Embed Size (px)
Citation preview
PROGRESS OF CRÉDITO REAL TOWARDS ITS
TARGETS IN 2022
Investor Day 2014 2017 2019
Customers 531,399 832,842 913,668
Loan Portfolio $13,805 $29,015 $43,472
NPL 1.9% 2.1% 1.7%
Mix México 100%México 77%
International 23%México 79%
International 21%
Yield 26.2% 32.2% 29.0%
NIM 20.3% 22.0% 17.7%
Cost of Risk 1.9% 4.6% 3.5%
ROA 6.9% 4.5% 3.9%
ROE 24.7% 15.9% 17.5%
Average TIIE 3.5% 7.1% 8.4%
1 BUSINESS STRATEGY
PayrollUsed Cars MXSMEsGroup LoansDurable Goods
Consumer (Instacredit) Payroll
8%6%1%1%
60%3%
14%1%1%
INTERNATIONAL
OPERATIONS
Used CarsFactoringSME´s
79%
13%11%
2%
Sources: Company information and Survey on Financial Inclusion (Encuesta Nacional de Inclusión Financiera)
Demographic distribution by our clients% of total loan portfolio
LONG-TERM GROWTH OPPORTUNITIES
68%
12
9 m
illion
Limited banking access Total population
47.0%
31.0%
40.0%
25.0%
Limited banking access
Access to a bank account
Bank account
Credit
Life insurance
+ 40 minutesCommute to a branch
14 bank branchesFor every 100,000 population
1) Market segments are defined based on monthly family income, in accordance with the categories established by AMAI: Segment E, from zero to Ps.2,699; Segment D, from Ps.2,700 to
Ps.6,799; Segment C, from Ps.11,600 to Ps.34,999, Segment C+, from Ps.35,000 to Ps.84,999, Segment A and B, Ps.85,000 or more.
2) Source: AMAI based on cities with a population greater than 100,000 inhabitants
LONG-TERM GROWTH OPPORTUNITIESMarket segments(1) Percentage of total population Players CREAL(2)
2017 Total Population: 129.2 million
A&B
C+
C&C-
D and ETa
rge
t M
ark
et
6%
11%
27%
56%
17%
83%
C&C-
D and E
Portfolio breakdown by region
GEOGRAPHIC DIVERSIFICATION 2022
Portfolio breakdown by product
40%
15%
22%
22%1%
Payroll loans
Consumer loans
SME loans
Used cars loans
Others
50%
35%
15%
México
United States
CentralAmerica
79.0%
8.0%
13.0%
63%11%
14%
11%1%
2022
YTD19
2022
YTD19
Loan Portfolio’s growth CAGR 2012-2018: 32.4% Annual growth as of 3Q19: 24.4% Target 2022: 15-20%
Increase penetration
Capitalization
Expansion
Asset quality
Funding
Efficiency
Strategy key elements
BUSINESS PLAN EXECUTION OVERVIEW AND CURRENT PORTFOLIO STRENGHTS
2015 2016 2017 2018 3Q19
Payroll SMEs Used Cars MX CR USA Consumer loans Others
2.4%2.2% 2.1%
1.7% 1.7%
GROWTH
$1,371$1,714 $1,661
$1,955
$1,387 $1,553
2015 2016 2017 2018 YTD18 YTD19
NPL
+11.9%
Loan Portfolio
Net Income
$17,610
$23,927
$29,015
$36,319
$43,472
74% 61% 67% 68% 62%
8%2%8%
6%2%
4%
10%18% 6%
2%7%16%
2%10%
14%3%
3%
6%
8%
12%
1%
2%
11%
25%
5
14 distributors+6,000 reps
PAYROLLProduct Overview
Payroll´s progress
KPI´s
YIELD Cost of Risk ROAA NPL
26.0% 1.3% 6.6% 1.4%
Average Loan Amount
Average TermAverage Annual Interest
RatePayment
FrecuencyCustomers
Ps. 63,171 40 months 56% Bi-weekly 427,168
2,853 4,518 5,72410,697
14,530
24,807
26,984
49%
51%
Pensioners market
entrance
62%
2 FINANCIAL AND OPERATIONAL HIGHLIGHTS
49%
49%
Market Opportunities
42%
23%
35%
Crédito Real
Competitors
Other
6
SMEs
Traditional SMEs Product Overview
Leasing Product Overview
Market Opportunities
KPI’s
Ratios YIELD Cost of Risk ROAA NPL
SMEs 14.0% 1.0% 3.3% 0.5%
Average Loan Amount Average TermAverage Annual Interest
RatePayment
Frecuency
Ps. 8.4 million 36 months 25% Monthly
Average Loan Amount Average TermAverage Annual Interest
RatePayment
Frecuency
Ps. 4.0 million 6 months 19% Monthly
14%
72%
52%
19%
28% 48% 81%
Employment % of GDP FinancingSMEs Corporations
19%
13%
9%
5%5%5%4%3%
3%
32%
Personal services
Commerce
Transportation
Financial services
Tourism
Food & Beverage
Construction
Health Care
Manufacturing
Other
Loan Portfolio distribution by sector
Use of resources – SMEs market
81.3%27.5%
25.6%14.7%
10.2%7.4%
4.2%3.7%
9.4%
Supplies
Machinery
Debt repayments
Expansion Plans
Salaries
R&D
Real Estate
Opening new businesses
Other
Source: INEGI, ENAPROCE.
16%
25%
Source: AMDA, Jato Dynamics. 7
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2014 2015 2016 2017 2018 2019
New Cars Used Cars Var % New Cars Var % Used Cars
Distribution Network
USED CARS MX
KPI´s
YIELD Cost of Risk ROAA NPL
32.0% 4.3% 6.9% 0.9%Average Loan Amount Average Term
Average Annual Interest Rate
Ps. 123,420 40 months 35%
3%
Market in MexicoNew vs. Used Cars Loans
89.8%
10.2%
2018
New Cars Used Cars
87.6%
14.4%
2019
New Cars Used Cars
Market Share by type of vehicle
76%
16%
25%
▪ Used Cars
▪ Factoring
▪ SMEs
▪ Leasing Headquarters
Source: Pew Research Center.
1,838.12,317.8
2,100.4 2,030.5 1,874.1
3,343.3
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
0.04
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015 2016 2017 2018 3Q18 3Q19
Portfolio NPL
7
CR USA
Portfolio Progress Hispanics in USAIn millions
Average Loan Amount Average TermAverage Annual Interest
RatePayment
Frecuency Customers
Ps. 305,460 67 months 23% Monthly 10,945
Product Overview27 States
KPI´s
YIELD Cost of Risk ROAA NPL
29.0% 5.2% 1.5% 1.0%
35.85.4
2.2
2.1
1.9
1.45.1
MexicansPuerto RicansSalvadoransCubansDominicansGuatelmalansOthers
8%
Average Loan Amount Average Term
Average Annual Interest Rate
Payment Frecuency Customers
Ps. 28,719 45 months 57% Monthly 172,553
16%
50%
25%
▪ Consumer loans
▪ SMEs loans
▪ Auto loans
▪ Home equity loans
46Branches
Products Personal Used Cars Small Business Home Equity
% Mix Portfolio 51.9% 33.3% 12.1% 2.7%
Customers 116,335 32,706 22,485 1,027
Avg. Loan Amount 19,452 44,465 23,526 112,756
Avg. Term 40 49 41 57
Avg. Interest Rate 61.6% 49.0% 56.5% 51.7%
13Branches
6 Branches
8
CONSUMER LOANS
Product Overview
Portfolio Overview
KPI´sYIELD Cost of Risk ROAA NPL
65.0% 16.0% 10.0% 5.0%
11%
Market Opportunities
NicaraguaPanamáCosta Rica
Attractive opportunities due to low creditpenetration
3,853 5,1778,353
10,96515,100
19,916
25,996
35,915
41,908
49,56247,023
57,392
13 31 64 85 127 54 121 316 811 576 460 658
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q18 3Q19
Assets Cash & equivalents
3,391 3,7365,512 6,733
10,42413,805
17,610
23,92729,015
36,319 34,946
43,472
2.0%3.4% 2.0%
1.6% 1.5% 1.9%2.4% 2.2% 2.1%
1.7% 2.1% 1.7%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q18 3Q19
Total Loan Portfolio NPL
BALANCE SHEET OVERVIEW
Assets
+22%
+24%
24.1%22.2%
18.4%15.9%
12.9% 12.4% 12.9%
2014 2015 2016 2017 2018 YTD´18 YTD´19
Excluding Subordinated Perpetual Notes
Excluding Subordinated Perpetual Notes
BALANCE SHEET OVERVIEW
ROAA ROAE
Capitalization Efficiency
6.6%6.0%
5.0%4.5% 4.2% 4.2% 3.9%
2014 2015 2016 2017 2018 YTD´18 YTD´19
17.5%17.3%17.9%17.6%
38.5% 38.1% 38.1%
50.9%
43.5% 43.8%37.9%
2014 2015 2016 2017 2018 YTD´18 YTD´19
28.2%31.8%31.9%36.4%
27.6%
35.9%
49.9% 50.2%
42.4%45.2% 43.3%
2014 2015 2016 2017 2018 YTD´18 YTD´19
CAPITAL STRUCTURE
812 1,025 1,4603,596 4,353 5,357 6,713
9,277
14,768 15,809 15,307 16,484
2,590 5931,944
1,7513,042 2,572
3,6102,759
1,0001,464 851
582
375868
1,5702,282
4,081 4,261
6,4997,700
9,041
12,16411,569
14,705
2,564
3,122
2,814
2,830
6,561
7,335
14,129
13,544
17,019
15,446
22,180
9%10%
11% 10%9%
7% 6%
8%12% 11%
11%13%
0%
10%
20%
30%
40%
50%
60%
-5000
5000
15000
25000
35000
45000
55000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q18 3Q19
Equity Securitization Credit Lines Senior Notes Cost of Funds
*On October 1, 2019, Crédito Real issued EUR €350 million Senior Notes due 2027.
3,7775,049
8,09610,443
14,305
18,751
24,157
33,866
38,490
46,456
43,173
53,951
+25%
65%
18%
9%8%USD
MXN
CHF
EUR*
Debt by currency
$0.53
$0.43 $0.40
$0.25
$0.50
$0.70
2.4%
2.1%
0.9% 0.9%
2.0%
4.0%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
2012 2013 2015 2016 2017 2018
Dividend Per Share (MXN)
Dividend Yield
(1) Considering Gentera, Unifin and Findep
Sector’s average 20191
GENERATING VALUE FOR SHAREHOLDERSDividends
Collection (MXN Mn)
2018 9M19
Payroll 9,423.9 7,481.6
SMEs 3,411.7 3,821.6
Used Cars 3,282.6 2,969.1
Consumerloans
4,204.8 3,232.5
Others 6,694.8 5,260.3
Total 27,017.8 22,765.1
ADEQUATE ASSET AND LIABILITY MANAGEMENT
Liquidity profileSubsidiaries Return on Equity
ROAE
Payroll 6.5%
Used Cars MX 51.2%
CR USA 6.7%
Consumer loans 18.2%
Others (17.8%)
ROE 8.8%
-
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0Debt Service
Scheduled Collection
1,305
664
1,3091,167
1,517 1,457
917
2014 2015 2016 2017 2018 YTD18 YTD19
Cash and cash equivalents (MXN Mn)
ADEQUATE ASSET AND LIABILITY MANAGEMENT
NIM OBSESSED
1 Portfolio Mix
Scenario A Scenario B Scenario CPortfolio % Portfolio % Portfolio %
Payroll 31,105 58.0% 32,178 60.0% 37,540 70.0%SMEs 8,044 15.0% 10,726 20.0% 8,044 15.0%Used Cars MX 2,145 4.0% 1,609 3.0% 0 0.0%CR USA 4,827 9.0% 2,681 5.0% 3,218 6.0%Instacredit 6,436 12.0% 5,363 10.0% 3,754 7.0%Others 1,073 2.0% 1,073 2.0% 1,073 2.0%Total 53,629 100.0% 53,629 100.0% 53,629 100.0%
Yield 30.5% 30.0% 29.7%NIM 19.3% 18.8% 18.4%ROA 4.0% 3.9% 3.8%ROE 14.6% 14.0% 13.7%
ROE (excluding PN) 19.2% 18.5% 18.0%
INTERNATIONAL
OPERATIONS
Used CarsFactoringSME´s
79%
NIM OBSESSED
2 Cost of Funds
Actual 13.3%New issuances (0.5%)Estimated CoF 12.8%
Scenario 1 Scenario 2 Scenario 3
-100 bps -50 bps -25 bps
Interest rate cuts (0.3%) (0.2%) (0.1%)
CoF 12.5% 12.6% 12.7%
NIM 19.3% 19.1% 19.1%
ROA 4.0% 4.0% 4.0%
ROE 14.6% 14.4% 14.3%
ROE (excluding PN) 19.2% 19.0% 18.9%
Source: Company filings presented to CNBV as of December 31, 2018, except Findep and Unifin which were obtained from public filings
COMPETITIVE ADVANTAGES
1.8%
1.7%
1.8%
2.9%
1.9%
5.0%
0.5%
1.0%
1.4%
1.7%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Instacredit
SMEs
Used Cars
Payroll
Total
Average NPLs comparison by product in 3Q19
Crédito Real Banking Sector
2.2% 2.1%1.7%
2.1%1.7%
3.2%
3.7%
2.9% 3.1% 3.0%
2016 2017 2018 3Q18 3Q19
NPL Ratio Reserves/Total Portfolio
1.7%2.7%
5.5%
1.0%1.7%
2.9%
5.6%
3.9%
Creal Gentera Findep Unifin
NPLs ratios comparison
2018 YTD´19
42.4%
82.7%
44.9%
70.6%
44.3%
70.4%61.9%
44.9% 51.4%67.8%
30.5%45.1%
Source: Company filings presented to CNBV as of December 31, 2018, except Findep and Unifin which were obtained from public filings
43.9%
25.2%16.8%
45.7%53.7% 51.9%
23.8%14.1% 17.7% 15.8%
44.6%
18.4%
CRÉDITO REAL´S PERFORMANCE VS. PEERS
ROAA & Consumer Loan Portfolio NPL Ratio
Capitalization Ratio
Efficiency Ratio
Crédito Real
Banco Ahorro Famsa
Banco Azteca
BanCoppel
Compartamos
Consubanco
FindepUnifin
BBVA
Citibanamex
BanorteBanregio
HSBC
Inbursa
SantanderCommercial banking
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
-1% 1% 3% 5% 7% 9% 11% 13% 15%
RO
AA
Total Loan Portfolio NPL Ratio
Avg.63.0%
Avg.20.7%
Diferentiators Crédito Real vs Traditional Banks
Source: Company filings presented to CNBV as of December 31, 2018, except Findep and Unifin which were obtained from public filings.
STRENGHTS AND OPPORTUNITIES
Customers walking into branches
Competing with distributors with a loan portfolio and a
regional presence
Standard credit analysisfocused on mid - and high -
income segments
Focus on high-income population with high credit
penetration
Customer approach on site Train and develop sales force
Invest in partnershipsEstablish strategic Alliance
Exclusivity agreements
Expert and parametric credit analysis(developed according to segment)
Focus on middle and low income population with low credit
penetration
Traditional Banks
Crédito Real
CLOSING STATEMENTS
