presentation title - bocombbm.com.br · who we are banco bocom bbm s.a. is a brazilian financial...
TRANSCRIPT
SUMMARY
Who We Are
History
Our Business
Ownership Structure
Organizational Flowchart
Financial Highlights and Ratings
Corporate Credit
Funding
Wealth Management
HR | Competitive Advantages
Bank of Communications | Financial Highlights| Global Presence
Who We Are
Banco BOCOM BBM S.A. is a Brazilian financial
institution controlled by Bank of Communications, which
owns 80% of its equity, as a joint venture with
Brazilians who own the rest.
Bank of Communications was established in 1908 in
the city of Shanghai with the aim of boosting Chinese
industry. It opened its first branch in Hong Kong in
1934. Banco BOCOM BBM S.A.’s origins date from 1858
in the city of Salvador in Bahia State, Brazil.
Coherently with these two origins, today we are
dedicated to meeting the credit and financial service
requirements of companies established in Brazil, and to
providing wealth management services for individuals,
including the management of liquid assets and
protection against financial risks.
We look to the future with determination to participate
in the growing economic and cultural integration
between Brazil and China, always based on the two
institutions’ and countries’ core values.
HIGHLY QUALIFIED STAFF
TRADITION AND SOLIDITY TRANSPARENCY IN TRANSACTIONS
EXCELLENCE IN RISK CONTROL
AGILITY IN DECISION MAKING FLEXIBILITY TO MEET CLIENTS’ NEEDS
Origin in a joint venture between one of the largest and oldest banks in China and Brazil’s oldest private financial group.
Transparency in selecting the best products and services available on the market, with high governance standards: this is what distinguishes the advisory services we offer to our clients in accordance with each profile.
We have a long tradition of excellence in risk management. In
the past 20 years we have investedin continuous development of proprietary risk management methodologies, always at the cutting edge of the industry.
Banco BOCOM BBM is a hub for identifying and training talented people. We place a high value on the systematic pursuit of advanced knowledge and prioritize people who add value to the organization in the course of their professional development.
We have a sound and transparent governance framework. Our executives are deeply committed to the activities affected by their decisions in the short and long term, and have the expertise to minimize any conflicts of interest between business units, executives and shareholders.
With a team of trained and certified professionals, we seek personalized solutions to meet clients’ requirements, which go beyond financial portfolio management and include succession and family planning.
Our Business
Corporate Credit
Credit lines and guarantees to companies through the following platforms:
Corporate: economic groups with annual revenues from R$ 200 million up to R$ 3 billion;
Large Corporate: economic groups with annual revenues starting at R$ 3 billion;
China Corporate Desk: credits for Chinese companies based in Brazil.
Wealth Management
Financial advisory to high net-worth clients.
Financial Services
DCM structuring and distribution, pricing of derivatives and other products.
Ownership Structure
100%
80%
100%
The Southern Atlantic
Investments, Ltd.
BBM Bank Ltd.(Bahamas)
BOCOM BBM Corret. de Câmbio e Val. Mobil. S.A.
100%
BoCom Brazil Holding
Company Ltda
Brazilian Shareholders
100%
20%
- Participation of less than 0.001% were excluded from this organizational chart and the value was rounded to the controlling company.- Percentages considered excluding shares held in treasury.
Sun Xu*Shaohui Yang
Pedro H. MarianiPo Ying
Sun RongjunBoard
Pedro H. MarianiCEO
Miguel FlaksmanProducts, DCM / Structuring,
IB & Legal
Compliance & General Secretary
Alexandre LowenkronRisk, Research and Operations
Sergio FreitasWealth Management
Fan Shen**CFO
Leonardo OliveiraCorporate Credit
Cassio von Gal Large Corporate andInstitutional Relations
Internal Audit
Organizational Flowchart
*Chairman of the board**Pending regulatory approvals
Financial Highlights and Ratings
Moody’s
Brazil Sovereign Rating
Domestic
Fitch BB-
Ba1
BB+
Global
Local Currency Local Currency Foreign Currency
Aaa.br
AAA(bra)
Ba3
BB
Ratings
Ba2
Capital Tier I
Net Income
Total Expanded Credit Portfolio¹
Total Funding
Return on Average Equity (p.a.)
Return on Average Assets (p.a.)
Expanded NIM (Before allowances for loan losses) ² ³ (p.a)
Basel Ratio (Core Tier I)
Liquid Assets
Efficiency Ratio (ER)
550
23
3,175
3,656
8.1%
1.0%
5.9%
17.9%
1,131
55.8%
575
39
4,157
4,641
13.3%
1.5%
6.1%
14.4%
1,189
50.5%
803
38
5,487
5,750
12.5%
1.2%
5.1%
16.3%
1,280
57.7%
5,141 5,632 6,927
Financial Highlights (BRL Million) Jun/17 Jun/18 Jun/19
Total Assets
546
21
1,952
2,652
7.2%
1.0%
5.6%
21.1%
1,107
52.4%
4,106
Jun/16
² Includes the result of equity pickup.
³ Including services fees and adjustment in open market operations.
¹ Includes sureties, guarantees, letters of credit and operations bearing credit risk (debentures and promissory notes).
Gross Financial Income before Allowances for Loan Losses + Service Revenue + Result of Equity Pickup.
Service Revenues (% of the Total Revenues ) 14.7% 19.1% 26.6%8.6%4
4
Shareholders' Equity 572 595 620584
Financial Highlights and Ratings
² Includes the result of equity pickup.
³ Including services fees and adjustment in open market operations.
¹ Includes sureties, guarantees, letters of credit and operations bearing credit risk (debentures and promissory notes).
Gross Financial Income before Allowances for Loan Losses + Service Revenue + Result of Equity Pickup.4
Capital Tier I
Net Income Accumulated
Total Expanded Credit Portfolio¹
Total Funding
Return on Average Equity (p.a.)
Return on Average Assets (p.a.)
Expanded NIM (Before allowances for loan losses) ² ³ (p.a)
Basel Ratio (Core Tier I)
Liquid Assets
Efficiency Ratio (ER)
560
43
3,668
4,085
7.5%
1.0%
5.8%
16.1%
1,267
61.4%
577
64
4,408
4,897
10.8%
1.1%
5.5%
14.5%
1,468
57.8%
4,976 6,298
Financial Highlights (BRL Million) Dec/17 Dec/18
Total Assets
557
32
2,171
2,964
5.6%
0.8%
5.3%
21.3%
1,268
60.2%
4,004
Dec/16
Service Revenues (% of the Total Revenues ) 17.4% 21.2%10.5%4
Shareholders' Equity 575 601574
564
44
1,731
2,469
7.6%
1.3%
5.7%
21.1%
1,210
64.5%
3,796
Dec/15
8.9%
585
Corporate and Large Corporate;
Credit transactions such as working capital, trade finance, guarantees and corporate securities.
Credit Portfolio
Total Expanded Credit PortfolioR$ Million
5,487
1,952
Total Expanded Credit
4,157
3,175
645 906 1,3582,121
1,303
2,200
2,761
3,283
Jun/16 Jun/17 Jun/18 Jun/19
Others Corporate Large Corporate
Credit Portfolio
Total Expanded Credit PortfolioBreakdown by Transaction – Jun/19
Total Expanded Credit PortfolioBreakdown by Sector – Jun/19
Loans and Guarantees Portfolio*Risk Rates – Jun/19
Collaterals* – Jun/19Loans and Guarantees
* Expanded Credit operations, classified according to the Central Bank of Brazil’s 2.682/99 Resolution.**In Jun/19, the credits classified as D represent less than 1% of the total active loan portfolio.
* In June/19, the outstanding balance with some kind of collateral was 47.37%.
The total value of the exposure to agribusiness (sugar and ethanol, food and agriculture) accounted for 27.70% of the loan portfolio.
48%
32%
16%3%
1%AA
A
B
C
(E-H)
14%
10%
10%
7%7%6%
6%
40%
Sugar and Ethanol
Utilities (energy)
Agriculture
Civil Construction
Retail Companies
Capital Goods
Transportation and Logistics
Others
79%
9%
12%
Receivables
Inventories / Crops
Assignment of Real Estate
45%
15%
14%
13%
10%3%
Working Capital
Guarantees Issued
Export Credit Notes
Trade Finance
Corporate Securities
Others
Total Credit Portfolio Collateralization – Jun/19
71%
29%
Collateralized Clean
Corporate
Risk Management: Collateralization
Large Corporate
20%
80%
Collateralized Clean
47.4%
52.6%
Collateralized Clean
Loans and Guarantees Portfolio
Quality Ratios
Allowances for loan losses Loans rated D and E-H
3.5%
2.5%
2.0%
0.9%
Jun/16 Jun/17 Jun/18 Jun/19
3.0%2.7%
1.6%1.1%
5.9%
Jun/16 Jun/17 Jun/18 Jun/19
Loans from (E to H) Loans from (D to H)
Client Base
(Days)
(R$ Million)
(Units)
Large CorporateCorporate
Total Number of Clients
AverageTicket
AverageTerm
Jun/16 Jun/17 Jun/18 Jun/19
115
149167
190
100
150
200
2529
41 44
20
35
50
272
411
558 575
200
400
600
471
627692
778
400
600
800
Jun/16 Jun/17 Jun/18 Jun/19
11
1517 17
10
15
20
2631 33
48
20
40
60
R$ Million
Exposure by Group
236
1,296
2,039
3,368
4,542
5,487
4.3%
23.6%
37.2%
61.4%
82.8%
100.0%
Top debtor
Top 10 debtors
Top 20 debtors
Top 50 debtors
Top 100 debtors
Total Expanded Credit Portfolio
Funding by Type of InvestorR$ Million
Total Funding
5,750Total Funding
4,641
3,656
2,652Funding Sources Jun/16 Jun/17 Jun/18 Jun/19
Institutional Investors 55% 41% 41% 32%
Wealth Management 33% 37% 31% 29%
BoCom 5% 11% 17% 30%
Corporate 7% 11% 11% 9%
TOTAL 100% 100% 100% 100%1,455 1,495 1,890 1,820
8781,339
1,427 1,690121
435
803
1,720
198387
521
520
Jun/16 Jun/17 Jun/18 Jun/19
Institutional Investors Wealth Management
BoCom Corporate
Maturity Profile1
Loans and Guarantees Issued Portfolio vs. Funding2
Funding Sources
1) Average term of issuance (days).
2) Not considering demand deposits (days).
Funding and Asset Liability Management
440519
583
666
581
681
536
708
Jun/16 Jun/17 Jun/18 Jun/19
Loans and Guarantees Issued PortfolioFunding
27% 23% 16% 13%
27%21% 31%
25%
22%30% 32%
27%
12% 17%21%
31%
12% 9%0
4%
Jun/16 Jun/17 Jun/18 Jun/19
Subordinated DebtMultilateral AgenciesFunds in Foreign CurrencyAgribusiness & Real Estate Credit BillsBanknotesLocal Deposits and Others
Financial advisory to high net worth individuals and families, Brazilian and Foreign¹;
R$ 7.8 billion under advisory, grounded on:
More than 160 years of experience in theBrazilian market with a high expertise in riskmanagement;
Products diversification (open platform);
Transparency.
¹ Resolution 4,373
Assets under AdvisoryR$ Billion
Wealth Management
3.2
4.1
5.8
7.8
Jun/16 Jun/17 Jun/18 Jun/19
OPEN PLATFORM
Access to the best products and services available on the market.
PERFORMANCE
Technology and expertise in evaluating and recommending investments through excellence in risk control and strict observance of the highest ethical standards.
Modern tools and vast experience in advisory for high net worth individuals and families, both Brazilian and foreign, pursuing their investment objectives through structured financial solutions based on an open-platform model.
Besides the portfolio management of liquid assets, BOCOM BBM Wealth Management also offers advisory services in other areas, including non-financial matters, through its partners.
Wealth Management
PERSONALIZED SERVICE
Creation of taylor made solutions that go beyond the traditional portfolio management.
TRANSPARENCY
Mitigation of conflicts of interest through transparency in selection of the best products and services available on the market, with high governance standards and personalized advisory according to the client’s profile.
Wealth Management
▪ Corporate treasury
▪ Products
▪ Macroeconomic research
▪ Equity research
▪ Credit structuring
▪ Account for Non Resident Investors (res. 4.373)
FAMILY OFFICE SERVICESPartnership in managing the family firm’s consolidated assets
BANKERClient’s main contact with BOCOM BBM
BOCOM BBM PLATFORMUse of BOCOM BBM’s structure
CLIENT SUPPORTOperational support to both the Banker and the Client
ASSET ALLOCATIONPortfolio management
▪ Transactions
▪ Account opening
▪ CRM monitoring
▪ Client service
▪ Understanding client’s profile and requirements
▪ Integration with BOCOM BBM’s products and services
▪ Risk analysis
▪ Suitability control
▪ Market watch
▪ Management of exclusive funds
▪ Portfolio allocation
▪ M&A and auditing
▪ Income tax
▪ Succession planning
▪ Real estate advisory in Brazil and abroad
▪ Pensions
Highly qualified professionals with competitive and performance driven compensation.
ATTRACT HIGH TALENTED PROFESSIONALS
▪ Close relationships with the best universities;
▪ Support for research and academic development;
▪ Scholarships for undergraduates with the best performance indicators, undergraduate and graduate monitors, and candidates for an MSc or PhD in economics.
MOTIVATE AND RETAIN TOP PERFORMERS
▪ Dynamic and intellectually challenging workplace climate;
▪ Unremitting pursuit of excellence, industry best practices, and innovations that make a difference in our business;
▪ Market-competitive and meritocracy-based compensation.
ALIGN INTERESTS
▪ Objectives of individuals and teams aligned with business strategy;
▪ Compensation model aligns interests of the executives with business results.
HR | Competitive Advantages
Data in reference to June, 2019.
Began a career at Financial Sector at BOCOM BBM Time in BOCOM BBM (Years)
HR | Competitive Advantages
4
5
8
12
17
Analyst/Coordinator
Relationship Manager
Staff
General Manager
Managing Director
67.0%
26.6%
6.4%
Bachelor Degree Postgraduate (MSc and higher) High School
17%
48%
57%
67%
83%
Staff
Relationship Manager
Analyst/Coordinator
General Manager
Managing Director
Bank of Communications | Financial Highlights
¹ Hong Kong Securities Clearing Company Limited.² National Council for Social Security Fund.
* Foreign currency deposit.
BoCom’s Ownership(Top Shareholders)
Return on Average Assets
Shareholders' Equity ¹
Return on Average Equity²
Net Profit¹
Loan Portfolio
Bad Debt Ratio
Provision Coverage of Impaired Loans
Capital Adequacy Ratio (Core Tier 1)
1.00%
83,321
14.08%
5,679
600,759
1.54%
150.45%
10.92%
0.91%
94,953
13.06%
5,753
645,097
1.51%
151.02%
10.62%
0.89%
104,221
12.79%
6,276
746,303
1.47%
173.53%
10.86%
Total Assets 1,199,831 1,318,322 1,438,115
Financial Highlights (USD Million) Jun/16 Jun/17 Jun/19
¹ Attributable to shareholders of the bank
² Excluding the impact from preference shares.
Exchange rate on Jun/16: 6.6312 (State Administration of Foreign Exchange China);
Exchange rate on Jun/17: 6.7744 (State Administration of Foreign Exchange China);
Exchange rate on Jun/18: 6.6166 (State Administration of Foreign Exchange China);Exchange rate on Jun/19: 6.8747 (State Administration of Foreign Exchange China).
³ Due to changes in the presentation basis on the items in financial statements, the comparative figures of priorperiod were restated to the current presentation basis.
0.89%
100,301
12.99%
6,162
705,681
1.49%
170.98%
10.63%
1,408,988
Jun/18
27%
20%19%
4%
30%
M
H
S
O
Ministry of Finance (State)
HKSCC Nominees Ltd (Foreign Legal Person)¹
HSBC (Foreign Legal Person)
SSF (State)²
Others
Moody’s
S&P
P-1
A-2
Long Term* Short Term*
A2
A-
Ratings
Fitch F1A
Bank of Communications | Global Presence
Bank of Communications is one of the People’s Republic of China's top five commercial banks. With more than 3,000 domestic branches, it operates in more than ten countries including the United States, Japan, Singapore, South Korea, Germany, Australia, Canada, Luxembourg and the United Kingdom.
China is Brazil’s largest trade partner, and the joint venture between BoCom and BBM heralds the advent of a new stage of growthin this relationship.
In the context of this growing cooperation between the two countries, Banco BOCOM BBM has enormous potential to boost business and capital growth, adding value for all stakeholders and driving economic development.
ADDRESSES
www.bocombbm.com.brOmbudsman | Phone.: 0800 724 8448E-mail: [email protected]
Rio de Janeiro, RJ Av. Barão de Tefé, 34 – 20° e 21º andaresZip Code 20220-460 Tel.: +55 (21) 2514-8448 Fax: +55 (21) 2514-8293
São Paulo, SP Av. Brigadeiro Faria Lima, 3311 – 15º andarZip Code 04538-133 Tel.: +55 (11) 3704-0667 +55 (11) 4064-4867 Fax: +55 (11) 3704-0502
Salvador, BA Rua Miguel Calmon, 398 – 2º andar - parte Zip Code 40015-010 Tel.: +55 (71) 3326-4721 +55 (71) 3326-5583 Fax: +55 (71) 3254-2703
Nassau, Bahamas Shirley House | Shirley House Street, 50, 2nd floor P.O. N-7507 Tel.: (1) (242) 356-6584 Fax: (1) (242) 356-6015
This presentation was prepared by Banco BOCOM BBM. The information contained herein should not be interpreted as investmentadvice or recommendation. Although the information contained herein was prepared with utmost care and diligence, in order toreflect the data at the time in which they were collected, Banco BOCOM BBM cannot guarantee the accuracy thereof. Banco BOCOMBBM cannot be held responsible for any loss directly or indirectly derived from the use of this presentation or its contents. Thisreport cannot be reproduced, distributed or published by the recipient or used for any purpose whatsoever without the prior writtenconsent of Banco BOCOM BBM.
This presentation was developed using Conglomerado Prudencial’s values (4060).