3q16 earnings release - página inicial · price/earnings 12 months price/book ... includes the...

3Q16 Earnings

Release

2

Disclaimer

This presentation may include references and statements, planned synergies,

estimates, projections of results, and future strategy for Banco do Brasil, its

Associated and Affiliated Companies, and Subsidiaries. Although these references

and statements reflect the management’s belief, they also involve estimates and

unforeseen risks. Consequently, results may differ from those anticipated and

discussed here. These expectations are highly dependent on market conditions, on

Brazil’s economic and banking system performances, as well as on international

market conditions. Banco do Brasil is not responsible for updating any estimate in

this presentation.

Banco do Brasil S.A. – Third Quarter 2016 Earnings

Highlights (9M16/9M15)

NII Grew by 15.0%

3 Banco do Brasil S.A. – Third Quarter 2016 Earnings

Pre-Tax and Pre-

Provision

Earnings Increased by 9.8%

Administrative

Expenses

Fee Income

Cost to Income

Ratio

7.0% Growth

Under control (4.2% growth)

Improved to 39.4%

Net Income

R$ million Accumulated


Profitability Ratios

ROE 7.6%

ROE 10.0%

(7,385)

(972) 5,4247,070

8,947

5,7381,155

(2,059)

1,646

9M15 Adj. Net Income NII ALL Fee Income AdministrativeExpenses

Other/Taxes 9M16 Adj. Net Income One-Off Items 9M16 Net Income

3Q15 2Q16 3Q16 9M15 9M16

ROE 15.5% 12.3% 11.1% 19.7% 11.4%

Adjusted ROE 13.3% 7.7% 9.9% 13.7% 7.6%

Market ROE 15.2% 9.2% 12.0% 15.4% 9.1%

Shareholders ROE 17.0% 10.3% 13.4% 17.2% 10.1%

Pre-Tax and Pre-Provision Earnings


+9.8%

9M16

31.9

9M15

29.0

R$ billion

Quarterly Change Accumulated Change

+8.0%

3Q16

10.8

2Q15

10.7

3Q15

10.0

Market Ratios

(1) Dividends and Interest on Own Capital 12 months / Market Capitalization.

Source: Economatica

3Q16

0.84 0.80

2Q16

0.65

0.88

1Q16

0.46

0.83

4Q15

0.95 0.89

3Q15

1.03 1.08

Adjusted Earnings per Share Earnings per Share

Sep/16

6.63

Jun/16

4.60

Mar/16

5.05

Dec/15

2.86

Sep/15

2.86

Sep/16

0.74

Jun/16

0.57

Mar/16

0.66

Dec/15

0.50

Sep/15

0.51

3Q16

4.86

2Q16

7.62

1Q16

7.38

4Q15

13.96

3Q15

13.98

Source: Economatica. Source: Economatica.

Dividend Yield¹ (%) Earnings per Share

Price/Book Value Price/Earnings 12 months


Sep/16

619.9

150.6

148.7

203.4

61.6 31.6

23.9

Jun/16

624.7

153.5

148.4

202.5

62.5 30.4

27.5

Mar/16

638.6

154.1

151.9

202.6

62.6

30.5 36.9

Dec/15

669.5

152.9

151.8

204.5

66.5

52.1 41.5

Sep/15

660.2

153.0

149.8

205.2

66.1

44.7 41.5

Agribusiness Let. of Credit + Mortgage Bonds²

Savings Deposits

Time Deposits

Demand Deposits

Rep. Agreement with Private Securities¹

Interbank Deposits

89.5 91.3 92.1 90.3 90.3

Funding

R$ billion

Adj. Net Loan Portfolio / Comm. Funding (%)

- 1.6% on Sep/15


- 0.7% on Sep/15

77.3

14.2

74.7

14.1

75.4

13.7

74.9

13.3

75.9

12.6

Funding Expenses - % Selic Accumulated Selic (% accumulated in 12 months)

(1) Includes part of the balances of the Private Securities (Note 17). (2) Includes the balance of CRI (Certificates of Real Estate Receivables).

Other sources

R$ billion

Assets under Management – BB DTVM Brasilprev²

21.5 % Market Share¹

(1) Sorce: Anbima – Sep/2016.


Sep/16

674.7

Jun/16

668.1

Mar/16

644.8

Dec/15

603.2

Sep/15

602.4

46.2 % Market Share

(2) Source: Quantum Axis –Sep/2016.

3Q16

5.5

2Q16

9.6

1Q16

3.7

4Q15

5.8

3Q15

4.3

Net Inflow

1st 1st

Loan Portfolio – Broad Concept¹

R$ billion


Sep/16

734.0

316.8

186.2

179.6

51.5

Jun/16

751.2

327.6

187.9

184.5

51.2

Mar/16

775.6

348.5

185.9

179.5

61.7

Dec/15

796.7

364.6

183.3

174.9

73.8

Sep/15

788.4

355.2

179.7

171.8

81.7

Companies Individuals Agribusiness Abroad

-6.9 -1.2

2.3 7.4

10.4

12 month Growth (%)

9.0%

22.1%

23.3%

45.6%

7.0%

24.5%

25.4%

43.2%

3.6% on Sep/15

4.5% on Sep/15

(1) It includes private securities and guarantees provided.

Loan Portfolio¹ (by Contracted period)

%


13.6

2013

21.2

16.7

16.4 Up to 2011

12.1

2012 9.5

15.3

11.0

19.4

14.5

10.2

18.1

13.0

9.3

16.3

1Q15

4Q15

1Q16

3Q15

2Q15

2014

2Q16

3Q16

Sep/16

16.6

3.9 5.4

5.6

8.2

6.5

9.0

6.3

Jun/16

17.5

4.1

5.9

7.8

9.2

7.1

8.8

Mar/16

18.9

4.4

7.6

9.0

10.2

7.2

Dec/15

20.7

5.4

8.2

9.8

10.2

Sep/15

24.7

6.3

9.5

9.9

2016 21.8%

2015 23.0%

44.8%

(1) BB Classified Loan Portfolio.

Concentration in lower risk lines¹ R$ billion

(1) BB Organic Portfolio. (2) BB Classified Loan Portfolio.

Auto Loans

Payroll

+1.7%

Sep/16

62.8

8.6% 3.0%

88.5%

Jun/16

63.0

8.3% 3.1%

88.6%

Sep/15

61.8

7.5% 3.6%

88.9%

22.3%

Market

Share²

Salary Loans

Mortgages

+13.2%

Sep/16

53.1

41.2

11.9

Jun/16

51.6

39.7

11.9

Sep/15

46.9

35.2

11.7

Individuals Companies

+4.8%

Sep/16

20.3

Jun/16

20.5

Sep/15

19.4

INSS Retirees and Pensioners

Private Sector Employees

Civil Servants

-23.1%

Sep/16

6.8

Jun/16

7.3

Sep/15

8.8

1.30 1.25 1.31

Payroll NPL +90 days (%)²

2.42 2.52 2.28 Salary Loans NPL +90 days (%)²

1.03 0.95 0.82 Auto Loans NPL +90 days (%)²

1.42 1.29 1.17

Individuals Mortgage NPL +90 days (%)²


1.8% on Sep/15

17.0% on Sep/15

Loans to Companies – Broad Concept¹

R$ billion

99.8

15.2 19.1

32.8

Sep/15

355.2

180.5

104.7

26.1 18.1

25.8

-10.8%

Sep/16

316.8

152.6

100.3

14.0 16.9

33.0

Jun/16

327.6

160.6 Working Capital³

Investments + Private Securities

Guarantees

Foreign Trade²

Other

Corporate Portfolio by Size

241.9

74.9

Jun/16

327.6

246.4

81.2

Sep/15

355.2

263.6

91.6

Sep/16

316.8

Middle Market, Corporates and Government Very Small and Small Companies⁴


-18.3% on Sep/15

-8.2% on Sep/15

(1) It includes private securities and guarantees provided. (2) It Includes FEC/ACE and BNDES Exim. (3) It includes Working Capital, Receivables, Credit Card and Overdraft Account.

(4) Companies with annual revenues up to R$ 25 million.

Agribusiness

(1) Fonte: Banco Central do Brasil – Aug/2016.

R$ billion

Harvest 16/17 (Sep/16)

+4.5%

Sep/16

179.6

30.5

149.1

Jun/16

184.5

31.9

152.6

Sep/15

171.8

37.1

134.7

Agroindustry Rural

Agribusiness Loan Portfolio by Purpose Mitigators Use (Working Capital for Input Purchase)


-17.8% on Sep/15

10.9% on Sep/15

20.6%

79.4%

Not Insured

Insured

61.3 % Market Share¹

The total disbursement in 16/17 harvest until September, added to pre working capital for input purchase of the first half of 2016, reached R$25.9

billion, a 22.2% growth compared to 15/16 harvest disbursement in the same period (R$21.2billion). 1st

Guarantees provided and Provisions

14

2.7 2.2

1.6 1.7 1.6

Provisions/Guarantees Provided (%)

R$ million

491430423505504

Sep/16

18,241

Dec/15 Jun/16

19,326

Mar/16

25,750

29,366

Sep/15

32,354

Guarantees Provided (balance) Provisions (balance)


Delinquency Ratios¹

(1) BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect.

Sep/16

0.96

5.26

2.58

Jun/16

0.95

4.82

2.40

Mar/16

1.19

4.01

2.41

Dec/15

0.97

3.42

2.17

Sep/15

0.84

3.10

2.17

Jun/15

0.73

2.72

2.16

Mar/15

0.82

2.52

2.20

Dec/14

0.69

2.59

2.30

Sep/16

3.07

3.51

3.70

Jun/16

2.85

3.27

3.50

Mar/16

2.60

2.60

3.50

Dec/15

2.24

3.40

Sep/15

2.06

3.10

Jun/15

1.89

2.90

Mar/15

1.84

2.80

Dec/14

1.86

2.70

Banco do Brasil² Banco do Brasil Banking Industry

NPL +15 days (%) NPL +90 days (%)

Agribusiness Companies Individuals


Sep/16

1.79

8.47

6.01

Jun/16

1.45

7.09

4.59

Mar/16

1.80

7.07

5.51

Dec/15

1.66

5.56

4.52

5.62

4.79

Jun/15

1.29

4.50

4.47

Mar/15

1.29

4.69

4.60

Dec/14

1.19

3.90

4.26

1.69

Sep/15


NPL Ratio +90 days (%)

Asset Quality¹

93.97

175.68

159.39

167.81

109.06

180.00

163.87

173.16

104.05

171.43

193.83 193.83

119.68

167.65

209.19 209.19

177.42

218.07 218.07

119.14

172.41

211.79 211.79

98.89

175.00

213.99 213.99

124.75

181.48

203.48 203.48

113.11

BB + 15 days Banking Industry + 90 days BB + 90 days BB + 90 days²

Sep/16

37,514

37,514

Jun/16

36,968

36,968

Mar/16

35,398 1,209

34,189

Dec/15

33,577 3,228

30,349

Sep/15

31,926 3,705

28,220

Jun/15

27,575 1,405

26,170

Mar/15

26,862 1,380

25,482

Dec/14

25,295 1,405

23,889

Additional Allowance - R$ million Required Allowance - R$ million

Coverage Ratios (%) and ALL Balance


(1) BB Classified Portfolio. (2) Simulation excluding an oil and gas specific case effect.

Asset Quality¹

954

902

3Q16

6,644 730

1,411

4,370

132

2Q16

8,277 396

1,282

5,794

804

1Q16

9,145

1,041

1,408

4,754

1,942

4Q15

6,991

1,326

4,319

391

3Q15

5,835 536

1,221

3,832

246

2Q15

5,191 557

680

3,810

144

1Q15

5,654

1,405

3,142

206

4Q14

4,890 712

1,291

2,832

56

3Q14

4,301 431

1,382

2,543

-56

-19.7%

2Q14

4,174 400

1,197

2,600

-23

1Q14

3,806 509

1,238

1,929 130

Abroad Agribusiness Individuals Companies

Coverage Ratios by Segment (%)

ALL Expenses by Segment³


R$ million

Sep/16

295.58

140.99

190.86

Jun/16

290.00

144.94

201.31

Mar/16

254.92

145.07

201.82

Dec/15

291.88

150.29

222.18

Sep/15

316.09

155.03

220.31

Jun/15

370.65

161.23

221.12

Mar/15

334.82

159.47

235.08

Dec/14

347.07

148.51

223.10

Set/14

378.18

136.30

217.46

Jun/14

396.02

141.27

222.87

Mar/14

326.74

144.05

217.93


349.42 367.23

661.44

399.17 391.98 309.89 282.86 492.08

305.90 370.50 365.65

Abroad²

(1) BB Classified Portfolio. (2) Simulation excluding an oil and gas specific case effect. (3) Quarterly ALL. It does not consider additional provision.

Provision Flow and Average Risk

18 Banco do Brasil S.A. – Resultado do 3º Trimestre de 2016

R$ billion

Sep/16

5.15

5.59

Jun/16

4.94

5.36

Mar/16

4.60

4.87

Dec/15

4.16

4.23

Sep/15

3.97

Jun/15

3.81

Mar/15

3.74

Dec/14

3.57

6.50 6.30 6.00 5.70 5.50 5.00 4.90 4.90

Banking Industry Banco do Brasil² Banco do Brasil

3Q16

0.92

0.41

1.66

0.76

2Q16

0.79

0.22

2.11

0.68

1Q16

0.74

0.58

1.66

0.76

4Q15

0.67

0.55

1.45

0.73

3Q15

0.56

0.31

1.32

0.68

2Q15

0.65

0.33

1.33

0.39

1Q15

0.61

0.55

1.10

0.82

4Q14

0.55

0.44

1.00

0.77

Total Agribusiness Companies Individuals

0.41 1.67

3.51

0.55 0.62 0.15 0.49 0.76

Abroad

Provision Flow/ Loan Portfolio (%)

Average Risk¹ (%)

(1) Required Provision / BB Classified Loan Portfolio. (2) Simulation excluding an oil and gas specific case effect.

NPL Formation

New NPL¹, Write Off and NPL Formation Rate including the Past Due Renegotiated loan Portfolio⁴

19 Banco do Brasil S.A. – Resultado do 3º Trimestre de 2016

New NPL¹, Write Off and NPL Formation Rate

3Q16

6.14 7.12

2Q16

5.43

9.73

1Q16

5.18 7.39

4Q15

4.81 6.22

3Q15

3.97 5.59

2Q15

4.45 4.91

1Q15

4.16 4.28

4Q14

3.69 3.86

Write Off (R$ billion) New NPL (R$ billion)

1.03 1.39 1.03 0.88 0.81 0.72 0.64 0.60

New NPL / Loan Portfolio³ (%)

93.32

85.05

123.80 112.32 104.33 105.64 131.99 126.76

Quarterly ALL/New NPL (%)

0.98²

6.87²

3Q16

6.14 7.55

2Q16

5.43

10.48

1Q16

5.18

7.93

4Q15

4.81 7.13

3Q15

3.97 6.16

2Q15

4.45 5.45

1Q15

4.16 4.55

4Q14

3.69 4.15

Write Off (R$ million) New NPL with Past due Reneg. Portfolio (R$ million)

1.09 1.49 1.10 1.00 0.90 0.80 0.68 0.64

New NPL with Past due Reneg. Portfolio/Loan Portfolio(%)

88.03 78.94 115.34 98.10 94.72 95.28 124.30 117.92

Quarterly ALL/New NPL (%)

7.65²

1.09²

108.26²

120.55²

From the total contracts

in the 3Q16 in the

renegotiated loan

portfolio, 15.5% were

past due over 90 days.

(1) Quarterly change in the balance of past due for over 90 days operations + current quarter write-off. (2) Simulation excluding an oil and gas specific case effect. (3) It considers the Classified Loan

Portfolio of the previous quarter. (4) Estimated flow of the Renegotiated loan portfolio contracts of past due for over 90 days operations.

Renegotiated Overdue Loan Portfolio¹ R$ million


3Q15 2Q16 3Q16

Credits Renegotiated when Past Due - Changes

Initial Balance 12,701 22,038 25,050

Contracts 3,783 5,026 2,758

Payments received and capitalized interest (461) (979) (744)

Write-Off (503) (1,036) (1,370)

Past due Renegotiated Loan Portfolio (A) 15,520 25,050 25,694

ALL Balance (B) 7,464 10,369 10,784

NPL + 90 days (C) 2,469 5,642 6,370

Indicators - %

ALL / Loan Portfolio (B/A) 48.1 41.4 42.0

NPL + 90 days / Loan Portfolio (C/A) 15.9 22.5 24.8

ALL Balance/NPL + 90 days (B/C) 302.2 183.8 169.3

Credits Renegotiated/Classified Portfolio 2.2 3.6 3.8

New NPL¹, Write Off and NPL Formation Rate

Sep/16

1.37 2.10

Jun/16

1.04

2.38

Mar/16

0.78

1.91

Dec/15

0.84 1.55

Sep/15

0.50 1.24

Jun/15

0.65 0.79

Mar/15

0.51 0.68

Dec/14

0.51 0.33

Write Off (R$ billion) New NPL - Credits Renegotiated (R$ billion)

8.37 10.78 9.71 9.96 9.80 7.73 7.50 4.14

New NPL/Past due Renegotiated Portfolio²

169.31 183.79 220.67 270.72 302.24 382.74 384.91 403.08

ALL Balance/NPL + 90 days

Balance Share%

AA 151 1.0

A 894 5.8

B 1,767 11.4

C 1,427 9.2

D 803 5.2

E 2,974 19.2

F 1,578 10.2

G 962 6.2

H 4,964 32.0

Total 15,520 100.0

AA-C 4,239 27.3

D-H 11,281 72.7

Sep/15

Balance Share%

AA 431 1.7

A 1,158 4.5

B 3,467 13.5

C 3,183 12.4

D 1,333 5.2

E 5,195 20.2

F 2,634 10.3

G 2,182 8.5

H 6,112 23.8

Total 25,694 100.0

AA-C 8,238 32.1

D-H 17,456 67.9

Sep/16

(1) Table according to Explanatory Note 10.k

(1) Quarterly change in the balance of past-due for over 90 days operations + current quarter write off. (2) It considers the past due renegotiated portfolio of the previous quarter.

Chg. %

On 3Q15 On 2Q16 On 9M15

Net Interest Income 13,251 14,633 15,099 13.9 3.2 38,270 44,008 15.0

Loan Operations Income 24,840 25,311 26,117 5.1 3.2 69,417 76,506 10.2

Funding Expenses (11,616) (11,034) (11,366) (2.2) 3.0 (31,234) (33,330) 6.7

Institutional Funding Expenses¹ (3,792) (3,785) (3,737) (1.5) (1.3) (10,483) (11,255) 7.4

Recovery of Write-offs Loans 719 1,384 968 34.6 (30.1) 2,470 3,212 30.0

Treasury Income² 3,100 2,758 3,117 0.6 13.0 8,100 8,875 9.6

3Q15 9M15 9M163Q162Q16Chg. %

Net Interest Income and Net Interest Margin

21

2.7

4.9

2.1

4.9

1.7

4.8

2.4

4.8

2.5

4.5

1Q16 2Q16 3Q16 4Q15 3Q15

Risk Adjusted NIM NIM

Global Spread (%)¹ Spread by Segment (%)¹

3Q16

5.0

6.1

7.9

16.5

2Q16

4.9

5.9

7.7

16.3

1Q16

4.8

5.9

7.5

15.8

4Q15

4.8

5.8

7.4

15.5

3Q15

4.5

5.7

7.1

14.9

Agribusiness NIM

Companies NIM³

Loan Operations NIM²

Individuals NIM

R$ million


(1) It Includes senior debt, subordinated debt and hybrid capital instrument domestic and abroad (HCDI). (2) It included interest income, tax hedge, derivatives and other financial instruments that

compensate the exchange rate variation in result.

(1) Annualized data. (2) Series revised from 1Q15 due to methodology adjustments. (3) It does not include loans with government sector.

Fee Income

R$ million


Chg. %

On 3Q15 On 2Q16 On 9M15

Fee Income 5,691 6,063 6,022 5.8 (0.7) 16,488 17,643 100.0 7.0

Account Fees 1,373 1,534 1,600 16.5 4.3 3,488 4,569 25.9 31.0

Asset Management Fees 930 974 1,012 8.8 3.9 2,623 2,892 16.4 10.3

Insurance, Pension and Premium Bonds 691 835 751 8.7 (10.1) 2,166 2,283 12.9 5.4

Collections 435 421 424 (2.6) 0.5 1,279 1,264 7.2 (1.2)

Loan Fees 462 444 374 (19.0) (15.7) 1,511 1,179 6.7 (22.0)

Credit / Debit Cards 398 343 346 (13.1) 1.0 1,359 1,009 5.7 (25.8)

Billings 250 257 254 1.4 (1.4) 783 771 4.4 (1.5)

Interbank 196 223 209 6.4 (6.3) 575 634 3.6 10.2

Fiduciary Services 130 133 143 9.8 7.0 367 405 2.3 10.3

Consortium 109 123 156 43.9 27.5 314 394 2.2 25.6

Capital Market 84 174 142 69.3 (18.6) 346 426 2.4 23.0

Other 633 601 612 (3.3) 1.9 1,675 1,817 10.3 8.5

3Q15 2Q16 3Q16 9M15 9M16 Share %Chg. %

Chg. %

9M15 9M16 Share % On 9M15

Fee Income 16,080 17,643 100.0 9.7

Credit / Debit Cards 951 1,009 5.7 6.1

(1) It excludes interchange revenues in Jan/15 and Feb/15 that migrated to Cateno from Mar/15.

Adjusted Fee Income¹

23

BB Conta Fácil

Automated Service Channels - Transactions BB Digital – Mobile (million transactions)

3Q15 1,870

3Q16 2,786

Our more than 64 million clients count on more than 66 thousand points of service, present in 99.7% of the Brazilian municipalities. Also, we have the best digital service with innovative solutions.

Service Network Channels

Sep/16

40.3 % Mobile 26.9 % Internet 16.7 % ATM¹ 2.0 % In Person 14.1 % Other

BB Estilo Digital / Exclusivo

+ 49.0%

(1) Owned by BB. (2) Clients with monthly income above R$ 8 thousand. (3) Clients with monthly income between R$ 4 thousand and R$ 8 thousand.

100% Digital

Once opened,

it’s ready for

use

Estilo² and Estilo Digital²

1.1 million clients

232 branches - 100% Digital

Exclusivo³ and Personalizado³

3.3 million clients

12 digital Exclusivo offices

32 branches by the end of 2016

The goal is to reach 5 million high net worth clients


Administrative Expenses and Cost to Income Ratio¹

R$ billion

39.7 39.9

42.5

Cost to Income Ratio (%) - 12 months

3Q16

3.1

5.3

2Q16

3.0

5.0

3Q15

3.1

4.8


Other Expenses Personnel Expenses

(1) Cost to Income Ratio: Administrative Expenses / Operating Revenues. Data from the Income Statement with Reallocations.

OBS: Disregarding the lump-sum bonus granted to employees, the cost to income ratio would be 39.3% in the 3Q16 and 38.8% in the 9M16.

9M16

9.2

15.0

9M15

9.0

14.3

39.4 42.0

Cost to Income Ratio (%)

Disregarding the lump-sum bonus granted to employees, personnel expenses would reach

R$4.9 billion in the 3Q16 and R$14.6 billion in the 9M16.

BIS Ratio¹

%

3Q16

17.59

2Q16

16.45

1Q16

16.24

4Q15

16.13

3Q15

16.20


9.07 8.42 8.26 8.17 8.07

BIS Ratio Tier I Core Capital

11.61 11.39 11.38 11.34 12.18

(1) The consolidation scope used as a base for checking the operating limits was changed, so that it took into account only the Financial Conglomerate, from October 1, 2013, to December 31, 2014,

and the Prudential Conglomerate, as defined in CMN resolution 4,280/2013, from January 1, 2015.

Full application of Basel III rules

%

Tier 1

BIS Ratio


17.59 16.73 16.44 0.87 17.31

(0.85) (0.29)

BIS Ratio Deductions ScheduleAnticipation

BIS Ratio with fulldeductions

RWA RulesAnticipation

BIS Ratio with FullyLoaded Basel III

Rules

Use of Tax Credits Simulated BIS Ratiounder complete Basel

III Rules

11.20 11.00 11.84 12.18

(0.98) (0.20)

0.84

Tier 1 Deductions ScheduleAnticipation

Tier 1 with fulldeductions

RWA RulesAnticipation

Tier 1 with FullyLoaded Basel III

Rules

Use of Tax Credits Simulated Tier 1under completeBasel III Rules

%

27

Guidance


(1) Adjusted ROE estimated for 2016 uses estimated adjusted shareholders’ equity, free from the effects of: (i) the restatement of actuarial assets and liabilities

arising from the Deliberation CVM/695; and (ii) minority interests in controlled companies.

(2) It includes private securities and guarantees provided.

(3) Allowance for Loan Losses expenses of the last twelve months / Average Classified loan portfolio for the same period.

Adjusted Return on Equity¹ 9 to 12 7.6 8 to 10

Net Interest Income 11 to 15 15.0 Unchanged

Domestic Loan Portfolio² - Broad Concept -2 to 1 -3.4 -9 to -6

Individuals 5 to 8 3.6 1 to 4

Companies -10 to -6 -10.8 -19 to -16

Agribusiness 6 to 9 4.5 4 to 7

Allowance for Loan Losses³ 4.0 to 4.4 4.4 Unchanged

Fee Income 7 to 11 7.0 Unchanged

Administrative Expenses 5 to 8 4.2 4 to 6

2016 Performance 2016 Guidance Revised2016 Guidance

28

Contacts


Investor Relations Unit

Av. Paulista, 2,163 – 2nd Floor

01311-933 - São Paulo (SP)

Telephone: +55 (11) 3066 9110

bb.com.br/ir

[email protected]

29

Appendix


30. BIS III - Capital Requirements

31. One-Off Items

32. Income Statement – Main Lines

33. Banco Votorantim

%

BIS III – Implementation Schedule


(1) The Additional CET1 Countercyclical Buffer was not activated by the Central Bank in 2016, according to Central Bank Circular 3,769/15.

Implementation Schedule

2016 2017 2018 2019

Common Equity Tier I (CET1) 4.500 4.500 4.500 4.500

Tier I 6.000 6.000 6.000 6.000

Brazilian BIS Ratio 9.875 9.250 8.625 8.000

Capital Conservation Buffer 0.625 1.250 1.875 2.500

Additional CET1 Countercyclical Buffer

(superior limit)0.625 ¹ 1.250 1.875 2.500

Additional CET1 Systemic (D-SIB)

Buffer0.000 0.250 0.500 1.000

CET1 + Buffers 5.125¹ 7.250 8.750 10.500

Tier I + Buffers 6.625¹ 9.000 10.250 12.000

Brazilian BIS Ratio + Buffers 10.500¹ 12.000 12.875 14.000

Adjusted Net Income 2,881 1,801 2,337 8,947 5,424

(+) One-Off Items 181 664 (91) 2,941 1,646

Economic Plans (247) (185) (323) (402) (890)

Extraordinary Provision for Lawsuits (1,794) 259 147 (2,560) 813

Additional ALLL (2,370) 1,209 - (2,370) 3,257

Deferred Tax on CSLL 3,405 - - 3,405 -

Funds and Programs Adjustment - - - (127) -

Provision for commitment to buy loyalty program points from partners (765) - - (765) -

Cateno - Gestão de Contas de Pagamentos S/A - - - 11,572 -

Cateno - Unrealized Income - - - (3,474) -

Employees Retirement Plan (PAI) (372) - - (372) -

BrasilPrev: Susep Circular 457/12 and 462/13 - - - 385 -

BrasilPrev Effect on Minority Shareholders - - - (74) -

Tax Eff. and Stat. Profit Sharing on One-Off Items 2,325 (618) 85 (1,205) (1,532)

Net Income 3,062 2,465 2,246 11,888 7,070

3Q15 2Q16 3Q16 9M15 9M16

One-Off Items

R$ million


Chg. %

On 3Q15 On 2Q16 On 9M15

Financial Intermediation Income 64,416 36,935 46,834 (27.3) 26.8 149,179 114,889 (23.0)

Financial Intermediation Expenses (51,165) (22,302) (31,735) (38.0) 42.3 (110,910) (70,881) (36.1)

Net Interest Income 13,251 14,633 15,099 13.9 3.2 38,270 44,008 15.0

Allowance for Loan Losses (5,835) (8,277) (6,644) 13.9 (19.7) (16,680) (24,065) 44.3

Net Financial Margin 7,416 6,356 8,455 14.0 33.0 21,590 19,943 (7.6)

Fee income 5,691 6,063 6,022 5.8 (0.7) 16,488 17,643 7.0

Contribution Margin 12,060 11,128 13,203 9.5 18.6 34,923 33,797 (3.2)

Administrative Expenses (7,850) (7,973) (8,419) 7.3 5.6 (23,228) (24,201) 4.2

Commercial Income 4,074 3,064 4,663 14.5 52.2 11,357 9,267 (18.4)

Previ 40 (54) (141) - - 318 (248) -

Income Before Taxes 4,135 2,472 4,126 (0.2) 66.9 12,334 7,800 (36.8)

Income and Social Contribution Taxes (283) 12 (1,079) - - (688) (408) (40.7)

Corporate Profit Sharing (523) (246) (303) (42.1) 23.3 (1,443) (734) (49.1)

Adjusted Net Income 2,881 1,801 2,337 (18.9) 29.8 8,947 5,424 (39.4)

Adjusted ROE (%) 13.3 7.7 9.9 - - 13.7 7.6 -

Net Income 3,062 2,465 2,246 (26.6) (8.9) 11,888 7,070 (40.5)

ROE (%) 14.1 10.7 9.5 - - 18.2 10.0 -

3Q15 2Q16 3Q16 9M15 9M16Chg. %

R$ million


Income Statement – Main Lines

R$ million

112 108 86 77

137

3Q16 2Q16 1Q16 4Q15 3Q15

Sep/16

9.8

90.2

Jun/16

9.8

90.2

Mar/16

9.4

90.6

Dec/15

11.2

88.8

Sep/15

10.3

89.7

D-H Levels AA-C Levels

5.5 4.6 4.6 5.7 5.3


Banco Votorantim

Net Income

NPL + 90 days

Delinquency and Risk (%)

3q16 earnings release - página inicial · price/earnings 12 months price/book ... includes the...

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