Download - 4Q07 Presentation
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Presentation
1H07
Apresentação dos
Resultados do 3T07
9 de novembro de 2007
4Q07 Results
January 23, 2008
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The Bank's financial statements and consolidated financial statements
herein are presented on a pro forma basis, encompassing the financial
statements of the Bank, its subsidiaries, the Credit Receivables Investment
Funds (FIDC) and insurer J. Malucelli Seguradora.
They were prepared based on the accounting practices pursuant to Brazilian
Corporate Law, and associated with the regulations and instructions issued
by the National Monetary Council (“CMN”), the Brazilian Central Bank
(“BACEN”) and the Brazilian securities and exchange commission Comissão
de Valores Mobiliários ("CVM") (“BR GAAP”).
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Summary
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General Overview
Operational Highlights
Origination Evolution
Surety Bond Market
Franchise: an innovative sales channel
Alternative Channel x Comissions/Originations
Total Assets and Equity
Period Result Composition (R$ x 1,000)
Financial Highlights Summary
Credit Portfolio
Financial Revenue and Loan Assignments
Credit Portfolio Quality
Loan Assignment
Funding Structure (R$ x 1,000)
Operating Income and Expenses
J. Malucelli Seguradora – Performance
Ratings
Corporate Governance
Share Price Evolution
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General Overview
Private multiple bank focused on payroll-deductible and the middle-market segment
Focus in profitability and a low-risk customer base (civil servants, private-sector
employees and retirement beneficiaries, and pensioners under the INSS social security
system)
At the close of 2007, the Bank had 715 payroll-deduction loan agreements (state and
private entities)
Loan portfolio for middle-market operations totaled R$ 98.9 million on December
31, accounting for 8.2% of the total loan portfolio
4 sales channels: brokers, call center, franchises and regionals
The Franchise Channel closed the year with 60 operational units spread through
several important regions of the country, exceeding the initial annual target of 30
units
Paraná Banco concluded the acquisition of 100% of J. Malucelli Seguradora, as
outlined in the IPO Prospectus
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Operational Highlights
Total Originations (R$ mm) Number of Agreements
192.5
365.2
682.7
1,013.9
4Q06 4Q07 2006 2007
519
715
4Q06 4Q07
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Origination Evolution
(R$ X 1,000)
0
50000
100000
150000
200000
250000
300000
350000
400000
2005 2006 2007
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
256%
2000 2001 2002 2003 2004 2005 2006 2007
OTHER
ACE SEGURADORA S.A.
BERKLEY INTERNATIONAL DO BRASIL SEGUROS S.A.
UBF GARANTIAS & SEGUROS S/A
AUREA SEGUROS S/A
J. MALUCELLI SEGURADORA S/A
Surety Bond
Market
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•Data until November 2007Source: SUSEP
Annual Evolution – Surety Bond
Net premiums written (R$ x 1,000)
77,946
98,639
167,642
194,664
315,775
134,749
205,368
164,550
50%42%37%24% 34% 30%28%27%
(2000-2007)
CAGR market =22%
CAGR J. Malucelli = 33%
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Claim Volume and Claim Ratio Evolution
Surety Bond
Market
•Data until November 2007Source: SUSEP
0%
10%
20%
30%
40%
50%
2000 2001 2002 2003 2004 2005 2006 2007*
Claim Ratio - Market Claim Ratio - J. Malucelli Seguradora
0
10000
20000
30000
40000
50000
60000
70000
80000
2000 2001 2002 2003 2004 2005 2006 2007
R$
x 1
,00
0
Claim Volume - Market Claim Volume J. Malucelli Seguradora
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Franchise: an innovative
sales channel
The target for 2008 remains at 210 units in operation
Initial activities in march 2007
The Franchise Channel closed the year with 60 operational
units
Exclusivity and long-term agreements
Low initial investment and low operating costs
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Alternative Channel x
Comissions/Originations
6% 5% 3%
9%
7%
10%
21%
28%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
Evolution of Alternative Distribution Channels
% of Payroll Deductible Loan Origination
Begin of FranchiseOperations
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
8.1% 8.1% 7.2% 7.9% 7.6% 8.1% 9.2% 7.4%
Comissions / Originations (% of Payroll Deductible Loans Origination)
*
* Sales channels: brokers, call center, franchises and regionals
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Total Assets and Equity
(R$ x 1,000)
Total Assets Shareholders’ Equity
920,877
1,881,567
4Q06 4Q07
197,775
776,572
4Q06 4Q07
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Period Result Composition
(R$ x 1,000)
4Q07
2007
21,212 21,384
504
Net Income Non-Recurring IPO expenses
Net Adjusted Income
75,728
113.450
13,217
24.505
Net Income Non-Recurring IPO expenses
Deferred Comissions Adjustment
Period Result
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Financial Highlights
Summary
4Q06 4Q07Variation
4Q06 x 4Q072006 2007
Variation
2006 x 2007
Net Adjusted Income 13,419 35,620 165.4% 52,120 75,728 45.3%
IPO related expenses 504 13,217
Deferred Commission
Result24,505
Adjusted Net Income 13,419 36,124 169.2% 52,120 113,450 117.7%
Annualized Return over average
Equity (%)26.2% 18.6% -7.6p.p 27.6% 18.2% -9.4p.p
Annualized Intermediary margin of
financial operations (%)22.9% 16.8% -6.1p.p. 23.1% 15.3% -7.9p.p.
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Credit Portfolio
(R$1,000)
Total Credit Portfolio, including credit assignments to the FIDC’s, grew
up to R$ 1,172.1 million in the 4Q07.
623.2
1,080.5
1,172.1
4Q06 3Q07 4Q07
Loan Portfolio (R$ x 1,000)
19.6%
88.1%
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Financial Revenue and
Loan Assignments
Loan Assigment Evolution (R$ x1,000)
4Q06 4Q07 % Variation 2006 2007 % Variation
Loan Origination - Payroll Deductible Loans 178,763 235,953 32.0% 624,887 873,704 39.8%
Loan Origination - Middle Market 13,771 129,278 838.8% 57,865 140,201 142.3%
Loan Assignments (other institutions) - - - 184,250 20,079 -89.1%
Loan Assignments (Credit Receivables
Investment Funds )69,379 80,378 15.9% 152,428 353,731 132.1%
Loan Portfolios Acquired - 33,400 - - 76,354 -
% Credit Assignments (other institutions) 0.0% 0.0% - 27.0% 2.0% -
Income from Financial Operations (R$ x 1,000)
4Q06 4Q07Variation
4Q06 x 4Q072006 2007
Variation
2006 x 2007
Loans 52,888 79,974 51.2% 212,362 275,023 29.5%
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Credit Portfolio
Quality
High quality and stability
94.4%
5.6%
2006
95.8%
4.2%
2007
AA-C
D-H
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Loan Assignment
20.9%
11.6%
1st Month End of Contract% N
et
Inco
me o
ver
Fin
an
cia
l In
co
me
Operation with Loan Assignment
Reduction of 45%
0.4%
19.9%
1st Month End of Contract% N
et
Inco
me o
ver
Fin
an
cia
l In
co
me
Operation retained in Balance Sheet
Results grow 45x
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Funding Structure
(R$ x 1,000)
476,388
787,139
102,471
56,922
4Q06 4Q07
Medium term notes Total
844,061
578,859
476.388
787.139
102.471
56.922
4T06 4T07
Total Deposits Medium term notes
578.859
844.061
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Operating Income
(Expenses)
Operating Income (Expenses)
4Q06 4Q07Variation
4Q06 x 4Q072006 2007
Variation
2006 x 2007
Personnel expenses (3,920) (5,520) 40.8% (13,599) (18,305) 34.6%
Other administrative
expenses(17,253) (25,099) 45.5% (76,688) (106,984) 39.5%
Other Expenses (8,842) (15,369) 73.8% (20,436) (32,703) -60.0%
IPO expenses - (504) - (19,506)
Commissions Expenses
(Loan Origination)(8,411) (9,226) 9.7% (56,252) (54,775) -2.6%
Other operating expenses (758) 10,522 - 5,561 17,785 219.8%
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J. Malucelli Seguradora –
Performance
Premiums Written Shareholders’ Equity
24.8
88.7110.7
210.3
4Q06 4Q07 2006 2007
58.6
65.5
4Q06 4Q07
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Ratings
Rating / Classificação Rating / ClassificaçãoÍndice / Classificação Rating Rating Rating / Ranking Rating
Low Credit Risk Low Risk - Medium Term Low Credit Risk
June 2007 September 2007 October 2007
brBBB+ 11.39 brA- A-
Rating / Ranking
Low Credit Risk
June 2007
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Corporate Governance
The Board of Directors of Paraná Banco authorized on 19 October
2007, a stock buyback program. The program provides for the
purchase of up to 4,156,481 preferred shares until October 15,
2008.
Paraná Banco hired Banco UBS Pactual to act as market maker for
its preferred shares for a period of six months, automatically
renewable, with the objective of increasing liquidity in the
shares.
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Share Price Evolution
(R$)
5
7
9
11
13
15
0
5000
10000
15000
20000
25000
3-Jul 13-Jul 23-Jul 2-Aug 12-Aug22-Aug 1-Sep 11-Sep21-Sep 1-Oct 11-Oct 21-Oct 31-Oct10-Nov20-Nov30-Nov10-Dec20-Dec
Pri
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pe
r S
ha
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Vo
lum
e o
f N
eg
oc
iate
d s
ha
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(R
$ x
1,0
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)
Paraná Banco
VOLUME Paraná Banco
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IR Contact
“This document may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current
expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect
the results of Paraná Banco as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian
and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment, the ability of
Paraná Banco obtain funding for its operations, and amendments to Central Bank regulations.
The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying
estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies,
competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates
and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates
arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and
forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the
estimates, projections and forward-looking statements contained in this report.
Luis César Miara André NacliCFO and Investor Relations Officer IR Analyst
Ph: (55 41) 3351-9961 Ph: (55 41) 3351-9645
Ricardo Rosanova Garcia Mauricio N. G. FanganielloIR Manager IR Coordinator
Ph: (55 41) 3351-9812 Ph: (55 41) 3351-9765
e-mail: [email protected]
IR Website: www.paranabanco.com.br/ir