " Focus on deposit accounts " Branch bonuses closely linked to deposit growth! Build commercial deposits by: " Compensating balances in new lending relationships " Packaging Cash Management, POS, ATM, products " Segmentation of Commercial current account! Follow defensive strategy on government deposits 16

9 Continue to control all costs! Operating Expenses to remain flat " Increase in Personnel Expenses offset by a decrease in Administrative Expenses! Lower funding costs " Increase D&S deposits " Rating Agency classification! Minimal reserves required in Overall - substantial opportunity to grow loans Gross Loans (% of GDP) CAN CHI BRA ARG PER VEN MEX 18

10 and deposits Total Deposits (% of GDP) CAN CHI ARG BRA PER VEN MEX 19 and develop niche markets with strong growth potential.! Trade Finance! Insurance! Trust services! Services for Professionals 20

11 In Summary! Strong, restructured, well capitalized! National branch network! State of the art alternate delivery channels! Motivated and capable staff! Very competitive retail & commercial products POISED TO GROW 21 Revenue growth team! Retail Pablo Aspe! Commercial León Teutli! Corporate Troy Wright 22

12 This presentation includes forward-looking statements about objectives, strategies, and expected financial results. Such forward-looking statements are inherently subject to risks and uncertainties beyond the Bank s control, including but not limited to economic and financial conditions globally, regulatory developments in Canada and elsewhere, technological developments, and competition. These and other factors may cause the Bank s actual performance to differ materially from that contemplated by forward-looking statements, and the reader is cautioned not to place undue reliance on such forward-looking statements. 23