Bank Overview Our Business Highlights Commercial Banking Funding Corporate Treasury Private Banking
Structural Organization Mariani Group Others 47% 73% 27% BBM Holding S.A. 51% Banco BBM S.A. 2% 100% BBM Adm. de Recursos DTVM S.A. Bacor Corretora de Câmbio e Val. Mobil. S.A. BBM Bank Ltd. (Bahamas)
Organizational Flowchart Board of Directors Pedro H. Mariani Edgard Lacerda Eduardo Mariani Glória Mariani Lúcio Santos Banco BBM Executive Board Pedro H. Mariani * Cassio von Gal Leonardo Oliveira** Renato Muanis Internal Audit Pedro H. Mariani FX, Risk and Internal Controls Cassio von Gal Funding and Institutional Relations Renato Muanis Credit Leonardo Oliveira** Back Office Proprietary Treasury Funding and Institutional Relations Corporate Credit I Credit Analysis Private Banking Distribution Corporate Credit II Products Risk Communication Corporate Treasury Internal Controls Legal Dept. People Back office (Settlement and Custody) Administrative and IT *Coordinator of the Executive Board **Waiting approval of Banco Central do Brasil
Corporate Governance Annually Semiannual Quarterly Monthly Weekly General Meeting of Shareholders Board of Directors Executive Committee Operational Risk & Internal Controls Committee Product Committee HR Committee Credit Committee Risk Committee Regulatory Committee Compliance Committee
Our Business Commercial Banking Provides credit lines in local and foreign currency for companies; Focus on companies with annual revenues exceeding R$ 200 million. Private Banking Provides financial advisory and wealth management services to high net-worth clients. Treasury Capital and liquidity management; Asset pricing.
Highlights of Financial Performance Financial Highlights Sep/12 Dec/12 Jun/13 Total Assets (R$ Million) 3,010 2,705 2,837 3,111 Shareholders Equity (R$ Million) 533 543 546 547 Net Income (R$ Million) 23 43 19 27 Return on Average Equity 5.76% 8.04% 7.02% 6.62% Total Loan Portfolio (R$ Million) 1,264 1,341 1,111 1,165 Total Funding (R$ Million) 1,852 1,943 1,798 1,721 Liquid Assets 869 892 1,012 832 Basel Ratio (Core Tier I) 16.97% 22.03% 27.50% 22.41% Credit Leverage NIM (before Allowances for Loan Losses) 2.37 2.47 2.04 4.26% 5.41% 7.14% 2.13 5.86%
Ratings Mar/13 Aa2.br/BR1 Bank Deposits / Domestic Currency Ba1/NP Deposits / Foreign Currency Ba1/NP Bank Deposits Jun/13 Classificação de Risco: Low medium term risk Disclosure: Very Good
Credit Evaluation BBM s Credit Committee must approve the credit structure, product, payment flows and guarantees for each presented transaction; All credit approvals granted by the Committee are valid for 90 days; All transactions are evaluated by cash flow/balance sheet and quantitative model; R$ 20 million target net exposure per economic group.
Commercial Banking Loan Portfolio R$ Million 1,264 1,341 1,111 1,165 Sep/12 Dec/12 Jun/13
Commercial Banking Loan Portfolio Breakdown by Transaction Loan Portfolio Breakdown by Sector 2% 3% 2% 7% 51% 54% 53% 48% 21% 18% 18% 5% 5% 6% 6% 4% 8% 9% 14% 9% 14% 6% 11% 25% 6% 5% 13% 6% 22% 21% 27% 23% 19% 20% 28% 24% 25% 22% 18% 22% 26% 28% 25% 21% Sep/12 Dec/12 Jun/13 Sep/12 Dec/12 Jun/13 Trade Finance Working Capital Export Credit Notes Others Agriculture Chemical and Petrochemical Food Others Construction and Engineering Sugar and Alcohol Energy
Commercial Banking Loan Portfolio - Quality Ratios Sep/12 Dec/12 Jun/13 Past Due Above 60 days 0.2% 0.1% 1.6% 2.1% Allowances for Loan Losses 3.6% 1.6% 3.5% 4.5% Loans from (D H) Loans from (( D H ) allowances for loan losses) / equity. 4.9% 0.7% 3.3% 3.0% -2.1% -0.3% 5.9% 3.0% Collaterals Receivables Inventories / Crops Assignment of shares Assignment of real estate 29% 4% 42% 25%
Liquidity Management Total Funding R$ Million Liquid Assets* R$ Million 1,852 1,943 1,798 1,721 1,012 869 892 832 Sep/12 Dec/12 Jun/13 Sep/12 Dec/12 Jun/13 *Liquid Assets = Cash and cash equivalents + Short-term interbank investments (Funded position, Investments in interbank deposits and foreign currency) + Fixed Income Securities (Not considering those linked to Repo transactions and guarantees) + Variable Income Securities (Not considering fund shares).
Funding Funding Breakdown by Sector Funding Sources 15% 13% 14% 11% 45% 48% 55% 54% 42% 44% 54% 57% 12% 15% 12% 14% 12% 5% 6% 12% 6% 8% 9% 11% 28% 26% 28% 28% 37% 35% 23% 21% Sep/12 Dec/12 Jun/13 Individual Investors Corporate Multilateral Agencies Institutional Investors Sep/12 Dec/12 Jun/13 Time Deposits & Interbank Deposits Trade Finance Banknotes, Agribusiness & Real Estate Credit Bills Demand Deposit, IFC
Funding Maturity Profile 1 Loan Portfolio vs. Funding 2 Asset Liability Management R$ Million 778 773 812 738 1.200 1.000 407 410 453 447 800 600 400 200 0 Sep/12 Dec/12 Jun/13 Loan Portfolio Funding ¹Average term of issuance ²Not considering Demand Deposits.
Treasury Asset and liability management; Sets price points for other areas; Sophisticated risk management tools; VaR of 2% of shareholders equity; Activities supported by a strong research team.
Private Banking Provides financial advisory and wealth management services; R$ 2.5 billion under management, grounded on: More than 150 years of experience on the Brazilian market with a high expertise on risk management; Consistent performance throughout the last years; Assets under Management R$ Million 2,295 2,324 2,537 Product diversification (Open Platform); 1,969 Transparency. Sep/12 Dec/12 Jun/13
Addresses Rio de Janeiro, RJ Praça Pio X, 98-5 th, 6 th e 7 th floors Zip Code 20091-040 Phone.: +55 (21) 2514-8448 Fax: +55 (21) 2514-8293 Salvador, BA Rua Miguel Calmon, 398-2 nd floor - parte Zip Code 40015-010 Phone.: +55 (71) 3326-4721 (71) 3326-5583 Fax: +55 (71) 3254-2703 São Paulo, SP Av. Brigadeiro Faria Lima, 3311-15 th floor Zip Code 04538-133 Phone.: +55 (11) 3704-0667 +55 (11) 4064-4867 Fax: +55 (11) 3704-0502 Nassau, Bahamas Shirley House Shirley House Street, 2 nd floor, P.O. N-7507 Phone.: (1) (242) 356-6584 Fax: (1) (242) 356-6015 www.bancobbm.com.br Ombudsman : Phone.: 0800 724 8448 Fax: 0800 724 8449 E-mail: ouvidoria@bancobbm.com.br www.bancobbm.com.br/ouvidoria