earnings release report 3q10
DESCRIPTION
São Paulo, November 11, 2010 – Banco Indusval S.A., financial institution with activities primarily focused on middle market lending, operating in the Brazilian market for over 40 years, listed at the Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and IDVL4, announces its financial results for the third quarter 2010 (3Q10).TRANSCRIPT
1/19
3Q10 Earnings Release
Focused on Corporate Lending
São Paulo, November 11, 2010 – Banco Indusval S.A., financial institution with activities
primarily focused on middle market lending, operating in the Brazilian market for over 40 years,
listed at the Stock, Commodities and Futures Exchange - BM&FBOVESPA under tickers IDVL3 and
IDVL4, announces its financial results for the third quarter 2010 (3Q10).
Highlights
� The loan portfolio, including guarantees and letters of
credit, closed 3Q10 at R$ 1.8 billion, up 5.0% from
3Q09.
� Allowance for loan losses totaled R$ 112 million,
covering 6.6% of the loan portfolio and around 180%
of Non-Performing Loans (more than 60 days
overdue).
� Total funding remained at around R$ 1.9 billion, with
longer tenors and cash free of current obligations of R$
679 million, equivalent to 46% of total deposits.
� Net profit of R$ 7.5 million in the quarter and R$ 23
million in the first nine months, with a significant
increase in recurring revenues.
� Banco Indusval Multistock is ranked 3rd among Latin
America’s most sustainable midsized banks in 2010,
according to the Spanish consultancy firm
Management & Excellence, in partnership with Latin
Finance.
IDVL4: R$ 8.00 per share
Closing: 11/11/2010
Total Shares: 41,212,984
Market Cap: R$ 329.7 MM
Conference Call/ Webcasts:
Nov. 12/2010
In English
Webcast
At: 12 pm (US EST)/ 3 pm (Brasília) Webcast will be available on:
www.indusval.com.br/ir
In Portuguese
Conference Call and Webcast
At: 11 am (US EST) / 2 pm (Brasília)
Phone: (55 11) 4688-6361
Code: Banco Indusval
Website: www.indusval.com.br/ir
2/19
The financial and operating information presented in this report are based on consolidated financials prepared in local currency
(Real), according to Brazilian GAAP.
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09
Income from Financial Intermediation 39.1 33.1 6.4 18.1% 510.6% 107.4 66.9 60.4%
Operating Results 12.6 12.1 (16.1) 3.8% 178.0% 35.5 (3.1) 1244.6%
Net Profit 7.5 8.3 (7.8) -9.5% 196.3% 23.1 8.3 177.4%
3Q10 2Q10 3Q09 3Q10/2Q10 3Q10/3Q09
Loan Portfolio 1,707.3 1,686.6 1,631.7 1.2% 4.6%
Loan Portfolio + Guarantees and L/Cs 1,769.1 1,762.6 1,684.2 0.4% 5.0%
Cash & Short Term Investments 54.0 353.2 349.5 -84.7% -84.5%
Securities and Derivatives 1,404.5 937.8 903.9 49.8% 55.4%
Total Assets 3,230.2 3,043.8 2,856.6 6.1% 13.1%
Total Deposits 1,471.2 1,373.3 1,215.9 7.1% 21.0%
Open Market 739.0 561.5 522.8 31.6% 41.3%
Foreign Borrowings 323.5 414.2 333.2 -21.9% -2.9%
Domestic On-lending 108.0 93.1 182.9 16.0% -41.0%
Shareholders’ Equity 432.4 429.7 438.1 0.6% -1.3%
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09
Free Cash 679.7 695.5 707.1 -2.3% -3.9%
NPL 60 days/ Loan portfolio 3.7% 2.6% 8.1% 1.1 p.p. -4.5 p.p.
NPL 90 days/ Loan portfolio 2.5% 2.2% 7.0% 0.3 p.p. -4.4 p.p.
Basel Index 19.9% 20.3% 21.6% -0.4 p.p. -1.7 p.p.
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09
ROAE 7.2% 7.9% -6.8% -0.8 p.p. 14.0 p.p. 7.2% 2.5% 4.7 p.p.
Net Interest Margin (NIM) 7.0% 6.8% 6.1% 0.2 p.p. 0.9 p.p. 6.8% 8.5% -1.7 p.p.
Net Interest Margin (NIMa) 8.5% 8.5% 7.5% 0.0 p.p. 1.0 p.p. 8.3% 10.0% -1.7 p.p.
Efficiency Ratio 61.6% 55.2% 60.7% 6.4 p.p. 0.9 p.p. 59.3% 49.1% 10.2 p.p.
3Q10 2Q10 3Q09
Number of Clients - Corporate Borrowers 703 694 643
Number of Employees 354 349 345
Banco Indusval Multistock (BIM) is a commercial bank with 43 years of experience in the financial markets, focusing on local and foreign currency corporate loan products. Operating with agility and quality in its services, BIM has a wide range of products designed to meet the specific needs of this market, including structured deals. To guarantee such a level of service, the Bank relies on a network of 11 branches strategically located in economically relevant Brazilian regions, including an offshore branch, and its subsidiary Indusval Multistock Corretora de Valores, the brokerage arm that operates at the São Paulo Stock, Commodities and Futures Exchange - BM&FBOVESPA. The Bank is a publicly-held financial institution listed at Level 1 Corporate Governance of the BM&FBOVESPA since July 2007 and voluntarily adopts additional practices specific to companies listed in the Novo Mercado special trading segment.
Results
Balance Sheet Resultados Trimestrais
Key Indicators – R$ MM
Performance
Other Information
3/19
In the third quarter of 2010, the Brazilian economy proved its consistent behavior and showed that
the political developments had little influence on its performance. However, Banco Indusval
maintained the approach it adopted at the end of 2009, when it decided to review its medium- and
long-term business strategies. In other words, we are overcoming the recent past setbacks and are
reinforcing our structure to expand our businesses. Though the market demands immediate results,
for the sake of consistency and sustainability, this process is not developed overnight.
The first step in this direction was the strategic alliance established at the brokerage firm in June
2009, which, though still in the investment phase, is already operating on a new technological
platform with products tailored to the profile of the existing and the target clients. Also with an
improved expertise that is compatible with market demand. As second step, with the decision to
broaden the focus of operations to include the ‘upper middle’ companies, we segmented the client
service platform into Middle Market, targeted at companies with annual revenue of up to R$ 400
million, and the one denominated ‘Large Companies’, targeted at companies with annual revenue of
over R$ 400 million. This new service platform was created in July and should deliver more
consistent results in around 12 months. The objective of this segmentation is to increase the
competitiveness in meeting the specific demands of each segment, given that for upper-middle
companies our competitive advantage rests on structured operations with customized solutions.
Thus, our numbers transparently reflect this period of work towards the expansion and perpetuity of
Banco Indusval in a consistent and sustainable manner.
The economies of developed countries are expanding modestly, with no inflation pressures,
resulting in low interest rates. The combination of low interest rates and available liquidity
encourages the flow of funds to emerging economies, which present the highest growth rates and
demand for investments. This trend has led to a strong appreciation of their currencies against the
U.S. dollar, since the recovery of the U.S. economy is slower than of European countries.
In 3Q10, the Brazilian economy stands to benefit from this scenario, registering low inflation and
little pressure on interest rates, which enable longer-term funding and reasonable costs in virtually
all sectors. This expansion potential of the economy attracts investments both in the means of
production and in financial assets, despite measures to curb the exaggerated appreciation of the
Brazilian real. This situation points to strong economic growth, with increased investments, income
and consumption, and lower unemployment rates. This growth should reach levels that are
sustainable in the long run, in 2011, allowing inflation and interest rates to remain stable and, in
the backdrop of the global scenario, point to an attractive environment for investments, credit and
consumption in 2011.
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/9M09
GDP Variation (IBGE- Q on Q) 2.36% (*) 3.74% 0.58% -1.38 p.p. 1.78 p.p. 9.87% (*) 2.23% 7.64 p.p.
Inflation Rate (IPCA – IBGE) 0.50% 1.00% 0.63% -0.50 p.p. -0.13 p.p. 3.55% 3.17% 0.38 p.p.
FX Rate Variation (US$/ R$) -5.96% 1.15% -8.70% -7.11 p.p. 2.74 p.p. -2.70% -23.90% 21.20 p.p.
Interest Base Rate Variation (Selic) 2.62% 2.23% 2.19% 0.39 p.p. 0.43 p.p. 7.03% 7.67% -0.64 p.p.
Individuals Default Rate (BACEN) 6.00% (*) 6.50% 8.10% -0.50 p.p. -2.10 p.p. 6.00% (*) 8.10% -2.10 p.p.
Corporate Default Rate (BACEN) 3.50% (*) 3.60% 4.00% -0.10 p.p. -0.50 p.p. 3.50% (*) 4.00% -0.50 p.p.
(*) Central Bank of Brazil estimates or preliminary figures
Macroeconomic Environment
Management Comments
4/19
Credit in Brazil
Credit Operations in the Financial System
Individuals Corporates
Resources Resources Balances in R$ Million Non
earmarked Earmarked
Total Non earmarked
Earmarked Total
Total R$ million
Credit/GDP %
2008 Dec 394 287 138 019 532 306 476 890 218 098 694 988 1 227 294 40.8
Mar 411 953 141 124 553 077 465 180 224 634 689 814 1 242 891 41.0
Jun 434 331 147 255 581 587 464 467 230 787 695 254 1 276 841 41.8
Sep 451 453 158 746 610 199 470 422 267 578 738 000 1 348 200 43.9 2009
Dec 469 899 166 131 636 030 484 661 293 704 778 366 1 414 396 45.0
Mar 486 529 176 278 662 807 483 400 305 459 788 859 1 451 666 44.6
Jun 505 906 185 938 691 844 511 630 324 814 836 443 1 529 007 45.7 2010
Sep* 527 949 200 010 727 959 533 010 351 002 884 012 1 611 971 46.7
Variation %
In the month 1.4 2.9 1.8 2.2 1.1 1.7 1.8 0.4 p.p.
In the quarter 4.4 7.6 5.2 4.2 8.1 5.7 5.4 1.0 p.p.
In the year 12.4 20.4 14.5 10.0 19.5 13.6 14.0 1.7 p.p.
In 12 months 16.9 26.0 19.3 13.3 31.2 19.8 19.6 2.8 p.p.
* BACEN estimates Source: BACEN
Preliminary data from the Brazilian Central Bank for September 2010 put the total loan operations
in the country’s financial system at R$ 1.6 trillion, with an increase in the credit/GDP ratio to
46.7%. The estimated balance of loan operations on September 30, 2010, represents growth of
1.8% in the month and 5.4% in the quarter. Until August, this growth was clearly driven by
earmarked credit in both individual and corporate segments. September was the first in 24 months
when the increase in non-earmarked credit was slightly higher than of earmarked loans, especially
in corporate loans and financing.
Operations contracted with free credit accounted for 65.8% of the total credit, compared to 34.2%
in earmarked credit, which mainly consisted of housing loans for individuals and BNDES loans for
companies. Operations with free credit, which amounted to R$ 1.1 trillion, increased by 4.4% in the
quarter (4.9% in 2Q10) and 15.1% in 12 months. Meanwhile, earmarked loans totaled R$ 0.5
trillion, increasing by 7.5% and 29.2%, respectively. The earmarked loans’ share of total loans
increased to 34.2% in September, from 33.5% in June 2010. Government-controlled banks
maintained their 42% share of total loans.
BIM focuses on free-credit loans to companies, with credit agreements mainly in the R$10,000 to
R$100 million range which, according to the Central Bank, grew by 6% (including earmarked loans)
in the three months through August and by 12% year to date.
Default
Central Bank data for September 2010
depict a slow recovery in default rates,
mainly in corporate loans, which registered
a mere 0.3 p.p. improvement in 2010,
while individual loan defaults fell by 1.7
p.p. in the period. The Central Bank’s
percentages refer to the total balance of
loans overdue more than 90 days.
3.5
6.0
4.7
1,0
3,0
5,0
7,0
9,0
Dec Dec Dec Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
200620072008 2009 2010
%
Corporates Individuals Total
Source: BACEN
5/19
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09
Income from Financial Intermediation
123.4 110.4 94.3 11.9% 31.0% 348.2 314.3 10.8%
Loan Operations 72.0 65.6 58.4 9.7% 23.2% 198.8 203.7 -2.4%
Loans & Discounts Receivables 63.1 59.9 51.2 5.3% 23.1% 175.0 173.3 1.0%
Financing 7.9 4.3 6.7 81.4% 16.8% 18.7 29.4 -36.2%
Other 1.1 1.4 0.5 -24.8% 128.9% 5.0 1.0 385.0%
Securities 44.9 18.9 29.1 137.5% 54.5% 88.1 76.5 15.2%
Derivative Financial Instruments 0.0 6.8 0.0 -100.0% n.m. 8.4 0.0 n.m.
FX Operations Result 6.6 19.1 6.8 -65.6% -3.2% 53.0 34.1 55.3%
Financial Intermediation Expenses
84.4 77.3 87.9 9.1% -4.0% 240.8 247.4 -2.6%
Money Market Funding 55.2 46.0 40.8 20.0% 35.3% 140.0 104.9 33.4%
Time Deposits 37.9 34.2 27.7 10.7% 36.7% 100.5 67.2 49.5%
Repurchase Transactions 15.8 10.6 11.2 49.5% 41.4% 34.7 26.5 31.1%
Interbank Deposits 1.5 1.2 1.9 26.6% -20.1% 3.7 10.3 -64.3%
Loans. Assign. & Onlending 8.1 18.7 4.5 -56.6% 80.2% 55.7 16.7 233.6%
Foreign Borrowings 1.6 16.8 (0.6) -90.5% -365.0% 44.7 4.5 892.4%
Dom. Borrowings + Onlending 6.5 1.9 5.1 248.1% 27.6% 11.1 12.1 -8.7%
Derivative Financial Instruments 9.7 0.0 7.6 n.m. 27.1% 9.7 31.0 -68.8%
Allowance for Loan Losses 11.4 12.7 35.0 -10.4% -67.5% 35.5 94.9 -62.6%
Result from Financial Intermediation
39.1 33.1 6.4 18.2% 510.8% 107.4 66.9 60.4%
Income from Financial Intermediation, detailed in note 15(a) to the financial statements and
summarized above, increased by 11.9% from 2Q10 and by 31.0% from 3Q09. Income from loan
operations accounted for 58%, followed by income from securities operations and foreign exchange
operations, which represented 36% and 5%, respectively. The reduction foreign exchange income is
directly related to the 5.96% appreciation of the real in the period, which also impacted the
expenses with foreign borrowings.
Income from Securities Operations increased significantly in the quarter to reach R$ 44.9 million,
due to the higher average balances held in government bonds and the growth in the volume of ADR
arbitrage operations. These operations are characterized by the arbitraging of the prices of shares
traded on the Brazilian stock exchange with the prices of ADRs of the same companies on the New
York Stock Exchange, always maintaining the equivalent volumes. These operations generated
income of R$ 2.9 million. Income from securities operations also showed effects in other balance
sheet items, such as net foreign exchange gains or losses from foreign operations and cash position
amounting to expenses of R$ 1.4 million, booked under ‘other operating income and expenses’, that
adjust income from securities operations to R$ 43.5 million. A part of the expenses with derivatives,
which totaled R$ 9.7 million, is linked to forward contracts on interbank rates (DI Futuro) to hedge
the securities operations, given that the Bank’s treasury department constantly seeks to mitigate
currency, rate and index mismatches.
In the first nine months, income from financial intermediation was R$ 348.2 million, up 10.8% year
over year, while net foreign exchange gains, booked under ‘other operating income and expenses’,
came to R$ 0.6 million, which would increase income from financial intermediation to R$ 348.8
million (up 11.0% from 9M09).
Results from Financial Intermediation – R$ MM
Operating Performance
Profitability
6/19
Expenses from Financial Intermediation, detailed in note 15(b) to the financial statements,
corresponded to 68% of the income from financial intermediation in 3Q10 (compared to 70% in
2Q10 and 93% in 3Q09) and 69% in 9M10 (versus 79% in 9M09). These expenses increased 9.1%
in the quarter (down 4.0% from 3Q09), versus an 11.9% growth in income from financial
intermediation (up 31.0% from 3Q09). As a result, income from financial intermediation increased
18.2% in 3Q10 and 510.8% in twelve months.
Money Market Funding Expenses increased, primarily due to the growth in the average volume of
money market funding and the higher number of working days in the quarter.
In 3Q10, the Result from Derivative Financial Instruments was a R$ 9.7 million loss, primarily due
to the currency, rate and index hedge operations, with a significant share of hedges of pre-fixed
government bonds to the interbank rate (DI), as mentioned previously.
As a result of the real’s appreciation, Expenses with Loans, Assignments and Onlending fell
significantly in the quarter but increased in twelve months, due both to the expansion of the Trade
Finance portfolio and the foreign exchange variations.
Allowance for Loan Losses were R$ 11.4 million in the quarter (equivalent to 9.2% of income from
financial intermediation), while the total allowance remained at R$ 112.2 million on September 30,
2010, providing a coverage deemed adequate by Management.
Expenses from financial intermediation decreased 2.6% between 9M09 and 9M10, chiefly due to the
decline in the expenses with Allowance for Loan Losses in view of a more positive scenario, and in
expenses with derivatives due to the foreign exchange variations.
Net Interest Margin
The combination of Income and Expenses with Financial Intermediation, detailed above, resulted in
a Result from Financial Intermediation of R$ 39.1 million in the quarter, 18.2% more than in 2Q10
and substantially higher than the R$ 6.4 million recorded in 3Q09. Year-to-date net income from
financial intermediation was R$ 107.4 million, 60% more than in 9M09.
Net Interest Margin (NIM) on allowance for loan
losses, as presented in previous quarters, has
remained stable at around 7.0% in the past three
quarters.
However, adjusting the result from financial
intermediation with the foreign exchange effects on
securities (booked under ‘other operating income and
expenses’), as mentioned earlier, and excluding from
the average interest-bearing assets those assets that
do not bear interest due to their null result in
repurchase operations of equal amount, interest rate
and tenor in liabilities, we arrive at the (a)NIM, i.e.
adjusted net interest margin:
Financial Intermediation Result (+) ALL expenses (+)Net FX variation on Securities
Average interest-bearing Assets (Repos deducted)
7.0%
8.5%
5.4%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
N IM N IM (a) GIM
7/19
Efficiency Ratio
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09 9M10 9M09 9M10/ 9M09
Personnel Expenses 14.0 14.3 12.5 -2.2% 11.9% 40.8 37.5 8.8%
Contributions and Profit-sharing 2.6 1.9 1.3 40.6% 97.1% 7.0 3.8 82.1%
Administrative Expenses 9.9 8.9 9.5 10.2% 4.3% 28.1 32.5 -13.5%
Taxes 5.3 2.6 2.3 106.1% 127.2% 11.1 8.8 26.5%
Other Operating Expenses 2.3 0.5 1.4 358.6% 66.9% 6.3 2.1 198.3%
A- Operating Expenses Total 34.2 28.2 27.1 21.0% 26.3% 93.3 84.8 10.1%
Gross Income Fin. Interm. (w/o ALL) 50.5 45.7 41.4 10.4% 21.9% 142.9 161.8 -11.7%
Income from Services Rendered 3.2 2.6 2.6 22.3% 25.3% 8.7 8.7 0.2%
Income from Banking Tariffs 0.3 0.3 0.2 8.8% 35.3% 0.7 0.5 37.6%
Other Operating Income 1.5 2.5 0.4 -41.3% 256.0% 5.0 1.7 198.3%
B- Operating Income Total 55.5 51.2 44.6 8.4% 24.4% 157.3 172.7 -8.9%
Efficiency Ratio (A/B) 61.6% 55.2% 60.7% 6.4 p.p. 0.9 p.p. 59.3% 49.1% 10.2 p.p.
The Efficiency Ratio in 3Q10 was impacted by higher operating expenses, including the FX and tax
effects on operations abroad, notedly in September, by the increase in the IOF charges, which
raised these expenses to R$ 1.9 million in the quarter.
Net Profit
Banco Indusval Multistock registered Net profit of R$ 7.5 million in 3Q10,
down 9.5% from 2Q10, due to the factors described above.
Net profit in 9M10 was R$ 23.1 million, a significant recovery from the R$
8.3 million recorded in 9M09, specially considering recurring revenues. Net
profit in 9M09 included non-operational revenue, net of taxes, from the
sale of BM&FBOVESPA and CETIP stock in the amount of R$ 4.5 million.
Efficiency Ratio – R$ MM
Solid improvement in recurring net profit
8/19
The Loan Portfollio, as extensively detailed in the Explanatory Note 6 to the Financial Statements,
grew 1.2% in the quarter, prevailing the working capital loans and discount of receivables
operations to corporate borrowers. The trade finance transactions (Financing in Foreign Currency –
Import Financing and Advances on FX Contracts – Export Financing) represent 20% of the total loan
portfólio, in spite of the Brazilian real appreciation in 3Q10. Aditionally, the credit portfolio also
bears BNDES onlendings and FINAME operations; the remaining R$ 7.8 million outstanding balance
of the car loan portfolio discontinued in October 2008; and, the R$ 15.5 million portion of middle
market loans and car financings assigned to other financial institutions under our credit risk
coverage (co-obligation).
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09
Loan Operations 1.401.4 1.365.3 1.390.2 2.6% 0.8%
Loans & Discounted Receivables 1.227.6 1.204.4 1.106.5 1.9% 10.9%
BNDES/ Finame 91.1 72.7 155.4 25.3% -41.4%
Direct Consumer Credit – used vehicles 7.8 9.9 21.8 -21.3% -64.2%
Financing in Foreign Currency 42.1 33.1 12.7 27.1% 231.3%
Other Financing 17.3 19.7 28.6 -12.0% -39.4%
Assignment with Co-obligation 15.5 25.5 65.2 -39.3% -76.3%
Advances on Foreign Exchange Contracts 297.7 314.1 241.5 -5.2% 23.3%
Other Loans 8.2 7.2 0.0 14.1% n.m.
DISBURSED CREDIT OPERATIONS 1.707.3 1.686.6 1.631.7 1.2% 4.6%
Guarantees Issued (Guarantees. L/Gs and L/Cs) 61.8 76.0 52.5 -18.7% 17.7%
TOTAL 1.769.1 1.762.6 1.684.2 0.4% 5.0%
Allowance for Loan Losses (112.2) (107.8) (133.0) 4.1% -15.7%
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09
Local Currency - Real 1.367.5 1.339.4 1.377.5 2.1% -0.7%
Foreign Currency 339.8 347.2 254.2 -2.1% 33.7%
TOTAL 1.707.3 1.686.6 1.631.7 1.2% 4.6%
Loan operations in reais represented 80% of the portfolio of loans granted on September 30, 2010,
expanding by 2.1% while the foreign currency operations decreased by the same percentage,
though representing a lower volume of total loans (20%). The reduction in the Trade Finance
balance is directly linked to the appreciation of the real, since in U.S. dollar terms it actually grew
7%, from US$ 189.2 million in June to US$ 201.6 million in September.
As announced in August, the Bank amplified its client strategy to follow their growth and the greater
service sophistication required by them, in addition to developing an operational mix that enables it
to improve the quality of the loan portfolio and widen its income base. A new relationship platform
was structured in July for larger clients. This platform, called “Large Companies” in the table below,
serves companies with annual revenue of over R$ 400 million, concentrated in upper middle
companies. Thus, Banco Indusval Multistock operates in the middle market segment, which
accounts for 92% of the loan portfolio, the upper middle segment, which in September 2010
represented 6.4% of the portfolio, and other credits, including the remaining balance of the car
loans discontinued in October 2008, which accounts for 1.6% of the portfolio.
Loan Portfolio
Loan Portfolio by Product– R$ MM
Loan Portfolio by Currency – R$ MM
9/19
3Q10 2Q10 3Q09 3Q10/2Q10 3Q10/3Q09
Middle Market 1,524.2 1,602.3 1,523.8 -4.9% 0.0%
Local Currency - Real 1,240.8 1,255.1 1,269.5 -1.1% -2.3%
Loans & Discounted Receivables 1,150.6 1,181.8 1,114.1 -2.6% 3.3%
Financing 1.4 0.6 - 139.3% n.m.
BNDES / FINAME 88.9 72.7 155.4 22.2% -42.8%
Foreign Currency 283.4 347.2 254.2 -18.4% 11.5%
Large Companies 110.0 - - - -
Local Currency - Real 53.6 - - - -
Loans & Discounted Receivables 51.4 - - - -
BNDES / FINAME 2.2 - - - -
Foreign Currency 56.4 - - - -
Other 73.1 84.3 107.9 -13.3% -32.3%
Consumer Credit – used vehicles 18.9 23.3 41.4 -18.7% -54.2%
Acquired Loans & Financing 46.0 53.8 66.5 -14.7% -30.9%
Other Loans 8.2 7.2 - 14.8% n.m.
Disbursed Credit Operations 1,707.3 1,686.6 1,631.7 1.2% 4.6%
Guarantees Issued 61.8 76.0 52.5 -18.7% 17.6%
TOTAL 1,769.1 1,762.6 1,684.2 0.4% 5.0%
Allowance for Loan Losses (112.2) (107.8) (133.0) 4.0% -15.6%
Industry Participation
Food. Beverage and Tobacco 18.7%
Agribusiness 17.0%
Civil Construction 10.5%
Chemical & Pharmaceutical 5.4%
Automotive 4.5%
Transportation & Logistics 4.5%
Textile. Apparel and Leather 4.2%
Education 4.0%
Individuals 3.2%
Financial Services 3.1%
Oil and Biofuel 3.1%
Financial Institutions 2.7%
Metal Industry 2.6%
Wholesale and retail trade 1.7%
Paper and Pulp 1.3%
Other sectors (*) 13.5%
TOTAL 100.0%
(*) Individual participation of less than 1.2% of credit portfolio
Loan Portfolio by Client Segment – R$ MM
Loan Portfolio by Industry
10/19
By Economic Activity By Segment
Financial Interm. 1%
Commerce 11%
Individuals 8%
Other Services 25%
Industry 55%
Retail and Other 4%
Upper Middle 6%
Middle Market 90%
By Product By Client Concentration
Loans & Discounts 69%
Other3%
Guarantees Issued
4%BNDES Onlendings
5%
Trade Finance 19%
61 - 160 25%
11 - 60 32%
Other 25%
10 largest 18%
By Maturity By Guarantee
181 to 360 15%
91 to 180 21%
+ 360 days 30%
up to 90 days 34%
Aval PN 23%
Monitored Pledge 8%
Securities 3%
Pledge/ Lien 5%
Vehicles 7%
Real State 8%
Receivables 46%
3Q10 2Q10 3Q09
Rating % Required Provision
Loan Portfolio
Allowance for Loan Losses
Loan Portfolio Allowance for Loan Losses
Loan Portfolio
Allowance for Loan Losses
AA 0.0% 0.0 0.0 - - 25.0 0.0
A 0.5% 584.9 2.9 548.2 2.7 463.3 2.3
B 1.0% 460.6 4.6 466.9 4.7 429.6 4.3
C 3.0% 408.5 12.3 459.4 13.8 511.9 15.4
D 10.0% 116.3 11.6 95.4 9.5 61.7 6.2
E 30.0% 75.9 22.8 55.1 16.5 34.8 10.5
F 50.0% 20.1 10.0 19.9 10 17.0 8.5
G 70.0% 5.0 3.5 8.9 6.2 8.1 5.7
H 100.0% 36.0 36.0 32.8 32.8 80.2 80.2
Compl. Allowance - 0.0 8.5 - 11.6 - 0.0
TOTAL - 1.707.3 112.2 1.686.60 107.8 1.631.7 133.0
Quality of Loan Portfolio – R$ MM
11/19
Allowance for loan losses totaled R$ 112.2 million and consisted of: (a) regulatory provisions of R$
103.7 million in 3Q10; and (b) voluntary complementary provisions of 0.5% of the loan portfolio in
the amount of R$ 8.5 million. Complementary provisions are maintained for potential difficulties in
the payment of renegotiated loans and in the aging of loans overdue more than 60 days classified
between D and H.
The Loan Portfolio balance includes loans amounting to R$ 207.9 million renegotiated with clients,
which, though not overdue, are classified between D and H credit ratings, until the credit analysis of
the economic and financial fundamentals of the debtor or an increase in the collaterals justify such
risk reclassification.
In September, loans classified between D and H totaled R$ 253.3 million, equivalent to 14.8% of
the loan portfolio, of which 75% were performing loans. The balance of agreements with
installments overdue more than 60 days totaled R$ 62.6 million on September 30, 2010,
corresponding to 3.7% of the loan portfolio making up the default ratio (NPL 60 days). The balance
of agreements with installments overdue more than 90 days totaled R$ 42.9 million, representing
2.5% of the loan portfolio (NPL 90 days).
Overdue Contracts Outstanding (NPL)
Outstanding
> 60 days > 90 days
3Q10 2Q10 3Q10 2Q10 3Q10 2Q10
Middle Market 1,524.2 1,602.3 56.1 3.7% 36.1 2.3% 37.1 2.4% 29.6 1.8%
Large Companies 110.0 - - - - - - - - -
Other 73.1 84.3 6.4 8.8% 8.0 9.5% 5.8 7.9% 6.9 8.1%
TOTAL 1,524.2 1,602.3 56.1 3.7% 36.1 2.3% 37.1 2.4% 29.6 1.8%
Allowance for Loan Losses (ALL) 112.2 107.8 - - - -
Allowance for Loan Losses / NPL - - 179.2% 244.5% 261.78% 295.4%
ALL/ Loan Portfolio 6.6% 6.4% - - - -
Note that the above table shows that the allowance for loan losses on September 30, 2010,
corresponded to 6.6% of the loan portfolio, versus 6.4% in 2Q10.
It is worth mentioning that the carry-forward of corporate loans overdue during 2009 impacts the
maintenance of the default ratios which, according to the Central Bank data presented in the
beginning of this report, have practically remained stable at around 3.6% for loans overdue more
than 90 days.
In the quarter, the total balance of agreements in the loan portfolio of the Bank with installments
overdue more than 90 days, and therefore comparable to the Central Bank data, corresponded to
2.5% of the portfolio. The Management believes that the allowances constituted provide sufficient
coverage for the overdue loans.
In 3Q10, loans amounting to R$ 7.0 million (R$ 15.6 million in 2Q10), classified as H for 180 days,
hence 100% provisioned, were written off, bringing total write-offs in 9M10 to R$ 56.7 million.
Recovery of overdue loans, though still slower than desired, totaled R$ 1.0 million in 3Q10 (R$ 1.4
million in 2Q10) and R$ 4.9 million in 9M10.
Default by Segment – R$ MM
12/19
Funding balances increased 1.2% from the previous quarter to reach R$ 1.9 million, out of which
83% of total funding in reais and 17% in foreign currency.
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09
Total Deposits 1.471.2 1.373.3 1.215.9 7.1% 21.0%
Time Deposits (CDB) 753.1 749.2 592.4 0.5% 27.1%
Time Deposits with Special Guarantee (DPGE)* 543.1 525.4 500.3 3.4% 8.5%
Agribusiness Letters of Credit (ALC) 69.6 16.2 9.0 330.0% 670.4%
Interbank Deposits 67.7 45.7 65.3 48.2% 3.7%
Demand Deposits and Other 37.7 36.8 48.8 2.4% -22.8%
Domestic Onlending 108.0 93.1 182.9 16.0% -41.0%
Foreign Borrowings 323.5 414.2 333.2 -21.9% -2.9%
Trade Finance 286.0 304.4 219.9 -6.0% 30.1%
IFC A/B Loan 37.5 109.8 113.3 -65.9% -66.9%
TOTAL 1.902.7 1.880.6 1.732.0 1.2% 9.9%
* Time Deposits bearing the Guarantee of the Credit Insurance Fund
Funding in reais mainly consists of deposits, which account for 77% of total funding, mainly through
the issue of Bank Deposit Certificates (CDBs) (39.6%) and Time Deposits with Special Guarantee
(DPGE) (28.5%). The average term for deposits was 757 days from issue and 526 days as of the
closing of the quarter, as follows:
Type of Deposit Average term from issuance Average term to maturity
CDB 551 361
Interbank 160 74
DPGE 1.186 853
LCA 184 167
Portfolio of Deposits 757 526
Deposits
By Type By Investor By Maturity
Time Deposits (CDBs)51%
Time Deposits
(DPGEs)37%
Interbank4%
ALC5%
Demand3%
Financial Inst. 6%
Enterprises 23%
Individuals 17%
Other3%
Institutional
51%
181 to 360 21%
91 to 180 7%
+360 days 45%
up to 90 days27%
The share of foreign borrowings in total funding declined to 17%, due both to the appreciation of
the real and the payment of the principal amount of the B Loan from the IFC in the amount of US$
32.4 million and Euro 7.1 million, totaling R$ 72.0 million on September 27, 2010. As announced,
this operation is fully hedged against variations in foreign currency and interest rates since its
disbursement in October 2008. Note that the funds raised through Trade Finance lines from foreign
correspondent banks is offset by the Trade Finance loan portfolio, which has grown in U.S. dollar
terms, as explained in the section on Trade Finance.
Total Funding – R$ MM
Funding
13/19
Free Cash – R$ MM Assets and Liabilities Management (GAPS) – R$ MM
On September 30, 2010, Cash totaled R$ 1,458.5 million and, excluding Money Market Funding (R$ 739.0 million) and Derivatives (R$ 39.8 million), resulted in free cash of R$ 679.7 million, equivalent to 46% of total deposits and 157% of shareholders’ equity, demonstrating a healthy liquidity to meet the obligations and the loan portfolio growth.
Assets and liabilities are managed in order to guarantee a comfortable level of liquidity and stability
to the Bank, with a longer profile of liabilities, considering that the current maturity profile of the
loan portfolio is concentrated in operations maturing in up to 360 days (70%).
The Basel Accord requires banks to maintain a minimum percentage of capital weighted by the risk in
their operations. The Central Bank of Brazil has stipulated that banks operating in the country should
maintain a minimum percentage of 11.0%, calculated according to the Basel Accord regulations,
which provides greater security to Brazil’s financial system against oscillations in economic conditions.
The following table shows Banco Indusval Multistock position in relation to the minimum capital
requirements of the Central Bank:
3Q10 2Q10 3Q09 3Q10/ 2Q10 3Q10/ 3Q09
Total Capital 432.4 429.7 439.3 0.6% -1.6%
Required Capital 238.6 232.5 223.4 2.6% 6.8%
Margin over Required Capital 193.8 197.1 215.9 -1.7% -10.3%
Basel Index 19.9% 20.3% 21.6% -0.4 p.p. -1.7 p.p.
Agency Ratings Observation Last Report Financial
Date as of
Standard & Poors
B+ / Positive / B
B+ / Positive / B
brBBB+/ Positive /brA-3
Global Scale: Foreign Currency
Global Scale: Local Currency
Local Scale - Brazil
Nov. 03. 2009 June 30. 2009
FitchRatings BBB/ Stable/ F3 National Scale - Brazil Aug 19. 2010 June 30. 2010
RiskBank 10.50
Ranking: 41
RiskBank Index
Low risk for Short Term Oct. 14. 2010 June 30. 2010
Capital Adequacy
Liquidity
Risk Ratings
Capital Adequacy– R$ MM
679.7695.5707.1
3Q09 2Q10 3Q10
645,3
339,6238,5
536,3552,7
227,9
372,0
729,9
90 180 360 > 360 days
Assets Liabilities
14/19
Total Shares
On September 30, 2010, Banco Indusval S.A. had a total of 41,212,984 shares, of which
27,000,000 were common shares (IDVL3) and 14,212,984 were preferred shares (IDVL4).
The cancellation, with no capital reduction, of 1,262,117 preferred shares held in treasury until
August 10, 2010, when it was approved by the Board of Directors, will be submitted to the
Extraordinary Shareholders’ Meeting to be held on November 18, 2010, together with the proposal
to amend the lead paragraph of article 5 of the Company’s Bylaws to reflect said cancellation.
Share Buyback Program
The 4th Share Buyback Program for the acquisition of up to 1,301.536 preferred shares, approved
by the Board of Directors on August 10, 2010, is effective till August 9, 2011. Indusval S.A. CTVM is
the intermediary for this program, through which a total of 700,598 preferred shares (IDVL4) had
been acquired till October 30, 2010.
Free Float
Number of Shares as of Oct. 30. 2010
Type Paid-up Capital Controlling Group Management Treasury Free Float (%)
Common 27,000,000 (17,116,173) (2,574,369) - 7,309,458 27.1%
Preferred 14,212,984 (1,026,653) (159,570) (674,998) 12,351,763 86.9%
Total 41,212,984 (18,142,826) (2,733,939) (674,998) 19,661,221 47.7%
The 7,309,458 outstanding common shares are owned by the Ribeiro and Ciampolini families, who
are not the controlling shareholders. Thus, the preferred shares regularly traded on the stock
exchange total 12,340,369, equivalent to 29.9% of the total capital.
Stock Option Plan
Following is the position of the Stock Option Plan of Banco Indusval S.A., created on March 26,
2008, with the aim of aligning the interests of executive officers and managers:
Quantities
Date Granted
Grace Period Term for Exercise
Strike Price R$
Granted Exercised Rights Expired
Not Exercised
07.22.08 Three years Five years 10.07 161,869 - - 161,869
02.10.09 Three years Five years 5.06 229,067 25,600 10 203,457
02.22.10 Three years Five years 8.56 525,585 - 10,814 514,771
08.06.10 Three years Five years 7.72 261,960 - - 261,960
1,178,481 25,600 10,824 1,142,057
In the quarter, 25,600 options were exercised and 10,824 options were written off as their rights
had expired, resulting in 1,142,057 options for preferred shares to be exercised under the plan.
Capital Market
15/19
Shareholder Remuneration
On September 30, 2010, the Bank paid Interest on Equity in the amount of R$ 6.3 million related to
3Q10, as advance payment of the minimum mandatory dividend for 2010. This amount corresponds
to R$ 0.15341 per share or R$ 0.13040 net of withholding income tax.
In 9M10, total shareholder remuneration paid as advance payment of the minimum mandatory
dividend for 2010 was R$ 18.9 million, corresponding to R$ 0.45544 per share or R$ 0.38712 net of
withholding income tax.
Shares Performance
The shares of Banco Indusval Multistock (IDVL4) closed 3Q10 at R$ 8.00, for market cap of R$
329.7 million and Shareholders’ Equity of R$ 432.4 million, resulting in a Market Value/ Book Value
ratio of 0.76. The price of IDVL4 shares appreciated by 4.58% in 3Q10, while depreciating by
3.50% in nine months and 17.27% in 12 months. In the same periods, the Ibovespa index
appreciated by 13.94%, 1.23% and 12.86%, respectively.
On November 11, 2010, IDVL4 shares were traded at R$ 8.00, with a drop of 3.50% year to date
and 2.91% in 12 months. However, after adjusting for earnings, the share appreciation was 2.17%
year to date and 4.85% in 12 months.
Base 100 em 31.12.2009
80
85
90
95
100
105
110
115
30/12
/200
9
08/01
/201
0
17/01
/201
0
26/01
/201
0
04/02
/201
0
13/02
/201
0
22/02
/201
0
03/03
/201
0
12/03
/201
0
21/03
/201
0
30/03
/201
0
08/04
/201
0
17/04
/201
0
26/04
/201
0
05/05
/201
0
14/05
/201
0
23/05
/201
0
01/06
/201
0
10/06
/201
0
19/06
/201
0
28/06
/201
0
07/07
/201
0
16/07
/201
0
25/07
/201
0
03/08
/201
0
12/08
/201
0
21/08
/201
0
30/08
/201
0
08/09
/201
0
17/09
/201
0
26/09
/201
0
05/10
/201
0
14/10
/201
0
23/10
/201
0
01/11
/201
0
10/11
/201
0
IBOVESPA IDVL4 IDVL4 earnings adjusted
2.900 2.791 2.3226.039 6.817 6.258
2.900 2.730 2.320
6.5506.876
6.289
3.000 2.426 5.134
6.5126.622
6.319
2.6462.220
6.082
6.3696.693
2005 2006 2007 2008 2009 2010
1Q 2Q 3Q 4Q
11,44610,167
15,858
25,470
R$
MM
27,008
18,866
2.900 2.791 2.3226.039 6.817 6.258
2.900 2.730 2.320
6.5506.876
6.289
3.000 2.426 5.134
6.5126.622
6.319
2.6462.220
6.082
6.3696.693
2005 2006 2007 2008 2009 2010
1Q 2Q 3Q 4Q
11,44610,167
15,858
25,470
R$
MM
27,008
18,866
16/19
The 3rd Most Sustainable Midsized Bank in Latin America
Liquidity and Trading Volume
The preferred shares of Banco Indusval Multistock (IDVL4) were traded in 97% of the sessions in
3Q10 and 99% in the last 12 months. In 3Q10, a total of 3.2 million IDVL4 shares were traded over
880 transactions on the spot market, for total volume of R$ 25.7 million. In the past 12 months, the
volume traded on the spot market was R$ 104.1 million, representing approximately 12.7 million
preferred shares over 9,720 trades.
Shareholding Dispersion
Distribution of Preferred Shares by type of investor:
10.30.2010 06.30.2010
TYPE OF INVESTOR # Inv.
Preferred % PN %
Total # Inv.
Preferred % PN %
Total
Controlling Shareholders 4 1,026,653 7.2% 44.0% 4 1,038,047 6.7% 42.7%
Management 10 159,570 1.1% 6.6% 10 159,570 1.0% 6.4%
Family Members 12 515,931 3.6% 17.6% 12 749,231 4.8% 19.0%
Brazilian Inst. Inv. 85 7,209,367 50.7% 17.6% 86 6,244,388 40.4% 19.0%
Foreign Investors 12 3,047,225 21.5% 7.4% 10 4,386,425 28.3% 14.7%
Brazilian Corporates 8 42,800 0.3% 0.1% 13 140,000 0.9% 10.3%
Individuals 544 1,536,440 10.8% 3.7% 608 1,661,396 10.7% 0.3%
Treasury - 674,998 4.8% 1.6% - 1,096,044 7.1% 3.9%
TOTAL 675 14,212,984 100% 100% 743 15,475,101 100% 100%
According to an independent evaluation by the Spanish consultancy firm Management & Excellence
(M&E) in partnership with Latin Finance, Banco Indusval Multistock ranked 3rd in the 6th edition of
the “Most Sustainable Midsized Banks in Latin America - 2010” survey.
The 2010 edition assessed 152 criteria, including corporate governance,
sustainability and corporate social responsibility. In corporate governance,
M&E evaluated the policies on ethics, client relations, compliance with
Basel principles, information disclosure policies and practices, as well as
governance structure and practices. In sustainability, the survey
evaluated risk management, environmental processes and investor
relations. In the area of social responsibility, M&E evaluated the measures
taken in the human resources area with regard to training, benefits policy,
the health system, working conditions, and participation in community
development programs, among others.
Acknowledgement
17/19
Consolidated R$ '000
Assets 2009/09/30 2010/06/30 2010/09/30
Current 2,354,927 2,531,006 2,683,574
Cash 4,798 6,151 9,518
Short-term interbank investments 344,654 347,061 44,526 Open market investments 274,794 287,002 17,500
Interbank deposits 69,860 60,059 27,026
Securities and derivative financial instruments 903,499 934,809 1,399,765 Own portfolio 545,918 491,500 532,614
Subject to repurchase agreements 300,490 300,412 726,223
Linked to guarantees 34,081 111,767 105,751
Derivative financial instruments 23,010 31,130 35,177
Interbank accounts 3,126 3,415 3,504 Payment and receipts pending settlement 1,809 2,334 2,417
Restricted credits - Deposits with the Brazilian Central Bank 1,317 1,081 1,087
Loans 793,830 828,346 833,693 Loans - private sector 786,714 840,325 844,624
Loans - public sector 24,912 17,828 13,660
(-) Allowance for loan losses (17,796) (29,807) (24,591)
Other receivables 273,452 372,762 358,454 Foreign exchange portfolio 257,095 370,408 318,393
Income receivables 131 77 73
Negotiation and intermediation of securities 7,061 5,493 41,014
Sundry 12,855 4,710 6,065
(-) Allowance for loan losses (3,690) (7,926) (7,091)
Other assets 31,568 38,462 34,114 Other assets 31,729 39,686 35,013
(-) Provision for losses (865) (2,006) (1,908)
Prepaid expenses 704 782 1,009
Long term 488,961 499,939 533,553
Marketable securities and derivative financial inst ruments 372 3,019 4,697
Linked to guarantees 33 37 30
Derivative financial instruments 339 2,982 4,667
Interbank Accounts 10,977 9,647 8,557 Pledged Deposits - Caixa Economica Federal 10,977 9,647 8,557
Loans 415,430 411,581 447,191
Loans - private sector 499,948 481,641 527,627
Loans - public sector 13,422 - -
(-) Allowance for loan losses (97,940) (70,060) (80,436)
Other receivables 60,686 74,456 72,007 Trading and Intermediation of Securities 84 162
Sundry 74,227 74,404 71,910 (-) Allowance for loan losses (13,541) (32) (65)
Other rights 1,496 1,236 1,101 Prepaid Expenses 1,496 1,236 1,101
Permanent 12,715 12,849 13,042
Investments 1,686 1,686 1,686 Other investments 1,686 1,686 1,686
Property and equipment 11,029 11,163 11,356 Property and equipment in use 2,173 2,179 2,192
Revaluation of property in use 3,538 3,538 3,538
Other property and equipment 11,727 12,014 12,073
(-) Accumulated depreciation (6,409) (6,568) (6,729)
Leasehold Improvements - 282
TOTAL ASSETS 2,856,603 3,043,794 3,230,169
BALANCE SHEET
18/19
Consolidated R$ '000
Liabilities 2009/09/30 2010/06/30 2010/09/30
Current 1700408 1,897,737 2,073,562
Deposits 702026 723,279 775,912 Cash deposits 43,233 36,248 37,045 Interbank deposits 65,278 45,737 67,722 Time deposits 587,922 640,755 670,508 Other 5,593 539 637
Funds obtained in the open market 522826 561,458 738,999
Own portfolio 300,255 299,456 722,696 Third party portfolio 222,571 262,002 16,303
Funds from securities issued or accepted 7188 16,193 69,627
Agribusiness Letter of Credit 7,188 16,193 69,627
Interbank accounts 485 683 661
Receipts and payment pending settlement 485 683 661
Interdepartamental accounts 16448 12,066 9,715
Third party funds in transit 16,448 12,066 9,715
Borrowings 219621 395,215 305,021
Domestic Borrowings - - - Foreign borrowings 219,621 395,215 305,021
Onlendings 115414 36,270 34,599
BNDES 72,254 13,973 10,737 FINAME 21,646 22,297 23,862
Other liabilities 116400 152,573 139,028
Social and statutory liabilities 1,241 4,199 2,501 Taxes and similar charges 573 357 902 Foreign exchange portfolio 30,938 56,141 35,255 Taxes and social security contributions 23,258 3,489 3,226 Negotiation and intermediation securities 32,586 32,644 56,587 Derivative financial instruments 19,357 48,876 32,667 Sundry 8,447 6,867 7,890
Long Term 717812 715,878 723,485
Deposits 504805 633,872 625,666 - Time deposits 504,805 633,872 625,666
Funds from securities issued or accepted 1850 - -
Agribusiness Letter of Credit 1,850 - -
Loan obligations 113598 18,972 18,474 Foreign loans 113,598 18,972 18,474
Onlending operations - Governmental Bureaus 67527 56,791 73,369
Federal Treasure 17,485 15,032
BNDES 10,900 1,639 18,800 FINAME 49,262 34,316 36,712 Other Institutions 7,365 3,351 2,825
Other liabilities 30032 6,243 5,976
Taxes and social security contributions 13,422 5,917 5,794 Derivative financial instrument 16,605 144 - Sundry 5 182 182
Future results 260 501 719
Shareholders' Equity 438123 429,678 432,403 Capital 370,983 370,983 370,983 Capital Reserve 620 1,375 1,893 Revaluation reserve 2,012 1,961 1,945 Profit reserve 64,448 65,313 56,150 Asset valuation Adjustment 60 (944) 2,321 (-) Treasury stock - (9,010) (889)
TOTAL LIABILITIES 2,856,603 3,043,794 3,230,169
19/19
Consolidated R$ '000
3T09 2T10 3T10 9M09 9M10Income from Financial Intermediation 94,267 110,359 123,445 314,269 348,190
Loan operations 58,444 65,630 71,994 203,689 198,777
Income from securities 29,055 18,905 44,898 76,483 88,075
Income from derivative financial instruments - 6,750 - - 8,388
Income from foreign exchange transactions 6,768 19,074 6,553 34,097 52,950 -
Expenses from Financial Intermediaton 87,869 77,300 84,364 247,350 240,831 Money market funding 40,767 45,959 55,214 104,822 139,965
Loans, assignments and onlendings 4,474 18,679 8,107 16,631 55,709
Income from derivative financial instruments 7,633 - 9,660 31,029 9,660
Allowance for loan losses 34,995 12,662 11,383 94,868 35,497
Gross Profit from Financial Instruments 6,398 33,059 39,081 66,919 107,359 -
Other Operating Income (Expense) (22,512) (20,925) (26,523) (70,019) (71,877)Income from services rendered 2,583 2,646 3,236 8,692 8,713
Income from tariffs 201 250 272 521 717
Personnel expenses (12,530) (14,333) (14,023) (37,489) (40,778)
Other administrative expenses (9,453) (8,949) (9,861) (32,544) (28,141)
Taxes (2,340) (2,580) (5,317) (8,762) (11,085)
Other operating income 420 2,548 1,495 1,687 5,033
Other operating expense (1,393) (507) (2,325) (2,124) (6,336) -
Operating Profit (16,114) 12,134 12,558 (3,100) 35,482 -
Non-Operating Profit 629 (815) (9) 7,864 (840)
Earnings before taxes ad profit-sharing (15,485) 11,319 12,549 4,764 34,642
Income tax and social contribution 9,028 (1,185) (2,410) 7,405 (4,542)Income tax (884) (75) 200 (15,054) 287
Social contribution (534) (45) 120 (9,030) 172
Deferred fiscal assets 10,446 (1,065) (2,730) 31,489 (5,001)
Contributions and Equity (1,335) (1,871) (2,631) (3,836) (6,984)
Net Profit for the Period (7,792) 8,263 7,508 8,333 23,116
INCOME STATEMENT