40
APIMEC Meetings
APIMEC Meetings
Disclaimer
2
This presentation may include references and statements, planned synergies,
estimates, projections of results and future strategy for Banco do Brasil, its
Associated and Affiliated Companies, and Subsidiaries. Although these references
and statements reflect the management’s belief, they also involve imprecision and
highly difficult risks to be foreseen. Consequently, they may conduct to a different
result than those anticipated and discussed here. These expectations are highly
dependent on market conditions, on Brazil’s economic and banking system
performances, as well as on international market conditions. Banco do Brasil is not
responsible for bringing up to date any estimate in this presentation.
R$ million
Adjusted Net Income
3
3,008 2,728
3,967
2,557
7,472
5,510
10,029
2,986 2,6573,180 2,685 2,634
5,6905,319
21.4 18.627.0
16.5
51.8
19.3
31.9
21.2 18.1 21.2 17.4
16.4 19.9
16.3
2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
Net Income Adjusted Net Income ROE - % Adjusted ROE - %
jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13
4
Acquisition:
BNC, BEP,
BESC and BV
Partnership
ADR 1
Launching
BB Follow -
on
Shares
repurchase
program
IPO BB
Seguridade Acquisitions: Banco
Patagonia, BB Americas and
Banco Postal Partnership
Value Creation
BB is listed
on DJSI
4.14.7 4.9 4.9
2.2
4.0
2009 2010 2011 2012 1H12 1H13
Amount Distributed (Dividends and Interest on Own Capital) – R$ billion
Stock Trading Behavior (BBAS3 )
Assets Under Management¹ (R$ billion) Deposits (R$ billion)
Loan Portfolio¹ (R$ billion) Assets (R$ billion)
5
Leaderships
Peer A Peer B
(1) Source: Central Bank of Brazil – Market Share of March/2013.
21.0%
Market
Share¹
Peer A Peer B
20.8%
Market
Share²
(1) It includes Private Securities and guarantees provided.
(2) Source: Central Bank of Brazil – Domestic Portfolio Market Share.
Peer A Peer B
(1) Source: Central Bank of Brazil – Market Share of March/2013.
27.9%
Market
Share¹
Peer A Peer B
(1) It does not include Banco Votorantim’s figures.
(2) Source: Anbima – Market Share Jun/13.
20.8%
Market
Share²
1st 1st
1st 1st
BB BB
BB BB
1,214.71,057.7
896.7
638.6
467.5402.5
478.3
245.0 208.5
483.7397.5
280.1
Agenda
6
- Funding
- Loan Portfolio
- Asset Quality
- Other businesses
- Indicators
- Sustainability
7
Commercial Funding
R$ billion
193.5 204.7265.8 263.0 257.2
75.789.3
100.1 117.7 129.056.5
63.5
62.074.8 72.2
0.4
1.2
7.4
34.1 48.6
11.8
19.4
14.5
16.619.9
0.9
0.7
9.615.0
338.8
378.0
450.5
515.7541.9
Dec/09 Dec/10 Dec/11 Dec/12 Jun/13
Time Deposits Savings Deposits Demand Deposits LCA + LCI¹ Interbank Deposits Repo
(1) LCA - Agribusiness Letter of Credit; LCI - Real State Letter of Credit.
R$ billion
(1) LCA – Agribusiness Letter of Credit; LCI – Real State Letter of Credit
(2) It includes Subordinated Financial Letters.
Financial Letters, LCA e LCI¹
119.8% in 12
months
198.2 %
44.9 %
827.9 %
8
17.424.5 25.2
16.2
39.3
48.2
0.0
0.1
0.5
33.6
63.9
73.8
Jun/12 Mar/13 Jun/13
Letters of Credit - LF¹ Agribusiness Letters of Credit - LCA Real State Letters of Credit - LCI
4.67.6
11.0
17.5 19.56.2
8.8
10.0
10.912.2
6.2
4.9
7.0
11.2
10.2
2.0
2.1
3.1
3.23.0
2.8
2.0
3.5
2.21.1
21.7
25.3
34.6
45.046.1
Dec/09 Dec/10 Dec/11 Dec/12 Jun/13
Bond Issues Interbanking Companies Individuals Repo + Special
US$ billion
Foreing Borrowings
9
(1) Funds and portfolios managed.
(2) It does not include Banco Votorantim.
8.0 % in 12
months
R$ billion
Asset Management¹
10
20.8 % Market Share² 1º
447.8
477.3
483.7
Jun/12 Mar/13 Jun/13
Loan Portfolio
11
- Growth and Leaderships
R$ billion
Loan Portfolio – Broad Concept¹
1º
12
(1) It includes private securities and guarantees provided.
(2) Domestic Loan Portfolio / Brazilian Banking Industry. Source: Central Bank of Brazil.
144.0 176.4210.2
273.9 300.191.8
113.1
130.6
152.0161.5
67.1
75.7
89.4
108.0
127.1
18.4
23.0
35.0
46.9
49.9
321.4
388.2
465.1
580.8
638.6
20.119.8
19.220.3 20.8
Dec/09 Dec/10 Dec/11 Dec/12 Jun/13
Corporates Individuals Agribusiness Offshore Market Share(%)²
25.7% in 12
months
R$ 23.6 billion
23.1% in 12
months
(1) It does not include BV and acquired portfolios.
R$ billion
Organic Individuals Loan Portfolio¹
13
Payroll 43.1 42.1 48.5 40.6 50.5 40.1
Salary Loans 17.0 16.7 17.8 14.9 18.3 14.6
Auto Loans 6.7 6.6 11.7 9.8 12.1 9.6
Mortgage 7.7 7.5 11.4 9.5 13.7 10.9
Credit Cards 13.6 13.3 15.4 12.9 16.2 12.9
Consumer Finance 6.1 5.9 5.9 5.0 6.2 4.9
Overdraft 2.9 2.9 2.8 2.3 2.7 2.2
Microcredit 0.6 0.6 1.0 0.8 0.9 0.7
Other 4.5 4.4 5.0 4.2 5.1 4.1
Indivuals Loan Portfolio 102.2 100.0 119.5 100.0 125.8 100.0
Jun/13 Share %Mar/13 Share %Jun/12 Share %
72.9% 75.2%
7.4
6.1
5.4
1.3 3.4
Jun/12 Payroll Mortgage Auto Loans Salary Loans Other Jun/13
R$ billion
Individuals Loan Portfolio – Organic Growth
14
102.2
125.8
R$ 23.6 bi
23.1%
76.3% in
12 months
R$ billion
Mortgage Loans
15
7.7 8.510.2
11.4
13.7
2.12.3
2.7
3.0
3.6
9.810.8
12.9
14.3
17.3
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Individuals mortgage Companies mortgage
Loans to Individuals BB Banking Industry
Average Ticket (R$ thousand) 145.1 203.0
Average financed (%) 60.8 65.0
79.9 % in
12 months
R$ billion
Auto Loans - Organic¹
16
(1) It does not include BV and acquired portfolios.
6.7
9.2
11.011.7
12.1
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
56.8%
20.9%
22.3%
61.2%
19.4%
19.4%
Checking Account Holders:
Over 10 years
Between 5 and 10 years
Less than 5 years
28.8% in 12
months
R$ billion
Loan to Companies – Broad Concept¹
17
Working Capital 125.2 53.7 157.1 56.0 162.4 54.1
Investment 39.5 17.0 46.2 16.5 49.9 16.6
Trade Finance 17.2 7.4 15.4 5.5 16.2 5.4
Corp. Bonds & Notes 26.9 11.5 35.5 12.6 41.4 13.8
Guarantees 17.6 7.6 16.9 6.0 18.3 6.1
Other 6.6 2.8 9.4 3.4 12.0 4.0
Corporate Loan Portfolio 233.0 100.0 280.5 100.0 300.1 100.0
Jun/12 Share % Mar/13 Share % Jun/13 Share %
(1) It includes Private Securities and Guarantees provided.
R$ billion
Loans to Companies
Companies Loan Portfolio by size
18
SME Loan Portfolio – Operations Guarantee
Fund (FGO)
43.6% in
12 months
11.4
14.3
16.3
435.1 460.9 478.2
Jun/12 Mar/13 Jun/13
Number of Operations (thousand)
153.4180.6 193.4
75.4
89.394.0
4.2
10.712.8
233.0
280.5300.1
Jun/12 Mar/13 Jun/13
Medium and Large Companies SME Government
24.8%
26.0%
28.8% in 12
months
202.1%
16.9
20.4
33.8
42.8
28.5
2009 2010 2011 2012 1H13
R$ billion
Investments – Disbursement
41.3% in
12
months
19
1H12
20.2
Infrastructure Projetcs
20
36.3
16.9
8.9
4.4 4.1
1.3 0.8
22.1
9.5
6.9
1.42.4
1.3 0.6
Total More than onesector
Energy Marine Sector andOil
Transport Telecom Other
Amounted Contracted Disbursed
1H13 Transactions – R$ billion
Expectative¹ of
disbursement between
Aug-Dec/13: R$ 22.5
billion
Viracopos Airport / Campinas (SP) – Inauguration of the 1st expansion phase.– May/2014
(1) Position: Aug.05, 2013
32.8% in 12
months
R$ billion 66.1% Market Share 1st
Agribusiness Loan Portfolio
21
67.1
75.7
89.4
108.0
127.1
Dec/09 Dec/10 Dec/11 Dec/12 Jun/13
• Anticipated acquisition of inputs (Work
Capital for Input purchase)
US$ Jun/13 = 4.0%
• High Demand for Investments (more
atractive interest rates)
• Transactions with large companies
15.0% in
2Q13
Agribusiness Crops
22
2012/2013 Crop Plan¹
Disbursement Objective: R$ 55.0 billion
Reached Disbursement: R$ 61.6 billion
2013/2014 Crop Plan¹
(1) Amounts relating to rural credit.
Disbursement Objective: R$ 70.0 billion
27% increase over
2012/2013 Crop Plan
Asset Quality
23
- Delinquency below the Brazilian Banking Industry
- Concentration of loans at AA-C risks
- BV Asset Quality Improvement
92.8
7.2
Asset Quality
Risk Level – Jun/13 (%)
24
Coverage Ratio + 90 days (%)
NPL +90 days (%)
Risk AA-C Risk D-H
BI¹
3.02
4.43
3.18 3.60 3.70 3.60 3.40
2.36
3.25
2.28
2.16 2.05 2.00 1.87
3.26
2.34
1.81 1.77 1.74 1.65
2008 2009 2010 2011 2012
BI¹ BB consolidated BB ex. Banco Votorantim
156.1 174.4 157.3 148.7 146.2 152.3
190.3212.1 207.6 196.5 199.7 201.6
Dec/09 Dec/10 Dec/11 Dec/12 Mar/13 Jun/13
BI BB
BB
94.6
5.4
(1) Banking Industry
25
Write-off Ratio¹ (%) Recovery Ratio² (%)
Average Risk (%)
(1) Write-off ratio = write off / loan portfolio (2) Recovery ratio = recovery / write-off
Peers average considers the balance reported by the three largest brazilian private banks.
Asset Quality
4.09 4.10 3.81 3.77 3.56
5.69 5.73 5.50 5.26 5.18
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
BB Banking Industry
0.59 0.59 0.61 0.57 0.69
1.39 1.42 1.411.29
1.37
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
BB Peers Average
21.09 21.03 18.35 19.40 21.76
40.89
28.87 33.29
22.70
29.70
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Peers Average BB
%
Delinquency per Segment¹
26
Indiv
iduals
C
om
panie
s
Agri
busin
ess
NPL 15 NPL 90 Risk AA-C
(1) It does not include BV and acquired portfolios.
4.90 4.74 4.20 4.31 4.142.76 2.76 2.60 2.38 2.40
91.5 91.7 92.2 92.4 92.5
3.21 3.56 3.16 3.46 3.062.12 2.26 2.18 2.20 2.14
95.1 94.8 95.2 95.1 95.1
0.720.95 0.96 1.00
0.780.51 0.48 0.63 0.64 0.48
94.5 94.6 95.2 95.2 95.8
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
1.438 1.332
1.066 1.004 1.065 1.322 1.207
880 841 779
2Q12 3Q12 4Q12 1Q13 2T13
Classified Retail
Allowance for Loan Losses – Classified Concept – R$ million
Vintage of the Managerial Auto Loan Portfolio (%) Coverage x Delinquency (classified Concept) - %
Banco Votorantim – Asset Quality
27
22 19 15 13 11 4
57 5247 43 38
29
21 29 38 44 52 67
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Dec/13
Until Jun/10 Jul/10 to Sep/11 After Sep/11
91 98 104 111 114
8.4 8.0 7.0 6.4 5.9
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Coverage + 90 days NPL + 90 days
1,197 1,083735 749 657
Auto
Estimated
Other Businesses
28
- Insurance, Pension Plans and Premium
Bonds
- Capital Market
- Cards
Adjusted ROAE
(2Q13)
BB Seguridade
29
Market Position 3
Adjusted Net Income
(2Q13) 7 (R$ million)
Businesses
SH1 Life1
SH2 P&C2
Pension Plans
Premium Bonds
Broker
108.4 18.9 147.9 39.8 231.6 550.3 8
Insurance, Pension Plans and Premium Bonds Distribution Holding
1st 1st 1st 1st 4 6
1st
59.0% 63.9% 27.7% 13.2% 39.1%
Source: BB Seguridade (IFRS) and Susep
1. SH1 includes Life, Credit, Housing and Rural Insurance/ 2. SH2 includes Auto, Damages and Others (except for Housing and Rural Insurance) / 3. 1H13 Position / 4. 1st position:
represents Life Insurance of BB Seguridade / 5. 2nd position: represents the P&C products of BB Seguridade / 6. Considers Susep ranking about collection produtcs as of Jun/2013 / 7.
Considers net income of BB Seguridade / 8. The BB Seguridades’s net income includes R$ 3.7 mi related to holding taxes and revenues/expenses, which are not presented above.
5
Revenues – R$ million
Capital Market
30
18.4
44.6
25.0
40.4
2Q12 2Q13
Equity Fixed Income
143.1% in
12 months
61.7% in
12 months
Fee Income (R$ billion) Revenues (R$ billion)
Cards
32.137.6
45.5
56.3
77.7
93.8
1H12 1H13
Debit Card Credit Card
8.0 8.7
2.3
2.6
10.3
11.3
1H12 1H13
Cards Other
31
23.3% 22.0%
23.6% Market Share¹
(1) Position: Mar/13.
Indicators
32
- Cost to Income Ratio
- BIS Ratio
R$ billion
Cost to Income Ratio
33
(1) Administrative Expenses / Operational Revenues. Data reffers to Income Statement with realocations. 12 months accumulated ratio.
19.2
22.6
24.8
28.2
13.6 14.4
40.7
44.0 42.9 43.2 42.5 43.6
2009 2010 2011 2012 1H12 1H13
Administrative Expenses Cost to Income Ratio (%)¹
%
BIS Ratio
34
10.60 10.74 10.55 10.58 10.32
3.63 4.07 4.285.72 5.61
14.2214.81 14.83
16.29 15.93
Jun/12 Sep/12 Dec/12 Mar/13 Jun/13
Tier I Tier II
%
Guidance
35
(1) Adjusted ROAE estimated for 2013 uses estimated shareholders’ equity, according to current legislation on December 31, 2012.
(2) Includes total deposits, Agribusiness Letters of Credit – LCA, Mortgage Bonds - LCI and Repurchase Agreements Operations with Private Securities.
(3) Domestic Loan Portfolio,in Broad Concept, includes private securities and guarantees.
(4) Expenses with allowance for loan losses of the last twelve months/average classified loan portfolio for the same period.
Adjusted Return on Equity¹ 16.3 14 - 17 Unchanged
Net Interest Income 1.2 7 - 10 4 - 7
Commercial Funding² 10.0 15 - 19 Unchanged
Domestic Loan Portfolio³ - Broad Concept 25.8 16 - 20 17 - 21
Individuals 15.9 18 - 22 16 - 20
Companies 28.8 16 - 20 18 - 22
Agribusiness 32.8 13 - 17 22 - 26
Allowance for Loan Losses
⁴
2.9 3,0 - 3,4 2,7 - 3,1
Fee Income 9.7 10 - 14 Unchanged
Administrative Expenses 6.0 7 - 10 5 - 8
2013 Guidance2013 Guidance
Revised2013 Performance
Sustainability
36
-Sustainability Plan – BB’s Agenda 21
-Sustainable Regional Development
-BB Volunteer Program
37
• 120 executives
• 29 strategic areas + Banco do Brasil Foundation and Related Companies
• 92 macro actions:
• 77 actions with deadline between 2013 and 2015
• 15 continuous actions
• 17 finished actions in 1H13
• Social Businesses/ Financial Inclusion/ Businesses Opportunities
• Private Social Investment
• Strategy / Corporative Governance
• Trademark Management/ Customers Relationship Management
• Culture of Social and Environmental Responsability
• Ethics and Code of Conduct / Compliance / Corruption / Labor Practices Indicators
• Environmental Risk
• Environmental Management System / Ecoefficiency / Supply Chain Management
Sustainability Plan - Agenda 21 BB To
pic
s
DRS Action
Sustainable Regional Development (DRS) Business Strategy to support urban and rural productive activities
Productive Loan Portfolio (R$ billion) Beneficiaries
Rural Activities
66%
Urban Activities
34%
4.088 Businesses Plans
149 supported activities
38
162,000
1,167,997
1,502,180
2007 2008 2009 2010 2011 2012 Jun/13
0.3
8.9
15.7
2007 2008 2009 2010 2011 2012 Jun/13
BB Volunteers Project: FBB¹ e FIA² Resources (R$ mil)
BB Volunteer Program
Regional Distribution Number of Volunteers
1,449 1,712 1,918 2,118 2,475
4,911
8,399
10,903
2006 2007 2008 2009 2010 2011 2012 Aug/13
40%
19%
18%
17%
5%
Southeast South Northeast Midwest North
1968.0
3509.0 3471.0 3434.0 4180.0
1173.0
2525.0
5113.0
6477.0
2009 2010 2011 2012 2013
FBB FIA
39
(1) Banco do Brasil Foundation. (2) Fund for Children and Adolescents.
(3) Support for projects with waives tax resources (FIA) will occur in the second half of 2013.
3
