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SUMMARY
1 ------ WHO WE ARE
4 ------ HISTORY
5 ------ OUR BUSINESS
6 ------ OWNER STRUCTURE
7 ------ ORGANIZATIONAL FLOWCHART
8 ------ FINANCIAL HIGHLIGHTS AND RATINGS
9 ------ CORPORATE CREDIT
17 ------ FUNDING
20 ------ WEALTH MANAGEMENT
24 ------ ASSET MANAGEMENT
27 ------ HR | COMPETITIVE ADVANTAGES
30 ------ BANK OF COMMUNICATIONS
31 ------ | FINANCIAL HIGHLIGHTS
32 ------ | GLOBAL PRESENCE
2Q 2021
WHO WE ARE
1
WH
O W
EA
RE
Banco BOCOM BBM S.A. is a Brazilian financial institution controlled by Bank of Communications, which owns 80% of its equity, as a joint venture with Brazilians who own the rest.
Bank of Communications was established in 1908 in the city of Shanghai with the aim of boosting Chinese industry. It opened its first branch in Hong Kong in 1934. Banco BOCOM BBM S.A.’s origins date from 1858 in the city of Salvador in Bahia State, Brazil.
Coherently with these two origins, today we are dedicated to meeting the credit and financial service requirements of companies established in Brazil, and to providing wealth management servicesfor individuals, including the management of liquid assets and protection against
financial risks.
We look to the future with determination to participate in the growing economicand cultural integration between Brazil and China, always based on the two institutions’ and countries’ core values.
2
WHO WE ARE 2Q 2021
Tradition and Solidity
Origin in a joint venture between one of the
largest and oldest banks in China and Brazil’s
oldest private financial group.
Excellence in Risk Control
We have a long tradition of excellence in risk
management. In the past 20 years we have
invested in continuous development of proprietary
risk management methodologies, always at the
cutting edge of the industry.
Agility in Decision Making
We have a sound and transparent governance
framework. Our executives are deeply
committed to the activities affected by their
decisions in the short and long term, and
have the expertise to minimize any conflicts
of interest between business units, executives
and shareholders.
Transparency in Transactions
Transparency in selecting the best products
and services available on the market, with
high governance standards: this is what
distinguishes the advisory services we offer to
our clients in accordance with each profile.
Flexibility to Meet Clients’ Needs
With a team of trained and certified
professionals, we seek personalized solutions
to meet clients’ requirements, which go
beyond financial portfolio management and
include succession and family planning.
Highly Qualified Staff
Banco BOCOM BBM is a hub for identifying
and training talented people. We place a high
value on the systematic pursuit of advanced
knowledge and prioritize people who add
value to the organization in the course of
their professional development.
WH
O W
EA
RE
3
WHO WE ARE 2Q 2021
Bank of Communications was founded in
1908 with the aim of boosting Chinese
industry. It is one of the largest commercial
banks in China and the world.
Banco BBM was established in 1858 in Salvador as
Banco da Bahia, focused on extension of credit to
agricultural producers. It becomes one of the only
Brazilian banks authorized to issuecurrency.
Banco BOCOM BBM
HIS
TO
RY
1909The bank becomes a currency issuer and remains so for 33 years.
Clemente Mariani leads Banco da Bahia to become one of Brazil’s pre-eminentcommercial banks.
1942
BoCom becomes the first large Chinese bank to be headquartered in Shanghai.
1987
1973The bank makes the strategic decision to focus on the wholesale segment.
In 2005, BoCom was listed on the Hong Kong Stock Exchange, and in 2007, it was listed on the Shanghai Stock Exchange.
2005/07
1998It becomes a multiple bank and changes its name to Banco BBM S.A.
2016The aquisition process of 80% of Banco BBM’s equity by Bank of Communications is concluded, giving rise to Banco BOCOM BBM S.A.
BRL 200 million perpetual Bank Notes issuance, in order to compose Tier I capital.
2019
2020We participated actively in the extension of credit to mitigate the economic impact of the Covid-19 pandemic via BNDES’s PEAC program, under which our lending totaled BRL 2.9 billion.
4
HISTORY 2Q 2021
FINANCIAL SERVICES
DCM structuring and distribution, pricing of derivatives and
other products.
S N
CORPORATE CREDIT
Credit lines and guarantees to companies through the followingplatforms:
SME: companies with annual revenues between R$ 70
million and R$ 500 million with liquid collateral;
Corporate: economic groups with annual revenues
from R$ 200 million up to R$ 3 billion;
Large Corporate: economic groups with annual revenues
starting at R$ 3 billion;
China Corporate Desk: credits for Chinese companies
based in Brazil.
WEALTH MANAGEMENT
Wealth management for high net worth individuals.
ASSET MANAGEMENT
5Management of investment funds focusing on credit fundsand global funds.
OU
RB
US
IN
ES
S
OUR BUSINESS 2Q 2021
OW
NE
RS
HIP
STR
UC
TU
RE
BoCom Brazil
Holding Company Ltda.
Brazilian
Shareholders
The Southern Atlantic
Investments, Ltd.
BOCOM BBM Corretora de
Câmbio e Val. Mobil. S.A.100%
100%
100%
80% 20%
BBM Bank Ltd.
(Bahamas)
- Participation of less than 0.001% were excluded from this organizational chart and the value was rounded to the controlling company.
- Percentages considered excluding shares held in treasury.
100%
6
OWNERSHIP STRUCTURE 2Q 2021
OR
GA
NIZ
ATIO
NA
LFLO
WC
HA
RT
Sun Xu*
Miguel Flaksman
Pedro H. Mariani
Po YingShen Fan
Shi Qi
Board
Internal Audit
Pedro H. Mariani
CEO & Managing Director
Compliance & Corporate
Documents Control
Alexandre Lowenkron
Managing Director
Monique Verboonen
Director
Luiz Augusto
Director
Carlos Jourdan
Managing Director
Cassio von Gal
Managing Director
Leonardo Oliveira
Managing Director
Sergio Freitas
Managing Director
Shen Fan
Managing Director
*Chairman of the board
7
ORGANIZATIONAL FLOWCHART 2Q 2021
HIG
HLIG
HTS
AN
DR
ATIN
GS
FINANCIAL HIGHLIGHTS - (BRL Million) JUN/18 JUN/19 JUN/20 JUN/21
Total Assets 5,632 6,927 9,159 13,218
Capital Tier 1 575 803 856 980
Shareholders' Equity 595 620 680 808
Net Income 39 38 14 64
Net Income before Tax 55 54 32 124
Total Expanded Credit Portfolio ¹ 4,157 5,487 7,005 8,876
Total Funding 4,641 5,750 7,578 10,150
Return on Average Equity (p.a.) 13.3% 12.5% 4.3% 16.2%
Return on Average Assets (p.a.) 1.5% 1.2% 0.3% 1.0%
Expanded NIM (Before Allowances for loan losses) ²³ (p.a.) 6.1% 5.1% 4.6% 4.5%
Basel Ratio (Core Tier I) 14.4% 16.3% 13.9% 13.2%
Liquid Assets 1,189 1,280 1,940 2,248
Efficiency Ratio (ER) 50.5% 57.7% 45.8% 48.2%
Service Revenues 32 44 31 58
Service Revenues (% of the Total Revenues4) 19.1% 26.6% 16.5% 21.9%
¹ Includes sureties, guarantees, letters of credit and operations bearing credit risk (debentures, promissory notes and overseas bonds).² Includes the result of equity pickup ³ Including services fees and adjusting for open market operations.4 Gross Financial Income before Allowances for Loan Losses + Service Revenue + Result if Equity Pickup
Ratings
Moody’s
Fitch
DomesticLocal Currency
Aaa.br
AAA(bra)
GlobalLocal Currency Foreign Currency
Ba1 Ba1
BB+ BB
Brazil Sovereign Rating
Ba2
BB-
8
FINANCIAL HIGHLIGHTS AND RATINGS 2Q 2021
CORPORATE CREDIT
9
PORTFOLIO JUN/18 JUN/19 JUN/20 JUN/21
Corporate 2,727 2,953 3,538 5,305
Large Corporate 1,011 2,010 2,916 2,013
SME - - 154 799
China Desk 381 400 324 678
Others 38 124 73 81
TOTAL (R$ Milion) 4,157 5,487 7,005 8,876
10
Credit transactions such as working capital, trade finance, guarantees and corporate securities.
BRL BILLION
TOTAL EXPANDED CREDIT PORTFOLIO
CR
ED
IT
PO
RTFO
LIO
CREDIT PORTFOLIO 2Q 2021
4.2 7.0 8.9
Jun/18 Jun/20 Jun/21Jun/19
5.5
TRANSACTIOS JUN/21
Working Capital 59%
Guarantees Issued 13%
Corporate Securities 10%
Export Credit Notes 10%
Trade Finance 7%
Others 1%
Total Expanded Credit Portfolio
Loans and Guarantees Portfolio*
*Expanded Credit operations, classified according to the Central Bank of Brazil’s 2.682/99 Resolution.
CR
ED
IT
PO
RTFO
LIO
11
RISK RATES JUN/21
AA 47%
A 35%
B 13%
C 5%
D -
(E-H) -
47%35%
13%
5%
CREDIT PORTFOLIO 2Q 2021
59%
13%
10%
10%
7% 1%
Total Expanded Credit Portfolio
Collaterals*
The total value of the exposure to agribusiness (sugar and ethanol, food and agriculture) accounted for 31.29% of the loan portfolio.
* In Jun/21, the outstanding balance with some kind of collateral was 35.22%.
12
LOANS AND GUARANTEES JUN/21
Receivables 77%
Inventories / Crops 17%
Assignment of real estate 6%
CR
ED
IT
PO
RTFO
LIO
BREAKDOWN BY SECTOR JUN/21
CREDIT PORTFOLIO 2Q 2021
Agriculture 14%
Sugar and Ethanol 13%
Utilities (energy) 10%
Retail market 8%
Building and Real Estate 7%
Foods - Sundry 4%
Transportation and Logistics 4%
Vehicles and Parts 3%
Pharmaceutics 3%
Specialized Services 3%
Diversified Holdings 2%
Others 29%
13%
29%
14%
7%8%
10%
4%4%
3%
3%3%
2%
77%
17%
6%
CO
LLA
TE
RA
LIZ
ATIO
N
TOTAL CREDIT PORTFOLIO COLLATERALIZATION
JUN/21
Collateralized
Clean
13
RISK MANAGEMENT: COLLATERALIZATION 2Q 2021
64.78%
35.22%
46%
54%
10%55%
95%
5%
Corporate
Large CorporateSME
China desk
45%90%
10%
QU
ALITY
RA
TIO
S
Loans rated D and E-H
LOANS AND GUARANTEES PORTFOLIO
14
QUALITY RATIOS 2Q 2021
Loans from (E to H)
Loans from (D to H)
Allowances for Loan Losses
2.1%
0.9%
2.0%
Jun/19 Jun/20 Jun/21
1.6%
3.6%
1.2%1.1%
Jun/18
0.7%
Jun/19 Jun/20 Jun/21Jun/18
0.3%0.4%
CLIE
NT
BA
SE
NUMBEROF CLIENTS
Large Corporate
Corporate
SME
China Desk
Large Corporate
Corporate
SME
China Desk
Large Corporate
Corporate
SME
China Desk
AVERAGE TICKETBRL Million
AVERAGE TERMDays
15
CLIENT BASE 2Q 2021
Jun/18 Jun/19 Jun/200
100
200
300
0
400
1,200
800
1,600
694
784
683596
299
171
0
10
20
30
40
50
60
70
214
Jun/21
34 4359
50
164179
175
279
10
86
10 13 7 12
Jun/18 Jun/19 Jun/20 Jun/21
38
30
17
47
31
16
49
46
56
40
19
9
Jun/18 Jun/19 Jun/20 Jun/21
460
1,423
1,556
1,076
914
599
405
20
15
EX
PO
SU
RE
BY
GR
OU
P
BRL MILLION
Top debtor - 256
Top 10 debtors – 1,362
Top 20 debtors - 2,176
Top 50 debtors – 3,855
Top 100 debtors – 5,607
Total Expanded Credit Portfolio – 8,876
16
2.9%
15.3%
24.5%
43.4%
63.2%
100%
EXPOSURE BY GROUP 2Q 2021
FUNDING
17
FUNDING SOURCES JUN/18 JUN/19 JUN/20 JUN/21
Institucional Investors 1,890 1,820 2,082 4,184
Wealth Management 1,427 1,690 1,622 1,232
Bank of Communications 803 1,720 2,945 3,389
Corporate 521 520 778 1,139
Large Corporate* - - 151 206
TOTAL (BRL Million)4,641 5,750 7,578 10,150
TO
TA
LFU
ND
IN
G
FUNDING BY TYPE OF INVESTOR
18
BRL BILLION
TOTAL FUNDING
*Only fixed-term transactions.
2Q 2021
4.6 7.6 10.1
Jun/18 Jun/20 Jun/21Jun/19
5.7
FU
ND
IN
G A
ND
AS
SE
TLIA
BILITY
1 Average term of issuance (days).2 Not considering demand deposits (days).
FundingSources
Maturity Profile1
Loans and Guarantees Issued Portfolio vs. Funding2
19
Local Deposits andOthers
Banknotes
Subordinated Debt
Agribusiness & Real Estate Credit Bills
Funds in ForeignCurrency
Time deposit with special guarantee
Loans and Guarantees
Issued Portfolio
Funding
Jun/19
Jun/20
Jun/21
13%
4%
25%
27%
31%
19%
15%3%
17%46%
23%15%
2%
14%42%
4%
FUNDING AND ASSET LIABILITY MANAGEMENT 2Q 2021
16%
31%
32%
21%
Jun/18
Jun/19
Jun/20
Jun/21
666
708
818
635
587
583
536Jun/18
799
WEALTH
MANAGEMENT
20
21
Wealth management for high net worth individuals and families, resident or nonresident¹;
BRL 9.3 billion in assets under management, grounded in:
More than 160 years of experience in the Brazilian market with a high expertise in risk management;
Products diversification (open platform);
Transparency.
¹ Resolution 4,373 WEA
LTH
MA
NA
GE
ME
NT
WEALTH MANAGEMENT’S TOTAL ASSETS
BRL BILLION
WEALTH MANAGEMENT 2Q 2021
Jun/18 Jun/19 Jun/20 Jun/21
5.8
7.88.2
9.3
Personalized Service
WEA
LTH
MA
NA
GE
ME
NT
Vast experience in wealth management for individual clients, meeting their investment objectives through structured financial solutions in an openplatform model.
Besides the portfolio management of liquid assets, BOCOM BBM WealthManagement also offers advisory services in other areas, including nonfinancial matters, through its partners.
Creation of taylor made solutions for
financial portfolio management.
Open Platform
Access to the best products and services
available on the market.
Performance
Technology and expertise in evaluating
and recommending investments through
excellence in risk control and strict
observance of the highest ethical
standards.
Transparency
Mitigation of conflicts of interest through
transparency in selection of the best
products and services available on the
market, with high governance standards
and personalized advisory according to the
client’s profile.
22
WEALTH MANAGEMENT 2Q 2021
WEA
LTH
MA
NA
GE
ME
NT
Banker
Client’s main contact with BOCOM BBM
–Understanding client’s profile and
requirements;
–Integration with the products and
services offered by BOCOM BBM Platform.
Advisory
Portfolio Recommendation
– Investment
Recommendation;
– Market Monitoring;
– Portfolio Consolidation;
– Estate Planning;
–Personalized solutions for wealth management
clients.
Client Support
Operational support to both
the Banker and the Client
– Transactions;
– Account opening;
– Client service;
– Suitability control.
Resource Management
Portfolio management
– Exclusive and Restricted Funds;
– Carteira Administrada;
– Market Monitoring.
BOCOM BBM Plataform
Use of the BOCOM BBM
Conglomerate Structure
– Macroeconomic research;
– Credit structuring;
– Asset Management;
– Products;
– Company analysis;
– Risk Analysis.
23
WEALTH MANAGEMENT
CLIENTE
2Q 2021
ASSET
MANAGEMENT
24
Robust Credit Analysis
and Monitoring
Analysis of credit risk by dedicated
teams for each different sector.
Monitoring until the end of the
operation, with deep expertise and
agility in execution of guarantees.
AS
SE
TM
AN
AG
EM
EN
T
BOCOM BBM hasexcellence in the development of macroeconomic research,methodologies andproprietary modelsused in themanagement of credit risk, market risk and liquidity risk, andcredit analysis.
All this experience and expertise is nowleveraged in its management ofinvestment funds.
Experience in Treasury, ALM,
Asset Selection, Liquidity Risk
and Market Risk.
Experience in Management
Macroeconomic Research
A highly qualified macroeconomic
research team who analyze economic
and political developments in Brazil,
China and the world.
25
ASSET MANAGEMENT 2Q 2021
PRIVATE CREDIT STRATEGY
BOCOM BBM Corporate Credit High Yield
Focus on mid- to high-yield bonds.
BOCOM BBM Corporate Credit
Focus on high-grade assets.
BOCOM BBM China FIA
Focus on return on investment in Chinese companies.
BOCOM BBM ESG FIA
Focus on assets located abroad with an outstanding
performance in environmental management,
sustainability and governance.
GLOBAL STRATEGY
AS
SE
TM
AN
AG
EM
EN
T
Our strategy focuses on private credit funds and global funds, which together had BRL 956 million under management at end of June 2021.
26
BOCOM BBM US Equities FIC FIA IE
Focus on returns from US companies.
ASSET MANAGEMENT 2Q 2021
PEOPLE
27
Highly qualified professionals with competitive and performance driven compensation.
CO
MPE
TITIV
EA
DV
AN
TA
GE
S
Attract High Talented Professionals
– Close relationships with the best universities;
– Support for research and academic development;
– Scholarships for undergraduates with the best performance indicators, undergraduate and graduate
monitors, and candidates for an MSc or PhD in economics.
Motivate and Retain Top Performers
– Dynamic and intellectually challenging workplace climate;
– Unremitting pursuit of excellence, industry best practices, and innovations that make a difference
in our business;
– Market competitive and meritocracy based compensation.
Align Interests
– Objectives of individuals and teams aligned with business strategy;
– Compensation model aligns interests of the executives with business results.
28
HR | COMPETITIVE ADVANTAGES 2Q 2021
Bachelor Degree
Postgraduate (MSc and higher)
High School
Began a career at Financial Sector at BOCOM BBM
Time in BOCOM BBM
(Years)
Managing
Director
General Manager
Analyst / Coordinator
Relationship Manager
Staff
CO
MPE
TITIV
EA
DV
AN
TA
GE
S
29
HR | COMPETITIVE ADVANTAGES 2Q 2021
5
6
3
8
11
49%
78%
61%
44%
28%
22%
7%
71%
30
BANK OF COMMUNICATIONS | FINANCIAL HIGHLIGHTS
¹ Attributable to shareholders of the bank
² Excluding the impact from preference shares.
³ Due to changes in the presentation basis on the items in
financial statements, the comparative figures of prior
period were restated to the current presentation basis.
4 National Council for Social Security Fund.5 Hong Kong Securities Clearing Company Limited.
FINANCIAL HIGHLIGHTS (USD MILLION) JUN/18 JUN/19 JUN/20 MAR/21
Total Assets 1,408,988 1,438,115 1,507,159 1,700,306
Return on Average Assets 0.89% 0.89% 0.72% 0.82%
Shareholders' Equity ¹ 100,301 104,221 113,362 135,392
Return on Average Equity² 12.99% 12.79% 10.07% 11.79%
Net Profit¹ 6,162 6,276 5,156 3,340
Loan Portfolio³ 705,681 746,303 791,349 918,317
Bad Debt Ratio³ 1.49% 1.47% 1.68% 1.64%
Provision Coverage of Impaired Loans³ 170.98% 173.53% 148.73% 143.42%
Capital Adequacy Ratio 10.63% 10.86% 14.57% 15.04%
* Foreign currency deposit.
Ratings Long Term* Short Term*
Moody’s A2 P-1
S&P A- A-2
Fitch A F1
BoCom’s OwnershipTop Shareholders
SSF4
HSBC
HKSCC Nominees Ltd5
Ministry of Finance
Others
31
FIN
AN
CIA
LH
IG
HLIG
HTS
30%
4%
27%
20%
19%
2Q 2021
Bank of Communications is one of the People’s Republic of
China's top five commercial banks. With more than 3,000
domestic branc hes, it operates in fifteen countries
including the United States, Japan, Singapore, SouthKorea, Germany, Australia, Canada , Luxembourg and the
United Kingdom.
China is Brazil’s largest trade partner, and the joint venturebetween BoCom and BBM heralds the advent of a new stage of
growth in this relationship. In the context of this growing
cooperation between the two countries, Banco BOCOM BBM has
enormous potential to boost business and capital growth, adding
value for all stakeholders and driving economic development.
USA
San Francisco Branch
New York Branch
Vietnam
Ho Chi Minh City Branch
BANK OF COMMUNICATIONS | GLOBAL PRESENCE
32
GLO
BA
LPR
ES
EN
CE
Germany
Frankfurt Branch
Australia
Brisbane Branch
Sydney Branch
Melbourne Branch
Brazil
Banco BOCOM BBM S.A.
Canada
Toronto Representative
Office
China
BoCom International
(Hong Kong)
China BoCom
Hong Kong Branch
Macau Branch
Taipei Branch
France
Paris Branch
BoCom (Luxemburgo) S.A.
Luxemburgo
Luxemburgo Branch
BoCom (Luxemburgo) S.A.
Czech Republic
Prague Branch
Italy
Rome Branch
BoCom (Luxemburgo) S.A.
Japan
Tokyo Branch
South Korea
Seoul Branch
Singapure
Singapure Branch
UK
London Branch
BoCom (UK) Ltd.
South Africa
Johannesburg Branch
2Q 2021
This presentation was prepared by Banco BOCOM BBM The information contained herein should not be interpreted as investment advice or recommendation Although the information contained herein was prepared with utmost care and diligence, in order to reflect the data at the time in which they were collected, Banco BOCOM BBM cannot guarantee the accuracy thereof Banco BOCOM BBM cannot be held responsible for any loss directly or indirectly derived from the use of this presentation or its contents This report cannot be reproduced, distributed or published by the recipient or used for any purpose whatsoever without the prior written consent of Banco BOCOM BBM.
ADDRESSES
This presentation was developed using Conglomerado Prudencial’s values 4060
This material is for information purposes only and should not be considered as a recommendation for investment or offer to buy or sell fund shares Read the essential information sheet and the regulation, with special attention to the clauses regarding the fund's investment objective and policy, as well as the provisions regarding the risk factors to which the fund is exposed, before making any investment decision This fund uses strategies with derivatives as an integral part of its investment policy Profitability obtained in the past does not represent a guarantee of future results The profitability disclosed is not net of taxes There is no guarantee that this fund will have the tax treatment for long term funds The methods used by the manager to manage the risks to which the fund is subject do not constitute a guarantee against possible asset losses that may be incurred by the fund Investment funds are not guaranteed by the administrator, manager or Credit Guarantee Fund (Fundo Garantidor de Crédito FGC) To access the essential information sheet, regulations and other documents related to the fund, visit www bradescobemdtvm com br This material was prepared in accordance with information necessary to meet the standards and best practices issued by CVM and ANBIMA
Rio de Janeiro, RJ
Av. Barão de Tefé, 34
20º e 21º andares
CEP 20220-460
Tel.: +55 (21) 2514 8448
Fax: +55 (21) 2514 8293
São Paulo, SPAv. Brigadeiro Faria Lima, 3311
15º andar
CEP 04538-133
Tel.: +55 (11) 3704 0667 +55 (11) 4064 4867
Fax: +55 (11) 3704 0502
Salvador, BARua Miguel Calmon, 398
2º andar parte
CEP 40015-010
Tel.: +55 (71) 3326 4721 +55 (71) 3326 5583
Fax: +55 (71) 3254 2703
Nassau, BahamasShirley House | Shirley House Street, 50,
2nd floor
P.O. N-7507
Tel.: 1 (242) 356 6584
Fax: 1 (242) 356 6015
www.bocombbm.com.brOmbudsman | Phone.: 0800 724 8448
E mail: [email protected]
DISCLAIMER
