Company Data
Company Name: Banrisul S/A Company Type: Multiple-service bank controlled by the State of Rio Grande do Sul. Incorporated in: September 12th 1928. Incorporated under the Laws of: State Law nº 459/28. Stake of the State: 57.0%. Stake of the State on ordinary stocks: 99.6%. Free float: 43.0%
2 The State of Rio Grande do Sul at a Glance
4th economy of Brazil accouting for 7.0% of the Brazilian GDP; State’s GDP growth in 2007: 7.0% (Brazil’s GDP: 5.2%); 2nd largest industrial expansion in the country; Ranked 3rd among Brazilian states in terms of retail trade growth State’s GDP: R$ 2,556.8 billion / US$ 1,312.6 billion
* Data 2007
3 State of Rio Grande do Sul productivity Structure
STATE OF RIO GRANDE DO SUL PRODUCTIVITY STRUCTURE
ECONOMIC SECTOR % Rural 8.50% Industry 29.20% Transformation 21.80% Civil Construction 4.70% Other - Industry 2.50% Mineral Extraction 0.20% Services 62.30% Other - Services 30.20% Public Education, Health and Administration 13.50% Commerce 12.80% Transportation, Warehousing and Mailing 5.80% Total 100.00% Source: FEE (RS Economy and Statistics Foundation) - 2006 (last available data)
4 Socioeconomic overview of Rio Grande do Sul
Indicators RS Brazil Population 10,963,219 186,770,562 Area (km2) 281,749 8,498,332 Population density 38.9 22.0 Venezuela GuyanaSuriname Colombia French Guiana Urban population (%) 81.2 82.8
Ecuador Brazil Growth population rate 1.3 1.7 HDI 0.814 0.766
Peru HDI-Income 0.754 0.723 Brazil HDI-Education 0.904 0.849
Bolivia HDI-Life expectancy 0.785 0.727 Gini index 0.520 0.569 Brazil Paraguay Brazil Life expectancy (years) 74.2 71,9 Brazil Infancy mortality rate 13.1 24.9 Chile Argentina Uruguay Illiteracy (%) 5.2 11.1 RS Average years of 6.9 6.5 ² education Kilometers 0 240 480 960 1.440 1.920 Poverty (% population) 17.1 25.6
5 Main factors contributing to the Bank’s business and performance are:
Strong partnership with Rio Grande do Sul state
Strong identification by state citizens
Regional multiple-service bank focused on credit products
6 Strong partnership with Rio Grande do Sul State
• Centralizes the ICMS (VAT) collection for RS (average monthly ICMS Collection Account inflows of R$1 billion) and IPVA collection for RS (average monthly inflows of R$71 million).
Public Cash Management • Cash of the State, State owned companies and State autarchies.
• Unique and intrinsic asset for Banrisul, pursuant to the state Judicial Deposits Fund constitution. Management • Base of approximately 365,000 clients, which represent approximately R$613 million per month.
• Exclusivity to payroll payments and payroll-deductible loans to Cross Selling State employees.
7 Strong identification by state citizens
Official sponsor of the biggest soccer teams of RS
National Prize of Social Responsibility
Sponsor of various social events
8 Banrisul Highlights Stockholder Breakdown BANRISUL STOCK – Before the Public Offer
State of Rio Grande do Sul 99.4002%
Officers 0.0000%
Inst. Prev. do Estado RGS Free Float 0.0624% 0.3598% Fund Banrisul de Seg. Social 0.1776%
10 Stockholder Breakdown BANRISUL STOCK - Presently
Officers Fund Banrisul de Seg. Social 0.00% Inst. Prev. do Estado RGS 0.15% 0.05%
Estado do Rio Grande do Sul 56.97% Free Float 42.83%
TOTAL (PNA + TOTAL OF Stockholder ON % PNA PNB % % PNB) STOCKS State of Rio Grande do Sul 204,199,859 99.60% 2,721,484 26,086,957 28,808,441 14.12% 233,008,300 56.97% Fund Banrisul de Seg. Social 449,054 0.22% 158,983 0 158,983 0.08% 608,037 0.15% Inst. Prev. Do Estado RGS 44,934 0.02% 168,612 0 168,612 0.08% 213,546 0.05% Free Float 324,014 0.16% 872,006 173,948,574 174,820,580 85.71% 175,144,594 42.83% TOTAL 205,017,861 100.00% 3,921,085 200,035,531 203,956,616 100.00% 408,974,477 100.00%
11 Capital Stock Breakdown
ON PNA 0.21% 0.59%
PNB 99.20%
Sort and class’ stock Stocks’ total
ON 205,017,861 PNA 3,921,085 PNB 200,035,531 % More liquid shares – Free float of the Bank TOTAL 408,974,477
12 Banrisul Shareholding
13 Banrisul Shareholding
14 Banrisul Shareholding
15 Banrisul Shareholding
16 Banrisul Shareholding
17 Stock Performance (PNB – BRSR6)
120,00%
110,00%
100,00%
90,00%
80,00%
70,00%
60,00%
50,00%
40,00%
30,00%
1/2/2008 5/2/2008 4/4/2008 7/7/2008 9/8/2008
2/13/2008 3/24/2008 1/15/2008 1/29/2008 2/26/2008 3/10/2008 4/17/2008 5/15/2008 5/29/2008 6/11/2008 6/24/2008 7/18/2008 7/31/2008 8/13/2008 8/26/2008 9/19/2008 10/2/2008 10/15/2008
Banrisul Average Performance of Financial Institutions Bovespa Performance Small Cap Rate Base
18 Banrisul Network
Service Network
Branches 424 Rio Grande do Sul 395 Santa Catarina 13 Other States 14 Abroad 2 Service Points 273 Eletronic Sales Points 427 Representative Office 1 Total Network 1,125
Presence in the State of Rio Grande do Sul
Total Municipalities in the State of Rio Grande do Sul 496 Municipalities with Banrisul Branches 294 Municipalities with Banrisul Service Points 105 Total Municipalites Serviced by Banrisul 408 Service Range 82.3% Population of the State of Rio Grande do Sul serviced by Banrisul 97.4% State of Rio Grande do Sul's GDP serviced by Banrisul 97.3%
19 Market Share
20 Brazilian Competitive Market
BRAZILIAN COMPETITIVE MARKET
AS OF JUN/08 - IN R$ MILLION, EXCEPT NR. OF BRANCHES
% STATE OF RGS / % BANRISUL / INDEX BRAZIL STATE OF RGS BANRISUL BRAZIL STATE OF RGS
TIME DEPOSITS 414,981 18,669 4.5% 7,133 38.2% SAVING DEPOSITS 247,732 19,893 8.0% 4,468 22.5% DEMAND DEPOSITS 113,568 8,686 7.6% 1,562 18.0% LOAN PORTFOLIO 1,067,355 45,540 4.3% 9,951 21.9% NR. OF BRANCHES 19,528 1,302 6.7% 423 32.5%
Source: Central Bank of Brazil
21 Regional multiple-service bank focused on credit products
Credit Products Portfolio Innovative and Differentiated Products
Personal credit
Direct credit to consumer
Overdraft loan (“Banricompras”)
Vehicle financing
Payroll deductible loan
Real estate credit Leveraging business with diversified client base Agribusiness financing and segment Receivables discount Individuals: Debit card with “Pre-approved Working capital credit line” “Promicro” SME: Discount receivables Machines and equipments More than 40 thousand affiliated stores Vendor 47 million transactions in 2007 Compror R$2.56 billion in transactions in 2007 Leasing R$34 million in gross income in 2007
22 Banricompras
debit card to make cash, term or installment payments for their purchases in accredited commercial establishments
a mean of payment that increases the purchase power, makes it easier to monitor expenses and does not burden card users
About 66,000 establishments affiliated
23 Banricompras
24 IT Investments
Chip Card - Multos A highly secure operating system that supports multiple applications for use in smart cards. MULTOS allows cards to be monitored during all steps of a transaction, simplifying and improving the smart card issuing process.
Internet Banking The Bank offers access channels to clients through Home and Office Banking.
Mobile Banking A debit card via cell phone to check balances and statements, and allows for the wire transfer of resources between accounts and the payment of bills through a mobile phone. Banrisul International IT Forum (Porto Alegre – RS – Brazil) Oct 28, 2008 http://www.banrisul.com.br/bob/data/Forum_Internacional_de_TI_Banrisul_agenda_textovrs08.pdf
25 Self-service Channels
26 Net Income
R$ million
27 27 Net Income Adjusted to Non-recurring Event
R$ million
CAGR: 18.66% p.a.
CAGR: 11.11% p.a.
28 28 Stockholders’ Equity
R$ million
CAGR: 35.99% p.a.
CAGR: 9.69% p.a.
29 29 Assets
R$ million
CAGR: 18.50% p.a.
CAGR: 19.02% p.a.
30 30 Interest on Own Capital and Dividends Paid
R$ million
31 31 Funding
R$ million
CAGR: 15.75% p.a.
CAGR: 15.10% p.a.
32 32 Funding Evolution
R$ million
33 33 Funding yearly rate of growth
34 34 Capitalization Ratio
R$ million
35 35 Credit Portfolio
R$ million
36 36 Credit Portfolio yearly rate of growth
37 37 Credit Portfolio Breakdown
R$ million
38 38 Commercial Credit Portfolio Individuals and Companies
R$ million
39 39 Commercial Credit Portfolio yearly rate growth
40 40 Credit Portolio by Rating
R$ million
41 41 Commercial Credit Rates Individuals and Companies
In %
42 Credit Portfolio and Allowance for Loan Losses
R$ million
43 43 Default Rate
In %
44 44 Financial Leverage
R$ million
45 45 Securities
R$ million
46 46 Net Financial Margin
R$ million
47 47 Administratives Expenses
R$ million
48 48 Income from Services x Personnel Expenses
R$ million
49 49 Efficiency Ratio
In %
50 Basel Ratio
In %
51 Productivity per Employee
In R$R$ Thousandthousand
52 Number of Clients
InR$ Million million
53 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul
• Measures of Central Bank released R$ 1,842.6 millions in reserve requirement
• On september 24, the total amount in reserve requirements was R$ 3,883 millions
54 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul Main figures in August, 2008
Loan portfolio: R$ 10,191.9 million Total funding, including investiment funds: R$ 18,051.7 million Federal securites + short term and interbank investiments: R$ 6,460.1 million Basel Index, after Basel II alterations: 18,11% - Allow for R$ 10 billion increase in the loan book
55 NOTICE TO THE MARKET Freed of Reserve Requirement Impacts on Banrisul Current situation Treasury invested only in federal securities indexed to the SELIC – LFT or inter-banking operations pegged to federal securities Not exposed to exchange, swaps or derivatives Payroll-deductible loans portfolios acquired: more than R$ 500 millions Default, overdue more than 60 days totaled 3,12% Summarizing, conditions to continue growing
56 Ricardo Hingel CFO & IRO
Investor Relations Rua Capitão Montanha, nº 177 – Centro Porto Alegre – Rio Grande do Sul - Brazil CEP 90010-040 Phone: +55 51 3215-3232 Fax: +55 51 3215-3200 www.banrisul.com.br/ir [email protected]