1Q15 CONFERENCE CALL

Transcription

1 1Q15 CONFERENCE CALL

2 Highlights Recurring Net Income R$ million -7.2% (1Q15/4Q14) 42.4% (1Q15/1Q14) Net Income of R$ million in the quarter, growth of 12.2% compared to 4Q14 and 57.8% higher than in 1Q14. ROAE -Adjusted and Recurring (p.a.) -1.5 p.p. (1Q15/4Q14) 15.6% 4.0 p.p. (1Q15/1Q14) The ROAE was 16.3 % p.a. and the net financial margin (NIM) was 11.5 % p.a. Credit for Companies (2) ended the quarter at R$ 7,572.2 million, an increase of 1.5% in the quarter. NIM-AR (1) (p.a.) 12.1% -0.4 p.p. (1Q15/4Q14) -1.3 p.p. (1Q15/1Q14) Funding reached a balance of R$ 13,794.5 million, an increase of 1.2% compared to 4Q14 and 19.9% compared to 1Q14. We ended the quarter with a 109.9% EH rating portfolio coverage level (balance of LLP/E-H Portfolio). The Credits Overdue by more than 90 days/credit Portfolio (%) index of 0.7% was 0.1 p.p. lower than in 4Q14 and 0.7 p.p. lower compared to 1Q14. Expanded Loan Portfolio 4.7% (1Q15/4Q14) R$ 13.4 billion 25.2% (1Q15/1Q14) Shareholder's Equity 2.9% (1Q15/4Q14) R$ 2.6 billion 5.2% (1Q15/1Q14) We ended 1Q15 with Shareholder s Equity of R$ 2,594.6 million and a Basel III index of 17.5%, which demonstrates our low leverage and high capital level. We are informing the launch of our first Annual Sustainability Report. Produced in accordance with Global Reporting Initiative (GRI). (1) Includes exchange-rate variations on liability operations, foreign trade, the purchase of credit rights and excludes the result of property protection operations, DAYC4 swaps, portfolio transfers to other banks and matched operations repurchase agreements-tri-party repos outstanding. (2) Includes assignments, sureties and avals granted and the purchase of credit rights. 2

3 Expanded Loan portfolio reaches 13.4 bi, growth of 4.7% in the quarter. Expanded Loan Portfolio R$ mn Expanded Loan Portfolio (R$ mn) 1Q15 4Q14 Chg. % 1Q14 Chg. % Companies 5, , % 4, % Receivables Purchas e 1, , % 1, % Avals and Sureties % % Total Expanded Companies 7, , % 6, % Total Payroll Loans 4, , % 3, % Total Auto Loans % % Total DCC/Other % % Total Expanded Loan Portfolio 13, , % 10, % Breakdown Loan Loan Portfolio 1Q15 (*) 1Q15 1% Expanded Loan Portfolio R$ mn Expanded Loan Portfolio- (R$ mn) 36% 6% 57% Companies Payroll Loans Auto Loans 10,687 11,075 11,627 12,780 13,384 DCC 3

4 Companies Portfolio: 94% of active clients with sales less than R$ 300 mn/year. Highlights 39 Branches Companies portfolio grew 1.5% in the quarter and 25.8% compared to 1Q14 62% of the balance due is from clients with sales up to R$ 300 mn/year 94% of active clients with sales less than R$ 300 mn/year Companies Portfolio R$ mn Companies Portfolio- (R$ mn) 7,462 7,572 6,579 6,021 6,243 86% of the tickets are lower than R$ 500,000 93% of the clients have a balance due lower than R$ 5 mn Diversification of clients and sectors: 10 largest clients represented 5.8% of the credit portfolio 50 largest clients represented only 13.5% of the portfolio No single segment represents more than 10% of the credit portfolio Provision: 4.3% and NPL: 0.8% 5% 5% 12% Collateral Breakdown Collateral 4%3% 7% 64% Receivables Real Estate Vehicles Agricultural Products Financial Investments Equipments / Foreign goods Others Loans to Companies - Outstanding Operation - (December/14) Loan Portfolio Outstanding Operation - (March/15) 14% 32% 3% 51% Maturity of 51% over the next 90 days Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years 4

5 Companies Portfolio: Diversification of the sectorial breakdown. Breakdown Companies R$(mn) 1Q15 Chg. % 4Q14 Working Capital 3, % Guaranteed Account 1, % Receivables Purchase 1, % Trade Finance % Cross- Avals and Sureties Selling % BNDES % Total Companies 7, % 10% 20% Sectors Breakdown-1Q15 Companies Portfolio Breakdown 1Q15 6% 4% 60% Working Capital/Guaranteed Account Receivables Purchase Trade Finance Aval and Sureties BNDES Concentration by Sector Commerce 20.7% Food and Cereal Wholesaler 2.8% Services 30.4% Highway Transportation 3.7% Industry 42.7% Sugar and Alcohol Mill 3.8% Products For Agriculture 1.3% Real Estate Development 3.6% Inner Tubes 2.7% Export and import of Sugar 1.2% Holding Company 2.7% Light Vehicles 2.5% Export and import soybeans in bulk 1.1% Medical Services 1.4% General Electronic Products 1.9% Supermarket and Hypermarket 0.8% Factoring 1.3% Vehicles and Auto parts 1.5% Others 13.5% Others 17.7% (1) (1) (1) Others 30.3% (1) Others represent a lower share than the last ones cited in the sub-sector 5

6 Daycred Payroll Loans: Balance of R$ 4,908 million. Highlights Total Payroll Loan (*) R$ mn Number of contracts in the portfolio: 1Q15: 1.090,000 Average ticket: R$ 5,000 Portfolio Duration: 24 months 3,865 Payroll Portfolio (R$ mn) 4,441 4,017 4,189 4,908 Average Interest Rate (year): 27.6% Number of Promoters: 1,090 Refinancing Origination (Refin): 42% 49 own stores-ifp: 10.5% share of sales Provision: 1.9% and NPL: 0.3% (*) Includes credit assignment in all of the quarters (R$2,5 mn in 1Q15) Payroll Origination Portfolio Origination Monthly Average Média da Originação - (R$ MM) Net Origination Gross Origination Breakdown of Payroll Breakdown Payroll Loan (*) - 1Q15 R$ mn (includes credit assignments) 2.1% 0.8% 0.3% INSS 7.3% State Government 0.1% 7.8% Government /SIAPE Army 12.4% 41.8% Municipalities Courts Others 27.4% Debit Account Private 6

7 Daycred Auto Loans: Growth of 3.1% in the quarter. Highlights Number of contracts in the portfolio 1Q15: 112,400 Auto Auto Loan Loan Portfolio (R$ mn) Average ticket: R$ 7,000 with minimum down payment of 30% Portfolio Duration: 15 months Average Interest Rate (year): 34.7% Vehicle average age: 10 years Number of Promoters: 90 Portfolio distribution: 72% small vehicles Focused on the Southeast Provision: 7.1% and NPL: 1.6% Origination of Auto Loan Portfolio R$ mn Auto Loans Origination (R$ mn) Loans Auto - Outstanding Operation - (December/14) Loans Auto - Outstanding Operation (March/15) 40% 4% 19% 37% Maturity of 96% over the next 3 years Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years 7

8 155 points of Sale and diversified products. Manages 41 funds; 27 Exchange Bureaus; 49 stores operating throughout in Brazil; 40 service units in the state of São Paulo; Funds Administered / managed totaling R$ 1.9 billion operations and turnover of R$ 230 million in the quarter. 10.5% share of sales; 355 employees. Processed 1,470,000 payment slips in 1Q15 versus 1,307,000 payment slips in 1Q14. 8

9 Funding: Diversification in the funding. Funding (R$ mn) 1Q15 4Q14 Chg. % 1Q14 Chg. % Deposits 4, , % 3, % Letter of Credit - LCI + LCM % % Total Deposits + LCI + LCM 4, , % 4, % Individuals % % Institutional 2, , % 2, % Institutional - Public Offerings % % Local Bonds (Letras Financeiras) 3, , % 2, % Bonds 2, , % 2, % Bonds Issued Abroad (Private Placement) % % Foreign Issuances 2, , % 2, % Foreign borrowings 2, , % 1, % Domestic onlendings % % Borrowing and Onlending 2, , % 1, % Total 13, , % 11, % Focus on stable and recurring sources of financing available in the market; Number of investors in the diversified CDB portfolio was 2,775. Ratings Funding R$ mn Total Funding (R$ mn) 11,507 11,092 38% 39% 12,881 35% 13,636 13,795 33% 35% 25% 28% 29% 29% 24% 21% 22% 23% 24% 19% 16% 15% 13% 15% 17% Borrowing and Onlending Foreign Issuances Local Bonds Total Deposits + LCA + LCM 9

10 Outstanding Operations (March/15) Available cash of R$ 2.5 billion and positive gap of 48 days. 5,078 4,267 3,763 4,089 3,413 2,004 1,903 1, Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Funding Loan Portfolio Over 5 years Average Term of Loan Portfolio: Average Term of Funding: Loan Portfolio - Outstanding Operation 422 Funding - Outstanding Operations 470 (March/15 (March/15) Outstanding Operations (Loan Portfolio) - 1Q15 -% Outstanding Operations (Funding) 1Q15 - % 9% 4% 15% 15% 26% 32% Maturity of 61% over the next 12 months 31% 39% Maturity of 54% over the next 12 months 29% to 3 months From 3 to 12 months From 1 to 3 years m 3 to 5 years Over 5 years Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years 10

11 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 Ratio of the loan portfolio provision at 3.6%. Total Provision / Loan Portfolio(%) Total Provision / Loan Portfolio (1) - (%) Balance and Estabilishment of Provision (*) - R$ mn Evolution LLP / Portfolio by Segment (%) Companies Portfolio Provision (1) -(%) Total Payroll Provision(%) Payroll Provision-(%) Total Auto Provision (%) Auto Provision- (%) Total Middle Market Provision(%) (1) Includes Receivables purchase (*) Unconsolidated 11

12 NPL reaches 0.7% in 1Q15, with a 0.7 p.p. reduction in loans overdue by more than 90 days, in the last 12 months. Overdue Loans (1) 1Q14 4Q14 1Q15 Overdue Loans more than 90 days past due- R$mn Companies Portfolio Payroll Auto DCC + Other LLP Balance / Overdue Loans > 90 days (%) 303.0% 441.0% 499.4% Overdue Loans > 90 days/loan Portfolio 1.4% 0.8% 0.7% Companies Portfolio 2.1% 1.0% 0.8% Payroll 0.3% 0.4% 0.3% Auto 1.5% 1.6% 1.6% Loan Portfolio E-H - R$ Mn Companies (1) Payroll Auto DCC + Other (1) Total LLP Balance / Portfolio EH - (%) 97.7% 101.9% 99.8% 110.9% 109.9% Créditos Recuperados- (R$ MM) Past due operations more than 90 days (%) Past due operations more than 90 days Recovered Loans % % 1.0% 0.8% 0.7% 5% 4% 3% 2% 1% Past due operations > 90 days (R$mn) Past due operations > 90 days / Loan Portfolio 0% Companies Retailers Write-offs - R$ Mn Companies (125.7) (103.6) (53.7) (72.4) (67.2) Retail (31.7) (31.0) (32.9) (35.0) (35.3) Total (157.4) (134.6) (86.6) (107.4) (102.5) (1) Includes Receivables purchase to Companies Portfolio and DCC. 12

13 Recurring Efficiency Ratio ends the quarter at 35.8%. Recurring Efficiency Ratio (R$ mn) 1Q15 4Q14 Chg. % 1Q14 Var. % Personnel Expenses (62.3) (64.4) -3.3% (47.0) 32.6% Administrative Expenses (65.0) (64.2) 1.2% (45.5) 42.9% Personnel and Administrative Expense (127.3) (128.6) -1.0% (92.5) 37.6% Commission Expenses (Total) (53.3) (36.5) 46.0% (61.1) -12.8% Payroll (38.9) (22.6) 72.1% (48.7) -20.1% Auto Loans (10.6) (8.7) 21.8% (7.7) 37.7% Direct Credit to Consumer (DCC) + Others (0.5) (1.4) -64.3% (0.7) -28.6% Daytravel (3.3) (3.8) -13.2% (4.0) -17.5% Total (180.6) (165.1) 9.4% (153.6) 17.6% Recurring Efficiency Ratio (%) 35.8% 33.1% 2.7 p.p 34.7% 1.1 p.p Recurring Efficiency Ratio (considering Profit Sharing) (%) 38.5% 36.4% 2.1 p.p 36.8% 1.7 p.p Recurring Efficiency Ratio% Índice de Eficiência Recorrente%

14 Basel Index and Shareholder s Equity Basel Index III-% (1) - Tier I BIS Ratio (%) Below the main changes estabilished by Circular Instruction 3644/14 of the Central Bank: Payroll and Auto Loans are weighted at 75%, independent of the maturity of the operation; Retail exposure limit goes to R$1,500 thousand (Individual) and R$3,000 thousand (micro and small company); Payroll loans with federal government bodies now have 50% credit risk mitigation. Shareholder's Equity (R$ mn) Change in Shareholder s Equity 1Q15 (1) Basel Index 3 minimum 11% required by the Central Bank. 14

15 Recurring Net Income of R$ million for the quarter and Recurring ROAE of 15.6% in 1Q15. Recurring Net Income (R$ mn) Composition of Net Income Recurring (R$ mn) Net Income (R$ mn) Accounting Net Income Adjusted Net Income Mark to Market Hedge of Net Foreign Funding of Income Tax 1Q (4.0) 4Q (14.6) 1Q Return on Average Equity (ROAE) Adjusted and Recurring-(%) Return on Average Equity (ROAE)-(%) Return on Average Assets (ROAA) Adjusted and Recurring - (%) Adjusted Net Interest Margin and Recurring (NIM-AR) (*) - (%) (*) Methodology includes exchange-rate variations on liability operations, receivables purchase and excludes the result of property protection operations, DAYC4 swaps and matched operations- repurchase agreements-triparty repos 15 outstanding.

16 1Q15 Conference Call Investor Relations Ricardo Gelbaum +55 (11) Erich Romani +55 (11) Susie Cardoso +55 (11) "This material may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect the Bank's business. Many important factors may adversely affect the results of Banco Daycoval as described in management's estimates and forward-looking statements. These factors include, but are not limited to, the following: the performance of the Brazilian and international economies; fiscal, foreign-exchange and monetary policies; increasing competition in the companies segment; Banco Daycoval's ability to obtain funding for its operations; and changes to Central Bank rules and regulations. The words "believe," "may," "could," "seek," "estimate," "continue," "anticipate," "plan," "expect" and other similar words are used to identify estimates and projections. Considerations involving estimates and forward-looking statements include information relating to results and projections, strategies, competitive positioning, the industry environment, growth opportunities, the effects of future regulation, and the effects of competition. Such estimates and projections are valid only at the time of writing. Daycoval does not undertake to publish updates or review any of these estimates in response to new information, future events or other factors. In light of the risks and uncertainties involved, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make decisions based on the estimates, projections and forward-looking statements contained in this material." 16