3Q09 Conference Call Presentation Agenda Page 3 Page 9 Market - - PowerPoint PPT Presentation

3Q09 Conference Call Presentation

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Page 4 Page 5 Page 7 Page 11 Liquidity Funding and Loan Portfolio Daycred - Payroll Page 8 Daycred - Auto Loans Efficiency Ratio Closing Statements Page 14 3Q09 Highlights Page 13 Capital Structure Page 6 Middle Market and Trade Finance Page 12

Agenda

Page 3 Page 9 Market Comments Quality of Loan Portfolio Profitability

3

Market Comments

Demand for credit is rising Level of margins remains high Credit Quality is beginning to show improvement Funding liquidity is surprisingly positive – “debentures” could further intensify this trend The reheating up of the economy will depend upon the behavior of interest rates

44.1 64.8 87.1 74.4 73.3 3Q08 4Q08 1Q09 2Q09 3Q09

4

Liquidity: positive gap between liabilities and

assets in maturities over the next 12 months

Average Term of Funding Portfolio: 505 days Cash Evolution - R$ Million Cash / Total Deposits – % % Funding - Outstanding Operations – 3Q09

1,197.3 1,138.3 1,674.1 1,511.21,708.7 3Q08 4Q08 1Q09 2Q09 3Q09

3% 22% 33% 28% 14%

No maturity Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Average Term of Loan Portfolio: 402 days % Loan Portfolio - Outstanding Operations – 3Q09

34% 33% 26% 6% 1%

Up to 3 months From 3 to 12 months From 1 to 3 years From 3 to 5 years Over 5 years

5

Funding & Credit Portfolio: strong growth of

time deposits

Funding – R$ Million Breakdown of Funding Loan Portfolio - R$ Million Breakdown of Loan Portfolio (*) – 3Q09

55% 26% 19%

Middle Market / Trade Finance Payroll Auto Loans

(*) includes credit assignments Credit assignments

4,627 3,334 3,493 199 163 3Q08 2Q09 3Q09 3,656 3,533 68 % 62 % 65 % 17 % 20 % 17 % 15 % 18 % 18 % 3Q08 2Q09 3Q09

Borrowing and Onlending Total Deposits Foreign Issuances

Funding (R$ MM) 3Q09 2Q09

• Chg. %

Total Deposits 2,331.4 2,031.0 14.8% Demand Deposits + Other Deposits 92.0 81.2 13.3% Time Deposits 2,088.7 1,681.8 24.2% Interbank Deposits 150.7 268.0

• 43.8%

Foreign Issuances 589.5 640.1

• 7.9%

Borrowing and Onlending 646.1 593.2 8.9% Total 3,567.0 3,264.3 9.3%

3,975 3,567 3,264

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Average Ticket – Middle Market + Trade Finance – 3Q09

2,612 1,705 1,809 201 155 185 3Q08 2Q09 3Q09

Trade Finance Middle Market

1,994 1,860 2,813

Middle Market + Trade Finance - R$ Million Final Balance R$ Per Volume Per Client

< 500,000 7.7% 64.4% 500,000 to 1 million 8.6% 13.0% 1 to 3 million 21.6% 13.7% 3 to 5 million 14.3% 4.0% 5 to 10 million 21.3% 3.3% > 10 million 26.4% 1.6%

Total 100.0%

Sectors Breakdown – Middle Market – 3Q09 Geographic Distribution – Middle Market – 3Q09

59% 13% 12% 11% 5%

Southeast South Northeast Mid-West North

45% 32% 17% 6% Industry Services Commerce Other

Middle Market + Trade Finance: relevant

recovery of the segment

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Daycred Payroll: strong production thanks to the

good moment the segment is experiencing

183 68 83 139 158 3Q08 4Q08 1Q09 2Q09 3Q09

Total Production – R$ Million Total Production 3Q09 – R$ 158 MM

37% 13% 42% 1% 3% 3% 1%

INSS Federal Government Army Law Courts and Legislative Bodies Municipalities Other Private

Total Loan Portfolio (*) - R$ Million

41% 16% 18% 9% 8% 7% 1%

INSS Federal Government Army Law Courts and Legislative Bodies Municipalities Other Private

869 838 854 899 957 3Q08 4Q08 1Q09 2Q09 3Q09

Total Loan Portfolio 3Q09 – R$ 957 MM (*) Includes credit assignments

8

Daycred Vehicles: reduction of the portfolio

continues to be our strategy

184 20 20 19 18 3Q08 4Q08 1Q09 2Q09 3Q09

Total Production - R$ Million Total Loan Portfolio (*) – R$ Million

946 892 835 774 706 3Q08 4Q08 1Q09 2Q09 3Q09 66% 20% 14%

Small Vehicles Heavy-duty Vehicles Motorcycles

Total Loan Portfolio 3Q09 - R$ 706 MM (*) Includes credit assignments

Liquidity of Auto Loans Portfolio - Aug/06 to Jun/09 R$ MM % % Accum.

PMT´s received in advance

239.7 33.7% 33.7%

PMT´s received on date of maturity

96.6 13.6% 47.3%

PMT´s received with delay of 30 days

224.7 31.6% 78.9%

PMT´sreceived with delay of 60 to 120 days

79.2 11.1% 90.0%

PMT´s received with delay over 120 days

11.2 1.6% 91.5%

PMT´s overdue

60.5 8.5% 100.0%

Liquidity of the Auto Loans Portfolio

651.4 91.5%

Outstanding PMT´s Total Amount

712.0 100.0%

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Portfolio Quality:(1) reduction of the LLP is one of

the quarter's highlights

116 153 155 129 % 163 % 166 %

3Q08 2Q09 3Q09

Past due operations LLP / Past due operations

149 249 258 52 79 68

3Q08 2Q09 3Q09

Balance of Provision Establishment of Provision

Balance and Establishment of Provision - R$ Million

Establishment of Provision - R$ MM 3Q08 4Q08 1Q09 2Q09 3Q09 Middle Market + Trade Finance 29.0 44.6 39.0 41.5 37.3 Payroll 7.4 4.6 7.0 7.1 6.0 Auto Loans 15.2 18.5 29.2 30.5 24.9 Total 51.6 67.7 75.2 79.1 68.2

LLP / Past due operations > 60 days

Past due operations > 60 days - R$ MM 3Q08 4Q08 1Q09 2Q09 3Q09 Middle Market + Trade Finance 98.9 104.9 120.6 120.9 123.7 Payroll 3.9 4.8 5.4 6.5 6.2 Auto Loans 12.7 17.3 21.7 25.7 25.3 Total 115.5 127.0 147.7 153.1 155.2 (1) Unconsolidated: excludes FIDCs and Credit assignments

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AA - C 89% D - H 11%

Total Provisions – 3Q09 Risk (excludes FIDCs and assignments) – 3Q09

3Q09 Portfolio R$ MM % Provision R$ MM Middle Market 1,993.8 57.3% 154.2 Payroll 864.2 24.8% 24.1 Auto Loans 460.5 13.2% 79.7 Subtotal 3,318.5 95.3% 258.0 Credit Assignments 163.4 4.7% 1.2 Total 3,481.9 100.0% 259.2 7.4% Total Provisions / Portfolio Total Loan Portfolio (excludes FIDCs)

Credit Portfolio Quality

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Efficiency Ratio: control of expenses continues

being one of the Bank's focal points

3Q09 2Q09

• Chg. %

3Q08

• Chg. %

Personnel Expenses (15.5) (15.5) 0.0% (18.3)

• 15.3%

Other Administrative Expenses (15.7) (17.2)

• 8.7%

(17.4)

• 9.8%

Subtotal (31.2) (32.7)

• 4.6%

(35.7)

• 12.6%

Comission Expenses (total)(1) (11.0) (11.1)

• 0.9%

(23.3)

• 52.8%

Payroll (6.1) (6.0) 1.7% (11.9)

• 48.7%
• 1.5%

Auto Loan (4.9) (5.1)

• 3.9%

(11.4)

• 57.0%

Total (42.2) (43.8)

• 3.7%

(59.0)

• 28.5%

Efficiency Ratio - %

32.0 22.7 23.2 29.0 28.0 25.8 3Q08 2Q09 3Q09

Quarterly Last 12 months

(1) In 3Q08, excludes non-recurring effects of adjustment to anticipated appropriation of commissions related to the FIDC Auto in the amount of R$5.9 million.

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Profitability: increase of profits and ROAE along

with maintenance of the NIM

ROAE - % Net Income - R$ Million Net Interest Margin (NIM) - %

12.2 9.8 10.7 3Q08 2Q09 3Q09

47.1 38.5 42.0 179.8 128.6 3Q08 2Q09 3Q09 9M08 9M09

NIM excluding profit from exposure to foreign currency

9.8 11.7 11.6 13.0 12.2 3Q08 2Q09 3Q09

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Capital Structure: continued low level of

leveraging

Basel Index - % Shareholders’ Equity – R$ Million Loan Portfolio / Shareholders’ Equity - times

2.9 1.9 2.0 3Q08 2Q09 3Q09

25.6 30.5 29.3 3Q08 2Q09 3Q09

1,612.1 1,631.1 1,646.3 3Q08 2Q09 3Q09

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3Q09 Highlights

Net income up 9.1% compared with 2Q09 to R$42.0 million Quarter-over-quarter growth of 24.2% in time deposits, which reached R$2,088.7 million in 3Q09. Balance of total funding up 9.3% to R$3.6 billion; New share buyback program approved, authorizing repurchase of roughly 1.5 million preferred shares Balance of credit portfolio up 3.5% to R$3,656.4 million at end-September 2009; Loan loss provision (LLP) expense down 13.8% compared with 2Q09 Significant rise in debt recovery, which totaled R$12.6 million, compared with R$7.1 million in 2Q09 Administrative and payroll expenses decreased 4.6% compared with 2Q09 New authorized direct debit service launched, offering all customers and clients more agility, convenience and security

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3Q09 Results Conference Call Investor Relations

“This report may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Banco Daycoval as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the middle-market segment, the ability of Banco Daycoval to obtain funding for its operations, and amendments to Central Bank regulations. The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying estimates and

• projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the

environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report”.

Phone: +55 (11) 3138.1024/1039 ri@daycoval.com.br