4Q10
Disclaimer
All financial information herein is presented on a consolidated basis, and includes the financialstatements of the Bank, its subsidiaries, JMalucelli Seguradora, JMalucelli Seguradora de Crédito,JMalucelli Re., JMalucelli Agenciamento, Jmalucelli Distribuidora de Títulos e Valores Mobiliáriosand Paraná Administradora de Consórcio. All information, except when otherwise indicated, isexpressed in Brazilian currency (Reais) and was prepared based on the accounting practicespursuant to Brazilian Corporate Law, associated with the regulations and instructions issued bythe National Monetary Council (CMN), the Brazilian Central Bank (BACEN), the BrazilianSecurities and Exchange Commission (CVM), the National Council of Private Insurance (CNSP), theBrazilian Private Insurance Authority (SUSEP) and the Accounting Standards Committee (CPC), asapplicable.
The information contained in this material regarding future events is exposed to risks anduncertainties and subject to changes resulting from, but not limited to, market behavior,economic and political situation of Brazil and legislative and regulatory changes. Theinformation herein is entirely based on the Bank Administration’s performance expectations andis no guarantee of future results.
2
Qualidade da Carteira de Crédito
3
* Inclui saldo da cessão com coobrigação.
Inadimplência SFNPF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%
Inadimplência Paraná BancoConsignado (>90 dias) = 5,9%
PME (>90 dias) = 0,8%
PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%
Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%
Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%
Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.
Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)
PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.
Créditos Baixados a Prejuízo (b) 8.754 13.250 (33,9%) 7.856 11,4%
Nível de perda (b/a) 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
4T09 x 4T08R$ 4T09 3T09 4T09 x
3T09 4T08
MainHighlights 4Q10
Key Financial Numbers (Consolidated)
Net Income:R$ 117.4 million in 2010
12.6% x 2009R$ 33.7 million in 4T10
16.1% x 4T09
Profitability:ROAE de 14.6%ROAA de 4.0% NIM de 11.8%
Total Deposits:R$ 1,301.8 million
30.6% x 4T09
4
Total Assets:R$ 3,074.0 million
17,5% x 4T09
Loan portfolio:R$ 1,551.9 million
19.7% x 4T09
Portfolio from AA to C :95.8% of Parana Banco consolidated portfolio
4Q10 Environment ‐ BACEN (Central Bank of Brazil)
5
Date Resolution Provision Impact on Paraná Banco
03/12/2010 3931 The limit for collection of time deposits with special guarantee provided by the Fundo Garantidor de Créditos (FGC) shall be reduced from 2012.
Low ‐ Paraná Banco is not dependent on this kind of fund raising – just 6.1% of the total deposit portfolio was issued in DPGE.
03/12/2010 3515 Changes in standard risk weight onloans for individuals, including payroll‐deductible loan
Low – With a 32.7% Basel Index in December, 2010, Paraná Banco is able to leverage the Company in spite of this change.
03/12/2010 3513 Mandatory Deposits requirement Inexistent – Paraná Banco is not subject to reserve requirements
14/01/2011 Circular letter 3522
Forbids financial institutions to celebrate exclusive agreements with payroll registered covenants
Positive – This provision fosters market development and hinders a market practice that had been damaging for Paraná Banco operations.
Financial Performance
6
Financial Intermediation Income
Financial Intermediation Expenses
Net Interest Margin - NIM
2009 2010
91,527 113,697 117,314
(42,286) (57,394) (52,340)
13.5%11.7% 10.6%
‐25.0%
‐20.0%
‐15.0%
‐10.0%
‐5.0%
0.0%
5.0%
10.0%
15.0%
(150,000)
(50,000)
50,000
150,000
250,000
350,000
343,655 420,490
(151,730)(199,713)
13.6% 11.8%
‐15.0%
‐10.0%
‐5.0%
0.0%
5.0%
10.0%
15.0%
‐300000
‐200000
‐100000
0
100000
200000
300000
400000
Net Income from Financial Operations 49,241 56,303 64,974 32.0% 15.4% 191,925 220,777 15.0%
4Q10 x 3Q10 2009 2010 2010 X
2009R$ mil 4Q09 3Q10 4Q10 4Q10 x 4Q09
51.5% 51.5% 39.1%43.0% 47.0%
29,066 29,479 33,739
104,301117,423
4Q09 3Q10 4Q10 2009 2010
Net income(R$ thousand)
Participation of insurance sector
16.1%
14.5%
12.6%
7
Financial Performance
4.2% 4.0%
2009 2010
ROAA(0,2 p.p)
45.3%47.9%
2009 2010
Efficiency
2.6 b.p (0.2) b.p
13.0%14.6%
2009 2010
ROAE
1,6 p.p1.6 b.p
8
Credit Portfolio Quality
FIDC I and II Effect
1,347.7 1,398.6 1,413.3 1,483.5 1,554.4 1,578.1
4.3%
5.1%
4.3%4.0% 3.9%
3.3%2.9%
3.3%
2.7%2.4% 2.4%
1.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
‐
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Evolution of the Loan Portfolio - Consolidated(R$ million)
Loan Operations Allowance for doubtful accounts (PDD)/Loan Portfolio LevelH/Loan Portfolio
1,6 p.p
+17.1% +1.5%
Change in required alloance
Credit Portfolio Quality
9
* Includes balance of assignment with co-obligation.
Delinquency rate - Brazilian Financial System (“SFN”)
Individuals (>90 days) = 5.7%Corporations (>90 days) = 3.6%
Delinquency rate - Paraná BancoPayroll deductible (>90 days) = 3.1%
Middle Market (>90 days) = 2.4%*
Allowance for Doubtful Accounts (PDD) 51,942 61,377 (15.4%) 70,649 (26.5%)Portfolio overdue (> 60 days) 64,410 68,743 (6.3%) 72,412 (11.1%)
Portfolio overdue (> 90 days) 52,411 56,973 (8.0%) 58,868 (11.0%)
Total Portfolio* (a) 1,578,121 1,554,435 1.5% 1,398,582 12.8%
Portfolio Coverage Index (PDD / > 60 days) 80.6% 89.3% (8.6 p.p.) 97.6% (16.9 p.p.)
Portfolio Coverage Index (PDD / > 90 days) 99.1% 107.7% (8.6 p.p.) 120.0% (20.9 p.p.)
Allowance for Doubtful Accounts (PDD) / Total Portfolio 3.3% 3.9% (0.7 p.p.) 5.1% (1.8 p.p.)
Written-off credits (b) 7,771 8,541 (9.0%) 8,078 (3.8%)
Loss rate (b/a) 0.49% 0.55% (0.1 p.p.) 0.58% (0.1 p.p.)
4Q10 x 4Q09R$ 4Q10 3Q10 4T10 x 3Q10 4Q09
Performance – Payroll‐Deductible Loan
1,091 1,132 1,206 1,278 1,335
4Q09 1Q10 2Q10 3Q10 4Q10
Payroll-Deductible Loan Portfolio(R$ million)
96.1%
2.2%1.7%
Quality of the Payroll-Deductible Loan Portfolio
AA - C
D-G
H
10
Performance –Middle Market
Strategy: To invest in structuring this product so as to increase our share in this credit mode, focusing in the states of Paraná, where we rely on Group JMalucelli for support, and São Paulo, in synergy with JMalucelli Seguradora (insurance company).
11
130.0161.0 177.0 189.4 189.6
4Q09 1Q10 2Q10 3Q10 4Q10
Middle Market Portfolio Growth(R$ million)
97.2%
2.3% 0.5%
Quality of the Middle Market Portfolio Portfolio
AA - C
D-G
H
FRANCHISES
OWN STORES
5
21
DISTRIBUTIONCHANNELS
4
1
85
14
1
13
51
153
1
1
4
21
11
1
Distribution
PAYROLL-DEDUCTIBLEPAYROLL-DEDUCTIBLE
7 PLATAFORMS
•CURITIBA/PR
•SÃO PAULO/SP
•PONTA GROSSA/PR
•MARINGÁ/PR
•LONDRINA/PR
•JOINVILLE/SC
•FLORIANÓPOLIS/SC
MIDDLE MARKETMIDDLE MARKET
346 BROKERS
Funding
13
Medium Term Notes - MTN
100,000 December/2009 December/2012 7.375% 100%35,000 August/2008 August/2011 7.750% 100% + interest rate
Tranche (US$ thousand) Maturity Coupon
(p.a.) HedgeGranting Date
45.7%
8.0%
13.9%
11.2%
21.2%
Deposits Breakdown
Institutional Investors
Related Parties
Individuals
Corporate Investors
Financial Institutions
Capital Structure
14
Initial Balance 788,782 806,649 Net Income 117,452 107,196 Interest on Equity (46,143) (47,915)
Treasury shares (32,208) (77,181) Adjustment to market value - Marketable securities (223) 33
Final Balance 827,660 788,782
Equity Changes (R$ thousand) 2Q10 1Q10
38.9%
36.0%33.9% 33.2% 32.7%
4Q09 1Q10 2Q10 3Q10 4Q10
Basel Index
1.64 1.66
1.801.86 1.88
4Q09 1Q10 2Q10 3Q10 4Q10
Portfolio / Shareholder`s Equity
2010 2009
Corporate Governance
IOE (interest on equity) in 2010: R$ 46.1 million, equivalent to R$ 0.52 per share and pay-out of 39.3%.IOE (interest on equity) in 2010: R$ 46.1 million, equivalent to R$ 0.52 per share and pay-out of 39.3%.
1Q10 5,506,435.92 0.06 0.572Q10 10,645,443.84 0.12 1.413Q10 7,938,857.88 0.09 0.844Q10 22,052,383.00 0.25 1.85Total 46,143,120.64 0.52 -
Distributed Gross Value (R$)
Interest on Equity per share (R$)
Dividend Yield (%)
15
Qualidade da Carteira de Crédito
16
* Inclui saldo da cessão com coobrigação.
Inadimplência SFNPF (>90 dias) = 7,8%PJ (>90 dias) = 3,8%
Inadimplência Paraná BancoConsignado (>90 dias) = 5,9%
PME (>90 dias) = 0,8%
PDD 70.649 62.331 13,3% 51.469 37,3%Carteira (> 90 dias) 74.725 67.023 11,5% 56.151 33,1%
Carteira (> 180 dias) 46.820 38.475 21,7% 30.420 53,9%
Carteira Total* (a) 1.398.582 1.347.703 3,8% 1.330.658 5,1%
Índice de cobertura da carteira (PDD / > 90 dias) 94,5% 93,0% 1,5 p.p. 91,7% 2,9 p.p.
Índice de cobertura da carteira (PDD / > 180 dias) 150,9% 162,0% (11,1 p.p.) 169,2% (18,3 p.p.)
PDD / Carteira Total 5,1% 4,6% 0,5 p.p. 3,9% 1,2 p.p.
Créditos Baixados a Prejuízo (b) 8.754 13.250 (33,9%) 7.856 11,4%
Nível de perda (b/a) 0,6% 1,0% (0,4 p.p.) 0,6% 0,0 p.p.
4T09 x 4T08R$ 4T09 3T09 4T09 x
3T09 4T08
Insurance4Q10
Insurance Group
Seguradora’s Net Income : R$ 37.8 million in 2010
ROAE of 28.9% 29.2% x 2009
Resseguradora’s Net Income :R$ 15.8 million in 2010
ROAE of 16.4%12.2% x 2009
Seguradora’s Combined Ratio:66.4%
down 23.1 p.p. x 3T10
17
Market share - 2010:JM Seguradora: 40.4%
JM Re: 41.8%
Premiums issuedJM Seguradora + JM Re:
R$ 170.7 million137.8% x 4Q09
Share of Insurance Business: 47.0% of 2010 Net Income
Market Expectations
18
58.264.8
78.0 79.893.5
111.7121.9
2003 2004 2005 2006 2007 2008 2009
Investments in Infrastructure(in R$ billions)
According to ABDIB, Brazil will need R$ 160.9 billion per year for the next 5 years in order to suppress bottlenecks that are hindering the country’s competitiveness and economic growth. When financial resources are not invested, this need increases exponentially.
According to ABDIB, Brazil will need R$ 160.9 billion per year for the next 5 years in order to suppress bottlenecks that are hindering the country’s competitiveness and economic growth. When financial resources are not invested, this need increases exponentially.
4.7
4.3
4.1
4.0
3.9
3.7
3.6
3.6
3.5
3.0
2.8
2.8
Chile
Uruguay
El Salvador
Brazil
Guatemala
Mexico
Argentina
Colombia
Peru
Bolivia
Dominic Rep.
Venezuela
Quality of Infrastructure(Between1 e 7. GCR 2010-2011 )
Source: ABDIB and World Economic Forum – Global Competitiveness Report 2010-2011
19
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2003 2004 2005 2006 2007 2008 2009
Investments in Infrastructure(R$ million)
Oil & Gas Energy Transport Telecommunications Sanitation
Market Expectations
Source: ABDIB
Investment guide
20
2011 ‐ 2022
BRAZIL IS GOING TO NEED INVESTMENTS OF R$ 2 TRILLION BY 2022
HIGHWAYS • Investment estimate: R$ 200 billion •More than 12,636 km in new highways
RAILWAYS Investment estimate: R$ 130 billion29,000 km in new railways
PORTS AND WATERWAYS Investment estimate: R$ 60 billion A total of 133 new construction, expansion and renovation works need to be made.
AIR TRANSPORTATIONInvestment estimate: R$ 20 billionA 41% expansion of current capacity is needed.
Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro
Investiment Guide
21
POWER Investment estimate: R$ 385 billion Requirement of 3,500 megawatts per year
OIL AND GAS Investment estimate: R$ 955 billionPre‐salt oil is President Dilma administration’s greater promise
TELECOMMUNICATIONS Investment estimate: R$ 100 billion The goal is a 233% increase in the number of homes accessing the Web
2011 ‐ 2022
SANITATION Investment estimate: R$ 206 billion The lack of water and sanitation services affects 18% of Brazilian people
Sources: ICA Consultores, Fiesp, ABDIB, IBGE, Infraero, EPE, PAC and Revista Istoé Dinheiro
Market Share
22
JMalucelli Seguradora: market leadership, profitable operation, low claims ratio, fast credit analysis, client selection, and attractiveness for coinsurance companies.
JMalucelli Resseguradora: first in the market share ranking, with 41.8% of the financial risk group.
JMalucelli Seguradora: market leadership, profitable operation, low claims ratio, fast credit analysis, client selection, and attractiveness for coinsurance companies.
JMalucelli Resseguradora: first in the market share ranking, with 41.8% of the financial risk group.
29.2% 37.0% 42.3%50.4% 43.0% 32.6% 40.4%
187,768 167,452 192,364
346,089
499,334
694,787 726,400
2004 2005 2006 2007 2008 2009 2010
Market share - direct premiums (R$ thousand)
JMalucelli Seguradora Market
Source: SUSEP
Financial Performance
23
29.249
37.799
30,0%28,9%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
2009 2010
JMalucelli Seguradora
∆YoY = 29.2%
Net Income (R$ thousand)
14.091
15.810
17,3%16,4%
8,0%
9,0%
10,0%
11,0%
12,0%
13,0%
14,0%
15,0%
16,0%
17,0%
18,0%
9.000
10.000
11.000
12.000
13.000
14.000
15.000
16.000
17.000
2009 2010
JMalucelli Resseguradora
ROAE
∆YoY = 12.2%
62.0%
93.0%
47.0%
82.0%
Monthly evolution of composite rate and expanded composite rate*
JM Seguradora Market Expanded JM Seguradora Expanded Market
24
Combined Rate
Source: SUSEP
According to SISCORP data, JMalucelli Seguradora had the 2nd better combined ratio in the whole Brazilian insurance market in 2009 and 2010.According to SISCORP data, JMalucelli Seguradora had the 2nd better combined ratio in the whole Brazilian insurance market in 2009 and 2010.
* For the market, all insurance products included. For JMalucelli Seguradora, surety bond and DPVAT includedMonthly evolution of combined ratio and amplified combined ratio*
Amplified JM Seguradora Amplified Market
Operational Performance (Insurance)
25
JM Seguradora has a specific area for occurrences which mediates and manages all claims received from customers. Its principle is legal defense of the involved parties and a wide opportunity for discussion on controversial matters.
JM Seguradora has a specific area for occurrences which mediates and manages all claims received from customers. Its principle is legal defense of the involved parties and a wide opportunity for discussion on controversial matters.
38,273
76,155
29,950
16,146
76,004
92,701
76,418
253 4,025 2,3726,457 9,056 7,960 9,073
2004 2005 2006 2007 2008 2009 2010
Insurance Claims(R$ thousand)
Market JMalucelli Seguradora
Source: SUSEP
26
Investment Policy
Profitability: financial income of R$ 12.8 million in 4Q10. Profitability: financial income of R$ 12.8 million in 4Q10.
79,9
301,120,4
431,029,6
18,5%
69,9%
6,9%
Bonds Fixed income Equities Multimarket Total
Portfolio of financial investments(R$ million)
72,6%
14,2%
13,2%
CDB = R$ 42,8
DPGE = R$ 218,7
Others = R$ 39,6
2.6%
9.7%
3.0%
10.6%
4Q10 2010
Profitability of investments
CDI Investments JM Seguros
Investor Relations
27
This material may include estimates and forward-looking statements. These estimates and forward-looking statements are mostly based on current expectations andprojections of future events and financial trends which impact or may impact our business. Many important factors may have a negative impact on Banco Parana Banco’sresults, such as those anticipated in our estimates and forward-looking statements. These factors include, but are not limited to, domestic and international economicconditions, fiscal, foreign exchange and monetary policies, increased competition in the consigned credit sector, Banco Parana Banco’s funding capacity to support itsoperations, and changes in Central Bank’s standards. The words “believe”, “can”, “may”, “aims”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and other similarwords are intended to identify estimates and projections. The considerations on estimates and forward-looking statements include information concerning results andprojections, strategy, competitive position, sector circumstances, growth opportunities, future regulation and competition impacts.
These estimates and projections refer only to the date that they were expressed, and no undertaking has been made to publicly update or revise them resulting from newinformation, future events or any other factors. Due to the risks and uncertainties set forth herein, the estimates and forward-looking statements in this material many notmaterialize. Considering these limitations, the shareholders and investors should not make any decisions based on the estimates, projections and forward-lookingstatements contained herein.
Marianne C. BaggioIR Analyst
Phone: (55 41) 3351-9645
Mauricio N. G. Fanganiello IR Manager
Phone: (55 41) 3351-9765
Cristiano Malucelli IR Officer
Phone: (55 41) 3351-9950
e-mail: [email protected] Website: www.paranabanco.com.br/ri
Recommended