0 consumer credit vehicle finance august 25 th 2003 ruy m. abreu executive director banco itaú
Post on 26-Mar-2015
221 Views
Preview:
TRANSCRIPT
1
Consumer CreditVehicle Finance
August 25th 2003
Ruy M. Abreu Executive Director
Banco Itaú
2
Vehicle Finance Market
Banco Itaú and the Logic behind the Acquisitions of Fináustria and Fiat
Acquisitions’ Synergies
Fiat “Consortium”
Vehicle Financing Operation
3
VehiclesMotorcycles Heavy Vehicles
Cars and Light Commercial
Vehicles
New Used
New Used
New Used
Itaú’s Business Focus
Dispersed risk
Better Spreads
Lower losses
Distribution(Capillary Effect)
Efficient Processes(Technology)
Scale(Itaú’s retail volume)
Retail Credit
(Itaú’s Customer Base)
Success FactorsItaú’s Skills
Vehicle Finance Market
4
Forecast Itaú
Source: Anfavea
1,257
1,489 1,6011,488
1,221
1999 2000 2001 2002 2003(*)
Annual Sales of New Vehicles – Brazil(Number of vehicles / thousands)
5
% of Financed Sales of New Vehicles
Source: Banco Fiat
0%
20%
40%
60%
80%
Jan-01
Apr-01
Jul-0
1
Oct-01
Jan-02
Apr-02
Jul-0
2
Oct-02
Jan-03
Apr-03
Jul-0
3
6
18
26
3129
2000 2001 2002 2003
Source : Banco Itaú forecast based on Bacen and Abel data
Consumer Credit and Leasing Portfolio (New and Used Vehicles) – R$ Billions
44%
19% (6%)
CAGR = 12.7%
7Source : Banco Itaú forecast based on Bacen and Abel data
New Consumer Credit and Leasing Business(New and Used Vehicles) – R$ Millions
0
500
1,000
1,500
2,000
2,500
3,000
1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q02 1Q 03 2Q 03
8
(*) Includes Dealers’ Commission and Taxes (Pis , Cofins, ISS , among others)Source: Bacen
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Spread
Gross Spread(*) (p.y.)Vehicle Finance Market
9
2.5 2.73.0 3.0 2.9 2.9
3.3 3.5
0.0
1.0
2.0
3.0
4.0
5.0
3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03
Source: Bacen
Delinquency rates over 90 days (%)Vehicle Finance Market
10
Vehicle Finance Market
Banco Itaú and the Logic behind the Acquisitions of Fináustria and Fiat
Acquisitions’ Synergies
Fiat “Consortium”
Vehicle Finance Operation
11
4.5 5.0 5.6 5.6 5.6
3.5 3.5
7.0
1Q 00 1Q 01 1Q 02 Dec 2002(1) Mar 2003(2)
Itaú Fináustria Fiat
Source : Banco Itaú forecasts based on Bacen , Abel , Itaú, Fiat and Fináustria data
In %
9.0
16.0
(1) Acquisition of Fináustria CFI(2) Acquisição of Banco Fiat
Itaú’s Market Share Consumer Credit and Vehicle Leasing Market
12
Bahia
Minas GeraisGoiás
Rio de JaneiroEspírito Santo
Paraná
Santa Catarina
São PauloBrasília
Rio Grande do Sul
Mato Grosso do Sul
Mato Grosso
Regions of Complementary Business Activity: Itaú
13
CearáCearáRio Grande do NorteRio Grande do Norte
ParaíbaParaíbaPernambucoPernambuco
BahiaBahia
Minas GeraisMinas GeraisGoiásGoiás
Rio de JaneiroRio de JaneiroEspírito SantoEspírito Santo
ParanáParaná
Santa CatarinaSanta Catarina
São PauloSão PauloBrasíliaBrasília
Rio Grande do SulRio Grande do Sul
Mato Grosso do SulMato Grosso do Sul
MaranhãoMaranhão
Mato GrossoMato Grosso
PiauíPiauí
SergipeSergipeAlagoasAlagoas
Regiões de Atuação Complementares Itaú + Fináustria
14
CearáCeará
Rio Grande do NorteRio Grande do Norte
ParaíbaParaíbaPernambucoPernambuco
BahiaBahia
Minas GeraisMinas GeraisGoiásGoiás
Rio de JaneiroRio de Janeiro
Espírito SantoEspírito Santo
ParanáParaná
Santa CatarinaSanta Catarina
São PauloSão PauloBrasíliaBrasília
Rio Grande do SulRio Grande do Sul
Mato Grosso do SulMato Grosso do Sul
MaranhãoMaranhão
Mato GrossoMato Grosso
PiauíPiauí
SergipeSergipe
AmazonasAmazonas
RoraimaRoraima ParáPará AmapáAmapá
RondôniaRondônia
AlagoasAlagoasAcreAcre
TocantinsTocantins
Regions of Complementary Business Activity:Itaú + Fináustria + Fiat
15Source: Banco Itaú, Fiat and Fináustria
Distribution of Financing by Vehicle Age
88%
7% 5%
53%
20%27%
37%
21%
42%
0km to 3 years 4 to 6 years > 6 years
Fiat Itaú Fináustria
Also complementary in different types of
market
16Source: Banco Itaú, Fiat and Fináustria
Distribution of Financing by Rate
95%
5%
56%
44%
26%
74%
2.0 to 3.0 % > 3.0 %
Fiat Itaú Fináustria
17
Num
ber
Poin
ts o
f Sal
e
Fináustria Itaú
Relative Market Share
3,404
347829
448
3,494
-
1,000
2,000
3,000
4,000Overlapping in only 10% of total
points of sale,which corresponds to 16% of total production
Source : Banco Itaú and Fináustria
Overlapping Active Points of SaleItaú x Fináustria
Banco Fiat: active overlapping points of sale
irrelevant
18
Vehicle Finance Market
Banco Itaú and the Logic behind the Acquisitions of Fináustria and Fiat
Acquisitions’ Synergies
Fiat “Consortium”
Vehicle Financing Operation
19
Itaú Vehicle Finance Central Office: Dedicated credit, collection , back office and front office structure.
Platforms Platforms Plataforms .....
Operators Operators
Dealers Dealers Dealers Dealers
Vehicle Finance – Banco Itaú
20Source : Banco Itaú, Fiat and Fináustria
Customer Vehicle Financing Portfolio
ITAÚ
Fináustria
Banco Fiat
TOTAL
325 thousand
225 thousand
350 thousand
895 thousand
21
Proposals Examined (*)
ITAÚ
Fináustria
Banco Fiat
TOTAL
16 thousand
17 thousand
13 thousand
46 thousand
(*) Monthly Average – 2nd Half 2002Source : Banco Itaú, Fiat andFináustria
22
(*) Monthly Average – 2nd Half 2002Source : Banco Itaú, Fiat and Fináustria
Number of Monthly Financing Operations (*)
ITAÚ
Fináustria
Banco Fiat
TOTAL
7,500
5,700
7,400
20,600
23
Call Center – Number of Calls (*)
ITAÚ
Fináustria
Banco Fiat
TOTAL
83 thousand
133 thousand
225 thousand
448 thousand
(*) Monthly Average – 2nd Half of 2002Source : Banco Itaú, Fiat and Fináustria
24
Credit score
There are 5 regionalized models for new and used vehicles
The system compares the proposal with the credit policy and indicates eventual discrepancies.
The credit analyst analyzes the veracity of the information via external sources – risk center , SPC , among others.
Dealer score
70% of the proposals
are sent via internet
Credit Systems – Received via Internet
20% are immediately
answered
25
The system calculates the score based on data input
Credit Systems – Received via Fax
Scaned
Document
26
The reply to the credit proposal is sent by the system to the dealer, operator and commercial manager via
web or fax.
20% of the proposals receive a reply in real time.
Credit Systems – Control Panel
27
Credit – Response Time Breakdown
Automatic
Up to 15
From 15 to 30
> 30
20%
30%
35%
15%
Source : Banco Itaú
Reply Time(In Minutes) % Production
28
80% of the guarantees are constituted at the time of payment of the operation via the National Lien
System
Credit Systems - Payment of the Operation
Analysis of the Guarantee – On line consultation of RENAVAM (Brazilian vehicle registration
database) which is integral to the process of payment of the operations
29
Back office system for this operation was established based on the factory
concept using the technology employed in the processing of bulk volumes for the
Itaú Branch Network
Back Office – Digitalization of Documents
30
Vehicle Finance Market
Banco Itaú and the Logic behind the Acquisitions of Fináustria and Fiat
Acquisitions’ Synergies
Fiat “Consortium”
Vehicle Financing Operation
31Source : Bacen
Ranking of Vehicle Finance Companies Vehicle Consortium – May 2003
Finance CompanyRanking by Participants
Quantity of Participants
Market Share
VW 1 109,357 12%
Fiat + Itaú 2 95,803 11%
Fiat 2 89,257 10%
GM 3 67,832 8%
Disal 4 47,441 5%
Unibanco Rodobens 5 31,646 4%
CNF 6 23,724 3%
Novaterra 7 21,589 2%
Servopa 8 21,078 2%
Rodobens Administradora e Promoções Ltda 9 16,381 2%
União 10 13,888 2%
32Source : Banco Itaú forecast based on Bacen data
Consortium Market Active Quotas Portfolio (Thousands)
1,004903 883
2001 2002 2003
33Source : Banco Itaú forecast based on Bacen data
Consortium Market Quota sales – Monthly Average/Year (Thousands)
3438
31
2001 2002 2003
34
(*) Banco Itaú forecastSource : Anef
Share of Consortium MarketSale of New Vehicles
16%18%
24%21%
19%
14%12% 13%
1996 1997 1998 1999 2000 2001 2002 2003(*)
35
Vehicle Finance Market
Banco Itaú and the Logic behind the Acquisitions of Fináustria and Fiat
Acquisitions’Synergies
Fiat “Consortium”
Vehicle Finance Operation
36(*)variation in funding rate (p.m.) half year average for Fiat/FináustriaSource: Banco Itaú
107
105
108 108109
104
101
105104
101
1H 01 2H 01 1H 02 2H 02 1H 03
Fiat Fináustria
Itaú FundingItaú = base hundreds per period
37
R$ 100 million
8.5% 29% 37%... ...
18% ...
......
......
29% ...
17% (2%)... ...
51%6.7% 1.3% 2%
Commercial Credit Operational Systems Cost
reductionFináustria
Commercial
Credit Operational
Systems
Cost reduction
FIAT
Costreduction
TOTAL
Fináustria Fiat
Source : Banco Itaú
Estimated Cost Reduction for 2004After I.T. and Social Contribution
38
135 ..... 306
71 ....
100 ....
Itaú Fináustria Fiat Total
Source : Banco Itaú
Estimated Growth in Annual Total RevenuesItaú = base hundreds
(*) Total Revenues: Financial Margin + Banking Service Fees + Insurance Revenues, Pension Plan and Capitalization + Equity Income from Afilliates
39
Consumer CreditVehicle Finance
August 25th 2003
Ruy M. Abreu Executive Director
Banco Itaú
top related