1 / 34

Bradesco 4Q07 Earnings Results

Bradesco 4Q07 Earnings Results.

devin
Download Presentation

Bradesco 4Q07 Earnings Results

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Bradesco 4Q07 Earnings Results This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of the Company's management. The words "anticipates”, "believes”, "estimates”, "expects”, "forecasts”, "plans”, "predicts”, "projects”, "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include but are not limited to the impact of competitive services and pricing market acceptance of services, service transactions by the Company and its competitors, regulatory approval, currency fluctuations, changes in service mix offered, and other risks described in the Company's registration statement and other Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made and Banco Bradesco does not undertake any obligation to update them in light of new information or future developments.

  2. Highlights • Net Income: R$ 8.0 billion (16th quarter of consecutive growth), of which R$ 2.4 billion in Insurance, Private Pension Plans and Savings Bonds • ROAE(*): 35.4% in 4Q07 and 31.4% in 2007 • Total Assets: R$ 341.2 billion (+7.4% x 3Q07 and +28.5% x 4Q06) • Stockholders’ Equity: R$ 30.4 billion (+3.9% x 3Q07 and+23.2% x 4Q06) • Loan Portfolio, Sureties, Guarantees and Credit Cards totalingR$ 161.4 billion (+15.2% x 3Q07 and+38.9% x 4Q06) • Efficiency Ratio: 41.8% in 2007, showing an improvement of 0.3 p.p. vis-à-vis 2006. • Interest on Own Capital paid and provisioned in 2007: R$ 2.8 billion • Taxes and Contributions: R$ 6.8 billion (85% of Net Income) (*) Not considering the effects of mark to market of available for sale securities registered on shareholders’ equity 2

  3. Net Income R$ Million 4Q07 3Q07 2007 2006 REPORTED NET INCOME 2,193 1,810 8,010 5,054 (1) 140 631 953 2,109 Goodwill Amortization Fiscal Credit (300) (376) (718) (398) (2) Civil Provision 74 126 274 - Bovespa Holding Disinvestment / BM&F (405) (75) (480) - (3) (64) - (1,017) (219) Total/Partial Desinvestments Non-technical provisions of Health Insurance - - - 387 Labor Provision 232 - 232 309 Others 36 (51) (87) - Fiscal Effects 20 (215) 43 (879) Subtotal Extraordinaries Events (339) 40 (800) 1,309 Adjusted Net Income 1,854 1,850 7,210 6,363 (1) Fulll Goodwill Amortization of participations (2) Provisions for Economic Plans (3) In 2006: Usiminas R$ 219; in 2007: Serasa R$ 599; Arcelor R$ 354 and Indiana R$ 64 3

  4. Efficiency Ratio Net Income Earnings Per Share (R$) EPS(1), Efficiency and Net Income 3.57 3.57 3.45 3.37 3.27 3.18 3.18 3.17 3.08 2.98 44.1% 43.2% 42.4% 42.1% 42.1% 42.1% 42.0% 41.8% 41.8% 41.8% 7,210 6,363 R$ Million 1,854 1,850 1,801 1,705 1,620 1,611 1,602 1,530 2006 2007 (2) 1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q(2) Accumulated over 12 months (1) In order to compare EPS evolution, stocks were adjusted accordingly to events as stock bonus and splits. (2) Reported Net Income ofR$ 8,010 million in 2007 and R$ 2,193 million in 4Q07. 4

  5. Total Assets and Stockholders’ Equity R$ Million Total Assets Stockholders’ Equity 31.1% 32.6% 31.4% 28.3% 30.0% 30,357 24.7% 29,214 24,636 Dec06 Sep07 Dec07 Stockholders’ Equity ROAE (1) ROAE (1) (Adjusted Income) BIS Ratio % Dec07 Dec06 Sep07 Dec07 (2) Tier I 11.6 10.8 10.2 12.1 Tier II 4.9 3.8 3.9 4.6 BIS 16.5 14.6 14.1 16.7 Deductions - (0.4) (0.1) (0.1) BIS 16.5 14.2 14.0 16.6 (1) Excludes Mark to Market effect of Available for Sale Securities recorded directly in the Stockholders’ Equity. (2) Simulation based on circular Bacen # 3,367 of 2007 5

  6. Unrealized Gains R$ Million + 158% 6

  7. Net Income Breakdown 4Q07 3Q07 2007 2006 - Fees 29% 30% 29% 26% - Credit 26% 25% 25% 23% - Securities 8% 9% 9% 9% - Funding 6% 6% 6% 8% Banking 69% 70% 69% 66% Insurance 31% 30% 31% 34% 7

  8. Income Statement Summary R$ Million Variation % 4Q07 3Q07 2007 2006 Q–o-Q Y-o-Y 5,997 5,580 22,300 19,838 7.5 12.4 (1,556) (1,438) (5,498) (4,412) 8.2 24.6 4,441 4,142 16,802 15,426 7.2 8.9 146 208 711 1,025 (29.8) (30.6) 2,896 2,742 10,806 8,898 5.6 21.4 (3,794) (3,395) (13,482) (11,802) 11.8 14.2 (623) (599) (2,389) (2,150) 4.0 11.1 (588) (639) (2,819) (2,731) (8.0) 3.2 2,478 2,459 9,629 8,666 0.8 11.1 21 1 24 (9) - - (645) (610) (2,443) (2,294) 5.7 6.5 1,854 1,850 6,363 0.2 13.3 7,210 339 (40) 800 (1,309) - - 2,193 1,810 8,010 5,054 21.2 58.5 8

  9. NIM & NII R$ Million 15.0% 11.7% 10.8% 11.8% 8.5% 7.4% 7.5% 7.5% 22,300 2,667 19,838 2,170 • volume= 4,147 • volume= 4,147 5,997 • rate= (2,182) 768 19,633 5,580 17,668 616 5,229 • volume= 476 4,964 • rate= (211) 3Q07 4Q07 2006 2007 Non Interest Average Selic Interest NIM / Average Total Assets – Repos – Fixed Asset 9

  10. Adjusted NII & NIM 10.0% 9.7% 9.6% 9.4% 9.4% 9.1% 8.9% 8.7% 8.6% 8.5% 8.6% 8.3% 8.5% 8.3% 8.3% 8.0% 7.8% 7.9% 7.3% 7.1% 6.9% 6.9% 6.7% 6.5% R$ Million 5,229 4,964 4,837 4,603 4,502 4,549 4,274 4,343 4,230 3,993 3,660 3,247 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q NIM – Interest / Average Assets – Repos – Fixed Asset NIM Interest / Average Assets NII 10

  11. Adjusted Net Interest Income R$ Million Variation % 4Q07 3Q07 2007 2006 Q-o-Q Y-o-Y - Credit 3,567 3,384 13,159 11,059 5.4 19.0 - Funding 541 556 2,201 2,545 (2.7) (13.5) - Insurance 497 486 2,147 2,431 2.3 (11.7) - Securities and Others 624 538 2,126 1,633 16.0 30.2 Net Interest Income 5,229 4,964 19,633 17,668 5.3 11.1 11

  12. Credit NII R$ Million 3,567 3,384 3,183 3,025 2,951 2,834 2,756 2,518 2,376 2,223 2,135 2,037 1,984 1,975 1,984 1,884 1,866 1,840 1,732 1,813 1,668 1,651 1,539 1,344 1,304 1,347 1,199 1,050 1,067 994 943 867 644 562 467 445 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q Risk Adjusted Margin Net Margin Allowances for Loan Losses (+) Recoveries (-) Discounts 12

  13. Loan Portfolio(*) Variation % R$ Million Dec07 Sep07 Dec06 Q-o-Q Y-o-Y Individuals 59,277 54,383 44,156 9.0 34.2 Large Corporate 58,150 48,331 42,087 20.3 38.2 43,980 37,379 29,982 17.7 46.7 SMEs Total 161,407 140,093 116,225 15.2 38.9 (*) Including sureties, guarantees and credit cards receivables(payments in cash and installments). 13

  14. Variation % Dec07 Sep07 Dec06 Q-o-Q Y-o-Y Working Capital 14,685 10,589 8,498 38.7 72.8 BNDES Onlendings 10,442 9,740 8,275 7.2 26.2 Operations Abroad 8,535 8,294 6,513 2.9 31.0 Overdraft Accounts 7,643 7,284 6,120 4.9 24.9 Export Financing 7,812 6,976 6,146 12.0 27.1 Credit Card 4,265 3,327 2,433 28.2 75.3 Leasing 4,886 4,098 2,891 19.2 69.0 Vehicles 3,496 3,171 2,885 10.2 21.2 Agriculture 3,132 3,168 2,660 (1.1) 17.7 Mortgage 1,758 1,494 1,044 17.7 68.4 Sureties and Guarantees 23,906 18,162 14,590 31.6 63.9 Others 11,570 9,407 10,014 23.0 15.5 TOTAL 102,130 85,710 72,069 19.2 41.7 Main Credit Lines – Corporates R$ Million 14

  15. Main Credit Lines – Individuals Variation % R$ Million Dec07 Sep07 Dec06 Q-o-Q Y-o-Y Vehicles 21,183 19,556 16,260 8.3 30.3 Personal Loans 7,063 7,016 6,356 0.7 11.1 Credit Card 8,284 7,230 5,629 14.6 47.2 Payroll Loan 6,106 5,608 3,837 8.9 59.1 BNDES Onlendings 2,843 3,060 2,931 (7.1) (3.0) Leasing 3,315 2,215 1,017 49.7 226.0 Agriculture 3,138 2,684 1,914 16.9 63.9 Overdraft Accounts 1,848 1,960 1,688 (5.7) 9.5 Mortgage 1,646 1,420 1,089 15.9 51.1 Sureties and Guarantees 390 308 201 26.6 94.0 Others 3,461 3,326 3,234 4.1 7.0 TOTAL 59,277 54,383 44,156 9.0 34.2 15

  16. Asset Quality % 7.9 7.9 7.7 7.6 7.5 7.2 7.0 6.9 6.8 6.7 6.6 6.6 6.5 6.5 6.4 6.4 6.3 6.3 6.2 6.2 6.2 6.1 6.0 6.0 5.9 5.8 5.7 5.6 5.6 5.5 5.5 R$ 1.1 bi 5.4 5.4 5.1 5.1 5.1 5.1 5.0 4.9 4.9 R$ 2.6 bi 4.6 4.6 4.5 4.4 4.4 4.3 4.3 4.3 4.2 4.6 4.1 4.0 3.9 4.3 4.3 3.8 3.8 4.1 3.6 4.0 3.5 3.9 3.4 3.8 3.3 3.3 3.7 3.7 3.2 3.3 3.3 3.2 3.0 2.9 2.7 2.7 1Q03 2Q 3Q 4Q 1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q Required Allowances / Loan Portfolio Total Allowances / Loan Portfolio 12 Months Charge offs E-H Past Dues / Loan Portfolio 16

  17. Delinquency Ratios > 90 days % 6.3 6.2 6.2 6.1 6.0 5.8 5.4 4.8 4.4 3.6 3.6 3.6 3.5 3.4 3.4 3.3 3.1 3.4 3.4 3.3 2.7 3.2 3.1 3.1 2.9 2.6 2.5 0.5 0.5 0.5 0.4 0.2 0.2 0.1 0.1 0.1 Dec05 Mar06 Jun Sep Dec Mar07 Jun Sep Dec Individuals Total Large Corporate SMEs 17

  18. Payroll Deductible Loans R$ Million Variation % Dec07 Sep07 Dec06 Q-o-Q Y-o-Y 4,696 104.0 Own Origination(*) 4,204 2,302 11.7 1,410 (8.1) Acquired Portfolios 1,404 1,535 0.4 TOTAL 6,106 5,608 3,837 8.9 59.1 (*) Including BMC 18

  19. 66.9% 73.2% 78.0% 33.1% 26.8% 22.0% 10,857 46.1% 9,734 50.0% 50.7% 5,392 50.0% 4Q06 3Q07 4Q07 Mortgage R$ Million Origination Annual Origination 4,088 1,328 1,218 3,000 1,328 4Q 558 2,139 2,000 1,218 3Q 873 2Q 1Q 669 4Q06 3Q07 4Q07 Individuals Builders 2006 2007 Realized Goal Portfolio Mix Origination 3,311 2,816 (# of homes) 2,046 53.9% 49.3% 4Q06 3Q07 4Q07 Individuals Builders 19

  20. Fee Income R$ Million Variation % Q-o-Q Y-o-Y 4Q07 3Q07 2007 2006 Cards 688 623 2,449 1,758 10.4 39.3 Checking Accounts 609 591 2,357 2,084 3.0 13.1 Credit Operations 521 504 1,934 1,543 3.4 25.3 384 376 1,439 1,245 2.1 15.6 Asset Management Collection 283 280 1,114 1,006 1.1 10.7 Interbank Fees 85 81 321 289 4.9 11.1 Consortium 65 61 236 202 6.6 16.8 Custody 37 36 136 106 2.8 28.3 Brokerage 34 28 105 52 21.4 101.9 Others 190 162 715 613 17.3 16.6 2,896 2,742 10,806 8,898 5.6 21.4 TOTAL 20

  21. Variation % Q-o-Q Y-o-Y 4Q07 3Q07 2007 2006 - Structural (1,380) (1,381) (5,295) (4,879) (0.1) 8.5 - Non Structural (441) (259) (1,275) (1,053) 70.3 21.1 Personnel (1,821) (1,640) (6,570) (5,932) 11.0 10.8 Administrative (1,973) (1,755) (6,912) (5,870) 12.4 17.8 (3,794) (3,395) (13,482) (11,802) 11.8 14.2 Total Operational Expenses*/ Total Assets 4.0% 4.0% 4.0% 4.4% Operational Expenses R$ Million * 12 months Accumulated 21

  22. 13,482 12,819 12,515 12,066 11,802 11,471 11,134 10,776 10,806 10,454 10,334 9,935 9,417 8,898 8,484 8,059 7,728 7,349 80.6 80.2 79.4 78.0 75.4 74.0 72.4 71.7 70.3 4Q05 1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q Coverage Ratio(*) R$ Million Personnel and Administrative Expenses (1) Fee Income (2) Coverage Ratio % (2/1) (*) 12 months Accumulated 22

  23. Funding R$ Million Variation % Dec07 Sep07 Q-o-Q Y-o-Y 29,420 22,825 21,078 28.9 39.6 Demand Deposits 32,813 30,231 27,612 8.5 18.8 Savings Deposits 67,860 63,231 59,105 7.3 14.8 Time Deposits + Debentures Subordinated Debts(*) 15,850 13,441 11,949 17.9 32.6 Total 145,943 129,728 119,744 12.5 21.9 Fixed Income 148,166 146,258 134,874 1.3 9.9 Equities 21,814 14,827 7,901 47.1 176.1 Third Party Funds 7,506 6,502 4,333 15.4 73.2 Asset Management 177,486 167,587 147,108 5.9 20.7 (*) Of which, R$ 11,750 million were considered in the BIS Ratio calculation. 23

  24. Insurance and Pension Plans Income Statement Summary R$ Million Variation % Q-o-Q Y-o-Y 4Q07 3Q07 2007 2006 Insurance Written Premiums, Pension Plan Contribution and Saving Bonds Income 6,175 5,448 21,479 19,022 13.3 12.9 Insurance Realized Premiums, Pension Plan Contribution and Saving Bonds Income 3,038 3,064 12,240 11,909 0.8 2.8 758 681 2,981 2,894 11.3 3.0 Financial Net Income 248 200 861 641 24.0 34.3 Other Operating Income Retained Claims (1,595) (1,488) (6,014) (6,128) 7.2 (1.9) (843) (854) (3,576) (3,490) (1.3) 2.5 Raffle/Benefits and Redemptions (287) (274) (1,085) (1,032) 4.7 5.1 Commercial Expenses (305) (301) (1,120) (1,025) 1.2 9.2 General and Administrative Expenses Other Operating Expenses (57) 42 (86) (167) - (48.3) Tax Expenses (25) (51) (180) (193) (51.0) (6.7) Additional Health Provision (166) (239) (855) (630) (30.5) 35.7 766 780 3.166 2,779 (1.8) 13,9 Operating Income 29 51 221 176 (43.1) 25.6 Equity Result 67 (2) 72 59 22.0 Non-Operating Income - IT/SC and Minority Interest (280) (281) (1,104) (855) (0.4) 29.1 NET INCOME 582 548 2,355 2,159 6.2 9.1 24

  25. Written Premiums, Contributions and Savings Bonds Income R$ Million Variation % 4Q07 3Q07 2007 2006 Q-o-Q Y-o-Y Life and Pension Plans 3,894 2,966 12,315 10,225 20.4 31.3 Health (Group and Individual) 1,066 4,246 3,918 8.4 4.2 1,111 (1.9) Auto and P&C 912 2,862 2,916 (28.4) 653 Savings Bonds 394 1,556 1,418 9.7 5.8 417 100 Others 110 500 545 8.3 (9.1) 13.3 Total 5,448 21,479 19,022 12.9 6,175 8,647 (2.7) 19.3 Stockholders’ Equity 8,885 8,647 7,250 ROAE 32% 33% 29% 33% 25

  26. Financing Assets 67,718 64,618 55,297 Dec06 Sep07 Dec07 Financing Assets and Technical Provisions R$ Million Technical Provisions 58,526 55,319 48,742 Dec06 Sep07 Dec07 Written Premiums, Contributions and Saving Bonds Income 29,431 26,394 8,339 7,387 3Q07 4Q07 2006 2007 26

  27. Technical Provisions R$ Million Health Pension Plans and Life / VGBL 3,202 3,007 50,543 47,405 42,038 1,862 Dec06 Sep07 Dec07 Dec06 Sep07 Dec07 Auto / P&C Savings Bonds 2,491 2,370 2,329 2,418 2,307 2,201 Dec06 Sep07 Dec07 Dec06 Sep07 Dec07 27

  28. Insurance Company Efficiency Ratio(*) % 5.5 5.3 5.4 5.1 3Q07 4Q07 2006 2007 (*) Operational Expenses / Revenues 28

  29. Combined Ratios(*) % 92.1 84.9 86.0 84.4 3Q07 4Q07 2006 2007 (*) Excluding additional provisions 29

  30. 2007 Evolution 2006 Variation 2007 5.1% 3,160 Branches 3,008 36 million 2.9% 35 million Clients Base % 28.3% -2.8pp 31.1% ROAE (1) Efficiency Ratio 42.1% 41.8% -0.3pp 80.2% +4.8pp 75.4% Coverage Ratio (2) R$ Million 7,210 13.3% 6,363 Adjusted Net Income 109,463 29.1% 84,801 Market Capitalization (1) Calculation based on Adjusted Net Income. Excludes Mark to Market effect of Available for Sale Securities recorded directly in the Stockholders’ Equity. (2) Fee Income / Administrative Expenses + Personnel 30

  31. 2007 Guidance Perspective Realized Status 36.5% Credit Portfolio (1) 21-27% 25-30% 35.0% Individuals (1) Corporate (1) 19-24% 37.5% Fee Income 18-23% 21.4% Net Interest income 4-10% 12.4% Operational Expenses 12-16% 14.2% Insurance Premiums 12-14% 12.9% Mortgages (2) 3.000 4,088 (1) Not considering Cards, Sureties and Guarantees (2) Origination (R$ Million) 31

  32. 2008 Guidance Credit Portfolio 21 - 25% Individuals 24 - 29% Corporate 20 - 23% SME’s 25 - 30% Large Corporates 10 - 15% Products Automobilies 26 - 31% Cards 25 - 30% Mortgages (origination) R$ 5.3 bi Payroll Loan 90 - 110% Net Interest Income 16 - 20% Fee Income 5 - 10% Operational Expenses 10 - 16% Insurance Premiuns 10 - 12% 32

  33. Macroeconomic Outlook 2008 2009 GDP 4.50 % 4.15 % Interest Rate (year-end Selic) 11.25 % 10.75 % Inflation (CPI) 4.50 % 4.00 % FX Rate (year-end R$/US$) 1.75 1.80 33

  34. Bradesco 4Q07 Earnings Results This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of the Company's management. The words "anticipates”, "believes”, "estimates”, "expects”, "forecasts”, "plans”, "predicts”, "projects”, "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include but are not limited to the impact of competitive services and pricing market acceptance of services, service transactions by the Company and its competitors, regulatory approval, currency fluctuations, changes in service mix offered, and other risks described in the Company's registration statement and other Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made and Banco Bradesco does not undertake any obligation to update them in light of new information or future developments.

More Related