Mariani Group - History
•
Banco da Bahia is
established focused
on providing lines of
credit to farmers
1858
•
•
Issuance of Euro Medium Term
Notes (US$ 150 million)
•
A-Loan funding with IFC (1st
tranche in 2006 and 2nd in 2007):
R$ 215 million
Establishment of Banco
da Bahia Investimentos
1942
Clemente Mariani
takes control of the
Bank, which stands
out as a
commercial bank
•
1967
•
Banco da Bahia
sells its branches
to Banco Bradesco
1973
•
2006
1998
It becomes a multiple bank
and changes its name to
Banco BBM
•
•
•
Beginning of the new mandate,
targeting a leverage of 3 times
the Shareholders’ Equity
•
Corporate and economic
separation of the Asset
Management (BBM
Investimentos)
•
Closure of the Shareholders’
Program
2008
2011
2014
•
In May 2015, the
shareholders of BBM’s
controlling group and
Bank of Communications
(“BoCom”) have
celebrated a Share
Purchase Agreement for
the acquisition of 80% of
the total share capital of
Banco BBM
•
Recreation of Large
Corporate Platform
2015
•
BBM performs a Public
Offering with limited efforts of
Banknotes of R$ 200 million
•
Transfer of Treasury staff for the Asset Management
Signature of A B MCPP Loan
and GTFP with IFC (US$
100 million and US$ 25
million, respectively)
Establishment of Cyclotron (hedge fund) by
Banco BBM’s shareholders through R$ 200
million of dividends paid in April 2008
•
Reduction of the Treasury’s VaR limit (1% of the
Shareholders’ Equity)
•
B-Loan funding of US$ 150 million
•
BBM starts to reduce the level of credit leverage
2016
•
In November 30th,
2016, the acquisition
of 80% of the total
share capital of
Banco BBM by The
Bank of
Communications was
completed.
2
Structural Organization
Bank of Communications
Co., Ltd
100%
Brazilians signatory of the
shareholders' agreement
BoCom Brazil Holding
Company Ltda
Others
0,35%
19,65%
80%
100%
BACOR Corret. de Câmbio
e Val. Mobil. S.A.
Banco BBM S.A.
100%
The Southern Atlantic
Investments, Ltd.
100%
BBM Bank Ltd.
(Bahamas)
1 Participations of less than 0.001% were excluded from this organization chart and the value was rounded to the controlling company.
.
2 Percentages considered over the shares being traded.
.
3
Organizational Flowchart
Board of Directors
Internal Audit
Pedro H. Mariani
Coordinator of the
Executive Commitee**
Compliance and
General Secretary
Miguel Flaksman*
Products, Legal, and
Credit Analysis
Cassio von Gal
Funding & Institutional
Relations, Large
Corporate and Treasury
Leonardo Oliveira
Corporate Credit
Sergio Freitas
Private Banking
Alexandre Lowenkron
Risk, Research and
Operations
*Ombudsman director
**The executive committee is composed by all BBM Bank’s statutory directors
4
Corporate Governance
Shareholders
Meeting
Board
Meeting
Executive
Committee
Compliance
Committee
Private Banking
Committee
Annual
Credit
Committee
Quarterly
Monthly
Product
Committee
Fortnightly
HR
Committee
Risk
Committee
Regulatory
Committee
Financial
Committee
Operational Risk
and Internal
Controls
Committee
Weekly
5
Ratings
Mar/17
Aaa.br
Bank Deposits / Domestic Currency
Ba1
Bank Deposits / Global
6
Our Business
Commercial Banking
• Lines of credit in BRL and in foreign currencies provided to
companies through two platforms:
•
Corporate: focused on economic groups with annual
revenues from R$ 200 million up to R$ 3 billion;
•
Large Corporate: focused on economic groups with
annual revenues starting in R$ 3 billion and high level of
governance.
Commercial
Bank
Private
Banking
Private Banking
• Provides financial advisory and wealth management services to
high net-worth clients.
Treasury
Treasury
• Capital and liquidity management;
• Asset pricing.
7
Financial Highlights
Financial Highlights
Total Assets (R$ Million)
Shareholders' Equity (R$ Million)
Net Income (R$ Million)²
Total Loan Portfolio (R$ Million)³
Total Funding (R$ Million)
Return on Average Equity²
Basel Ratio (Core Tier I)
Credit Leverage
Liquid Assets (R$ Million)
Efficiency Ratio (ER)²
NIM (Before allowances for loan losses)¹ ²
Dec/14
3,113
576
44
1,472
2,355
7.7%
20.7%
2.6
1,246
60.9%
4.9%
Dec/15
3,827
579
44
1,542
2,507
7.6%
19.8%
2.7
1,204
66.9%
4.5%
Jun/16
4,136
579
21
1,684
2,687
7.2%
21.1%
2.9
1,107
68.1%
4.6%
Dec/16
4,099
568
33
1,914
3,065
5.7%
21.3%
3.4
1,267
61.8%
4.3%
¹ considers the result of equity pickup
² values accumulated in the respective period.
³ expanded loan portfolio , classifiable by Resolution 2.682 / 99 of the Central Bank of Brazil
8
Credit Evaluation
•
•
Corporate credit transactions granted to companies with
revenues starting from R$ 200 million, divided in two
platforms: Corporate and Large Corporate;
Loan Portfolio
R$ Million
Credit transactions such as working capital, trade finance
and both local and international guarantees;
1,914
1,684
•
The Committee deliberates on the credit structure which is
proposed individually for each client based on (i) product;
(ii) flow and (iii) guarantees;
•
The duration for the Committee’s deliberations has a
maximum of 90 days;
•
Two methods of credit analysis are used: (i) balance sheet
/ cash flow and (ii) quantitative.
1,472
Dec/14
1,542
Dec/15
Jun/16
Dec/16
9
Loan Portfolio
Loan Portfolio
Breakdown by Transaction – Dec/16
Loan Portfolio
Breakdown by Sector – Dec/16
Agriculture
13%
22%
16%
Sugar and Ethanol
Trade Finance
Export Credit Notes
Chemical and Petrochemical
41%
17%
Retail market
Working Capital
22%
43%
Building and Real Estate
5%
5%
3%
3% 10%
Bank Guarantees and Others
Meat Industry
Oil and Gas
Others
Loan Portfolio*
Risk Rates – Dec/16
8%
5%
17%
Collaterals** – Dec/16
AA
16%
A
Receivables
B
26%
C
(D-H)
Inventories / Crops
18%
66%
Assignment of real estate
44%
*Expanded credit operations, classified according to the Central
Bank of Brazil’s 2.682/99 Resolution
**In Dec/16, the outstanding balance that had some kind of
collateral was 65%.
10
Agribusiness Loan Portfolio
•
In December 16, total exposure to agribusiness (sugar and ethanol, food and agriculture) accounted for
38.7% of the loan portfolio;
•
The total value of the guarantees was equivalent to 125% of the outstanding balance which they were
linked to. This is only possible due to the coexistence of guarantees linked to the same credit operation.
Outstanding Balance – Dec/16
Collaterals – Dec/16
19%
27%
47%
81%
Outstanding balance without collaterals
Outstanding balance collateralized
26%
Inventories/Crops
Assignment of real estate
Receivables
11
Loan Portfolio – Quality Ratios
Loan Portfolio - Quality Ratios
Past due above 90 days
Past due above 90 days (total value of contracts)
Allowances for loan losses
Loans from (D to H)
(Loans from (D to H)- Allowances for loan losses) / Equity
Dec/14
Dec/15
Jun/16
Dec/16
0.2%
2.9%
2.9%
4.2%
3.4%
0.8%
1.1%
3.0%
2.9%
-0.1%
0.3%
0.7%
3.5%
5.9%
7.1%
0.7%
1.8%
3.6%
5.1%
5.1%
12
Asset Liability Management
Total Funding
Liquid Assets *
R$ Million
R$ Million
3,065
1,246
2,687
2,355
Dec/14
2,507
Dec/15
1,267
1,204
1,107
Jun/16
Dec/16
Dec/14
Dec/15
Jun/16
Dec/16
*Liquid Assets = Cash and cash equivalents + Short-term
interbank investments (Funded position, Investments in interbank
deposits and foreign currency) + Fixed Income Securities (Not
considering those linked to Repo transactions and guarantees) +
Fund Shares with liquidity until 30 days + Variable Income
Securities (Not considering fund shares).
13
Funding and Maturity Profile
Funding
Breakdown by Sector
64%
50%
52%
51%
Maturity Profile1
Loan Portfolio vs. Funding2
Individual Investors
16%
1%
9%
12%
11%
12%
11%
13%
26%
23%
24%
25%
Dec/14
Dec/15
Jun/16
Dec/16
Corporate
676
Multilateral Agencies
581
551
554
498
Institutional Investors
421
405
440
Funding Sources
11%
1%
16%
12%
48%
65%
10%
39%
55%
12%
12%
9%
14%
Dec/14
10%
19%
Dec/15
28%
Jun/16
Credit assignment with recourse
Multilateral Agencies
Dec/14
Dec/15
Loan Portfolio
Banknotes, Agribusiness & Real
Estate Credit Bills
Jun/16
Dec/16
Funding
¹Average term of issuance
²Not considering demand deposits
Trade Finance/Loans
39%
Dec/16
Deposits, Structured Operations
Certificates and Others
14
Treasury Overview
•
Assets and liability management;
•
Asset pricing for other areas;
•
Sophisticated risk management tools;
•
VaR limit of 2% of shareholders’ equity;
•
Activities supported by a strong research team.
15
Private Banking
Assets under Management
•
Provides financial advisory and wealth management;
R$ Million
3,656
•
R$ 3,656 billion under management, grounded on:
3,008
•
More than 150 years of experience in the Brazilian
market with a high expertise in risk management;
•
Consistent performance throughout the last years;
•
Product diversification (Open Plataform);
•
Transparency.
3,220
2,704
Dec/14
Dec/15
Jun/16
Dec/16
16
Disclaimer
•
This presentation was prepared by Banco BBM. The information contained herein should not be interpreted as
investment advice or recommendation. Although the information contained herein was prepared with utmost
care and diligence, in order to reflect the data at the time in which they were collected, Banco BBM cannot
guarantee the accuracy thereof. Banco BBM cannot be held responsible for any loss directly or indirectly
derived from the use of this presentation or its contents. This report cannot be reproduced, distributed or
published by the recipient or used for any purpose whatsoever without the prior written consent of Banco BBM.
17
Addresses
Rio de Janeiro, RJ
Praça Pio X, 98 - 5th, 6th, 7th and 12th floors
Zip Code 20091-040
Phone.: +55 (21) 2514-8448
Fax:
+55 (21) 2514-8293
Salvador, BA
Rua Miguel Calmon, 398 - 2nd floor - parte
Zip Code 40015-010
Phone.: +55 (71) 3326-4721
+55 (71) 3326-5583
Fax:
+55 (71) 3254-2703
São Paulo, SP
Av. Brigadeiro Faria Lima, 3311 - 15th floor
Zip Code 04538-133
Phone.: +55 (11) 3704-0667
+55 (11) 4064-4867
Fax:
+55 (11) 3704-0502
Nassau, Bahamas
Shirley House
Shirley House Street, 50, 2nd floor, P.O. N-7507
Phone.: (1) (242) 356-6584
Fax:
(1) (242) 356-6015
www.bancobbm.com.br
Cassio von Gal: +55 (11) 3704 0637
[email protected]
José Renato Pipolo: +55 (11) 3704 0618
[email protected]
Tamie Sanematsu: +55 (11) 3704 0623
[email protected]
Ombudsman : Phone.: 0800 724 8448 Fax: 0800 724 8449 E-mail: [email protected]
www.bancobbm.com.br/ouvidoria