3Q14 / 9M14
Earnings Release
São Paulo, November 14, 2014. Banco Industrial e Comercial S.A. (BICBANCO) (BM&FBOVESPA: BICB3 and BICB4), today announced its results
for the third quarter (3Q14) and the first nine months of 2014 (9M14). All operational and financial information contained in this Report, except
where otherwise indicated, is presented in Brazilian currency (Reais - R$), on a consolidated basis, and comprises the Bank's subsidiaries
and the Receivables Investment Funds (FIDCs). The financial statements herein posted comply with the rules set out by the Brazilian Central
Bank (BACEN), the Brazilian Corporate Law, the technical opinions of the Accounting Pronouncement Committee (CPC), and are ruled by the
Brazilian Securities and Exchange Commission (CVM).
Highlights
Extended Loan Portfolio
R$12.3 bi
Total Funding
R$12.4 bi
Liquid Assets
R$2.7 bi
Adjusted Net Result
R$ -353.0 mi
Completion of
the acquisition
of BICBANCO
by CCB
At the close of 3Q14, loan operations including guarantees and sureties came to R$ 12,349.5
million, down 4.8% from 2Q14, and down 4.2% year-over-year. Guarantees and sureties
totaled R$ 2,364.1 million at the close of 3Q14, representing a decrease of 2.8% quarterover-quarter and an increase of 21.4% year-over-year. The share of large corporate clients in
the overall loan operations resulted in 46.2%.
Total funding amounted to R$ 12,440.4 million in 3Q14, representing an increase of 2.5%
quarter-over-quarter and a decrease of 1.2% year-over-year. Domestic funding came to
R$ 8,549.9 million, with particular emphasis on time deposits, which totaled R$ 6,583.7
million, down 3.5% from 2Q14 and up 5.9% year-over-year. International funding amounted
to R$ 3,890.5 million, accounting for 31.3% of the overall funding.
At the end of 3Q14, highly liquid assets totaled R$ 2,707.4 million, representing increases of
19.3% quarter-over-quarter and 38.0% in relation to the same period of 2013. The Bank’s
Management deems the amount for liquid assets to be quite favorable, based on the flow of
maturities for both assets and liabilities operations.
In the third quarter of 2014, the net financial loss rose to R$ 353.0 million and to R$ 500.0
million in 9M14. This performance has been mainly impacted by the expenses of LLPs totaling
R$ 621.2 million in 3Q14 and R$ 929.2 million in 9M14.
The unfolding of the share purchase and sale agreement of 72% of BICBANCO's capital
stock executed with China Construction Bank (CCB) on October 31, 2013, taking into
account that the applicable precepts and regulations concerning this operation have been
fulfilled, CCB Brazil Financial Holding – Investimentos e Participações Ltda (CCB Holding),
acquired BICBANCO's shareholding control on August 29. Further details on the final stage
of the purchase and sale process are shown on page 14.
Milto Bardini
Investor Relations
Executive Vice President of Operations and IR Officer
Phone [55 11] 2173-9190
Maria Ines Martins Ramos
www.bicbanco.com.br/ir
IR Superintendent
[email protected]
Claudine Nahas
IR Analyst
3Q14 / 9M14 Earnings Release
Main indicators
Balance sheet (R$ million)
3Q14
2Q14
3Q/2Q (%)
3Q13
3Q/3Q (%)
Loan operations
9,985.4
10,535.8
(5.2)
10,940.3
(8.7)
Marketable securities and derivatives
1,864.1
1,855.1
0.5
2,008.3
(7.2)
14,939.5
15,021.5
(0.5)
15,457.5
(3.4)
Time deposits
6,583.7
6,823.0
(3.5)
6,215.4
5.9
Total deposits
7,222.3
7,360.4
(1.9)
7,070.5
2.1
Shareholders’ equity
1,448.7
1,815.3
(20.2)
1,923.1
(24.7)
66.8%
70.1%
-3.3 p.p.
70.8%
-4.0 p.p.
Total assets
Loan operations / total assets
Results (R$ million)
3Q13 3Q/3Q (%)
9M14
(452.5)
(65.5)
n.a.
176.1
n.a.
(390.5)
458.7
n.a.
23.6
23.0
2.6
27.7
(14.9)
73.4
71.3
3.0
Personnel expenses
(56.3)
(56.1)
0.3
(47.4)
18.7
(166.8)
(156.1)
6.9
Administrative expenses
(52.5)
(46.3)
13.3
(47.4)
10.8
(148.7)
(133.2)
11.7
(353.0)
(150.8)
n.a.
35.4
n.a.
(500.0)
102.6
n.a.
3Q13 3Q/3Q (%)
9M14
Adjusted financial operations result
Income from services
Adjusted net result
Indicators (%)
3Q14
3Q14
2Q14 3Q/2Q (%)
2Q14 3Q/2Q (%)
9M13 9M/9M (%)
9M13 9M/9M (%)
14.4%
16.7%
-2.4 p.p.
18.9%
-4.5 p.p.
14.4%
18.9%
-4.5 p.p.
Adjusted net interest margin
5.1%
5.5%
-0.4 p.p.
7.2%
-2.1 p.p.
5.4%
5.9%
-0.5 p.p.
Shareholder Remuneration
(R$ million)
3Q14
2Q14 3Q/2Q (%)
3Q13 3Q/3Q (%)
9M14
9M13 9M/9M (%)
n.a.
-
3Q13 3Q/3Q (%)
9M14
Basel Index
Interest on equity
Stock Performance
3Q14
-
n.a.
2Q14 3Q/2Q (%)
-
52.0
n.a.
9M13 9M/9M (%)
Earnings per outstanding share (R$)
(1.4320)
(0.6118)
n.a.
0.1438
n.a.
(2.0283)
0.4167
n.a.
Book value per outstanding share (R$)
5.8768
7.3641
(20.2)
7.8110
(24.8)
5.8768
7.8110
(24.8)
7.30
7.55
(3.3)
4.50
62.2
7.30
4.50
62.2
1,846.2
1,927.0
(4.2)
1,146.1
61.1
1,846.2
1,146.1
61.1
Market price - BICB4 (R$) (*)
Market cap (R$ million) (*)
(*) last working day of the respective periods
n.a. - not applicable
The adjusted net result is the accounting net result, after deduction of the adjustments resulting from the mark-to-market valuation of
the derivative positions, in connection with the funding operations involving bonds issued abroad, net of taxes. The Bank adopts the
adjusted net result concept in its Earnings Release, for the purpose of providing a better understanding, a more adequate comparative
analysis, as well as a more accurate assessment of BICBANCO’s performance, with special emphasis on operational aspects. An
overview of the accounting result can be found on page 18. The conciliation between the adjusted and the accounting net result is
broken down as follows.
Reconciliation of net result (R$ million)
Net result (accounting)
Effect of the mark-to-market accounted in result with derivative financial instruments
Deferred tax over the mark-to-market
Net effect of the mark-to-market on the result
Adjusted net result
3Q14
2Q14
3Q13
9M14
(368.6)
26.0
9M13
(143.9)
5.2
(512.0)
22.8
(11.5)
50.0
20.0
133.1
(10.4)
4.6
(19.8)
(8.0)
(53.3)
15.6
(6.9)
30.2
12.0
79.8
(353.0)
(150.8)
35.4
(500.0)
102.6
Profile
BICBANCO is a foreign capital bank, which specializes in granting corporate credit to the Middle Market segment, which comprises the
group of companies with yearly revenues between R$ 50 million and R$ 500 million. It caters for a wide range of products and services to
its diversified client base spread throughout the country. With over 75 years’ experience in this activity, it stands out as one of Brazil's most
traditional banks, by supporting the sustainability and longevity of its businesses through initiatives related to good corporate governance
practices, corporate ethics and risk management. Since August 29, 2014, the Bank has integrated the China Construction Bank Group
(CCB). CCB is the second largest commercial bank in China, with nearly 60 years of operational track record, besides being the 5th largest
publicly-held bank in the world. CCB's shares are listed in the stock exchanges of Hong Kong and Shanghai.
p. 2|18
3Q14 / 9M14 Earnings Release
Economic environment
As at September, 2014, the official inflation rate, as measured by the Broad Consumer Price Index (IPCA) reached 6.75% p.a., above
the 6.5% p.a. reported for the same period ended June 2014, above the upper target that had been fixed. The Brazilian Central
Bank’s Monetary Policy Committee (COPOM), at the Meeting held on October 29, has resumed the upward cycle for the basic
interest rates (Selic), and raised it to 11.25% p.a., which had prevailed at 11.0% p.a. since April 2014.
Following a period of volatility shown during the first nine months of 2014, the exchange rate closed at R$ 2.45/US$ in September,
nearly flat versus the rate of R$ 2.40/US$ recorded at the beginning of the period. During the 12-month period ended in September,
Brazilian exports totaled US$ 238.2 billion, down 0.6% year-over-year. Considering the same basis of comparison, imports fell by
1.2%, to US$ 234.7 billion. As a result, the Brazilian trade balance came to a US$ 3.5 billion surplus.
Overall loans and financing carried out by the financial system amounted to R$ 2.9 trillion at the close of 9M14, up 11.7% yearover-year. Real estate financing was the category of credit that showed the largest expansion, with a 27.4% growth over the
12-month period. Credit supply as a proportion of GDP reached 57.2% in September 2014.
Volume of loan operations in the Financial
System (R$ billion)
Jun/14
Jul/14 (*)
Aug/14 (*)
Sep/14 (*)
Sep/Jun (%)
.Individuals
765.7
756.9
759.9
766.5
0.1%
.Corporations
758.9
760.1
763.4
767.8
1.2%
.Directed funds
1,306.4
1,319.9
1,339.7
1,366.4
4.6%
Total Credit
2,831.0
2,836.9
2,863.0
2,900.7
2.5%
56.8%
56.5%
56.7%
57.2%
Total Credit / GDP
(*) Preliminary data
Source: Bacen
Transition Phase 2
Since the completion of the acquisition of the Bank's shareholding control on August 29, 2014, China Construction Bank has laid
down a set of directives aimed at aligning the new Subsidiary to the framework adopted by the Group. This adjustment process, which
is expected to be completed by the end of this year, comprises policies, practices and procedures involving all operational areas, so as
to pave the way to assure that the business plan be performed in a smoothly and integrated manner.
The 3Q14 results reflect a major impact from such measures, within the scope of assessment of credit risks, by boldly getting ahead
of the signs shown by the present scenario, regardless of both individual or industry situations, which led to a considerable rise in
provision and coverage expenses. The permanent value deriving from the application of such cautionary procedures takes precedence
over the burden - transitory, notwithstanding significant - on the quarterly performance.
p. 3|18
3Q14 / 9M14 Earnings Release
Financial operations result
In 3Q14, the financial operations result amounted to R$ 461.9 million, down 4.3% from 2Q14. The amount of financial operations
income fell by 2.7% in 3Q14 with comparison to the previous quarter. Considering the first nine months of 2014, the financial operations
result dropped by 0.8% year-over-year.
Financial operation expenses came to R$ 293.2 million in 3Q14, down 3.4% from 2Q14.
PLL expenses stood at R$ 621.2 million in 3Q14, versus R$ 244.9 million in 2Q14, and R$ 77.0 million in 3Q13.
The participation of clients from the large-corporate segment accounted for 46.2% in 3Q14, higher than the 45.1% share recorded in
2Q14 and the 39.6% in 3Q13.
In 3Q14 and 2Q14, the recovery of written-off loans totaled R$ 4.2 million, versus R$ 12.6 million in 3Q13.
Financial operations result
(exchange variance*) (R$ million)
Financial operations income
Loan operations
3Q14
2Q14 3Q/2Q (%)
3Q13 3Q/3Q (%)
9M14
9M13 9M/9M (%)
461.9
482.8
(4.3)
513.9
(10.1)
1,413.7
1,424.6
(0.8)
375.2
385.5
(2.7)
401.4
(6.5)
1,131.1
1,218.8
(7.2)
3.8
9.7
(61.1)
17.4
(78.3)
25.1
43.9
(42.8)
Marketable securities result
59.3
65.6
(9.7)
69.5
(14.7)
193.2
87.7
120.4
Foreign exchange result
Leasing operations
21.9
15.1
45.7
21.5
2.3
52.5
69.8
(24.9)
Exchange variance
1.5
6.3
(75.7)
3.7
(58.4)
10.4
3.0
n.a.
Result from compulsory applications
0.1
0.1
-
-
n.a.
0.3
0.1
n.a.
0.1
0.5
(85.7)
0.4
(82.6)
1.1
1.3
(10.1)
(293.2)
(303.4)
(3.4)
(260.8)
12.4
(875.0)
(764.9)
14.4
(267.8)
(255.6)
4.8
(225.5)
18.7
(769.4)
(651.4)
18.1
(17.1)
(12.7)
33.6
(21.6)
(21.3)
(45.6)
(70.6)
(35.3)
(7.8)
(35.1)
(77.7)
(0.3)
n.a.
(59.3)
(29.5)
100.8
Financial assets sales or transfer operations
Financial operations expenses
Money market
Borrowings and onlending
Adjusted result from derivative instruments
(0.5)
-
n.a.
(13.4)
(96.4)
(0.7)
(13.4)
(95.1)
168.7
179.4
(6.0)
253.1
(33.3)
538.7
659.7
(18.4)
(621.2)
(244.9)
n.a.
(77.0)
n.a.
(929.2)
(201.0)
n.a.
(452.5)
(65.5)
n.a.
176.1
n.a.
(390.5)
458.7
n.a.
Sales operations or financial assets transfers
Financial operations result before PLL
Provision for loan losses
Financial operations result
n.a. - not applicable
* For the purpose of analysis, the currency variation of assets (loan operations, marketable securities and derivatives portfolio and foreign exchange portfolio) and liabilities (funding from
market and foreign exchange portfolio) have been grouped into one single account under the caption of “currency variation”. In the Financial Statements, the balances of the currency
variations were booked under their corresponding income and expenses, as shown in Explanatory Note No. 30 (L).
Net interest margin (NIM)
In 3Q14, net interest margin (NIM) stood at 5.1%, down 0.4 p.p. quarter-over-quarter. In 9M14, NIM was 5.4%, down 0.5 p.p.
in relation to the same period of 2013.
The net interest margin has been impacted by the drop in the financial operations result, without considering the provision for
loan losses. Moreover, the mix of profitable assets overburdened the highly-liquid assets, which deliver lower yields, in detriment
of declining loan operations.
Net interest margin (R$ million)
Financial operations result before PLL
3Q14
2Q14 3Q/2Q (%)
3Q13 3Q/3Q (%)
9M14
9M13 9M/9M (%)
168.7
179.4
253.1
538.7
(6.0)
Average profitable assets (*)
13,581.3 13,341.2
1.8 14,418.7
- Loan operations
10,212.2 10,593.1
(3.6) 11,279.2
(33.3)
659.7
(18.3)
(5.8) 13,419.8 14,972.8
(10.4)
(9.5) 10,351.0 11,832.8
(12.5)
- Securities and derivatives
1,827.5
1,844.2
(0.9)
2,143.6
(14.7)
1,885.4
2,135.4
(11.7)
- Interbank investments
1,541.6
903.9
70.6
995.9
54.8
1,183.4
1,004.6
17.8
5.1%
5.5%
-0.4 p.p.
7.2%
-2.1 p.p.
5.4%
5.9%
-0.5 p.p.
Net interest margin
(*) Average figures taking into account the monthly balance for each period.
p. 4|18
3Q14 / 9M14 Earnings Release
Total assets
As at September 30, 2014, the Bank’s total assets amounted to
R$ 14,939.5 million, representing decreases of 0.5% quarterover-quarter and of 3.4% year-over-year. This performance
reflects the reduction in loan operations.
Total Assets (R$ million)
R$ 14.9 billion in assets,
66.8% of which refers to loan
operations.
-3.4%
Loan operations
-0.5%
15,457.5
15,506.2
15,262.3
15,021.5
3,121.9
3,021.1
2,212.7
1,962.5
14,939.5
2,886.0
2,259.8
2,831.0
3,388.9
2,269.6
2,707.4
The extended loan portfolio, which comprises loan operations
(as set out by Resolution 2682/99), plus guarantees and sureties,
amounted to R$ 12,349.5 million, representing decreases of
4.8% quarter-over-quarter and of 4.2% over 3Q13.
Extended Loan Portfolio (R$ million)
-4.2%
10,473.9
3Q13
10,116.5
10,171.6
4Q13
1Q14
9,920.9
2Q14
-4.8%
8,843.2
12,888.3
3Q14
Other assets
Liquid Assets (highly liquid assets)
Loan Operations, net of provision for loan losses
12,736.0
12,792.2
12,966.8
12,349.5
1,948.0
2,145.4
2,242.5
2,431.0
2,364.1
10,940.3
10,590.6
10,549.7
10,535.8
9,985.4
Liquid assets
At the end of 3Q14, highly liquid assets totaled R$ 2,707.4
million, representing increases of 19.3% quarter-over-quarter
and of 38.0% year-over-year.
Liquid assets
(R$ million)
Cash & cash equivalents
Open Market
investments (except
FIDCs and Repurchase
Agreements)
3Q14
2Q14 3Q/2Q
(%)
3Q13 3Q/3Q
(%)
90.0
303.1
(70.3)
324.8
(72.3)
1,672.1
799.4
109.2
520.3
n.a.
4Q13
1Q14
2Q14
3Q14
Guarantees and sureties
Loan operations
The portfolio dispersion covers all geographic regions, with
no concentration in any industry, economic activity or risk per
client. The risk dispersion indicators, one of the Bank’s pivotal
values, fell within a satisfactory range of dispersion in 3Q14.
In 3Q14, the Bank did not carry out any sale or assignment of
credit to other financial institutions, neither did it discontinue
any businesses or products.
Investments in Interbank
deposits (except for
deposits for coverage of
swap operations)
101.8
2.9
n.a.
115.6
(11.9)
Own portfolio negotiation (except FIDCs
and private securities)
843.5
1,164.2
(27.5)
1,001.7
(15.8)
2,707.4
2.269,6
19.3
1,962.5
38.0
Total
3Q13
The volume of corporate loans accounted for 88.2% of the
Bank's overall loan operations in 3Q14, whereas payrolldeductible loan operations represented 8.0% of the total
and personal loans, 3.8%. Retail operations are primarily
conducted by the Bank's subsidiary Sul Financeira.
p. 5|18
3Q14 / 9M14 Earnings Release
In 3Q14, the breakdown of loan operations by economic
segments was as follows: industry 41.6%, services 26.1%,
commerce 13.9%, individuals 12.2%, agriculture 3.0%,
public sector 2.4% and financial intermediaries 0.8%. In each
economic segment, the policy of risk dispersal is also evidenced
by the granting of loans to clients that operate in a variety of
its business activities, as demonstrated in the table below.
By segment
The policy of loan portfolio dispersal implies keeping the main
risks at appropriate levels, both in the case of a single client
and for the groups of largest borrowers. In 3Q14, the largest
borrower accounted for 1.8% of the total portfolio, and the
100 largest ones jointly accounted for 37.3%.
Risk exposure levels
3Q14
2Q14
3Q13
1.82
1.86
1.17
10 largest risks
11.17
10.35
7.25
20 largest risks
16.22
15.23
11.46
Largest risk
By activity
%
Individuals
- Individuals
12.2%
Industry
- Construction - Contractors
7.3%
Industry
- Sugar and ethanol mills
7.2%
50 largest risks
26.60
24.85
20.53
Services
- Holding companies in general
5.2%
100 largest risks
37.30
35.83
31.38
Industry
- Real Estate Developer
4.7%
Services
- Cargo and passengers transportation
3.6%
Commerce
- Supermarkets and wholesalers
3.2%
Agriculture
- Agriculture
3.0%
Services
- Technical and professional services
2.9%
Industry
- Production of pulp and paper
2.5%
Public Sector
- State Government
2.4%
Industry
- Metallurgical and mechanical production
2.3%
Commerce
- Commerce of Electronics
2.3%
Services
- Medical and dental services
2.3%
Industry
- Chemical and petrochemical industry
2.1%
Commerce
- Vehicle dealerships and sale yards
1.8%
Services
- Rental services in general
1.8%
Industry
- Production of flour, pasta, cakes and cookies
1.5%
Industry
- Production of pipes and iron-based items
1.3%
Industry
- Production of vehicles, body and others
1.3%
Serviços
- Energy distribution
1.3%
Industry
- Beverage industry
1.2%
Industry
- Construction materials industry
1.1%
Industry
- Animal slaughter and meat packing
1.1%
Services
- Utilities
Others
- Other economic segments
30.7% of the loans mature in
less than 90 days.
The Bank’s portfolio has a short-term maturity profile, with
68,6% of the loans maturing within a year. In 3Q14, R$ 3,068.5
million of the loan operations, or 30.7% of the portfolio, had
maturities of up to 90 days. The loan portfolio duration stood
at 393 days (378 days in 2Q14).
Breakdown by maturity (%)
1.9%
1.6%
2.2%
1.8%
3.4%
24.1%
26.0%
24.1%
27.7%
28.0%
37.3%
35.3%
38.2%
37.3%
37.9%
36.7%
37.1%
35.5%
33.2%
30.7%
1.0%
23.3%
TOTAL
100.0%
Regional dispersion (%)
Cayman – 3.8%
3Q13
4Q13
1Q14
2Q14
3Q14
Up to 3 months
From 3 to 12 months
Above 1 year
Installments overdue over 14 days
0.6%
20.4%
11.9%
47.6%
15.7%
At the close of 3Q14, installments over 14 days past due totaled
R$ 335.7 million, up 75.3% from the balance of R$ 191.5
million recorded in 2Q14, and up 57.7% from the balance of
R$ 212.9 million registered in 3Q13. The ratio of installments
over 14 days past due to loan operations stood at 3.4% in
3Q14 (1.8% in 2Q14 and 1.9% in 3Q13). The coverage rate of
installments over 14 days past due stood at 340.2% in 3Q14
(321.1% in 2Q14 and 219.0% in 3Q13). At the close of 3Q14,
PLL came to R$ 1,142.2 million, representing rises of 85.8%
quarter-over-quarter and of 144.9% year-over-year.
p. 6|18
3Q14 / 9M14 Earnings Release
Extended loan portfolio (R$ million)
Working capital
Trade finance
Payroll deductible loans
Guaranteed accounts
Personal loan
Leasing operations
Machinery and heavy vehicles financing
Corporate Overdraft
Other credits
Total loan operations
Guarantees and sureties
Extended loan portfolio
Breakdown of loan portfolio by operational class (%)
47.1%
22.1%
11.8%
6.3%
2.9%
1.0%
0.4%
8.4%
3Q14
2Q14
3Q/2Q (%)
3Q13
3Q/3Q (%)
4,702.4
2,211.3
804.7
631.0
378.5
288.4
94.5
40.0
834.6
9,985.4
2,364.1
12,349.5
5,188.5
2,168.6
800.5
758.9
341.2
321.9
106.8
56.9
792.5
10,535.8
2,431.0
12,966.8
(9.4)
2.0
0.5
(16.9)
10.9
(10.4)
(11.5)
(29.7)
5.3
(5.2)
(2.8)
(4.8)
5,869.2
2,108.2
671.0
861.6
225.0
361.1
152.3
74.0
617.9
10,940.3
1,948.0
12,888.3
(19.9)
4.9
19.9
(26.8)
68.2
(20.1)
(38.0)
(46.0)
35.1
(8.7)
21.4
(4.2)
Trade finance
This type of credit comprises advances on foreign exchange
contracts (ACC/ACE), and import/export financing, as well as
notes receivables denominated in foreign-currencies. Foreign
trade finance operations are strategically important for the
Bank, since they expand product supply, ensure loyalty from
clients in foreign trading and disperse loan portfolio risks. At
the close of 3Q14, trade finance operations totaled R$ 2,211.3
million, or 22.1% of the total loan portfolio. During the quarter,
trade finance operations rose by 2.0% quarter-over-quarter and
by 4.9% year-over-year.
Working capital
Trade finance
Payroll deductible
loans / Personal loan
Guaranteed accounts
Leasing operations
Machinery and heavy
vehicles financing
Corporate Overdraft
Other credits
Retail
Working Capital
This is the Bank’s main product. It aims at meeting the cash flow
requirements of companies, generally with maturities not longer
than one year. At the close of 3Q14, the balance of this portfolio
amounted to R$ 4,702.4 million, or 47.1%of the total loan
portfolio. The volume of this type of operations declined by 9.4%
and 19.9% quarter-over-quarter and year-over-year respectively.
Sul Financeira, a wholly-owned subsidiary of BICBANCO,
concentrates the operations geared to the retail segment,
which basically comprises payroll-deductible loan operations, as
well as personal loans, car financing and credit cards. In 3Q14,
this segment accounted for 11.8% of the overall loan portfolio,
totaling R$ 1,183.2 million. Operations related to this type of
credit rose by 3.6% over 2Q14 and by 32.1% over 3Q13.
Guaranteed accounts
This product consists of credit lines linked to corporate bank
accounts, aimed at promptly meeting the clients’ working
capital needs. At the close of 3Q14, this type of credit
accounted for 6.3% of the total loan portfolio and amounted
to R$ 631.0 million, representing decreases of 16.9% and
26.8% quarter-over-quarter and year-over-year respectively.
Working Capital (R$ million)
-19.9%
-9.4%
5,869.2
5,752.5
Guaranteed accounts (R$ million)
5,406.3
-26.8%
5,188.5
4,702.4
-16.9%
861.6
776.8
775.3
758.9
631.0
3Q13
4Q13
1Q14
2Q14
3Q14
3Q13
4Q13
1Q14
2Q14
3Q14
p. 7|18
3Q14 / 9M14 Earnings Release
Lease operations
Corporate overdraft
Leasing operations, whose portfolio at present value came
to R$ 288.4 million in 3Q14, dropped by 10.4% quarterover-quarter and by 20.1% year-over-year. The portfolio
breakdown by type of segment was as follows: machinery
& equipment: 41.5%; heavy-duty vehicles: 23.4%; aircraft:
21.7%; real estate: 13.0%; and others: 0.4%.
This product consists in a revolving line of credit facility aimed
at meeting corporate clients' working capital needs. This preapproved credit limit enjoys pre-fixed interests and regulated
fees, providing agility and flexibility to minor financial operations.
This type of credit amounted to R$ 40.0 million in 3Q14, or
0.4% of the total loan portfolio, representing decreases of
29.7% and 46.0% over 2Q14 and 3Q13 respectively.
Financing of machinery and heavy-duty vehicles
This is one more credit alternative for the Bank’s clients to
develop their projects by acquiring durable goods intended to
foster their businesses. In 3Q14, this portfolio amounted to R$
94.5 million, down 11.5% and 38.0% from 2Q14 and 3Q13
respectively. The portfolio breakdown by type of segment was
as follows: machinery and equipment: 51.6%; heavy-duty
vehicles: 42.4%; and others: 6.0%. In 3Q14, this type of credit
comprised 0.9% of the overall loan portfolio.
Other credits
Other credits mainly comprise the modalities of Agribusiness
Financing, Resolution 2770, Compror & Vendor, and debtors for
the purchase of assets and goods. In 3Q14, This type of credit
amounted to R$ 834.6 million, and showed rises of 5.3% and
35.1% over 2Q14 and 3Q13 respectively. At the close of 3Q14,
the caption "other credits" accounted for 8.4% of the overall
loan portfolio.
Guarantees and sureties
This type of operation is not included in the loan portfolio, in accordance with Resolution 2682, notwithstanding it is taken into account
in the calculation of the Basel index. Its consistent development quarter after quarter led the Bank to start including information on
the extended loan portfolio in its Earning Releases, which includes guarantees and sureties. In 3Q14, guarantees and sureties granted
totaled R$ 2,364.1 million, down 2.8% quarter-over-quarter and up 21.4% year-over-year.
Loan default and provision for loan losses
In 3Q14, NPL figures (absolute and relative) remained stable, both in terms of loan installments overdue over 60 and 90 days,
notwithstanding the lingering deterioration of the economic situation, alongside with the corporate credit risks.
Nevertheless, as of September, the amount of expenses related to the provisions for overdue credits have been considerably increased,
due to the application of assessment and rating metrics in line with the practices adopted by the China Construction Bank Group. The
additional burden stemming from this rise in PLLs has been fully taken into account in 3Q14, which should be regarded as a crucial
effort within this context. Alongside, the adoption of more conservative criteria as concerns the identification and assessment of
further risks should gradually contribute to a more solid qualification of the Loan Portfolio.
Loan quality indicators (R$ million)
Total loan operations
PLL
D-H portfolio (2682)
E-H portfolio (2682)
Borrowers with loan installments overdue over 60 days
Borrowers with loan installments overdue over 90 days
Installments overdue over 14 days
Ratios over total loan operations (%)
PLL
D-H portfolio
E-H portfolio
Borrowers with loan installments overdue over 60 days
Borrowers with loan installments overdue over 90 days
Installments overdue over 14 days
Provision indicators (%)
D-H portfolio
E-H portfolio
Borrowers with loan installments overdue over 60 days
Borrowers with loan installments overdue over 90 days
Installments overdue over 14 days
3Q14
2Q14
1Q14
4Q13
3Q13
9,985.4
1,142.2
2,252.2
1,519.7
355.4
316.7
335.7
10,535.8
614.9
1,285.1
922.9
349.6
329.6
191.5
10,549.7
433.2
895.8
646.1
375.3
357.6
235.2
10,590.6
419.0
944.0
582.1
245.6
217.4
166.8
10,940.3
466.4
847.8
612.3
324.0
305.7
212.9
11.4%
22.6%
15.2%
3.6%
3.2%
3.4%
5.8%
12.2%
8.8%
3.3%
3.1%
1.8%
4.1%
8.5%
6.1%
3.6%
3.4%
2.2%
4.0%
8.9%
5.5%
2.3%
2.1%
1.6%
4.3%
7.7%
5.6%
3.0%
2.8%
1.9%
50.7%
75.2%
321.4%
360.7%
340.2%
47.8%
66.6%
175.9%
186.5%
321.1%
48.4%
67.1%
115.4%
121.1%
184.2%
44.4%
72.0%
170.6%
192.8%
251.2%
55.0%
76.2%
144.0%
152.6%
219.0%
p. 8|18
3Q14 / 9M14 Earnings Release
Funding
Time deposits maturity profile at the end of 3Q14 was as
follows:
The total volume of funds raised in 3Q14 came to R$ 12,440.5
million, showing a 2.5% increase in comparison with 2Q14,
and a 1.2% drop year-over-year.
The Bank has maintained its strategy to extend the maturity
terms of its funding operations. At the close of 3Q14, the total
funding featuring below 3-month maturities accounted for
22.7% of the overall funding, whereas 43.8% held over oneyear maturities. In 3Q14, the duration of total funding stood at
641 days, higher than the 393-day duration of loan operations.
BICBANCO's healthy structure as concerns the maturity of both
assets and liabilities delivers an atmosphere of stability and
comfort to the Institution, particularly during periods of greater
market volatility.
Sources of funding (R$ million)
Time deposits by maturity (%)
16.1%
37.9%
44.2%
1.8%
Up to 3 months
From 3 to 12 months
From 1 to 3 years
Above 3 years
The Bank maintains a suitable diversification of its investors'
base, with a view to diluting the risk exposure.
-1.2%
+2.5%
12,586.9
12,562.9
4,138.6
1Q14
12,440.4
3,597.4
8,557.3
8,493.7
4Q13
12,135.0
3,727.4
4,069.2
8,448.3
3Q13
12,284.7
3,890.5
8,537.6
2Q14
8,549.9
% of time deposits
3Q14
2Q14
3Q13
Largest depositor
10 largest depositors
20 largest depositors
50 largest depositors
100 largest depositors
4.7
18.5
25.4
35.1
47.6
6.7
18.0
24.2
33.7
45.9
2.6
11.3
17.7
27.4
40.2
From the total volume of time deposits, the amount of R$ 737.2
million held some liquidity clause, in general, on the date of the
investment anniversary. The commitment executed between
the Bank and the client is registered with the Custody and
Clearance Chamber (CETIP).
3Q14
Foreign currency funding
Local currency funding
Domestic Funding
Time deposits
In 3Q14, time deposits amounted to R$ 6,583.7 million, down
3.5% from 2Q14 and up 5.9% from 3Q13. During the quarter,
the duration of time deposits stood at 514 days (494 days in
2Q14). From the total volume of time deposits, in the amount
of R$ 6,583.7 million, R$ 3,169.7 million consisted of deposits
with special guarantee from the Credit Guarantee Fund (DPGE).
60.9% of time deposits come
from the Bank's client base
corporations and individuals.
Time deposit by type of depositor (%)
56.9%
38.7%
4.0%
0.4%
Corporations
Institutional investors
Individuals
Financial Institutions
p. 9|18
3Q14 / 9M14 Earnings Release
Other deposits
Demand, savings and inter-financial deposits totaled R$ 637.9 million at the close of 3Q14, up 18.7% quarter-over-quarter and down
25.4% year-over-year.
Agriculture (LCAs), Mortgage (LCI) Credit and Financial (LFs) Bills
The Bank has been seeking to diversify its financial product mix, by means of resorting to the issuing of credit bills, such as the
Agriculture Credit Bills (LCAs), Financial Bills (LFs) and Mortgage Bills (LCIs). Total proceeds from such issues amounted to R$ 800.7
million as at September 30, 2014, representing increases of 13.4% quarter-over-quarter and of 6.9% over 3Q13. The issue of bills
during the period accounted to 6.4% of the total funding.
FIDCs
Funding raised by means of subscription of FIDC senior quotas amounted to R$ 82.0 million, representing declines of 32.8% quarter-overquarter and of 65.2% year-over-year, deriving from the amortization of quotas of closed-end funds, which was not offset by relevant inflow of
investments.
Subordinated debt
At the close of 3Q14, the volume of subordinated debt issued by BICBANCO, by means of domestic and international funding, totaled
R$ 1,024.5 million, accounting for 8.2% of the overall funding. With respect to the calculation of the Tier II Capital that integrates the
Basel Index, 80% of this type of funding was accounted for as concerns that methodology. Three types of issue carry a subordinated
feature: (i) subordinated CDB of R$ 200 million, issued in 2009, with maturity in 2019; (ii) subordinated Eurobonds in the amount
of US$ 300 million, issued in 2010, maturing in 2020; and (iii) subordinated loan of US$ 32 million, issued in 2010, with maturity
scheduled for 2017.
International Funding
In 3Q14, total international funding accounted for 31.3% of overall funding, amounting to R$ 3,890.5 million, representing an 8.1%
increase over 2Q14 and a 6.0% fall over 3Q13.
International funding comprises: (i) the funding geared to trade finance operations that provides resources for active foreign trade
being raised from international banks; and (ii) funds raised by means of syndicated loans through multilateral bodies (BID, IFC, IIC,
Proparco and DEG), issue of securities, transfers and subordinated debt, which provide funding for loan operations and enjoy greater
maturity terms.
Fluctuations in the U.S. dollar do not constitute additional risks to the institution. Fund raising intended for trade finance operations
are naturally hedged by the asset operations. For the set of funding operations listed in item (ii), the Bank carries out hedge operations
aimed to mitigate the risk of currency mismatch.
The table below sets out the maturity schedule for the securities issued abroad (item ii), which altogether totaled US$ 894.1 million
and € 3.6 million as at September 30, 2014.
Maturity
2014
2015
2016
2017
2018
2019
2020
2021
Total
Amount (million)
$144.1
$390.4
$20.7
$45.2
$5.7
$5.7
$276.6
$5.7
$894.1
and
and
and
and
€ 0.6
€ 1.2
€ 1.2
€ 0.6
€ 3.6
p. 10|18
3Q14 / 9M14 Earnings Release
The tables below show the Bank’s total funding by currency & products and by maturity & class.
Total funding by currency and products (R$ million)
3Q14
2Q14
3Q/2Q (%)
3Q13
3Q/3Q (%)
8,549.9
8,537.6
0.1
8,448.3
1.2
Deposits
7,221.6
7,360.4
(1.9)
7,070.5
2.1
- Time deposits
6,583.7
6,823.0
(3.5)
6,215.4
5.9
- Other deposits
637.9
537.4
18.7
855.1
(25.4)
Resources from Issued Bills
800.7
705.8
13.4
749.1
6.9
- Agriculture Credit Bills (LCA)
407.7
346.7
17.6
374.6
8.8
- Financial Bills (LF)
164.8
168.6
(2.3)
264.5
(37.7)
- Mortgage Bills (LCI)
228.3
190.5
19.8
110.0
n.a.
Subordinated Debt
314.7
306.3
2.7
285.0
10.4
82.0
121.9
(32.8)
235.5
(65.2)
128.3
40.7
n.a.
105.6
21.5
Debentures proceeds
2.3
2.3
1.0
2.1
9.7
Proceeds from Forex notes
0.2
0.2
3.0
0.5
(56.1)
Foreign currency funding
3,890.5
3,597.4
8.1
4,138.6
(6.0)
1,615.9
1,568.3
3.0
1,714.8
(5.8)
International securities obligations
976.9
886.2
10.2
964.8
1.3
International onlending obligations
587.3
530.9
10.6
820.2
(28.4)
Subordinated debt
709.8
612.0
16.0
638.8
11.1
0.6
-
n.a.
-
n.a.
12,440.4
12,135.0
2.5
12,586.9
(1.2)
31.3%
29.6%
1.7 p.p.
32.9%
-1.6 p.p.
Local currency funding
Receivables Securitization Funds - FIDCs
Onlendings - Official Institutions
International loans obligations
Foreign currency deposits
Total funding
Foreign funding's share on total funding
n.a. - not applicable
Total funding by
maturity and class
(R$ million)
Without maturity (*)
Domestic
Onlending Official
Institutions
Borrowings and
onlending
abroad
Securities
issued abroad
Deposits
Credit Bills
(LCA, LF and LCI)
FIDCs (Credit
Receivables
Investment
Funds)
Forex
Acceptances
Subordinated
debt
Total
Funding
230.9
3.2%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
231.0
1.9%
Up to 3 months
1,125.0
15.6%
24.2
2.5%
1,050.9
47.7%
-
-
388.1
48.5%
-
-
-
-
-
-
2,588.1
20.8%
From 3 to 12 months
2,598.3
36.0%
36.5
3.7%
960.8
43.6%
98.5%
335.6
41.9%
2.5 100.0%
75.6
92.2%
28.9
2.8%
4,164.5
33.5%
From 1 year to 3 years
3,053.7
42.3%
916.2
93.8%
128.5
5.8%
2.0
1.5%
77.0
9.6%
-
-
6.4
7.8%
-
-
4,183.8
33.6%
116.4
1.6%
-
-
28.0
1.3%
-
-
-
-
-
-
-
-
-
-
144.4
1.1%
Above 5 years
98.0
1.3%
-
-
35.0
1.6%
-
-
-
-
-
-
-
-
995.6
97.2%
1,128.6
9.1%
Total funding
7,222.3
100.0%
976.9
100.0%
2,203.2 100.0% 128.3 100.0%
800.7
100.0%
2.5 100.0%
82.0
100.0%
1,024.5
100.0%
12,440.4
100.0%
From 3 to 5 years
126.3
(*) Represented as demand and savings deposits.
The Bank’s funding structure enjoys longer maturities than its loan portfolio (see chart on page 6). Loan operations as compared to
funding operations, both with up to 90-day maturities, were as follows: Loan operations: R$ 3,068.5 million / Total funding: R$ 2,819.1
million.
p. 11|18
3Q14 / 9M14 Earnings Release
Basel index
At the close of 3Q14, BICBANCO’s Basel Index stood at 14.35%, showing a 2.37 p.p. decrease quarter-over-quarter, and a 4.52 p.p.
decrease year-over-year. During the quarter, this index was impacted by the Bank's operating result.
Furthermore, the comparison between 2014 and 2013 has been harmed by the introduction of changes during the period. In
compliance with the Brazilian Central Bank (BACEN) Resolution No. 4192, the multiplying factor has changed to 80% as of 2014
from 90% applied in 2013 over the balance of the subordinated debt.
In addition, the set of regulations that carries the recommendations laid down by the Basel Committee on Banking Supervision, with
regards to the capital structure of financial institutions, known as Basel III, has also included the Brazilian institutions, and came into
effect as of October 1, 2013. The new rules, announced by means of Resolutions and Circulars, have laid down a set of procedures
related to the compilation of minimum level requirements involving the banks' Core Capital, Level I and the Reference Equity (RE).
Three independent requirements have been established for each concept of Capital (Core Capital, Level I and RE), in addition to
variable supplementary amounts. The minimum requirement for the Reference Equity was maintained at 11% in October, but this
is expected to change as of January 2016.
Basel index (%)
19.07%
18.87%
17.54%
16.72%
14.35%
6.15%
5.81%
4.92%
4.89%
11%
5.07%
12.72%
3Q13
13.26%
4Q13
12.62%
1Q14
11.83%
2Q14
9.28%
3Q14
TIER II
TIER I
Remuneration to shareholders
There was no distribution of dividends related the first nine months of 2014.
Human resources
At the close of 9M14, the Bank’s number of employees totaled 788, flat in relation to 2Q14 and up 3.8% from 3Q13.
Headcount
Sales
Administrative
Total BICBANCO
Sul Financeira
Consolidated Total
3Q14
2Q14
3Q/2Q (%)
3Q13
3Q/3Q (%)
219
569
788
119
907
222
566
788
118
906
(1.4)
0.5
0.8
0.1
224
535
759
116
875
(2.2)
6.4
3.8
2.6
3.7
p. 12|18
3Q14 / 9M14 Earnings Release
Service outlets
At the close of 9M14, the Bank had 37 service outlets, and maintained both its footprint and the regional franchise dispersion
throughout the main capitals and cities in Brazil.
State City
Service outlet
AL
Maceió
Maceió
BA
Salvador
Salvador
CE
Fortaleza
Aldeota - Bezerra - Centro
Juazeiro do Norte
Juazeiro do Norte
DF
Brasília
Brasília
GO
Goiânia
Goiânia
MA
São Luis
São Luis
MG
Belo Horizonte
Belo Horizonte
Uberlândia
Uberlândia
MT
Cuiabá
Cuiabá
PA
Belém
Belém
PB
João Pessoa
João Pessoa
PE
Recife
Recife
PI
Teresina
Teresina
PR
Curitiba
Curitiba
Londrina
Londrina
RJ
Rio de Janeiro
Rio de Janeiro
RN
Natal
Natal
RS
Porto Alegre
Porto Alegre
Caxias do Sul
Caxias do Sul
Blumenau
Blumenau
Chapecó
Chapecó
Florianópolis
Florianópolis
SE
Aracaju
Aracaju
SP
Barueri
Alphaville
Bauru
Bauru
Campinas
Campinas
Guarulhos
Guarulhos
Santo André
ABC
Santos
Santos
São José do Rio Preto
São José do Rio Preto
São Paulo
Berrini - Brasil - MASP
Ribeirão Preto
Ribeirão Preto
SC
Grand Cayman
37 Service
outlets
p. 13|18
3Q14 / 9M14 Earnings Release
Completion of the operation
The unfolding of the share purchase and sale agreement of 72% of BICBANCO's capital stock executed with China Construction Bank
(CCB) on October 31, 2013, taking into account that the applicable precepts and regulations concerning this operation have been
fulfilled, CCB Brazil Financial Holding – Investimentos e Participações Ltda (CCB Holding), acquired BICBANCO's shareholding control on
August 29, 2014.
New classification of the Bank's capital stock within the Brazilian Financial System
On September 18, 2014, BACEN's Board of Organization of the Financial System approved the transfer of shareholding control held
by BICBANCO, including its subsidiaries to CCB, headquartered in Beijing, China. Therefore, as of the date of approval, BICBANCO has
turned into a foreign-capital bank, within the scope of the Brazilian Financial System.
Tender Offer - Acquisition of all shares issued by the Company
On September 29, 2014, CCB Holding submitted to CVM a request for the registration of a tender offer for the acquisition of the totality
of outstanding shares held by the minority shareholders of the Company, as well as to discontinue the differentiated corporate governance
practices provided in the special listing segment of BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros, denominated Level 1
of Corporate Governance, in view of the process of going private.
This CVM’s authorization will be requested in order to integrate such tender offer with a cancellation of registration of the Company as
a issuer of securities ("Going-Private Tender Offer"), as well as a voluntary tender offer for leaving the Level 1 of Corporate Governance
Practices of BM&FBOVESPA ("Delisting Tender Offer", hereafter jointly referred to as "TO").
The brokerage house Morgan Stanley Corretora de Títulos e Valores Mobiliários S.A. was hired to perform as the intermediary institution
to carry out the "TO".
All documentation concerning the request of registration filed with CVM, which contains the information required to carry out the "TO"
operation, is currently subject to examination.
A comprehensive information contained in the set of Material Facts related to the operation and the "TO", as well as the Appraisal
Report, have been disclosed on CVM's website: www.cvm.gov.br, as well on the Investor Relations section of BICBANCO's website:
www.bicbanco.com.br/ir.
Process of price adjustment between the sellers and buyers of BICBANCO's shareholding control
On October 29, 2014, CCB Holding delivered a notification letter to the former controlling shareholders of the Bank, to inform, in
accordance to the terms and conditions of the share purchase and sale agreement of 72% of BICBANCO's capital stock, that the closing
price practiced on the date of the transaction, should be subject to a price reduction of approximately R$ 287.766 million, corresponding
to an adjusted purchase price reduction of R$ 1.58 per share.
Election of the Board of Directors and the Board of Executive Officers
As per the General and Extraordinary Shareholders Meeting held on September 1, 2014, the current shareholding controller appointed
three new members to make up the Board of Directors, namely: Mr. Wensheng Yang, to the position of Chairman; Mr. Tiejun Chen and
Mrs. Hong Yang to the post of members of the Board. The investiture of these new Board members is conditioned to the previous approval
by the Brazilian Central Bank (BACEN).
BICBANCO's Board of Directors has come to be composed by six members, of which three members had already composed the Board:
Mr. José Bezerra de Menezes as a member, and both Mr. Heraldo Gilberto de Oliveira and Mr. Daniel Joseph McQuoid as independent
members, plus the three new members, previously mentioned, who represent the controlling group.
At the Board of Directors' Meeting also held on September 1, 2014, five new members of the Board of Executive Officers were elected:
Mr. Tiejun Chen to take the post of President; Mrs. Xiaowei Dong and Mr. Jin Li for the positions of Executive Vice-Presidents; Mr. Zhongzu
Wang and Mrs. Hong Yang to the position of Executive Directors. These new Executives shall be invested in their respective positions upon
the previous approval by the Brazilian Central Bank.
Thus, the Bank's Board of Executive Officers will be composed by the five executives mentioned above, alongside with the four Executives
who had already held their positions: Mr. Milto Bardini as Executive Vice-President and IR Officer, Mr. Paulo Celso del Ciampo as Executive
Vice-President, and Mr. Francisco Edênio B. Nobre and Mr. Carlos José Roque as Executive Directors.
p. 14|18
3Q14 / 9M14 Earnings Release
Ratings
Following the transfer of BICBANCO's shareholding control to China Construction Bank, both the rating agencies S&P and Fitch have decided
to upgrade the Bank's ratings.
S&P attributed investment grade rating to the Bank, on a Global Scale, to BBB-. This is the highest investment grade among all the banks that
comprise the Brazilian Financial System. Fitch Ratings upgraded the Bank's ratings on a Domestic Scale.
Agencies/
consulting
Rating/index
Scope of activities - classification
Ba1
NP
Global activities
- Foreign currency deposits:
. Long term
. Short term
Ba1
NP
- Local currency deposits:
. Long term
. Short term
Aa2.br
BR-1
Domestic activities
- Deposits:
. Long term
. Short term
D+
Financial strength
Ba1
Ba2
Foreign currency debt
. Bonds
. Subordinated debt
Developing
Outlook
BBBA-3
Global activities - counterpart rating
- Foreign currency deposits
. Long term
. Short term
BBBA-3
- Local currency deposits
. Long term
. Short term
Moody´s
Standard & Poor´s
Date of publication of Rating
11/06/2013
10/01/2014
Domestic activities
brAAA
Stable
. Long term
Outlook
Domestic activities
Fitch Ratings
AAA (bra)
. Long term
F1+ (bra)
. Short term
09/16/2014
Stable
Outlook
brAA-
Domestic activities
. Long term domestic activities
Positive Watch
Outlook
LF Rating
AAPositive
. Local currency
Outlook
04/07/2014
Management &
Excellence
AA
. Sustainability
July/2014
Austin Rating
04/11/2014
Five brokers (Research) cover BICBANCO: BB Investimentos, Bofa Merrill Lynch, BTG Pactual, GBM Grupo Bursatil Mexicano and Itaú BBA.
p. 15|18
3Q14 / 9M14 Earnings Release
Annex I
CONSOLIDATED BALANCE SHEET
(R$ million)
3Q14
2Q14
3Q/2Q (%)
3Q13
3Q/3Q (%)
ASSETS
90.0
303.1
(70.3)
Interbank investments
1,882.8
1,064.1
76.9
680.8
n.a.
Securities and derivative financial instruments
1,864.1
1,855.1
0.5
2,008.3
(7.2)
100.1
125.0
(19.9)
124.8
(19.8)
9,985.4
10,535.8
(5.2)
10,940.3
(8.7)
(1,142.2)
(614.9)
85.8
(466.4)
144.9
Cash and cash equivalents
Interbank accounts
Loan, leasing, forex-finance and other receivables
Provision for loan losses
324.8
(72.3)
181.5
188.9
(3.9)
212.4
(14.5)
Other assets
1,977.8
1,564.4
26.4
1,632.5
21.2
Total assets
14,939.5
15,021.5
(0.5)
15,457.5
(3.4)
7,222.3
7,360.4
(1.9)
7,070.5
2.1
6,583.7
6,823.0
(3.5)
6,215.4
5.9
638.6
537.4
18.8
855.1
(25.3)
Permanent assets
LIABILITIES
Deposits
Time deposits
Other deposits
23.0
91.0
(74.7)
23.0
-
Funds from acceptance and issue of securities
1,780.2
1,594.5
11.6
1,716.5
3.7
Foreign currency borrowings
1,615.9
1,568.3
3.0
1,714.8
(5.8)
715.6
571.6
25.2
925.8
(22.7)
1,027.3
980.2
4.8
924.5
11.1
82.0
121.9
(32.8)
235.5
(65.2)
Subordinated debt
1,024.5
918.3
11.6
923.8
10.9
Total liabilities
13,490.8
13,206.2
2.2
13,534.4
(0.3)
1,448.7
1,815.3
(20.2)
1,923.1
(24.7)
14,939.5
15,021.5
(0.5)
15,457.5
(3.4)
Money market
Onlending
Other liabilities
Receivables Securitization Fund - FIDC
Shareholders’ equity
Total liabilities and shareholder’s equity
n.a. - not applicable
p. 16|18
3Q14 / 9M14 Earnings Release
Annex II - (Adjusted Results)
CONSOLIDATED STATEMENT
OF INCOME (R$ million)
Financial operations Income
Loans operations
Leasing operations
3Q14
2Q14 3Q/2Q (%)
3Q13 3Q/3Q (%)
781.8
365.1
n.a.
555.5
384.6
380.1
1.2
3.8
9.7
(61.1)
9M14
9M13 9M/9M (%)
40.7
1,498.1
1,739.2
(13.9)
403.7
(4.7)
1,128.2
1,229.3
(8.2)
17.4
(78.3)
25.1
43.9
(42.8)
58.6
65.9
(11.1)
69.3
(15.4)
192.8
81.0
n.a.
Adjusted result from derivative instruments
187.5
(80.2)
n.a.
24.3
n.a.
28.9
175.6
(83.5)
Foreign exchange result
Result from investments in marketable securities
147.1
(11.0)
n.a.
40.4
n.a.
121.7
208.1
(41.5)
Result from compulsory applications
0.1
0.1
-
-
n.a.
0.3
0.1
n.a.
Financial assets sales or transfer operations
0.1
0.5
(85.7)
0.4
(82.6)
1.1
1.2
(10.1)
Financial operations expenses
(1,234.3)
(430.6)
n.a.
(379.4)
n.a.
(1,888.6)
(1,280.5)
47.5
Money market
(420.3)
(218.4)
92.4
(236.7)
77.6
(835.9)
(783.0)
6.8
Borrowings and onlending
(192.3)
32.7
n.a.
(52.3)
n.a.
(122.8)
(283.1)
(56.6)
(0.5)
-
n.a.
(13.4)
(96.4)
(0.7)
(13.4)
(95.1)
(621.2)
(244.9)
n.a.
(77.0)
n.a.
(929.2)
(201.0)
n.a.
Financial operations result
(452.5)
(65.5)
n.a.
176.1
n.a.
(390.5)
458.7
n.a.
Other operating income (expenses)
(123.6)
(149.2)
(17.2)
(113.2)
9.3
(395.9)
(334.0)
18.5
Financial assets sales or transfer operations
Provision for loan losses
23.6
23.0
2.6
27.7
(14.9)
73.4
71.3
3.0
Personnel expenses
(56.3)
(56.1)
0.3
(47.4)
18.7
(166.8)
(156.1)
6.9
Tax expenses
(13.1)
(14.3)
(8.0)
(17.8)
(26.2)
(42.5)
(53.9)
(21.2)
Other administrative expenses
(52.5)
(46.3)
13.3
(47.4)
10.8
(148.7)
(133.2)
11.7
19.0
16.1
17.8
7.8
n.a.
52.4
40.9
28.1
(44.3)
(71.6)
(38.2)
(36.1)
22.8
(163.7)
(103.0)
58.9
Banking services fees
Other operating income
Other operating expenses
Operating result
(576.1)
(214.7)
n.a.
62.9
n.a.
(786.4)
124.7
n.a.
Non-operating result
(49.1)
(20.7)
n.a.
1.1
n.a.
(69.2)
(4.4)
n.a.
Income before taxes
(625.2)
(235.4)
n.a.
64.0
n.a.
(855.6)
120.3
n.a.
Income taxes
4.3
(4.6)
n.a.
4.1
6.1
(5.1)
(26.4)
(80.8)
Social contributions
2.0
(3.3)
n.a.
2.6
(21.1)
(5.0)
(16.7)
(70.4)
265.9
100.4
n.a.
(35.3)
n.a.
373.6
34.0
n.a.
-
(7.9)
n.a.
-
n.a.
(7.9)
(8.6)
(8.2)
(353.0)
(150.8)
n.a.
35.4
n.a.
(500.0)
102.6
n.a.
Adjusted Deferred tax credits
Profit sharing
Adjusted Net Result
n.a. - not applicable
p. 17|18
3Q14 / 9M14 Earnings Release
Annex III - (Accounting)
CONSOLIDATED STATEMENT
OF INCOME (R$ million)
Financial operations income
Loans operations
Leasing operations
3Q14
2Q14 3Q/2Q (%)
3Q13 3Q/3Q (%)
755.8
376.6
n.a.
505.4
384.6
380.1
1.2
3.8
9.7
(61.1)
9M14
9M13 9M/9M (%)
49.5
1,478.1
1,606.0
(8.0)
403.7
(4.7)
1,128.2
1,229.3
(8.2)
17.4
(78.3)
25.1
43.9
(42.8)
58.6
65.9
(11.1)
69.3
(15.4)
192.8
81.0
n.a.
Result from derivative instruments
161.5
(68.7)
n.a.
(25.8)
n.a.
8.9
42.4
(79.0)
Foreign exchange result
Result from investments in marketable securities
147.1
(11.0)
n.a.
40.4
n.a.
121.7
208.1
(41.5)
Result from compulsory applications
0.1
0.1
-
-
n.a.
0.3
0.1
(41.5)
Financial assets sales or transfer operations
0.1
0.5
(85.7)
0.4
(82.6)
1.1
1.2
n.a.
Financial operations expenses
(1,234.3)
(430.6)
n.a.
(379.4)
n.a.
(1,888.6)
(1,280.5)
47.5
Money Market
(420.3)
(218.4)
92.4
(236.7)
77.6
(835.9)
(783.0)
6.8
Borrowings and onlending
(192.3)
32.7
n.a.
(52.3)
n.a.
(122.8)
(283.1)
(56.6)
(0.5)
-
n.a.
(13.4)
(96.4)
(0.7)
(13.4)
(95.1)
(621.2)
(244.9)
n.a.
(77.0)
n.a.
(929.2)
(201.0)
n.a.
Financial operations results
(478.5)
(54.0)
n.a.
126.0
n.a.
(410.5)
325.5
n.a.
Other operating income (expenses)
(123.6)
(149.2)
(17.2)
(113.2)
9.3
(395.9)
(334.0)
18.5
Financial assets sales or transfers operations
Provision for loan losses
23.6
23.0
2.6
27.7
(14.9)
73.4
71.3
3.0
Personnel expenses
(56.3)
(56.1)
0.3
(47.4)
18.7
(166.8)
(156.1)
6.9
Tax expenses
(13.1)
(14.3)
(8.0)
(17.8)
(26.2)
(42.5)
(53.9)
(21.2)
Other administrative expenses
(52.5)
(46.3)
13.3
(47.4)
10.8
(148.7)
(133.2)
11.7
19.0
16.1
17.8
7.8
n.a.
52.4
40.9
28.1
(44.3)
(71.6)
(38.2)
(36.1)
22.8
(163.7)
(103.0)
58.9
Banking services fees
Other operating income
Other operating expenses
Operating result
(602.1)
(203.2)
n.a.
12.8
n.a.
(806.4)
(8.5)
n.a.
Non-operating result
(49.1)
(20.7)
n.a.
1.1
n.a.
(69.2)
(4.4)
n.a.
Income before taxes
(651.2)
(223.9)
n.a.
13.9
n.a.
(875.6)
(12.9)
n.a.
Income taxes
4.3
(4.6)
n.a.
4.1
6.1
(5.1)
(26.4)
(80.8)
Social contributions
2.0
(3.3)
n.a.
2.6
(21.1)
(5.0)
(16.7)
(70.4)
Deferred tax credits
276.3
95.8
n.a.
(15.4)
n.a.
381.6
87.4
n.a.
-
(7.9)
n.a.
-
n.a.
(7.9)
(8.6)
(8.2)
(368.6)
(143.9)
n.a.
5.2
n.a.
(512.0)
22.8
n.a.
Profit sharing
Net result (accounting)
n.a. - not applicable
p. 18|18