1 / 45

GFNorte: 1Q06 Results

GFNorte: 1Q06 Results. May-2006. Contents. 1Q06 Results Recent Developments. Stock Performance Economic and Political Outlook Final Remarks . 1. 1Q06 Results. GFNorte Highlights. 26%. 42%. 7%. MILLION PESOS. 1Q05. 1Q06. Net Income. 1,130. 1,370. 21%. 25.5 %. ROE. 26.9%.

kendra
Download Presentation

GFNorte: 1Q06 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. GFNorte: 1Q06 Results May-2006

  2. Contents • 1Q06 Results • Recent Developments. • Stock Performance • Economic and Political Outlook • Final Remarks

  3. 1. 1Q06 Results

  4. GFNorte Highlights 26% 42% 7% MILLION PESOS 1Q05 1Q06 Net Income 1,130 1,370 21% 25.5% ROE 26.9% Stock Price 18.19 25.89 7.3% 7.5% Net Interest Margin 0.54 0.68 EPS 2.19 2.35 P/BV Tax Rate 28% 35% Performing loans growth 19% 23% Past due loan ratio 1.9% 1.6% Reserve Coverage 154% 171%

  5. GFNorte´s Income Statement MILLION PESOS 1Q05 1Q06 Variation Net Interest Income 2,961 3,293 11% 1,503 2,072 38% Non Interest Income Services 1,154 1,204 4% Recovery 162 380 135% Foreign Exchange 57 117 104% Trading 129 371 188% 4,464 5,365 20% Total Income (2,726) (2,950) 8% Non Interest Expense Net Operating Income 1,738 2,415 39% Loan loss and loss sharing provisions (255) (371) 45% Non Operating Income (Expense) Net 38 (45) (218%) Income Tax (425) (704) 66% Subsidiaries and minority interest 32 75 134% Net Income 1,130 1,370 21%

  6. Non Interest Expense 1Q05 1Q06 Non Interest Expense 2.7 2.9 8% BILLION PESOS EFFICIENCY RATIO 61% 54% 1Q05 1Q06

  7. ROE & ROA ROE ROA 27% 26% 2.8% 2.5% 1Q05 1Q06 1Q05 1Q06

  8. NIM vs CETES 75% 99% Percentages 9.7 9.5 9.0 8.6 8.1 7.6 8.5 8.5 8.3 7.1 7.5 7.3 6.3 5.6 6.2 CETES 5.1 NIM 4.4 4.2 1Q06 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05

  9. Core Deposits 14% 4% BILLION PESOS Deposits 1Q04 1Q05 1Q06 Demand 63 65 76 Time 36 38 42 Total 99 103 118 Mix Demand 64% 63% 64% Time 36% 37% 36% 100% 100% 100%

  10. Performing Loan Portfolio BILLION PESOS 116 114 94 1Q05 4Q05 1Q06 Variation 1Q05 4Q05 1Q06 QoQ YoY Consumer 31 38 41 6% 33% 35 40 40 0% 14% Commercial 16 21 21 3% 35% Corporate 13 15 14 (6%) 10% Government Total 94 114 116 2% 23%

  11. Performing Consumer Loan Portfolio BILLION PESOS 41 38 31 1Q05 4Q05 1Q06 Variation 1Q05 4Q05 1Q06 QoQ YoY Mortgage 18 23 24 7% 32% Car loans 6 6 6 0% (1%) Credit Card 4 6 7 7% 62% Payroll loans 2 3 4 11% 72% Consumer 31 38 41 6% 33%

  12. Transformation of Loan Book 1Q03 1Q06 Government 8% Government 13% Commercial 34% Commercial 36% Consumer 29% Consumer 35% Corporate 27% Corporate 18% $116.1 billion pesos $62.4 billion pesos 86%

  13. Dynamics of Consumer Loans 53% 62% 95% 3% LOAN ORIGINATION Billion pesos MORTGAGE AUTOMOTIVE PAYROLL 2,459 1,360 1,267 1,260 1,229 838 1Q05 1Q06 1Q05 1Q06 1Q05 1Q06 TOTAL 5,086 3,328 1Q05 1Q06

  14. Asset Quality BILLION PESOS 1Q05 4Q05 1Q06 Total Loan Portfolio 98 118 120 Past Due Loans 1.8 1.9 1.9 Loan Loss Reserves 2.8 3.1 3.2 PAST DUE LOAN RATIO RESERVE COVERAGE 171% 166% 154% 1.9% 1.6% 1.6% 1Q05 4Q05 1Q06 1Q05 4Q05 1Q06

  15. Banking Sector´s Capitalization Ratio 1Q04 1Q05 1Q06 Tier 1 10.5% 12.5% 13.0% Tier 2 5.0% 3.6% 2.6% TOTAL 15.4% 16.2% 15.6% Percentage Tier 1 68% 77% 83%

  16. Recovery Bank Million Pesos 1Q04 1Q05 1Q06 Net Income 156 213 270 1Q03 1Q06 Proprietary 87% Proprietary 29% Managed 13% Managed 71%

  17. Recovery Bank ASSETS UNDER MANAGEMENT BILLION PESOS 64 61 60 60 18 22 33 Banorte 53 42 IPAB 38 31 8 1Q06 1Q03 1Q04 1Q05

  18. Long Term Savings NET INCOME Million Pesos Total 140 136 3% 1Q05 1Q06 Afore Annuities Insurance 41 67 58 55 43 26% 18% 11 273% 1Q05 1Q06 1Q05 1Q06 1Q05 1Q06

  19. Monthly Sales per Branch MORTGAGES LIFE INSURANCE 1.4 15 13 1.0 0.8 9 4Q03 4Q04 4Q05 4Q03 4Q04 4Q05

  20. Update on New Products

  21. New Products • Clients: 58,000. • Portfolio: $1.7 billion. • Average loan per client: $28,000 pesos. • Active accounts: 470,000. • Balance: $1.3 billion. • Average accounts openned daily: 1,600.

  22. New Products • Active accounts: 83,000. • Balance: $2.8 billion: • Checking: $1.2 billion. • Time Deposits: $0.9 billion. • Other Investments: $0.7 billion. • 40 branches in 20 cities. • 50 more branches in 2006. • Clients: 20,000. • Loan Portfolio: $403 million. • Average balance per loan: $20,000 pesos.

  23. 2. Recent Developments

  24. Investment Grade by S&P

  25. Investment Grade by S&P March 24 Upgrade by Standard and Poor’s to investment grade. Notches above Inv. Grade Agency GFNorte Sovereign Standard & Poor’s BBB- BBB = Fitch BBB- BBB = Moody’s +2 Baa1 Baa1

  26. Investment Grade by S&P • Implications: • Recognition of the Group’s strength. • Reduction in funding costs. • More liquidity to the stock. • Wider investor horizon.

  27. Banorte USA

  28. INB Acquisiton: Authorization Process • Formal filingwith authorities: • SHCP: March 14. • FED: March 16. • Processadvances in the time-frame established. • Follow-up to FED’s feedback. • Estimated conclusion: 4Q06.

  29. Purchase of Uniteller • Headquarters: New Jersey,USA. • 11 years operating. • Annual transactions: • More than 1.1 million. • US$370 million. • 1,000 collection agents in 41 of the 50statesin theUSA + D.C. • More than 4,000 payment points in 19 countries. • Main destinations of transfers: • Mexico: 50%. • Central America: 40%. • Phillipines: 10%.

  30. Description of Transaction • Acquisition of 100% of Uniteller for US$19 million. • Multiples within market references. • Closing estimated: 4Q06. Recent Transactions Market Valuations Value / EBITDA 34 21 19 17 17 17 Uniteller Vigo Dolex Global Payments Western Union (First Data) Moneygram

  31. Benefits of the Transaction • Entry into an attractive industry. • CAGRfor the past 10 years: 19%. • More participation in the value chain. • 80% of the money transfer income is generated in the USA. • Contact with users in both sides of the border. • Transfer and payment – bancarization opportunities. • Potential synergies: • INB through Netspend • Other business units in Banorte

  32. Launching of Banorte’s Loyalty Program

  33. Recompensa Total Banorte First loyalty program that rewards clients for all products and services within the Financial Group. Launch date: May 15. • Objective: • Retain clients and attract new ones. • Promote cross selling. • Increase deposit balances. • Encourage timely payments of loans. • Incentivate use of credit and debit cards.

  34. 3. Stock Performance

  35. Performance of IPC vs. GFNorte 2004-2005 1Q06 128% 102% 16% 8% IPC Banorte IPC Banorte

  36. GFNorte: Daily Turnover Million Dollars 15.3 8.7 6.7 1.8 1Q03 1Q04 1Q05 1Q06

  37. BMV: Most Active Stocks Daily turnover in million dollars 1Q06 Volume Stock 1) América Móvil 49.3 2) Cemex 29.8 3) Telmex 28.7 4) Wal-Mart 26.8 5) Grupo México 23.9 6) Televisa 17.8 7) Banorte 15.3 8) Geo 9.6 9) ICA 8.9 10) Modelo 8.5

  38. GFNorte: Market Capitalization Million Dollars 4,794 3,284 1,990 CAGR: 61% 1,160 1Q03 1Q04 1Q05 1Q06

  39. Comparison with Latin America MARKET VALUE IN BILLION DOLLARS 2005 P/E ‘05 Bradesco 40.9 Santander Chile 8.7 Unibanco 11.9 Itaú 37.4 Banco de Chile 4.9 Banorte 4.8 P/BV ‘05

  40. 4. Economic & Political Outlook

  41. Economic Outlook Fiscal and external accounts are almost in balance, with a positive outlook for 2006 due to higher oil prices. Remmitances surpassed US $20 billion last year, and showed and impressive growth of 28% in 1Q06. International reserves are at an all time high of US $70.5 billion. Inflation is in check and should close 2006 below 3.5%. GDP growth in 1Q06 was over 5% and the yearly forecasts have been raised to 4%.

  42. Political Environment • The campaigns are in full gear. • Calderon’s change of strategy is paying off. • Negative campaigning is intensifying. • First debate affected AMLO. • Recent polls show that Calderon has become the fore-front runner. • Most of the gains come from “switch” voters. • AMLO is not accepting the changing trends. • Eventhough lagging, Madrazo continues working the party’s base and is still alive. Expect a close election.

  43. 5. Final Remarks

  44. Medium Term Challenges Consolidate 20/20 vision under a more competitive environment. Continue with innovation and bancarization. Develop Banorte USA. Intensify client attraction and retention. Cross selling of products and services. Increase efficiency and productivity.

More Related