1 / 25

Conference Call 2006 Results

Conference Call 2006 Results. February 14, 2007. Highlights. 1.Results: Q4/06: Recurring Net Income of R$ 1,628 million, 2.3% increase compared to Q3/06; annualized ROE of 28.8%. ( Full Year 2006: Net Income of R$ 6,195 million and ROE of 32.6%).

olga-gilliam
Download Presentation

Conference Call 2006 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. Conference Call 2006 Results February 14, 2007

  2. Highlights • 1.Results: • Q4/06: Recurring Net Income of R$ 1,628 million, 2.3% increasecompared to Q3/06; annualized ROE of 28.8%. (Full Year 2006: Net Income of R$ 6,195 million and ROE of 32.6%). • Q4/06: Net Income of R$ 1,280 million (Year 2006: Net Income of R$ 4,309) • 2.Effects of BankBoston (BKB) acquisition in Brazil, Chile and Uruguay • Payment – Capital increase in Itaú (R$ 5,954 million), transferring common and preferred shares to Bank of America (7.44% of the total capital of Itaú). • Effects of BKB acquisition amounted R$ 2,171 million, net of tax effects. • 3.38.2% growth in credit portfolio during 2006, including BKB, and of 24.7%, not considering BKB. • Vehicles: 64.7% in 2006 and of 14.3% in Q4/06. • Small and Medium Sized Companies: 59.9% (including BKB), 22.4% (excluding BKB) and 3.5% in Q4/06. • 5.3% delinquency ratio as of December 31, 2006, stable Q-Q. .

  3. Non-recurring Effects – After Tax R$ Million 1 For more details, see page 4 of Management Discussion and Analysis Report. 2For more details, see Notes to Financial Statements 2a and 21i.

  4. Highlights R$ Million (Except where indicated) 1 Based on the average quotation of the last trading day in the period. It includes the number of shares related to BKB Chile and Uruguay acquisition. 2

  5. Itaú Holding Pro Forma R$ Million (Except where indicated)

  6. Credit Operation by Client Type R$ Million (Except where indicated) Not considering BKB contribution, total loans reached R$ 84,497 million, an increase of 24.7% in 2006. 1 Rural and Mortgage Loans – Loans linked with the balances of Demand and Savings Deposits.

  7. 100% 90% 28.6% 29.6% 29.8% 31.9% 32.9% 32.4% 34.8% 37.6% 39.0% 80% 70% 6.3% 6.2% 6.4% 6.3% 6.7% 6.9% 7.2% 60% 7.6% 8.5% 18.8% 21.8% 22.0% 19.1% 18.9% 18.7% 50% 19.0% 18.4% 18.2% 40% 30% 45.5% 42.8% 43.2% 41.5% 42.0% 41.8% 20% 38.9% 36.4% 34.3% 10% 0% Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Individuals Small and Medium-Sized Companies Mandatory Loans Corporate Credit Portfolio Break down

  8. 8.3% 8.1% 8.1% 5.3% 5.2% 5.1% 2.2% 2.1% 1.6% Jun/06 Sep/06 Dec/06 Delinquency and Coverage Ratios Delinquency Ratios Delinquency Ratio - Global Delinquency Ratio - Individuals Delinquency Ratio - Companies (*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

  9. Delinquency Ratio (NPL) by Segment R$ Million

  10. Funding R$ Million (except where indicated) 1 Includes Repurchase Agreement – Own Issue Securities

  11. Banking Service Fees R$ Million (Except where indicated) Not considering BKB, Banking Service Fees reached R$ 8,718 million in 2006, increase of 12.7% compared to 2005. 1Investment Funds and Consortium.

  12. Non Interest Expenses R$ Million (Except where indicated) Not considering BKB, Non Interest Expenses reached R$ 11,470 million in 2006, increase of 9.7% compared to 2005. 1 It does not include PIS, COFINS and ISS

  13. Efficiency Ratio 1 50.3% 47.6% 1 For further details on the criteria used, see slide 4.

  14. Itaú Itaubanco Itaú BBA Itaucred Corporation Banking Corporate Operations & Investment Banking Vehicles Cards – Current Account Holders Cards – Non Current Account Holders Insurance, Pension Plans and Capitalization Taií, FIC (CBD) and FAI (LASA) Investment Funds and Managed Portfolio Segmentation (Pro forma) NB: The organization chart of Itaucred segment reflects, chiefly, the transactions carried out through channels intended for non current account holders.

  15. Highlights of Pro Forma Segments R$ Million (Except where indicated) 1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

  16. Highlights of Pro Forma Segments R$ Million (Except where indicated) 1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

  17. The 2006 Outlook of Itaubanco broadcasted in 2005 Results Conference Call. • Organic growth of classic business lines; • 30.6% assets growth (without BKB) and 146 new branches and 969 new ATMs, not considering the 66 branches and 104 ATMs of BKB. • Expansion of Insurance, Pension Plans and Capitalization business areas; • Technical provisions increased 30.6%. • Efficiency ratio maintenance (at the same basis); • Efficiency ratio of 51.2% and 54.1% in 2006 and 2005, respectively. • 25% growth on credit portfolio. • The credit portfolio grew 13.7% and 38.8%, not considering BKB and considering it, respectively. • Moderate growth in delinquency ratio are expected as a consequence of targeting operations with higher margins and higher risks (personal loans and credit cards). • Delinquency ratio of 7.3% in Dec 31, 2006 and of 6.7% in June of 2006.

  18. The 2006 Outlook of Itaú BBA broadcasted in 2005 Results Conference Call. • Focus on Investment Banking and banking services segments; • 37.9% growth in banking service fees. • Continuous improvement of market risk management. • 26.8% increase in Treasury Financial Margin.

  19. The 2006 Outlook of Itaucred broadcasted in 2005 Results Conference Call. • Growth of vehicles financing, developing new segments and presence in regions where penetration is reduced; • 67.7% growth in the balance of vehicles financing and leasing. • 12 Commercial Platforms opened and 4,569 new car dealers registered in 2006. • Consolidation and growth of partnerships with CBD (FIC) and Lojas Americanas (FAI); • 48.2% increase in credit portfolio of FIC and 164.7% of FAI. • Growth of Taií’s outlets number (FIT); • 118 new outlets, increase of 90.8% from 2005. • New products launch through FIC, FIT and FAI; • Co-branded card, Private Label, Personal Loan - Card, Installments and Home Insurance. • Growth of operations with non-account holders; • Itaucred income correspond to 10.5% of Itaú’s income, with approximately 2.7 million new non account holders customers. • Growth of 30% in credit portfolio. • 59.8% growth in credit portfolio • Expectation of moderate growth of delinquency ratio as a consequence of targeting operations with higher margins and higher risks (Taií and credit cards). • Delinquency ratio was 6.2% and 7.1% in Dec 31, 06 and Jun 30, 06, respectively.

  20. 2007 Outlook • Small reduction in delinquency ratio. • Efficiency ratio improvement. • 20% - 25% growth in credit portfolio. • 10% growth in Banking Service Fees (15% in Itaú Holding). • Opening of 130 branches. • Expansion the operations in Argentina, Chile and Uruguay.

  21. 2007 Outlook • Focus on Investment Banking activities. • Continuous improvement of market risk management. • Continuous improvement of service fees. • Consolidation of Corporate clients portfolio in Argentina, Chile and Uruguay. • Slight reduction in the credit portfolio.

  22. 2007 Outlook • Taií • 100 new sales points. • 50% growth in credit portfolio (not including payroll loans). • Efficiency ratio improvement. • Delinquency ratio improvement. • On the 4Q/07,we wait to reach break-even of the threeoperation (FIC, FAI and FIT). • Vehicles • 40% growth in vehicles financing and leasing portfolio. • Efficiency ratio improvement. • Maintenance of delinquency ratio. • Credit Card • 20% growth in billing. • Maintenance of delinquency ratio.

  23. Recurring Net Income per share R$ Recurring Net Income Net Income and Net Income per Share R$ million Note: The Net Income per Share was adjusted to reflect the stock split of 900% that occurred in oct/05.

  24. Conference Call 2006 Results February 14, 2007

More Related