Banco Votorantim S.A. Institutional Presentation
2nd Quarter, 2012
1
Disclaimer
Disclaimer
“Certain statements made in this presentation may not be based on historical information or facts. This presentation therefore contains, or may be deemed to
contain, “forward looking statements” (within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended), including those relating to the general business plans and strategy, future financial condition and results and growth
prospects of Banco Votorantim S.A. (“Banco Votorantim” or the “Company”), and future developments in its industry and its competitive and regulatory
environment. By their nature, forward‐looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or
may not occur in the future and are based on assumptions, data or methods which, although considered reasonable by the company at the time, may turn out to
be incorrect or imprecise, or may not be possible to realize. Accordingly, actual results may differ materially from these forward‐looking statements due to a
number of factors, including future changes or developments in the Company‟s business, its competitive environment, technology developments and political,
economic, legal and social conditions in Brazil.
Forward looking information is not merely based on historical fact but also reflects management‟s objectives and expectations. The Company can give no
assurance that expectations disclosed in this presentation will be confirmed. The words “estimate”, “believe”, "anticipate", “wish", "expect", “foresee", “intend",
"plan“, "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown
risks. Known risks include uncertainties which include, but are not limited to, interest rates, product competition, market acceptance of products, the actions of
competitors, regulatory approval, currency type and fluctuations, monetary policy, among others.
This presentation is based on events up to June 30th, 2012. The Company or any of its affiliates take no responsibility or liability to update the contents of this
presentation in the light of new information and/or future events.
Banco Votorantim and/or any of its affiliates do not accept and take no responsibility, whatsoever, direct or indirect, for transactions or investment decisions
made on the basis of information contained in this presentation.
Banco Votorantim may alter, modify or otherwise change in any manner the contents of this presentation, without the obligation to notify any person of such
revision or changes.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor
anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this
summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research,
publicly available information and industry publications. Although the Company has no reason to believe that any of this information or these reports are
inaccurate in any material respect, the Company has not independently verified the competitive position, market share, market size, market growth or other data
provided by third parties or by industry or other publications and therefore does not make any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without the Company‟s
prior written consent.”
2
Macroeconomic environment and the banking sector
Corporate governance
Strategy and business portfolio highlights
Financial highlights
Agenda
3
Brazilian macroeconomic highlights
International reserves (US$B) Unemployment index³ (%)
GDP (R$T) and real GDP growth (%p.y.)
Benchmark interest rate¹ (Selic - %p.y.) and
12 month IPCA – consumer price index² (%)
June/12
4.92
8.50
Mar/12
5.24
9.75
2011
6.50
11.00
2010
5.91
10.75
2009
4.31
8.75
2008
5.90
13.75
2007
4.46
11.25
May/12
5.8
Mar/12
5.8
2011
6.0
2010
6.7
2009
8.1
2008
7.9
2007
9.3
Brazilian macroeconomic highlights
June/12
4.28
0.5%(F)
Mar/12
4.20
0.8%
2011
4.14
2.7%
2010
3.77
7.5%
2009
3.24
-0.3%
2008
3.03
5.2%
2007
2.66
6.1%
374365352
289
239
194180
June/12 Mar/12 2011 2010 2009 2008 2007
Selic
IPCA
1. Selic benchmark, by the end of the period; 2. Inflation, measured by the IPCA index; 3. As a % of the economically active population in metropolitan areas (average for the ongoing year)
Note: (F) – forecast Source: Bacen; IBGE
4
327330373
324
6358102
Jun/12 Mar/12 2011 2010 2009 2008 2007
Brazilian Financial System (SFN¹)
Reserve requirements collection (R$B)
SFN – Total loan portfolio (R$T) Credit as % of GDP
Brazilian Financial System
Enterprises
Individuals
June/12²
2.17
53%
47%
Mar/12
2.07
53%
47%
Dec/11
2.03
54%
46%
Dec/10
1.71
54%
46%
Dec/09
1.41
55%
45%
Dec/08
1.23
57%
43%
Dec/07
0.94
55%
45%
Individuals’ loans - Non-earmarked (R$B)
Auto finance
Payroll
loans
Others
June/12²
688.1
29%
25%
45%
Mar/12
667.7
30%
25%
45%
Dec/11
648.3
31%
25%
44%
Dec/10
560.0
33%
25%
42%
Dec/09
469.9
33%
23%
44%
Dec/08
394.3
35%
20%
45%
Dec/07
317.6
35%
20%
44%
June/12
50.6%
Mar/12
49.4%
2011
49.0%
2010
45.2%
2009
43.7%
2008
40.5%
2007
35.2%
1. SFN: Sistema Financeiro Nacional; 2. In June/12, individuals‟ loan portfolio included R$324B of Earmarked resources, and R$688B of Non-earmarked resources, including R$202B in auto
finance (CDC+Leasing) Source: Bacen; IBGE
Mar/10: changed
collection for time
deposits and additional
reserve requirements for
deposits
5
Macroeconomic environment and the banking sector
Corporate governance
Strategy and business portfolio highlights
Financial highlights
Agenda
6
Banco Votorantim is one of the leading players in Brazil 3rd largest privately-held Brazilian bank in total assets and loan portfolio
Banco Votorantim is the 3rd largest privately-
held Brazilian bank in total assets...
...and is well-positioned to consolidate itself
as one of the largest banks in Brazil
Banco Votorantim – Overview
Largest Financial Institutions - Assets (R$B)¹
...and also in terms of loan portfolio...
58
58
88
114
147432
511
666
815
935
CEF
Bradesco
Itaú Unibanco
Banco do Brasil
Citibank
BTG Pactual
Safra Votorantim
HSBC Santander
Largest Financial Institutions – Loan Portfolio (R$B)¹
State-owned
Foreign
National privately-held
20
20
41
48
59173
237
250
289
398
Volkswagen
Banrisul
Safra
HSBC Votorantim²
Santander
Bradesco
CEF
Itaú Unibanco
Banco do Brasil
State-owned
Foreign
National privately-held
1. Excluding BNDES (state-owned development bank); figures as of Mar/12, except for Banco Votorantim (June/12); 2. Considers BV‟s own portfolio (excluding securitization); 3. Includes credit assignments with recourse and FIDCs Source: Banco Votorantim; Bacen; Anbima
Diversified business portfolio
• Wholesale Banking
– “Top 5” in credit for large enterprises
• Consumer Finance
– Market leader in used auto finance
– “Top 5” in payroll loans³
– ~ 5.6 million customers
• Wealth Management
– 8th largest asset manager by Anbima‟s managers‟
ranking: R$43.2B in AuM
Strategic partnership with Banco do Brasil, the largest
financial institution in Latin America
Strong and committed shareholder base
• Banco do Brasil and Votorantim Group
Low fixed-cost business model
• Extensive third-party distribution network in Consumer
Finance (vs. branches)
+
Shareholder
50% total
7
Banco Votorantim has a strong shareholder base Two of the largest and most solid Brazilian institutions
Note: Figures as of Dec/11 Source: IR websites
Total: 50.00%
Common: 49.99%
Preferred: 50.01%
Total: 50.00%
Common: 50.01%
Preferred: 49.99%
• One of the largest privately-held industrial groups in
Latin America
• Founded in1918
• R$23.7B revenues and R$5.3B EBITDA in 2011
• Market leader among its diversified portfolio of basic
materials and commodities, e.g.:
– Pulp & Paper: #1 pulp producer in the world
– Cement: top 10 global player; #1 in Brazil
– Metals: leading global position in zinc and nickel; #1
aluminum producer in Brazil
– Steel: established presence in long steel in South
America
– Orange juice: “top 3” global player
• ~65,000 employees
• Ratings: Baa3 (Moody’s) / BBB (S&P) / BBB (Fitch)
Votorantim Group
• Largest FI in Brazil, 200+ years old
• R$12.1B net profit in 2011, and 21.7% ROAE
• Market leader in terms of
– Total assets (R$981B)
– Total deposits (R$442B)
– Loan portfolio (R$461B)
– AuM (R$416B)
• Diversified funding base, with low cost deposits
– ~65% of the basic interest rate – Selic
• 59.2% controlled by the Brazilian Government
• Market capitalization: R$74.4B (Mar/12)
• ~56M retail clients
• ~114k employees
• Ratings: Baa2 (Moody’s) / BBB (S&P) / BBB (Fitch)
Banco do Brasil (BB)
Banco Votorantim – Shareholder base
8
Partnership with Banco do Brasil was established in 2009,
based on a sound strategic rationale
Robust deposit base:
Funding
Votorantim Group‟s solidity and
industrial expertise
Asset origination capacity
Efficient brokerage structure
and differentiated Asset
Management products
Largest consumer finance
customer base in Brazil
Stronger and more competitive institution
Successful operating model in
Auto Finance and Alternative
Channels
National presence, through an
extensive distribution network
Solidity and tradition of the
oldest Brazilian bank
Strategic partnership
9
Shared governance between the shareholders
• Gestão profissional com executivos experientes
Name Position Shareholder
José Ermírio de Moraes Neto Chairman Votorantim Finanças
Aldemir Bendine Vice-Chairman Banco do Brasil
Ivan de Souza Monteiro Director Banco do Brasil
Marcus de Camargo Arruda Director Votorantim Finanças
Paulo Rogério Caffarelli Director Banco do Brasil
Wang Wei Chang Director Votorantim Finanças
Name Position
João Roberto Gonçalves Teixeira CEO
Alvaro Jorge Fontes de Azevedo Executive Officer
Elcio Jorge dos Santos Executive Officer
Marcos L. Monteiro Executive Officer
Pedro Mollo Neto Executive Officer
Ricardo Arruda Executive Officer
Robert John van Djik Executive Officer
Governance structure
Banco Votorantim – Corporate Governance
Board of Directors
Executive Committee
Source: Banco Votorantim
• Equal representation of each shareholder
• 2-year term of office, and annual Chairman/Vice-Chairman
rotation between the two shareholders
• Decisions are made by absolute majority, with no “casting vote”
Board of
Directors
Operating Committees
Executive
Committee
Communication
Credit
Business
Products
Human Resources
Technologies
Tax
Sustainability
ALM, Risks & Capital
Internal Controls
Ombudsman
Expenses (CAAD)
Projects
Fiscal Council
Audit
Committee
Compensation
& HR
Statutory
Products &
Marketing
Finance
Operational
Review (CRO)
Advisory
Equal representation of
each shareholder
Equal representation of each
shareholder (temporary)
10
Macroeconomic environment and the banking sector
Corporate governance
Strategy and business portfolio highlights
Financial highlights
Agenda
11
Banco Votorantim has a diversified business portfolio,
internally divided into Wholesale and Consumer Finance
Banco Votorantim – Corporate strategy
1. Includes guarantees provided and private securities; 2.Consumer Finance‟s own loan portfolio totaled R$38.3B in June/12, besides R$15.4B in credit assignments with recourse (including FIDCs‟ subordinated shares, which represented R$3.3B) Note: Middle Market segment refers to enterprises with annual sales between R$20M and R$400M; when annual sales are above R$400M, the enterprise belongs to CIB segment
Banco Votorantim is focused on increasing the return on
capital of all business lines in the medium-term
Shareholders
Pillars
Cons. Finance² Wholesale
Auto
Finance
Among the top players
in the market,
enhancing partnership
with BB
Focus on used auto
finance
(multi-brand dealers)
Partner with BB in new
auto finance
(new car dealers)
Other
businesses Increase profitability in
individual loans, with
focus on INSS
payroll loans
Continue to grow in
credit cards
Expand insurance
brokerage revenues
(e.g. Auto)
Corporate &
IB (CIB)
Wealth
Management
Middle
Market
Continue to grow with
quality in this segment
of mid-sized
companies, gaining
scale and efficiency
Focus on
relationships and
operational agility
Enhance product
offering
8th largest asset
manager, with
innovative products
Private Bank focused
on estate planning,
offering customized
solutions, with an
open architecture
Continuously expand
synergies with BB
Position CIB as a relevant partner, by building agile and
long-term relationships, as well as offering integrated
financial solutions (IB, derivatives,
structured products and distribution), suitable for each
client
Banco do Brasil Votorantim Group +
Expanded¹
loan portfolio
R$42.3B
R$80.6B
R$80.6B
R$38.3B
12
Wholesale: expanded¹ loan portfolio
reached R$42.3B in June/12 Corporate & IB (CIB) highlights
1. Includes guarantees provided and private securities; 2. Ratio between ALL balance and balance of operations past due by over 90 days (Bacen‟s Res. 2,682 criteria); 3. Past due by over 90 days (Bacen‟s Res. 2,682 criteria)
Corporate
(CIB)
Middle
Market
June/12
42.3
32.7
9.6
June/11
39.0
31.7
7.3
2011
39.2
30.2
9.0
2010
37.2
31.3
5.9
2009
35.6
33.4
2.1
2008
35.6
33.9
1.7
Wholesale expanded¹ loan portfolio (R$B)
Middle Market highlights
More disciplined capital allocation (focus on profitability)
• Assessment of operations via Business Committee (weekly)
• Individual business plans for each client
Improved relevance to customers, through strengthening of
the product platform. 1H12 highlights:
• Derivatives (hedge): ranked 8th in CETIP‟s ranking
• Investment Bank: 25 Fixed Income and 2 Equities operations,
besides the announcement of 4 Mergers & Acquisitions
• Project Finance: R$1.1B in concluded operations
“One-stop-shop Project Structuring factory”
• Advisory and financing throughout the project cycle
Focus on profitability (vs. growth)
• Cautious loan portfolio expansion
• Delinquency levels below market average (2.3%³ in June/12)
Scale and efficiency gains
∆
June.12/
June.11
8%
30%
3%
Coverage Ratio² 189% 180%
Focus on exploring opportunities related to infrastructure
investments and the expected growth of capital market
Wholesale – CIB and Middle Market
CIB and Middle Market have increased their focus on
profitability, and kept the conservatism in credit provisions CIB & Middle
Market
13
VWM&S reached R$43.2B in assets under management
Wealth Management (VWM&S) expands 14% in
12 months and VAM is now the 8th largest Asset¹ Asset Management highlights
Wholesale – Wealth Management
VWM&S assets under management²(R$B) Continuous market share expansion in the last months,
reaching 1.9% in June/12
Structured Products (FIDC, FII and FIP³) ends June/12
with R$11.4B in assets under management
Enhanced synergies with BB: assets from funds
structured in partnership reach R$2.2B4
43.2
+14%
June/12 June/11
37.8
2011
43.0
2010
31.4
2009
22.9
2008
19.1
13th Anbima
ranking¹ 9th 8th
Private Bank highlights
12% growth in assets under management (AuM) and
17% growth in the customer base, in the last 12
months
ISO 9001:2008 Certificate for the scope of Relationship,
Wealth Management and Advisory regarding Brazilian
clients, by Bureau Veritas
Focus on estate planning via customized solutions,
with an open architecture concept
1. Includes Treasury, Brokerage and offshore products; 2. Votorantim Asset Management „s(VAM) position in Anbima‟s managers‟ ranking; 3. Investment funds in credit receivables, real estate , and equity shares; 4. Total assets by the end of June/12 Source: Banco Votorantim; Anbima
VWM&S aims at being one of the best in structuring and
managing high value-added products
Wealth
Mgmt
14
Consumer Finance – Auto Finance
BV Financeira is one of the leading players in auto
finance, and operates in partnership with BB
BVF operates as BB’s arm in auto financing outside
BB s branch network
BVF is among the leading players in the auto finance
market…
• ~19.3% portfolio market share²
• ~ 5.6 million clients
…with focus on multi-brand dealers (used vehicles) for
own origination
• Multi-brand dealers represented 81% of light vehicles
financed in June/12 (67% in June/11)
BB and BV Financeira have jointly advanced in the
structuring of a credit assignment model without
recourse (“BV Financeira Originadora”)
• Focus on new car dealers (new vehicles)
Low fixed-cost business model, based on an extensive
third-party distribution network
• More than 22,000 multi-brand dealers throughout Brazil
Auto Finance highlights
Auto finance represents 80% of Consumer
Finance’s managed loan portfolio
Banco Votorantim – Auto finance managed¹ loan
portfolio(R$B)
Auto finance
(own portfolio)
12.0
30.9
(72%)
43.0
June/12
Auto finance
(securitized)¹
2011
47.5
31.3
(66%)
16.3
2010
41.6
32.0
(77%)
9.6
2009
26.4
22.6
(86%)
3.8
2008
20.0
17.2
(86%)
2.8
80% 88% Auto finance/
Cons. Fin.¹(%)
Auto
Finance
1. Includes credit assignments with recourse and for FIDCs; 2.Estimate based on the managed loan portfolio (excluding FIDCs) Source: Banco Votorantim; Bacen; Abel
15
June/11
28.5 24.5 26.8
Mar/12 June/12
57%59%65%
June/12 Mar/12 June/11
81%77%67%
June/12 Mar/12 June/11
June/12
45.2
Mar/12
45.6
June/11
48.8
Higher than SFN²:
20.7% in June/12
Production via multi-brand¹ dealers/Total (%) Auto production average interest rate (%p.y.)
Auto production average tenor (months) Auto production loan-to-value³ (%)
1. Considers light vehicles; 2. National Financial System (“Sistema Financeiro Nacional”); 3. Financed % of the asset‟s value (the lower the %, the higher the required down payment) Source: Banco Votorantim
BV Financeira reinforced focus on multi-brand dealers,
reduced average tenor and required greater down payment Auto
Finance
Consumer Finance – Auto Finance
16
Social security represents 67% of BV’s
managed payroll loan portfolio Payroll loans highlights
7.0
(68%)
10.4
3.4
Own
portfolio
Securit.¹
June/12 Mar/12
10.5
6.7
(64%)
3.8
Dec/11
10.5
6.2
(59%)
4.3
Dec/10
8.9
4.9
(56%)
3.9
Dec/09
5.7
3.4
(59%)
2.3
Dec/08
2.6
1.7
(68%)
0.8
67% INSS/ Payroll loan
portfolio (%)
Managed¹ payroll loan portfolio (R$M)
Banco Votorantim’s payroll loans business is focused
on INSS (retirees and pensioners)
Operation focused on “INSS” (retirees and
pensioners)
• INSS represents 67% of BV‟s managed payroll loan
portfolio
Selective operations in both private and public
sector
Increased focus on refinancing contracts
Estimated market share of 5.9% (considering
managed¹ portfolio)
National presence mainly through an extensive
third-party distribution network
• Relationship with over 1,000 correspondent banks
55%
Consumer Finance – Payroll loans
Payroll
loans
1. Includes credit assignments with recourse Source: Banco Votorantim; Bacen
17
Macroeconomic environment and the banking sector
Corporate governance
Strategy and business portfolio highlights
Financial highlights
Agenda
18
Financial highlights
Financial highlights
Note: excluding the timely expenses related to the restructuring process (e.g. labor provisions), 2Q12 non-interest expenses would have decreased R$10M vs. 1Q12
1. Federal, state and local taxes (excludes ISS, PIS and Cofins)
Total revenues (Gross Financial Margin, Fee Income and Other Operating Income) Allowance for loan losses expenses
859813Cons.
Finance
Wholesale
2Q12
1,449
1,331
119
1Q12
1,491
1,357
134
4Q11
1,328
1,181
146
3Q11
989
130
2Q11
893
80
Non-interest expenses (Personnel, Administrative, Operating and Other Tax¹) Net income
354 415 433 362 372
210235 209 235 244
187145 157
Administrative
Personnel
Other
2Q12
773
1Q12
742
4Q11
829
3Q11
768
118
2Q11
672
108
-536-597-656
-85
156
2Q12 1Q12 4Q11 3Q11 2Q11
R$ million
∆ 2Q12/
1Q12
2Q12
1,405
1Q12
1,400
4Q11
1,186
3Q11
1,748
2Q11
1,819 -3%
-12%
-2%
19
Dec/11
39.7%
Sept/11
37.0%
June/11
36.2%
June/12
48.1%
Mar/12
43.4%
Financial highlights
2Q12
4.4%
1Q12
4.5%
4Q11
3.5%
3Q11
4.9%
2Q11
5.5%
Financial highlights
Net Interest Margin – NIM (% p.y.) Efficiency Ratio¹ (%) – last 12 months
1.Ratio between (a) the sum of Personnel and Other administrative expenses and (b) the sum of Gross income from financial intermediation before Allowance for Loan Losses (ALL), Fee
income, Other operating income/expenses, and Fiscal hedge adjustment
20
June/12
43.2
Mar/12
44.6
Dec/11
43.0
Sept/11
38.6
June/11
37.8
Expanded¹ managed² loan portfolio
Total assets Assets under management
Loan portfolio
June/12 Mar/12
113.6
Dec/11 Sept/11 June/11
119.2 113.5 112.4 124.3
1. Includes guarantees provided and private securities, 2. Includes credit assignments with recourse and credit assignments for FIDCs (of which Banco Votorantim owns 100% of the subordinated quotas)
Financial highlights
Expanded credit
portfolio¹
Securitization
June/12
95.7
80.3
15.4
Mar/12
97.6
79.6
18.0
Dec/11
97.4
76.8
20.5
Sept/11
99.4
82.8
16.6
June/11
95.7
79.8
15.9 58.8
Dec/11
58.7
Sept/11
64.0
June/11
61.2
Mar/12
58.8
June/12
Financial highlights
R$ Billion
21
Expanded managed loan portfolio
Others³
Auto finance
June/12 Sept/11
99.4
Corporate
95.7
48.0
95.7
Middle
Market
10.8
June/11
43.0
10.4
31.7
7.3
46.2
10.4
Mar/12
97.6
32.4
9.1
45.6
10.5
9.6
Dec/11
97.4
30.2
9.0
10.7
31.8 32.7
8.8
47.5
Credit assignments with recourse(R$B)
Expanded¹ managed² loan portfolio (R$B)
1. Includes guarantees provided and private securities, 2. Includes credit assignments with recourse and credit assignments for FIDCs (of which Banco Votorantim owns 100% of the subordinated quotas); 3. Payroll loans, CDC, credit cards and individual loans
Total
Credit assignments for FIDCs(R$B)
Financial highlights
15.4 12.9 12.0
5.2 2.9 3.3
∆
June12/June11
∆
June12/Mar12
0.0% -1.9%
-0.5% -0.8%
-7.0% -5.8%
30.5% 5.2%
3.3% 1.1%
22
June/12
6.9%
5,091
Mar/12
5.9%
4,536
Dec/11
4.6%
3,675
Sept/11
3.7%
2,992
June/11
2.9%
2,248
June/12
108.1%
Mar/12
102.0%
Dec/11
103.9%
Sept/11
103.9%
June/11
108.2%
Allowance for loan losses balance Coverage Ratio¹ (%)
Non-performing loans - 90 days¹ (%) Non-performing loans - 15 to 90 days¹ (%)
ALL balance/managed loan portfolio¹
ALL balance (R$M)
Credit indicators
Financial highlights – Credit indicators
June/12
8.0%
2.1%
6.3%
Mar/12
7.1%
2.0%
5.8%
Dec/11
5.5%
1.7%
4.5%
Sept/11
4.4%
1.3%
3.6%
June/11
3.3%
1.1%
2.7% 1.1%
7.4%
June/11
5.9%
8.7%
Mar/12
6.0%
0.7%
8.1%
June/12
1.2%
6.7%
Dec/11
8.1%
0.8%
6.2%
Sept/11
7.6%
0.3%
5.5%
Total Consumer Finance Wholesale Wholesale Total Consumer Finance
1. Considers credit assignments with recourse and credit assignments for FIDCs ; past due loans according to Bacen‟s Res. 2,682 criteria
23
June12/Mar12 June12/June12
Deposits 23.6 25.6 23.0 (10.2) (2.8)
Repos¹ 19.4 20.7 16.2 (21.6) (16.5)
Issuance of Securities² 15.7 19.1 21.4 11.9 36.7
Financing Bills 5.7 8.4 10.1 19.7 77.3
Subordinated Debt 5.7 7.5 7.8 4.1 37.8
Subordinated Financing Bills 1.1 2.2 2.1 (3.6) 95.4
Loans and Others³ 9.6 7.7 7.0 (10.0) (27.8)
Onlendings 7.1 6.0 5.6 (6.4) (21.2)
Total Funding 81.1 86.6 81.0 (6.5) (0.2)
Securitization (credit assignments + FIDCs) 15.9 18.0 15.4 (14.5) (3.2)
Credit assignments - w ith recourse 12.9 13.6 12.0 (11.8) (7.0)
Credit assignments - for FIDCs4 2.9 4.3 3.3 (23.0) 14.0
Total Funding and Securitization 97.0 104.6 96.4 (7.9) (0.7)
International Funding5/Total Funding and Securitization (%) 13.0 12.4 14.8
Loan Portfolio/Total Funding (%) 75.4 67.9 72.6
FUNDING SOURCES
(R$ Billion)
(R$ Bilhões)
June.11 Mar.12 June.12Variation (%)
Funding sources
1. Private securities (excludes government securities); 2. Includes Eurobonds, Debentures, Financial bills and LCA; 3. Includes Option Box and NCE repo; 4. FIDCs of which Banco Votorantim owns 100% of the subordinated quotas; 5. Includes foreign securities, foreign borrowings and subordinated bills
Financial highlights – Funding
Additionally, Banco Votorantim has a stand-by credit
facility of ~R$7B from BB, which has never been tapped
24
Basel Index and Shareholders’ Equity
Tier I
Tier II
Sept/11
12.7%
8.5%
4.2%
June/11
13.9%
9.7%
4.1%
June/12
15.5%
10.2%
5.3%
Mar/12
13.0%
8.7%
4.4%
Dec/11
14.1%
9.5%
4.7%
Financial highlights – Capital and liquidity
Basel Index
8,718
7,566
Dec/11 June/11
8,706 8,041
Sept/11 June/12 Mar/12
9,304
Shareholders’ Equity (R$M)
Shareholders increased capital
by R$ 2B in June/12
25
Banco Votorantim’s main ratings
Ratings
Banco Votorantim is an Investment Grade bank by Fitch, Moody’s and S&P
RATING
AGENCIES
International National
Long-Term Short-Term Long-Term Short-Term Long-Term Short-Term
Fitch Ratings Local Currency Foreign Currency Nacional
BBB- F3 BBB- F3 AA+(bra) F1+(bra)
Moody’s Local Currency Deposits Foreign Currency Deposits Nacional
Baa2 P-2 Baa2 P-2 Aaa.Br BR-1
Standard & Poor's Local Currency Foreign Currency Nacional
BBB- A-3 BBB- A-3 brAAA brA-1
Top Related