Banco ABC Brasil SA · BMFBOVESPA:ABCB4
Banco ABC Brasil SA — Investor Presentation (November 2024)
26 slides from Banco ABC Brasil SA's investor presentation, November 2024
Slide 1: ABC Day November Presentation 2024
ABC Day November Presentation 2024
Slide 2: Brazilian Wholesale Credit Market
Brazilian Wholesale Credit Market
Slide 3: Non-earmarked Corporate Loans – MoM Growth Index Heat Map
Non-earmarked Corporate Loans – MoM Growth Index1,2,3,4 Heat Map Non-earmarked Corporate Loans - MoM Growth Index 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Avg Median Std. Dev Jan 93% 89% 86% 92% 85% 83% 84% 83% 87% 92% 91% 91% 83% 88% 87% 4% 1Q Feb 105% 103% 102% 103% 93
Slide 4: Wholesale Non-earmarked Loans Balance in the Brazilian Financial System
Wholesale Non-earmarked Loans Balance in the Brazilian Financial System Wholesale Non-earmarked Outstanding Balance Y-o-Y Credit Growth 18,5% 17,9% 17,9% 17,5% 16,9% 16,8% 17,0% 16,3% C&IB Event 16,0% 13,6% 12,2%11,9% 11,8% 8,4% 8,1% 7,2% 7,2% 6,6% 6,1% 6,1% 4,9% 4,3% 4,3% 4,3% 3,9% 3,0% 2,5% 2,7% 1
Slide 5: Wholesale Non-earmarked Credit Lines in the Brazilian Financial System
Wholesale Non-earmarked Credit Lines in the Brazilian Financial System Wholesale Non-earmarked Outstanding Credit Lines YoY Growth (R$ bn)1 44 Working 21 44 34 42 Capital 14 38 23 41 Trade Finance 24 27 29 33 41 36 28 40 27 27 38 31 22 3 26 13 Receivables 64 69 22 55 45 39 12 1 64 49 36 39 Working 3
Slide 6: E-H Percentage of Total Loan Portfolio
E-H Percentage of Total Loan Portfolio E-H Percentage (%) 13,6% 2024 12,2% End of C&IB Event 11,8% Reestructuring Process 9,6% 9,5% 9,5% 9,5% 9,3% 9,4% 9,4% 8,9% 9,1% 9,1% 9,0% Middle + 8,8% 8,4% Small1 7,8% 7,9% 7,8% 7,1% 6,9% 6,9% 6,7% 6,8% 6,6% 6,8% 6,7% 6,8% 6,6% 6,4% 6,2% 6,9% 5,8% 6,0% 5,9% 6,
Slide 7: Wholesale Non-earmarked NPLs in the Brazilian Financial System
Wholesale Non-earmarked NPLs in the Brazilian Financial System Wholesale Non-earmarked Outstanding Credit and NPLs (R$ bn and % to Tot. Portfolio)1 +7.2% 5,2% 2024 YoY Growth 4,4% 4,5% 3,8% 3,5% 3,5% 3,7% 3,1% 3,3% 3,1% 3,3% 3,3% 3,2% 3,3% 3,2% 3,1% 2,9% 3,0% 2,9% 2,7% 2,7% NPL Ratio 2,0% 1,8% 2,1%
Slide 8: Wholesale Non-earmarked Gross Interest and Spread
Wholesale Non-earmarked Gross Interest and Spread Wholesale Non-earmarked Spread and Gross Interest (EoP) 1 2024 29,8% End of C&IB Event 28,2% Reestructuring Process 24,2% 23,3% 23,0% 22,6% 21,4% 21,6% 21,6% 21,1% 21,1% 21,3% 20,7% 20,8% 21,1% 21,1% 20,7% Gross 19,7% Interest 18,8% 18,0% 16,9% 16,5%
Slide 9: Debt Capital Markets - Primary Issue Volume
Debt Capital Markets - Primary Issue Volume DCM Primary Issue Volume (R$ bn) 124,9 57,5 70,5 111,4 157,3 115,8 190,2 173,2 73,3 74,4 69,2 4,0 66,2 3,4 Presidential 13,4 63,1 Elections C&IB 8,0 60,7 5,4 7,5 4,2 Event 5,8 53,8 53,4 52,2 9,2 4,4 4,9 11,4 9,6 4,1 4,1 2,4 5,0 4,9 2,1 3,7 43,5 44,6 7,6 1,
Slide 10: Brazilian Wholesale Credit Market – 2Q24
Brazilian Wholesale Credit Market – 2Q24 R$3.7 Wholesale trillion Credit 64% 23% 13% Classified Loans Private Securities Guarantees R$2,333 bn R$844 bn R$479 bn Note: 1 Source: Brazilian Central Bank, Company Financial Statements 10
Slide 11: 3Q24 Results
3Q24 Results
Slide 12: 3rd Quarter of 2024 Highlights
3rd Quarter of 2024 Highlights Profitability Portfolio and Clients Expanded Portfolio Net Income ROAE R$255 16.2% R$50 5,033 billion Wholesale million in the quarter Clients +14.5% 3Q24 vs. 3Q23 NII and NIM Expenses Discipline Annualized NII Growth of Efficiency Ratio NIM R$622 mm 4.4% 4.4% 37.8% +5
Slide 13: Expanded Credit Portfolio
Expanded Credit Portfolio Expanded Credit Portfolio Sep/24 % Total Jun/24 % Total Chg 3M Sep/23 % Total Chg 12M (R$ million) Loans 22,984 100% 23,235 100% -1.1% 24,109 100% -4.7% C&IB 4,256 18.5% 4,506 19.4% -5.5% 3,834 15.9% 11.0% Corporate 14,767 64.3% 14,829 63.8% -0.4% 16,275 67.5% -9.3% Middle
Slide 14: Economic Sectors
Economic Sectors Pulp & Paper Textile Industry Others Agribusiness Automotive Grains Chain 4.7% 22.2% Telecom 1.2% 1.0% 11.0% Water & Sewage Food Industry 1.9% 1.5% 1.1% 2.5% Agriculture & Livestock Heavy Construction 5.4% 2.7% Metal & Mining 3.0% Sugar & Ethanol 3.0% Consumer Goods Industry 3.4% 2.
Slide 15: Revenue with Clients
Revenue with Clients1 (R$ milhões) High Capital 56% 68% 61% 62% Consumption2 73% 70% 44% Low Capital 39% 38% Consumption3 32% 27% 30% 2019 2020 2021 2022 2023 9M24 Notes: 1 Margin with Clients + Service Revenues 2 High Capital Consumption Revenues include Classified Loans, Guarantees and Energy 3 Lo
Slide 16: Net Interest Income
Net Interest Income Net Interest Income NIM (R$ million) (% p.a.) 1,750 1,685 372 4.8% 4.7% 428 4.4% 4.5% 4.4% 4.3% 4.1% 306 236 +5.2% +4.1% 591 598 622 560 531 144 120 128 1,021 1,072 132 125 99 85 98 127 80 349 343 326 379 367 3Q23 4Q23 1Q24 2Q24 3Q24 9M23 9M24 3Q23 4Q23 1Q24 2Q24 3Q24 9M23 9M24 S
Slide 17: Service Revenue
Service Revenue 25.1% 24.0% 23.9% 24.4% 24.2% 24.2% 21.3% 17.2% 16.2% 16.5% 17.6% 16.3% 16.8% 14.8% 341.6 (R$ million) 275.8 92.4 69.4 134.3 83.4 116.7 122.2 117.2 108.0 102.2 25.0 32.0 39.1 28.7 24.5 51.0 37.0 41.6 43.9 48.9 123.0 114.9 40.8 39.0 36.1 39.2 39.6 3Q23 4Q23 1Q24 2Q24 3Q24 9M23 9M24 In
Slide 18: Credit Portfolio Quality
Credit Portfolio Quality Expanded Provision Expenses R$ million and % of the Expanded Portfolio (annualized) 1.1% 0.9% 0.8% 115.0 0.6% 0.6% 0.6% 0.5% 98.9 0.5% 89.7 0.4% 70.3 73.3 72.1 51.6 54.4 43.7 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Expanded Provision Expenses Expanded Provision Expenses
Slide 19: Credit Portfolio Quality
Credit Portfolio Quality Loans Overdue for More Than 90 Days (includes falling due and averdue installments) R$ million and % of loan portfolio 10.9% 9.9% 9.2% C&IB C&IB1 5.1% 4.7% C 4.0% 4.3% 4.1% 3.1% 3.6% M 3.0% 2.9% 3.0% 2.5% 2.6% Total 1.8% 2.7% 1.7% 1.2% 1.0% 1.1% 1.3% 1.2% Total1 0.3% 0.5% 0.
Slide 20: NPL Balance
NPL Balance 3,0% 2,9% 2,6% NPL Balance / 1,7% Loan Portfolio (Ex. C&IB Company) 1,2% 1,1% 1,2% 1,2% NPL Balance / 1,0% Loan Portfolio 0,9% 0,6% 0,8% 703 0,5% 675 0,3% 649 (R$ million) NPL Balance 416 C&IB Company 406 416 416 277 194 92 287 271 NPL Balance 212 233 259 + 90 days 129 153 184 87 3Q22 4Q
Slide 21: Credit Portfolio Quality
Credit Portfolio Quality Loan Loss Reserve 11.6% 11.0% % of loan portfolio 9.9% 9.6% 8.5% 7.9% C&IB 5.9% 6.3% 6.2% C&IB1 5.5% 5.9% 4.5% 4.6% 5.1% 4.9% C 4.5% 3.6% 3.6% 4.0% 3.4% 3.4% 3.5% 3.6% 3.5% M 2.7% 3.2% 3.0% 2.5% 2.4% 2.4% 2.3% 2.3% 2.3% 2.3% 2.0% 2.2% 2.3% 2.2% 1.8% 1.6% 1.5% Total 1.5% 1.5%
Slide 22: Expenses Evolution
Expenses Evolution (R$ million) 3Q24 2Q24 3Q24x2Q24 3Q23 3Q24x3Q23 9M24 9M23 9M24x9M23 Efficiency Ratio (A/B) 37.8% 36.9% 94 bps 38.0% (18) bps 38.0% 38.9% (94) bps Expenses (A) (271.1) (256.5) 5.7% (259.6) 4.4% (771.3) (724.8) 6.4% Personnel (127.2) (124.3) 2.3% (111.9) 13.7% (368.9) (330.3) 11.7%
Slide 23: Funding
Funding Funding 3Q24 Funding Evolution (R$ million) Trade Finance Multilateral Equity 55,551 6.1% Agencies, 53,628 11.5% Deposits & Others 50,456 BNDES Onlending 47,744 49,300 10,285 8,716 4.2% 12.5% 7,896 7,280 9,167 Corporates 14.6% 33,724 35,336 35,840 30,519 33,015 34.5% 16.7% Institutional 2,33
Slide 24: Basel Ratio & Shareholders' Equity
Basel Ratio & Shareholders’ Equity Basel Ratio 2Q24 vs. 3Q24 (R$ million) Basel Ratio 8,062 8,255 8,345 16.3% -0.1% 6,699 7,225 +0.3% -0.4% 16.1% -0.0% 5,872 6,138 6,235 6,378 5,722 Tier II 2.5% 2.4% 16.6% 16.3% 16.1% 14.6% 14.9% 2.8% 2.5% 2.4% 1.9% 2.2% 1.1% 1.0% 2.1% 2.1% 2.0% 13.8% 13.6% Tier I 1
Slide 25: Recurring Net Income | 3Q23 x 3Q24
Recurring Net Income | 3Q23 x 3Q24 (R$ million) Net Interest Income 0.5 (15.7) 19.2 (23.4) 28.3 0.3 (12.5) 11.9 +26.9 18.2 +11.8% 255.1 228.2 3Q23 Net Margin Margin w/ BV at CDI Rate Provision Service Expenses Other Income Taxes Profit Sharing 3Q24 Net Income w/ Clients Market Expenses Revenues Inco
Slide 26: 2024 Guidance
2024 Guidance Performed Guidance 3Q24 vs. 3Q23 Expanded Credit Portfolio¹ Growth 10% to 15% 14.5% Middle Segment Expanded Credit Portfolio Growth 10% to 15% 10.8% Expenses Growth 7% to 12% 4.4% Personnel, Other Administrative and Profit Sharing Efficiency Ratio 36% to 38% 37.8% Expenses/Income Note:
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