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Presentation to: 13 th Annual Latin America Conference

Banco Itaú Holding Financeira S.A. Presentation to: 13 th Annual Latin America Conference. Alfredo Setubal Investor Relations Director. New York March 2005. Agenda. Results - Banco Itaú Holding Financeira Pro Forma Results - Banco Itaú and Banco Itaú BBA

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Presentation to: 13 th Annual Latin America Conference

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  1. Banco Itaú Holding Financeira S.A. Presentation to:13th Annual Latin America Conference Alfredo Setubal Investor Relations Director New York March 2005

  2. Agenda Results - Banco Itaú Holding Financeira Pro Forma Results - Banco Itaú and Banco Itaú BBA Important Facts - Banco Itaú Holding Financeira

  3. Highlights Results: 4th Quarter/04 – Net Income of R$ 1,030 million with ROE 32.9% p.a.; 2004 - Net Income of R$ 3,776 million with ROE 27.0% p.a.; Growth of Credit Portfolio (including endorsements and sureties): Total: 4th Quarter/04 = 4.3% Excluding Corporate Clients: 4th Quarter/04 = 14.8% 2004 = 19.5% 2004 = 43.8% Growth of Credit Portfolio by Client Type (highlights): 4th Quarter/04 -Individuals 19.7% and Small and Medium Sized Companies 15.7%. 2004 -Individuals 43.1% and Small and Medium Sized Companies 70.8% Net Interest Margin* 4th Quarter/04 = 13.6% p.a. 3rd Quarter/04 = 12.4% p.a. 2004 = 13.2% p.a. 2003 = 13.9% p.a. * Excluding the nonrecurring items of 4th Quarter of 2004

  4. Highlights Solvency -Nonperforming Loans Ratio: 4th Quarter/04 = 2.9% 3rd Quarter/04 = 3.2% 2004 = 2.9% 2003 = 4.1% Full Amortization of Goodwill: (R$ Million) Without Tax Effects With Tax Effects CBD (3rd Q./04) 381 347 Credicard (4th Q./04) 721 656 Orbitall (4th Q./04) 233 212Intercap - Sales promoter (4th Q./04) 65 59 TOTAL 1,400 1,274 Technical Provisions of Pension Plans: Balance at Dec/04 of R$ 8.6 billion – Growth of 56.4% in 2004.

  5. Highlights R$ Million (Except where indicated) 2004 4th Q/04 3rd Q/04 2003 1,030 920 3,776 3,152 Net Income Stockholders’ Equity ROE (%) Total Assets BIS Ratio (%) Efficiency Ratio (%) 13,971 13,471 13,971 11,879 32.9% 30.3% 27.0% 26.5% 130,339 138,520 130,339 118,738 20.6% 19.4% 20.6% 19.8% 45.9% 52.5% 52.4% 54.5%

  6. Financial Ratios (%)

  7. Efficiency Ratio (%) 54.5% 52.4% Annual Efficiency Ratio.

  8. Exposure – Loans and Securities R$ Million Dec 31, 04 Sep 30, 04 Dec 31, 03 Var Dec04/ Sep04 Var Dec04 / Dec03 53,275 51,059 44,581 4.3% 19.5% Loans Public Securities Private Securities Total 7,486 9,369 14,306 -20.1% -47.7% 12,145 11,216 8,564 8.3% 41.8% 72,906 71,644 67,451 1.8% 8.1% (*) Rural Loans and Mortgage – Loans linked to the availability of Demand deposits and Savings deposits.

  9. Credit Operations R$ Million CAGR: 21.1% CAGR: 22.5%

  10. Change in the mix of the Credit Portfolio

  11. Nonperforming Loans Ratio and Coverage Ratio (*) Provision for Loan Losses / Total Nonperforming Loans We are not expecting an ongoing improvement in these indicators, because of the focus on credit products with higher margins, but, at the same time, with a higher credit risk.

  12. Service Fees R$ Million 4th Q/04 3rd Q/04 Var 4Q04 -3Q04 2004 2003 Variation 04-03 91 228 197 263 167 98 1,044 Asset Management (*) Current Account Services Credit Cards Sureties and Credits Granted Collection Services Other Total 376 327 371 266 302 158 1,799 358 303 282 234 180 151 1,508 17 24 89 32 122 7 291 1,411 1,230 1,162 916 866 580 6,165 1,320 1,002 965 653 699 482 5,121 (*) Mutual Funds and Consortium.

  13. Financial Instruments – Market Value R$ Million 09/30/04 12/31/03 12/31/04 Unrealized Income/(Loss) (1) (2) 10 782 600 182 309 691 39 133 354 14 620 400 220 248 660 (41) 93 480 10 688 545 143 319 627 33 74 297 Interbank Deposits Securities and Derivatives Additional provision Adjustment – Securities Held to Maturity Credit Operations Investment on BPI Time and Interbank Deposits and Funds from acceptance and issuance of securities abroad Securitization of Payment Orders Abroad Subordinated Debt and Treasury Shares Stockholders’ Equity Stockholders’ Equity Stockholders’ Equity 2,074 2,319 2,048 Total Unrealized (1) Tax effects not considered. (2) Includes unrealized minority interest gains in Equity of R$ 271 million at December/04, R$ 284 million at September/04 and R$ 257 million at December/03.

  14. Internet Banking CAGR: 32.4% CAGR: 43.4%

  15. Agenda Results - Banco Itaú Holding Financeira Pro Forma Results - Banco Itaú and Banco Itaú BBA Important Facts - Banco Itaú Holding Financeira

  16. 2004 % % 2003 3,502 86.8% 92.7% 2,737 829 23.8% 22.0% 750 (555) (14.7%) (335) (10.6%) 3,776 3,152 100% 100% Net Income R$ Million Banco Itaú S.A. Banco Itaú BBA S.A. Corporation Total Diversification of the income sources Not dependent only from interest rates

  17. Pro Forma R$ Million 2004 2003 Corpo- ration Corpo- ration Banco Itaú BBA Conso- lidated Banco Itaú Banco Itaú BBA Conso- lidated Banco Itaú 829 3,194 25.9% 17,671 34,488 (555) 2,934 -18.9% - 6,597 3,776 13.971 27.0% 47,407 130,339 2,737 7,550 36.2% 20,739 94,641 750 3,213 23.4% 17,919 30,490 (335) 1,117 -30.0% - 5,438 3,502 7,843 44.7% 29,736 109,983 3,152 11,879 26.5% 38,659 118,738 Net Income Tier I Allocated Capital ROE (%) Credit Portfolio (*) Total Assets (*) Including endorsements and sureties. Note: The Consolidated figures do not represent the sum of the parts because certain intercompany transactions were eliminated only at the Consolidated level.

  18. Consolidated Net Income Diversification of income sources Not dependent only on interest rates

  19. Credit Cards R$ Million (Except where indicated) Variation 2004 2003 Nº of Cards - Itaucard (thousands) Nº of Cards - Credicard (thousands) (*) Nº of Cards - Total (thousands) 5,780 2,246 8,026 10,603 4,787 15,390 400 99 499 1,305 1,349 2,654 2,353 1,732 4,085 (10) (9) (19) 22.6% 60.0% 33.1% 22.2% 36.2% 26.5% -2.5% -9.1% -3.8% 7,085 3,595 10,680 12,956 6,519 19,475 390 90 480 Turnover - Itaucard Turnover - Credicard (*) Turnover - Total Net Income - Itaucard Net Income - Credicard (*) Net Income - Total Participation in the Net Income of Orbitall and Redecard 63 41 22 53.7% (*) Corresponds to the share of Credicard owed by Itaú – 50% at 2004 and 33% at 2003.

  20. Insurance, Pension Plans and Capitalization R$ Billion 11.0 10.0 9.3 8.3 7.7 6.1 5.4 Technical Provisions – Pension Plans: growth of 43% from Dec. 03 to Dec. 04

  21. Combined Ratio Claim Ratio Insurance, Pension Plans and Capitalization R$ Million 4º Tri/04 Var 4ºT04 -3ºT04 Var.2004 - 2003 2004 2003 3º Tri/04 • Insurance Premiums, Pension Plans Contributions and Premium Bonds Revenues • Changes in Technical Provisions • Selling Expenses • Insurance Claims, Pension Plans Benefits and Premium Bonds Redemption • Other Operating Income/(Expenses) 6,233 (2,957) (395) (2,251) 177 5,008 (2,578) (358) (1,508) 136 24% 15% 11% 49% 30% 1,686 (843) (103) (579) 41 1,475 (636) (100) (591) 54 14% 33% 3% -2% -24% Operating Margin 807 701 15% 201 202 0% 485 (616) (141) (84) 623 (623) (166) (70) -22% -1% -15% 19% Financial Income Administrative and Tax Expenses* Income Tax and Social Contribution Other 115 (169) (23) (24) 115 (146) (39) (20) 0% 16% -41% 21% 451 465 -3% 101 113 -10% Result of Ins., Pension Plans and Cap. 94.1% 97.2% 92.3% 93.5% 53% 54% 51% 55% *Except for ISS, PIS and COFINS

  22. Resources Managed R$ Billion Volume of Mutual Funds and Portfolios under Management Technical Provisions of Insurance, Pension Plans and Capitalization Growth of 23.0% in the volume of Funds and Portfolios under Management and 43.4% in the volume of Technical Provisions in relation to Dec/2003

  23. Pro Forma R$ Million 2004 3rd Q/04 4th Q/04 Variation 04-03 2003 Net Interest Margin Result from Loan Losses Service Fees Administrative and Tax Expenses* Tax Income and Social Contribution Other Net Income Tier I Allocated Capital ROE (%) 464 31 84 (159) (151) (27) 242 3,194 33.9% 391 27 83 (133) (147) (25) 196 3,245 26.4% 1,403 213 306 (622) (416) (55) 829 3,194 25.9% 1,989 (513) 270 (613) (410) 27 750 3,213 23.4% (586) 726 36 (9) (6) (82) 79 (19) *Except for ISS, PIS and COFINS

  24. Strategy • Itaú BBA: wholesale bank integrated into a financial conglomerate; • Credit perspective for the corporate segment in Brazil: declining spreads, increase in the competition, limited client base. Currently 51% of all our revenues are non-credit related; • Challenge: to maintain current profitability levels in the next years considering lower margins in credit; • Our strategy: compensate lower gains in credit with an increase in the distribution of non-credit related products and services to our clients through: • Cross-selling – continue to take advantage of the synergy with Itaú, by increasing the selling of structured treasury operations such as hedging and also simpler products such as payroll and collection; • Investment banking – segment likely to expand in the next 5 years (we expect that by the end of this period Brazil becomes an investment grade country). • Itaú BBA is well-positioned in investment banking – leader in fixed income issuances and reinforcing our variable income team in order to build a strong investment banking. Investment banking currently stands for 5% of Itaú BBA´s revenues. In the next 5 to 6 years our goal is to increase this participation to 20%.

  25. Agenda Results - Banco Itaú Holding Financeira Pro Forma Results - Banco Itaú and Banco Itaú BBA Important Facts - Banco Itaú Holding Financeira

  26. Banco Itaú Holding in 2005 • Focus in increasing the credit portfolio to Individuals and to Small and Medium Sized Companies; • Consolidation of initiatives related to consumer loans: (Taií, CBD, Lojas Americanas, Credicard…); • Costs constant in real terms, which will lead to an improvement in the efficiency ratio (at the same basis); • New Segment – Disclosure, starting in next quarter, of a new segment to reflect the performance of business areas related to consumer loans.

  27. Taií New Brand Name (Itaú-based). Focus on lower income consumers. Proprietary platform. Operation launched in June/04 with 3 branches in São Paulo (currently 29). Uses the Itaú ATM network. Diversifies credit-related revenues. Responsive and efficient. Forecast: 150 stores by YE 2005.

  28. Forecast for 2005: Retail partnerships Expansion of Focus on direct consumer credit Long term partnership: 20 years, and renewal option Operating Management under the responsibility of Itaú Exclusivity in exploitation of financial products and services to retailers’ customers February 28, 2005 October 27, 2004 250 stores 170 stores

  29. Increase in Participation on CredicardCredit Card Base In Thousand Market Share: 20.3% 10,680 9,077 8,674 8,026 8,259

  30. Evolution of Earnings per Share and Dividends per Share (*) R$ CAGR = 28.6% CAGR = 26.2% Earnings per Share (*) Dividends per Share (*) (*) In the previous years per lot of thousand shares, as in 2004 a reverse split of shares was carried out.

  31. Preferred Shares Appreciation – in US$ Evolution of US$ 100 Invested from Dec. 94 to Dec. 04 Annual Average Appreciation in US$ 1,145 US$ Itaú(1) Itaú(2) Ibov. 10 years 27.60% 23.12% 6.75% 5 years 20.05% 15.75% 0.65% 800 Attack to WTC 64.36% 58.79% 28.23% 2004 Election Period Argentine Crisis Real Devaluation Russian Crisis Asian Crisis Mexican Crisis 192 100 • With dividends reinvestment. • Without dividends reinvestment.

  32. Banco Itaú Holding Financeira S.A. Presentation to:13th Annual Latin America Conference Alfredo Setubal Investor Relations Director New York March 2005

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