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Earnings Presentation
1st Quarter, 2014
Disclaimer: This presentation may include references and statements on expectations, planned synergies, growth estimates, projections of results, and future strategies for Banco
Votorantim, it’s associated and affiliated companies, and subsidiaries. Although these references and statements reflect the management’s belief, they also involve imprecision and
risks that are highly difficult to be foreseen. Consequently, they may conduct to different results from 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 Votorantim is not responsible for bringing up to date
any estimate in this presentation.
2
Net income of R$ 152M in 1Q14 Second consecutive quarter of positive results, maintaining the trajectory of gradual improvement
R$ 152M
net income
Net income of R$ 152M, exceeding both 4Q13 (R$ 121M) and 1Q13 (R$-278M) results
In 2014, Banco Votorantim shall consolidate the return to profitability
Net Interest Income (NII) increased 1.7% vs. 1Q13, totaling R$ 1,142M, despite 6.7% decrease in
the expanded credit portfolio in the last 12 months (focus on profitability)
Net Interest Margin¹ (NIM) of 4.9% p.y. – improvement of 0.7 p.p. on 1Q13
90-day NPL ratio of 6.2% in Mar/14, practically stable compared to Mar/13
• Excluding a specific Wholesale case, NPL 90 would have been 5.2%, 0.1 p.p. above Dec/13
BV has been originating quality auto finance portfolios for nearly 30 months
Expenses with credit provisions² reduced 43.6% vs. 4Q13 and 19.7% over 1Q13, totaling R$ 714M
• Better quality vintages reached 77% of the managed auto finance loan portfolio (57% in Mar/13)
90-day coverage ratio reached 124% in Mar/14 (Mar/13: 106%; Sept/11³: 78%)
Administrative and personnel expenses reduced 9.1% over 1Q13 (vs. 6.2% inflation – IPCA)
Efficiency Ratio for the last 12 months reached 40.7% (Dec/13: 43.6%; Mar/13: 51.5%)
1Q14 Highlights
Executive summary
Consistent
revenue
generation
Cost base
under control
Maintained
asset quality
1. Ratio between Net Interest Income and Average Interest-Earning Assets; 2. Net of income from recovery of written-off loans; includes ALL expenses of the portfolios assigned with recourse; 3. Beginning of the restructuring process
Reduced credit
provisions
3
Banco Votorantim – Overview
1Q14 Results
Annexes
Agenda
4
10 largest banks in Dec/13 – Total Assets (R$B)¹
106116
130
160495
763
777
858
Votorantim BTG Pactual
Safra
HSBC Santander
BNDES
Bradesco
CEF Itaú 1,027
Banco do Brasil 1,219
State-owned
Foreign
National privately-held
25
4654
55
195
281
291
351485
583
Banrisul Safra
HSBC Votorantim
Santander BNDES
Bradesco
Itaú CEF
Banco do Brasil
State-owned
National privately-held
Foreign
10th
7th
Banco Votorantim is one of the leading banks in Brazil “Top 10” in total assets, with robust and committed shareholders (Votorantim Group and BB)
Banco Votorantim – Overview
Banco Votorantim is one of the largest
privately-held Brazilian banks in total assets…
...and also in terms of loan portfolio
10 largest banks in Dec/13 – Loan Portfolio² (R$B)¹
1. Mar/14 information unavailable by the preparation of this presentation; 2. On-balance portfolio according to Bacen’s Res. 2,682
Equal
representation
of each
shareholder Board of
Directors
Executive Committee
Fiscal Council
Audit
Committee
Compensation
& HR
Committee
Statutory
Products &
Marketing
Committee
Finance
Committee
Operating Committes &
Commissions
Total: 50.00%
Voting: 49.99%
Non-voting: 50.01%
Total: 50.00%
Voting: 50.01%
Non-voting: 49.99%
Votorantim Group Banco do Brasil
Ownership Structure
Governance Structure
Shareholder
50% Total
5
Diversified business portfolio Focus on profitability and on increasing operating efficiency and synergies with BB
Shareholders
Pillars
Banco do Brasil Votorantim Group +
R$ 69.2B
Expanded credit portfolio²
Off-balance portfolio¹
R$ 3.6B
R$ 0.5B
Assigned to BB
Assigned to FIDCs
Strategy
Unification of the CIB and
Middle Market structures,
with efficiency gains
Consumer Finance
Auto
Finance
To originate portfolios with quality, scale and
profitability
To focus on used auto finance (multi-brand dealers)
To advance in new auto finance origination in
partnership with BB (new car dealers)
Other
Businesses
In Payroll loans, focus on
INSS (retirees and
pensioners) and refinancing
To expand synergic
businesses (credit cards,
insurance sales)
To explore new opportunities
together with BB (e.g.
syndicated loans, real
estate, “Mais BB”)
R$ 36.5B
R$ 30.0B R$ 6.5B
Wealth
Mgmt. & BVEP
Asset: 10th largest in the market, with innovative
products
R$ 40.6B AuM³
Increase synergies with BB
Private: focus on estate management through
custom-made solutions
BVEP: investments in real estate projects
Wealth Mgmt.
Corporate &
IB (CIB)
To be the best wholesale bank to our target clients,
with:
• Long-term relationships
• Focus on capturing synergies in the origination and structuring of integrated
financial solutions
• Efficient management of capital allocation and
expenses
Wholesale R$ 32.7B
1. Securitization with substantial risk retention before entry in force of Bacen’s Res. 3,533; 2. Includes guarantees provided and private securities
6
Highlights Corporate & Investment Bank (CIB)
Wholesale: continued focus on return on capital
and on strengthening the product portfolio
Wholesale Businesses
Large
companies
Medium
companies
Mar/14
32.7
25.8
6.9
Dec/13
35.1
27.5
7.6
Mar/13
36.5
27.3
9.2
Expanded credit portfolio¹ (R$B)
-9.4%
-6.1%
∆Mar14
/Dec13
-6.8%
Disciplined approach to capital allocation
• Credit selectivity
• Focus on products with low capital consumption (FX, IB)
• Accurate asset pricing
• Active management of the credit portfolio
• Reduced exposure to the “lower middle market”
Unification of the CIB and Middle Market structures, with
gains in operating efficiency
Increased relevance of BV to its target clients
• Strengthening the portfolio of products
• Enhancing international distribution (NY and London)
• Agile relationships, with long-term vision and industry
knowledge
Focus on capturing synergies in the origination and
structuring of Credit, Capital Markets, Derivatives and FX
Thorough monitoring of key credits in “financial
distress”, with focus on restructuring
Wholesale Businesses
Guarantees
provided 9.9 12.0 11.1
1. Includes guarantees provided and private securities
7
Consumer Finance: intensified focus on used auto
finance and INSS payroll loans (retirees and pensioners)
Payroll Loans Auto Finance
Consumer Finance Businesses
Managed loan portfolio (R$B) Managed loan portfolio (R$B)
-2.1%
On-
balance 30.0
33.0
Mar/14
Off-
balance 3.1
Dec/13
33.7
29.9
3.8
Mar/13
37.2
29.9
7.3
On-
balance
Off-
balance
Mar/14
7.1
6.0
1.1
Dec/13
7.6
6.3
1.3
Mar/13
9.5
7.4
2.1
Used/
Total¹ 76% 71%
INSS/
Total 63% 57%
Consumer Finance Businesses
Among market leaders in auto financing
Operates as an extension of Banco do Brasil in auto
finance outside the branch network
Continuous improvement of credit processes
• 72%² automated credit decisions in Mar/14 (Dec/13:
65%; Jan/12: 28%)
1. Only on-balance loan portfolio; 2. Refers to light vehicles; 3. Banco Votorantim estimate; 4. Banking correspondents
7th largest player in the payroll loan market³
Focus on INSS (retirees and pensioners)
Focus on refinancing (vs. growth)
Selective operation in private and public payroll loans
4,292 Resolution (May/14): Credit portability
4,294 Resolution (Jan/15): Deferred Cobans4 payment
-20.3%
0.3%
∆Mar14
/Dec13
-17.6%
-4.4%
∆Mar14
/Dec13
8
Highlights
Wealth Management & Services
Wealth Management: Asset with focus on high value-added
products and Private with focus on estate management
Assets under Management¹ (R$B)
+3.2%
Mar/14
40.6
Dec/13
39.4
Mar/13
41.1
Asset Management
• Focus on high value-added structured products
• Top 10 in ANBIMA’s ranking of managers
• Continuous expansion of synergies with BB – volume of
partnership funds reached R$ 4.3B
• Partnership with Allianz Global Investors in order to better
serve institutional investors
Private Bank
• Focus on High and Ultra High clients (AuM > R$ 25M)
• Integrated estate management, through differentiated and
custom-made solutions
• ISO 9001:08 certification covering activities of Relationship,
Estate Management and Advisory
BVEP – BV Empreendimentos e Participações
• Focus on real estate, residential, commercial
and logistic projects
• Operates in SP, RJ, MG and DF
Wealth Management Businesses
Wealth Management Businesses
1. Includes onshore funds (ANBIMA criteria) and private clients resources; 2. Ranking of Managers
ANBIMA²
ranking 10th 9th 10th
9
Banco Votorantim – Overview
1Q14 Results
Annexes
Agenda
10
152121
-159-196
-278
-428-459-505
-596-643
156
385
-85
3Q11 1Q14 1Q12
+26%
4Q13 3Q13 2Q13 1Q13 4Q12 3Q12 2Q12 4Q11 2Q11 1Q11
Net Income of R$152M in 1Q14 Second consecutive quarter of positive results, maintaining the trajectory of gradual improvement
Focus of 2014 is on consolidating profitability.
In 2015, the focus will be on increasing ROE.
Net Income evolution (R$M)
-187 -1,988 -512
Consolidated results
11
Net Interest Income (A) 1,123 1,226 1,142 -6.9% 1.7%
ALL Expenses¹ (B) (889) (1,266) (714) -43.6% -19.7%
Net Financial Margin (A+B) 234 (40) 428 - 83.3%
Operating Income/Expenses (669) (58) (350) - -47.6%
Fee/Banking Fee Income 239 282 244 -13.5% 2.4%
Personnel Expenses (228) (292) (257) -12.0% 13.0%
Other Administrative Expenses (367) (400) (284) -29.2% -22.8%
Tax Expenses (124) (115) (111) -4.2% -11.1%
Other Operating Income/Expenses² (188) 468 57 -87.8% -130.3%
Net Income (Loss) (278) 121 152 25.6% -154.7%
(R$ Million)Var. 1Q14
/4Q13
Var. 1Q14
/1Q131Q13 4Q13 1Q14
Results have confirmed, once again, the progress
in Banco Votorantim’s restructuring process
Managerial Income Statement
Highlights of 1Q14 results Increased Net Financial Margin and reduced cost base
1. Includes expenses related to credit assignments with recourse (both on and off-balance), as well as revenues from write-off recovery; 2. Includes Other Operating
Income/Expenses, as well as Equity in Income of Associated Companies and Subsidiaries
Consolidated results
12
Consistent revenue generation NII increased 1.7% in 1Q14 / 1Q13, despite retraction of the credit portfolio in the last 12 months
1. Ratio between Net Interest Income and Average Interest-Earning Assets; 2. Includes guarantees provided and private securities; 3. Sum of income from loans and
irom sales or transfer of financial assets; 4. Expenses with the prepayment of credit assignments (before res. 3,533) amounted to R$ 23M in 1Q14 (R$ 80M in 1Q13)
Net Interest Income increased 1.7%
compared to 1Q13...
...despite reduction of 6.7% in the expanded
credit portfolio² in the period
Net Interest Income (R$M) and NIM¹ (% p.y.)
+1.7%
1Q14
1,142
4.9%
4Q13
1,226
5.0%
1Q13
1,123
4.2% -6.7%
Mar/14
69.2
Dec/13
71.8
Mar/13
74.2
Expanded credit portfolio² (R$B)
Growth of Consumer Finance’s loan³ revenues
• Reduced delinquency and increased interest rate
Reduction in expenses with the prepayment of assigned
portfolios4
Conservative position on credit concession
Focus on profitability (vs. growth)
Revision of Wholesale’s activity
Net Interest Income (NII)
13
Expanded portfolio (interest-earning)
reduced 3.6% vs. Dec/13
4.1 9.4 5.1
Expanded credit portfolio (R$B) (includes guarantees provided and private securities)
-6.6%
-2.1%
-9.4%
-6.1%
∆Mar14
/Dec13 -6.7% -3.6%
Large
Companies
Medium
Companies
Auto
Finance
Others¹
Mar/14
69.2
25.8
6.9
30.0
6.0
Dec/13
71.8
27.5
7.6
29.9
6.3
Mar/13
74.2
27.3
9.2
29.9
7.4 Payroll
Loans
-4.6% -12.3%
73.3
Mar/14
25.8
6.9
33.0
7.1
Dec/13
76.9
27.5
7.6
33.7
7.6
Mar/13
83.6
27.3
9.2
37.2
9.5
-9.4%
-6.1%
-4.4%
0.3%
∆Mar14
/Dec13
CIB
1. Credit cards and individual loans
Consistent revenue generation, despite retraction
of the credit portfolio in the last 12 months
Maintenance of the conservative approach in credit Credit portfolio retraction associated with the focus on business profitability
Credit portfolio by segment
Expanded managed credit portfolio (R$B) (includes off-balance securitization with substantial risk retention)
Reduction in off-balance securitization
explains greater drop in managed portfolio
Off-balance
securitization
14
Auto Finance: origination amounted to R$ 3.4B in 1Q14 Increased focus on used light vehicles and maintained conservative credit concession
Auto finance: origination amounted to R$ 3.4B
in 1Q14, with emphasis on used light vehicles
Mar/14
10.75³
26.8
Dec/13
10.0
25.5
Dec/12
7.3
23.5
Dec/11
11.0
26.4
Dec/10
10.75
24.6
Auto finance origination rate x Selic² rate (% p.y.)
+4%
Used light
vehicles
Other
vehicles¹
1Q14
3.4
2.7
(80%)
0.7
1Q13
3.3
2.5
(74%)
0.9
1Q12
2.7
1.7
(62%)
1.0
1Q11
5.1
2.7
(53%)
2.4
26% 32% 36% 38% 39%
4445444752
1Q14 4Q13 4Q12 4Q11 4Q10
-19%
∆1Q14
/1Q13
12% BV Financeira
(auto)
Selic
Banco Votorantim is one of the leading players
in the auto financing market
Consumer Finance – Auto Finance
BV maintained the focus on quality
and profitability of new vintages
Auto Finance origination (R$B) Down payment (%) and average tenor (months)
Down
payment
Average
tenor
1. Composed of trucks, motorcycles and new light vehicles; 2. Market’s benchmark interest rate; 3. Increased to 11.0% on Apr/14
15
Consumer Finance – Auto Finance
June/12 Dec/11
1.0
June/11 Dec/10
2.1
June/10 Dec/09
1.5
June/09 Mar/14
0.9
Dec/13
1.3
June/13 Dec/12
1.1
Auto finance: BV has been originating quality auto finance
for 30 months, focused on multi-brand dealers (used cars)
Vintages indicating lower quality
Inad 30¹ (by vintage)
Multi-brand dealers
New car dealers
1. % of each month’s production with first installments past due over 30 days; 2. Includes securitization with substantial risk retention before Bacen’s Res. 3,533
June09-
June10
average
Participation of lower quality vintages reduced to
less than ¼ of the managed auto finance portfolio
Lower quality vintages /
Managed auto finance portfolio²
23%27%
62%
Mar/14 Dec/13 Dec/11
Light vehicles – Origination by channel (R$B) and 1st payment default¹ (%)
16
100%101%93%
124% 147%
106%
Consumer Finance’s 90-day Coverage Ratio³ (%)
ALL expenses decreased in 1Q14 90-day Coverage Ratio increased in the last 12 months
1. Includes expenses related to credit assignments with recourse, as well as revenues from write-off recovery; 2. Specific case that was classified in the “G” risk level in
Mar/14, with 80% of provisioning (or R$ 481M); 3. Ratio between ALL balance and balance of operations past due over 90 days
Note: the consolidated and Consumer Finance 90-day Coverage Ratios were 78% and 68%, respectively in Sept/11 (beginning of the adjustment process)
Expenses¹ with credit provisions (R$M)
ALL expenses reduced
19.7% vs. 1Q13 and 43.6% vs. 4Q13
Coverage Ratio increased compared to Mar/13
and Sept/11 (beginning of adjustment process)
669563
417557
156 290
199
849
156
733
-43.6% -19.7%
1Q14
714
4Q13
1,266
3Q13
761
2Q13
959
1Q13
889
-81.6%
33.5%
∆1Q14
/4Q13
Mar/14
2,692 2,684
Dec/13
2,741 2,777
Mar/13
3,627 3,384
NPL 90 Balance (R$M) ALL Balance (R$M)
Specific
Wholesale case²
Managed loan portfolio’s 90-day Coverage Ratio³ (%)
3,563
Mar/14
4,421
Dec/13
3,081 4,514
Mar/13
4,056 4,313
78% in
Sept/11
Wholesale
Consumer
Finance
Credit indicators – ALL expenses and 90-day Coverage Ratio
17
1
2
3
4
5
6
7
8
9
10
Dec/13
1.9%
5.1%
6.6%
Sept/13
2.1%
5.5%
6.2%
Mar/14
5.0%
6.2%
6.3%
2.3%
6.9%
June/13
2.4%
%
7.7%
Dec/12
2.4%
6.6%
8.3%
Sept/12
2.4%
7.4%
9.4%
June/12
2.0%
7.5%
9.6%
Mar/12
1.8%
7.0%
8.9%
6.6% 7.1%
5.7%
Mar/13
Delinquency increased in 1Q14, mainly due to a
specific Wholesale case that became overdue
1. Specific case that was classified in the “G” risk level in Mar/14, with 80% of provisioning (or R$ 481M)
NPL 90 / Managed loan portfolio (%)
Consumer Finance Total Light Vehicles Wholesale
Excluding this Wholesale case¹,
NPL 90 would have ended Mar/14 at 5.2%
5.1%
Dec/13
1.9%
Mar/14
1.6%
5.2%
Excluding specific
Wholesale case¹
Credit indicators – Delinquency
18
Managed Loan Portfolio (A) 76,775 74,185 71,481 68,169 65,923 63,546 61,281 60,006 57,925
NPL 90 Balance 5,390 5,539 5,276 4,520 4,056 3,616 3,373 3,081 3,563
NPL 90 Quarterly Variation (B) 793 149 (262) (756) (465) (439) (244) (292) 482
Write-off (C) 693 1,079 1,269 1,439 1,144 1,339 902 869 832
New NPL (D=B+C) 1,486 1,228 1,007 683 680 900 659 578 1,314
New NPL Rate¹ (D/A) 1.88% 1.60% 1.36% 0.95% 1.00% 1.36% 1.04% 0.94% 2.19%
1Q12 3Q12 4Q12 1Q13 2Q13 3Q13NEW NPL
(R$ Million)4Q13 1Q142Q12
1.20%
2.19%
0.94% 0.94% 1.04% 1.36%
1.00% 0.95% 1.36% 1.60% 1.88%
0.83
1.31
4Q13
0.87 0.58
3Q13
0.90 0.66
2Q13
1.34
0.90
1Q13
1.15
0.68
4Q12
1.43
0.68
3Q12
1.27 1.01
2Q12
1.08 1.23
1Q12
0.69
1.49
1Q14
Impact of the specific Wholesale case is also
seen in the New NPL rate
1. Variation in the balance of NPL 90 + loans written-off to loss in the quarter, divided by loan portfolio by the end of the immediately preceding quarter; 2.Specific
case that was classified in the “G” risk level in Mar/14, with 80% of provisioning (or R$ 481M)
New NPL
rate
New NPL (R$B) Write-off (R$B)
Excluding
specific case²
Credit indicators – New NPL
19
BV continues to improve in cost management Personnel and administrative expenses reduced 9.1% in 1Q14 / 1Q13
Personnel and Administrative expenses
reduced 9% vs. 4Q13 and 22% vs. 1Q13
1Q14 personnel expenses benefited from
the reduction in expenses with labor claims
Note: in the last 12 months, the inflation rates IPCA and IGP-M reached 6,2% and 7,3%, respectively
1. Administrative expenses in 4Q13 were impacted by expenses related to restructuring process
Personnel and Administrative Expenses
Personnel and Administrative expenses (R$M) Personnel expenses (R$M)
367284
228
292
257
-9.1%
Administrative
Personnel
1Q14
541
4Q13
693
400¹
1Q13
595
208227 222
20
6535
Labor
claims
1Q14
292
257
4Q13
Others
1Q13
228
∆ 1Q14/
4Q13
-2.0%
-46.5%
-12.0%
∆ 1Q14/
4Q13
-12.0%
-29.2%
-21.9%
20
Total Personnel and Administrative Expenses (A) 595 601 604 693 541 -21.9% -9.1%
Total Revenues (B) 1,173 1,297 1,273 1,977 1,443 -27.0% 23.0%
Net Interest Income (NII) 1,123 1,112 1,154 1,226 1,142 -6.9% 1.7%
Fee/Banking Fee Income 239 253 257 282 244 -13.5% 2.4%
Equity in Income of Associated Companies and Subsidiaries 24 20 30 35 41 16.9% 69.1%
Other Operating Income/Expenses (213) (87) (168) 433 16 -96.4% -107.4%
Efficiency Ratio (A/B) - Quarter 50.7% 46.4% 47.4% 35.1% 37.5% 2.4 p.p. -13.2 p.p.
Efficiency Ratio - 12 months 51.5% 51.2% 51.2% 43.6% 40.7% -2.9 p.p. -10.8 p.p.
4Q13 1Q14Var. 1Q14
/4Q13
Var. 1Q14
/1Q131Q13 2Q13 3Q13
EFFICIENCY RATIO
(R$ Million)
12 months
Quarter
1Q14
40.7
37.5
4Q13
43.6
35.1
3Q13
51.2
47.4
2Q13
51.2
46.4
1Q13
51.5
50.7
Efficiency Ratio evolution (%)
Efficiency Ratio continued to improve in 1Q14,
reflecting the progress in cost management
Efficiency Ratio
21
152121
-159-196-278
428
-40
393
153234
1Q14 4Q13 3Q13 2Q13 1Q13
Summary: Net Income of R$ 152M in 1Q14 Consistent revenue generation, reduction in ALL expenses and cost base under control
Net Interest Income + Fee Income¹ Credit provision expenses - ALL
Personnel and Administrative Expenses Net income and Net financial margin
+1.8%
1Q14
1,386
4Q13
1,509
3Q13
1,411
2Q13
1,364
1Q13
1,361
367 351 363 400284
228 250 241292
257
-9.1%
Admin.
Person.
1Q14
541
4Q13
693
3Q13
604
2Q13
601
1Q13
595
733 669 563 417 557
290199
849
-19.7%
Cons. Finance
Wholesale
1Q14
714 156
4Q13
1,266
3Q13
761
2Q13
959
1Q13
889 156
Net financial margin (post provisions) Net income
-12.0%
-29.2%
∆1Q14
/4Q13
-81.6%
33.5%
∆1Q14
/4Q13
-43.6%
-21.9%
Consolidated results
1. Includes Banking Fee Income
R$ Million
22
Funding: continuous improvement of the funding profile Funding from Credit Assignments and Financing Bills represent 40% of total funding
Funding
-1.2%
Mar/14
74.7
16.7
15.9
13.9
7.5
6.1
6.0 4.3
4.3
Dec/13
75.6
16.1
15.7
12.8
7.4
6.7
6.9
5.8 4.3
Mar/13
82.5
20.3
14.1
9.7
6.7
9.7
7.0
9.4
5.6
25% 22%
17% 21%
12%19%
8%
10%12%
8%8%
8%
7%
11%
6%
Debentures
(repos)
Bills (LF, LCA e LCI)
Credit Assignments²
Subordinated debt
Loans and onlendings
Private securities
Time deposits (CD)
Others¹
Mar/14
74.7
6%
Mar/13
82.5
Funding evolution (R$B)
Additionally, Banco Votorantim has a stand-by credit
facility of ~R$7B from BB, which has never been tapped
1. Includes other deposits, debenture issuances, and box of options; 2. Credits assigned with substantial risk retention to FIDCs e to other FI, under Res. 3,533 (i.e. does not
include off-balance credit assignments) Note: International funding is 100% swapped for BRL
23
Basel Ratio of 14.5% in Mar/14, stable vs. Dec/13 Tier I Capital ended 1Q14 in 9.5%, composed entirely by Common Equity
1. Dec/13 Basel Ratio revised from 14.3% to 14.5% due to the refinement of the Capital Requirement (Credit risk) calculation methodology Source: Finance
Capital structure
Capital (PR) 11,430 11,217 10,770
Tier I 7,595 7,100 7,029
Common Equity Tier I 7,595 7,100 7,029
Additional Tier I Capital - - -
Tier II 3,835 4,117 3,741
Risk-Weighted Assets (RWA) 84,043 77,309 74,299
Credit risk 77,219 71,990 68,624
Market risk 4,260 1,678 1,513
Operational risk 2,565 3,641 4,162
Minimum Capital Requirement 9,245 8,504 8,173
Basel Ratio (PR/RWA) 13.6% 14.5% 14.5%
Tier I Capital 9.0% 9.2% 9.5%
Common Equity Tier I - 9.2% 9.5%
Additional Tier I Capital - - -
Tier II Capital 4.6% 5.3% 5.0%
Mar.13 Dec.13¹ Mar.14BASEL RATIO
(R$ Million)
24
Banco Votorantim – Overview
1Q14 Results
Annexes
Agenda
25
+3,2%
Mar/14
40,6
Dec/13
39,4
Sept/13
42,7
June/13
42,7
Mar/13
41,1
Mar/14
104.6
Dec/13
105.5
Sept/13
110.7
June/13
111.9
Mar/13
119.7
37,7 37,1 36,9 36,6 36,5
18,9 18,6 18,0 18,2 17,3
-2,0%
Consumer
Finance
Wholesale
Mar/14
53,8
Dec/13
54,9
Sept/13
54,9
June/13
55,7
Mar/13
56,5
Dec/13 Mar/14
7.34 7.14
Sept/13
7.10
June/13
7.13
Mar/13
7.67
Financial highlights
Financial highlights
Total assets Assets under management¹
On-balance loan portfolio Shareholders’ Equity
R$ Billion
1. Includes onshore funds (ANBIMA criteria) and private clients resources
26
Net Interest Income (A) 1,123 1,112 1,154 1,226 1,142 -6.9% 1.7%
ALL Expenses (889) (959) (761) (1,266) (714) -43.6% -19.7%
Net Financial Margin 234 153 393 (40) 428 - 83.3%
Average Interest-Earning Assets (B) 109,414 105,840 102,260 99,754 95,872 -3.9% -12.4%
Compulsory Reserves (Bacen) 929 491 200 113 94 -16.8% -89.9%
Interbanks Funds Applied 16,466 15,492 15,374 13,821 11,860 -14.2% -28.0%
Securities 35,278 33,719 31,360 30,924 29,568 -4.4% -16.2%
Loan Portfolio 56,742 56,138 55,326 54,896 54,350 -1.0% -4.2%
NIM (A/B) - Quarter 4.2% 4.3% 4.6% 5.0% 4.9% -0.1 p.p. 0.7 p.p.
NET INTEREST MARGIN (NIM)(R$ Million)
1Q13 2Q13 3Q13 4Q13 1Q14Var. 1Q14
/4Q13
Var. 1Q14
/1Q13
Net Interest Margin (NIM)
NIM evolution in last quarters reflects the focus on
profitability (vs. growth) and the improved asset quality
Financial highlights - NIM
27
Mar/14
7.6%
4,421
Dec/13
7.5%
4,514
Sept/13
6.5%
4,003
June/13
6.3%
3,996
Mar/13
6.5%
4,313
124%
147%
119%111%106%
Mar/14
3,563
Dec/13
3,081
Sept/13
3,373
June/13
3,616
Mar/13
4,056
ALL Balance (R$M) 90-day Coverage ratio¹ (%)
NPL 90 / Managed loan portfolio (%) NPL 90 / Credit loan portfolio (%)
ALL Balance/Managed loan portfolio ALL Balance (R$M)
Mar/14
5.0%
6.2% 6.6%
Dec/13
1.9%
5.1%
6.6%
Sept/13
2.1%
5.5%
6.9%
June/13
2.4%
5.7%
7.1%
Mar/13
2.3%
6.2%
7.7%
Mar/14
5.0%
6.3%
6.9%
Dec/13
1.9%
5.2%
6.9%
Sept/13
2.1%
5.7%
7.4%
June/13
2.4%
5.9%
7.6%
Mar/13
2.3%
6.4%
8.5%
Wholesale Total Consumer Finance
NPL 90 Balance (R$M) 90-day Coverage Ratio
Wholesale Consumer Finance Total
Credit quality indicators
Financial highlights - Credit
1. Ratio between ALL balance and balance of operations past due over 90 days
Note: refers to managed loan portfolio (includes credits assigned with substantial risk retention until Dec/11 (before Res. 3,533))