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1Q10 Earnings Release
Anis Chacur Neto
Deputy CEO
Sérgio Lulia Jacob
Director Vice-President & IRO
Disclaimer
The following material, on this date, is a presentation containing general information about the
Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly,
as to the accuracy, completeness or scope of this information.
This presentation may include forward-looking statements of future events or results according
to the regulations of the Brazilian and International securities and exchange commissions.
These statements are based on certain assumptions and analyses by the Company that reflect
its experience, the economic environment, future market conditions and expected events by
the company, many of which are beyond the control of the Company. Important factors that
2
the company, many of which are beyond the control of the Company. Important factors that
may lead to significant differences between the actual results and the statements of
expectations about future events or results include the company’s business strategy, Brazilian
and International economic conditions, technology, financial strategy, financial market
conditions, uncertainty regarding the results of its future operations, plans, objectives,
expectations and intentions, among others. Considering these factors, the actual results of the
company may be significantly different from those shown or implicit in the statement of
expectations about future events or results.
The information and opinions contained in this presentation should not be understood as a
recommendation to potential investors and no investment decision is to be based on the
veracity, current events or completeness of this information or these opinions. No advisors to
the company or parties related to them or their representatives should have any responsibility
for any losses that may result from the use or contents of this presentation.
Highlights
• Return On Average Equity (RoAE) in 1Q10 reached 15.2% p.a.
• The Credit Portfolio including guarantees issued reached BRL 9,484.5
million, an outstanding increase of 11.5% over 4Q09 and 47.4% when
compared to 1Q09.
3
• Adjusted Net Income* in 1Q10 totaled BRL 46.9 million, an increase of
5.5% compared to 4Q09 and 96.0% in comparison to 1Q09.
• The number of clients increased by 9.3% QoQ and 54.7% in the year.
• Issuance of Subordinated Debt in the amount of USD 300 million, concluded
in April 8, 2010, increasing the capital and the ability to leverage the bank.
*Divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government (REFIS)
CREDIT PORTFOLIO (BRL million)
Including guarantees issued
Credit Portfolio
SHAREHOLDERS’ EQUITY (BRL million)
AND BASEL INDEX*
6,435.5 6,598.1 7,422.2 8,509.2 9,484.5
86.0% 84.3% 84.9% 84.1% 85.2%
11.5%
1.141,9 1.159,5 1.182,2
1.218,4
1.247,1
18,1% 17,9%
4
LOANS (BRL million)
1Q09 2Q09 3Q09 4Q09 1Q10
1Q09 2Q09 3Q09 4Q09 1Q10
Corporate
Middle Market
Other
4,395.7 4,438.1 4,863.4 5,644.7 6,293.0
11.2% 13.3% 13.3% 14.6% 13.9%
82.0% 79.0% 79.3% 78.1% 78.7%
15.8% 19.1% 19.2% 20.8% 19.9%
11.5%
1Q09 2Q09 3Q09 4Q09 1Q10
15,4%
14,6%
13,3%
It was concluded on April 8th the offshore
issuance of Subordinated Notes in the
amount of USD300 million. These Notes
have increased Basel Index by around 550
bps since April 2010.
Credit Portfolio Quality
1 2 3 4 5 6 7
Segments
Loan Portfolio *
(BRL million)
Write Off
(BRL million)
Write Off /
Loan Portfolio
LLR **
(BRL million)
LLR ** /
Loan Portfolio
Past Due >
90 days
(BRL million)
Past Due >
90 days /
Loan Portfolio
Corporate 4,950.3 13.6 0.27% 75.1 1.52% 11.5 0.23%
Middle Market 1,252.2 4.7 0.38% 41.7 3.33% 8.1 0.65%
Other 90.5 1.7 1.88% 4.1 4.50% 1.4 1.54%
Total - 1Q10 6,293.0 20.0 0.32% 120.9 1.92% 21.0 0.33%
4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57%
5
Mar/2010
* Excluding guarantees issued.
1.03% 0.99% 0.98% 1.05%
2.23%
2.81%
2.98%
2.64%
2.25%
1.92%
0.21% 0.25% 0.28% 0.34%
0.64%
1.18%
0.95%
0.65% 0.57%
0.33%
0.17% 0.11% 0.04% 0.05% 0.04%
0.16% 0.17%
0.28%
0.09%
0.32%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
AA-C; 96.9%
D-H; 3.1%
4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57%
3Q09 4,863.4 13.4 0.28% 128.4 2.64% 31.5 0.65%
2Q09 4,438.1 7.7 0.17% 132.4 2.98% 42.1 0.95%
1Q09 4,395.7 6.9 0.16% 123.4 2.81% 51.9 1.18%
Loan Loss Reserves
NPL (over 91 days)
Write Off
Corporate
(BRL Mi)
1.927,0 2.056,4
2.446,4
2.746,8
3.129,4
Guarantees Issued
Loans
5,533.0 5,563.1
6,305.0
7,157.2
12.9%
46.0%
8,079.7
6
(BRL Mi)
1Q09 2Q09 3Q09 4Q09 1Q10
3.606,0 3.506,7 3.858,6
4.410,4
4.950,3
1Q09 4Q09 1Q10
Ticket 11.8 12.0 12.0
Duration 329 342 346
Groups 470 596 675
São Paulo
52.4%
São Paulo -
Countryside
28.9%
Rio de
Janeiro
7.3%
South
11.4%
Middle Market
932,5
1.173,7 1.252,2
25,5
29,1
51,9
68,3
62,1
Guarantees Issued
Loans
5.8%
83.0%
718.0
877.0
984.4
1,242.0
1,314.3
7
(BRL Mi)
1Q09 2Q09 3Q09 4Q09 1Q10
692,5
847,9
932,5
São Paulo
49.5%
São Paulo -
Countryside
9.9%
Rio de Janeiro
9.8%
South
24.9%
Minas Gerais
5.8%
1Q09 4Q09 1Q10
Ticket 1.9 2.0 2.0
Duration 209 258 256
Groups 388 618 652
TREASURY, M&A AND CAPITAL MARKETS
Other Activities
Treasury (BRL Mi) 1Q10 4Q09 1Q09
Revenues 14.7 10.8 0.2
Consolidated Average VaR 1.7 2.3 2.1
8
Capital Markets (BRL Mi) 1Q10 4Q09 1Q09
Underwriting Fees and M&A 2.4 0.6 0.3
Numbers of deals 8 3 2
Funding
(BRL Mi)
10%
9%39% 32%
24%
23%
24%
International
22%
5,076.1 4,999.4
5,532.1
5,841.6
6,446.2
9
1Q09 2Q09 3Q09 4Q09 1Q10
22% 20% 20% 22% 19%
14%
13%
15%
13% 15%
8% 12%
14% 10%
11%11%
14%
19% 22%
22%
6%
9%
8%
10%
Retail
BNDES
Financialinstitutions
Institutional
Corporate
Managerial Income Statement
Revenue
MANAGERIAL NET INTEREST INCOME
* Treasury result with managerial adjustments
NII (BRL million) 1Q10 4Q09 Var.(%) 1Q09 Var.(%)
Credit Operations 93.8 87.9 6.7 88.7 5.7
Treasury* 14.7 10.8 0.2
Net Interest Income before Loan-Loss Provisions (LLP) 108.5 98.7 9.9 88.9 22.0
LLP (13.8) (4.1) 237.9 (25.6) (46.1)
LLP (Brazilian Central Bank resolution nº 2,682) (13.8) (10.8) 27.3 (25.1) (45.1)
Additional LLP 6.8 (0.5)
Total 94.7 94.6 0.1 63.3 49.6
10
INCOME FROM SERVICES RENDERED
* Treasury result with managerial adjustments
NIM (p.a.)
1Q09 2Q09 3Q09 4Q09 1Q10
5,2%
5,9% 5,6% 5,5% 5,7%
Income from services rendered (BRL million) 1Q10 4Q09 Chg.(%) 1Q09 Chg.(%)
Guarantees issued 14.9 14.1 6.0 7.4 101.0
Underwriting Fees and M&A 2.4 0.6 0.3
Banking Fees 7.1 5.1 38.9 2.6 174.4
Total 24.4 19.8 23.4 10.3 137.2
Managerial Income Statement
Expenses
Expenses (BRL million) 1Q10 4Q09 Var.(%) 1Q09 Var.(%)
Personnel (20.9) (20.3) 3.4 (20.6) 1.5
Other administrative expenses (14.3) (15.7) (8.4) (12.3) 16.4
Profit Sharing (15.4) (13.5) 14.4 (7.5) 106.0
Taxes (8.3) (3.5) 133.4 (0.5) 1,408.8
Total (59.0) (53.0) 11.4 (41.0) 43.9
PERSONNEL, ADMINISTRATIVE AND
PROFIT-SHARING EXPENSES
11
EFFICIENCY RATIO
(including profit sharing)
Total (59.0) (53.0) 11.4 (41.0) 43.9
40,6%
37,4%
41,6% 41,7%
38,0%
1Q09 2Q09 3Q09 4Q09 1Q10
Profitability
ADJUSTED NET INCOME
BRL million
ADJUSTED ROAE
(p.a.)
24,0
35,4
38,1
44,5 46,9
8,3%
12,0%
13,0%
14,8% 15,2%* *
12
1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10
*Excluding extraordinary effects of divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government
Contacts
Investor Relations
Sérgio Lulia Jacob
Director Vice-President & IRO
13
Alexandre Sinzato, CFA
IR Superintendent
www.abcbrasil.com.br/ir
ri@abcbrasil.com.br
+55 (11) 3170-2186

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1 q10 conference call presentation

  • 1. 1 1Q10 Earnings Release Anis Chacur Neto Deputy CEO Sérgio Lulia Jacob Director Vice-President & IRO
  • 2. Disclaimer The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that 2 the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.
  • 3. Highlights • Return On Average Equity (RoAE) in 1Q10 reached 15.2% p.a. • The Credit Portfolio including guarantees issued reached BRL 9,484.5 million, an outstanding increase of 11.5% over 4Q09 and 47.4% when compared to 1Q09. 3 • Adjusted Net Income* in 1Q10 totaled BRL 46.9 million, an increase of 5.5% compared to 4Q09 and 96.0% in comparison to 1Q09. • The number of clients increased by 9.3% QoQ and 54.7% in the year. • Issuance of Subordinated Debt in the amount of USD 300 million, concluded in April 8, 2010, increasing the capital and the ability to leverage the bank. *Divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government (REFIS)
  • 4. CREDIT PORTFOLIO (BRL million) Including guarantees issued Credit Portfolio SHAREHOLDERS’ EQUITY (BRL million) AND BASEL INDEX* 6,435.5 6,598.1 7,422.2 8,509.2 9,484.5 86.0% 84.3% 84.9% 84.1% 85.2% 11.5% 1.141,9 1.159,5 1.182,2 1.218,4 1.247,1 18,1% 17,9% 4 LOANS (BRL million) 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 Corporate Middle Market Other 4,395.7 4,438.1 4,863.4 5,644.7 6,293.0 11.2% 13.3% 13.3% 14.6% 13.9% 82.0% 79.0% 79.3% 78.1% 78.7% 15.8% 19.1% 19.2% 20.8% 19.9% 11.5% 1Q09 2Q09 3Q09 4Q09 1Q10 15,4% 14,6% 13,3% It was concluded on April 8th the offshore issuance of Subordinated Notes in the amount of USD300 million. These Notes have increased Basel Index by around 550 bps since April 2010.
  • 5. Credit Portfolio Quality 1 2 3 4 5 6 7 Segments Loan Portfolio * (BRL million) Write Off (BRL million) Write Off / Loan Portfolio LLR ** (BRL million) LLR ** / Loan Portfolio Past Due > 90 days (BRL million) Past Due > 90 days / Loan Portfolio Corporate 4,950.3 13.6 0.27% 75.1 1.52% 11.5 0.23% Middle Market 1,252.2 4.7 0.38% 41.7 3.33% 8.1 0.65% Other 90.5 1.7 1.88% 4.1 4.50% 1.4 1.54% Total - 1Q10 6,293.0 20.0 0.32% 120.9 1.92% 21.0 0.33% 4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57% 5 Mar/2010 * Excluding guarantees issued. 1.03% 0.99% 0.98% 1.05% 2.23% 2.81% 2.98% 2.64% 2.25% 1.92% 0.21% 0.25% 0.28% 0.34% 0.64% 1.18% 0.95% 0.65% 0.57% 0.33% 0.17% 0.11% 0.04% 0.05% 0.04% 0.16% 0.17% 0.28% 0.09% 0.32% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 AA-C; 96.9% D-H; 3.1% 4Q09 5,644.7 5.1 0.09% 127.2 2.25% 32.4 0.57% 3Q09 4,863.4 13.4 0.28% 128.4 2.64% 31.5 0.65% 2Q09 4,438.1 7.7 0.17% 132.4 2.98% 42.1 0.95% 1Q09 4,395.7 6.9 0.16% 123.4 2.81% 51.9 1.18% Loan Loss Reserves NPL (over 91 days) Write Off
  • 6. Corporate (BRL Mi) 1.927,0 2.056,4 2.446,4 2.746,8 3.129,4 Guarantees Issued Loans 5,533.0 5,563.1 6,305.0 7,157.2 12.9% 46.0% 8,079.7 6 (BRL Mi) 1Q09 2Q09 3Q09 4Q09 1Q10 3.606,0 3.506,7 3.858,6 4.410,4 4.950,3 1Q09 4Q09 1Q10 Ticket 11.8 12.0 12.0 Duration 329 342 346 Groups 470 596 675 São Paulo 52.4% São Paulo - Countryside 28.9% Rio de Janeiro 7.3% South 11.4%
  • 7. Middle Market 932,5 1.173,7 1.252,2 25,5 29,1 51,9 68,3 62,1 Guarantees Issued Loans 5.8% 83.0% 718.0 877.0 984.4 1,242.0 1,314.3 7 (BRL Mi) 1Q09 2Q09 3Q09 4Q09 1Q10 692,5 847,9 932,5 São Paulo 49.5% São Paulo - Countryside 9.9% Rio de Janeiro 9.8% South 24.9% Minas Gerais 5.8% 1Q09 4Q09 1Q10 Ticket 1.9 2.0 2.0 Duration 209 258 256 Groups 388 618 652
  • 8. TREASURY, M&A AND CAPITAL MARKETS Other Activities Treasury (BRL Mi) 1Q10 4Q09 1Q09 Revenues 14.7 10.8 0.2 Consolidated Average VaR 1.7 2.3 2.1 8 Capital Markets (BRL Mi) 1Q10 4Q09 1Q09 Underwriting Fees and M&A 2.4 0.6 0.3 Numbers of deals 8 3 2
  • 9. Funding (BRL Mi) 10% 9%39% 32% 24% 23% 24% International 22% 5,076.1 4,999.4 5,532.1 5,841.6 6,446.2 9 1Q09 2Q09 3Q09 4Q09 1Q10 22% 20% 20% 22% 19% 14% 13% 15% 13% 15% 8% 12% 14% 10% 11%11% 14% 19% 22% 22% 6% 9% 8% 10% Retail BNDES Financialinstitutions Institutional Corporate
  • 10. Managerial Income Statement Revenue MANAGERIAL NET INTEREST INCOME * Treasury result with managerial adjustments NII (BRL million) 1Q10 4Q09 Var.(%) 1Q09 Var.(%) Credit Operations 93.8 87.9 6.7 88.7 5.7 Treasury* 14.7 10.8 0.2 Net Interest Income before Loan-Loss Provisions (LLP) 108.5 98.7 9.9 88.9 22.0 LLP (13.8) (4.1) 237.9 (25.6) (46.1) LLP (Brazilian Central Bank resolution nº 2,682) (13.8) (10.8) 27.3 (25.1) (45.1) Additional LLP 6.8 (0.5) Total 94.7 94.6 0.1 63.3 49.6 10 INCOME FROM SERVICES RENDERED * Treasury result with managerial adjustments NIM (p.a.) 1Q09 2Q09 3Q09 4Q09 1Q10 5,2% 5,9% 5,6% 5,5% 5,7% Income from services rendered (BRL million) 1Q10 4Q09 Chg.(%) 1Q09 Chg.(%) Guarantees issued 14.9 14.1 6.0 7.4 101.0 Underwriting Fees and M&A 2.4 0.6 0.3 Banking Fees 7.1 5.1 38.9 2.6 174.4 Total 24.4 19.8 23.4 10.3 137.2
  • 11. Managerial Income Statement Expenses Expenses (BRL million) 1Q10 4Q09 Var.(%) 1Q09 Var.(%) Personnel (20.9) (20.3) 3.4 (20.6) 1.5 Other administrative expenses (14.3) (15.7) (8.4) (12.3) 16.4 Profit Sharing (15.4) (13.5) 14.4 (7.5) 106.0 Taxes (8.3) (3.5) 133.4 (0.5) 1,408.8 Total (59.0) (53.0) 11.4 (41.0) 43.9 PERSONNEL, ADMINISTRATIVE AND PROFIT-SHARING EXPENSES 11 EFFICIENCY RATIO (including profit sharing) Total (59.0) (53.0) 11.4 (41.0) 43.9 40,6% 37,4% 41,6% 41,7% 38,0% 1Q09 2Q09 3Q09 4Q09 1Q10
  • 12. Profitability ADJUSTED NET INCOME BRL million ADJUSTED ROAE (p.a.) 24,0 35,4 38,1 44,5 46,9 8,3% 12,0% 13,0% 14,8% 15,2%* * 12 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 *Excluding extraordinary effects of divestment of CETIP and joint to program for settlement of tax debits published by the Federal Government
  • 13. Contacts Investor Relations Sérgio Lulia Jacob Director Vice-President & IRO 13 Alexandre Sinzato, CFA IR Superintendent www.abcbrasil.com.br/ir ri@abcbrasil.com.br +55 (11) 3170-2186