Abc brasil investor_presentation2q13_eng

Investor Presentation

October 2013

Strategy, business segments and products

Funding and capital base

Financial highlights

Ownership structure

Investor Presentation October 2013

Distinct strategy for each business segment:

Increase profitability per client in Corporate, through increased cross-selling of products;

Grow the number of clients in the Midsized Business segment.

Portfolio Mix: increase in Midsized Business segment participation.

Estratégia, segmentos e produtos

Focus on Companies

Banco ABC Brasil is a commercial bank, specializing in lending and services for mid-size to large companies.

Expanded Credit Portfolio*

* Includes Loans, Guarantees Issued and Corporate Securities portfolios

89% 87%

85% 84%

87% 86% 86%

87%

11%

11% 12%

14%

13% 14%

14% 13%

Dec/06 Dec/07 Dec/08 Dec/09 Dec/10 Dec/11 Dec/12 Jun/13

Corporate Middle Market Outros

11,762

8,651

6,660

5,227

3,045

CAGR = 30% 13,169

6.2% (BRL million)

15,318 16,879


Midsized Business

3

734 701 726

535 541 534

23.4 24.0 25.8

329 341 362

536 790 886


Corporate (annual revenues above BRL 400 million)

Strategy:

Grow the profitability per client, through increasing cross-selling of products.

Products:

loans denominated in BRL and foreign currencies

trade finance

underwriting and structuring advisory services for capital markets transactions

arrangement of syndicated loans in Brazil and abroad

BNDES onlending transactions

M&A transactions

treasury products

Average Ticket (BRL million)

Average Tenor (days)

Total Number of Clients

Clients with Credit Exposure

Jun/12 Mar/13 Jun/13

Corporate Securities (BRL million)

Loans and Guarantees Issued (BRL million)

53% 53% 52%

22% 18% 18%

16% 19% 19% 9%

10% 11%


South

Rio de Janeiro

São Paulo - Countryside

São Paulo - Capital

13,060 13,791 14,608

Strategy, business segments and products 4

1,154 1,357 1,337

949 1,007 1,024

2.0 2.0 2.2

212 241 265


Midsized Business (annual revenues between BRL 30 and 400 million)

Strategy:

Grow the number of clients, mainly in new regions.

Average Ticket (BRL million)

Average Tenor (days)

Total Number of Clients

Clients with Credit Exposure


Loans and Guarantees Issued (BRL million)

Mature Business Platforms (> Efficiency)

SP1 SP2 SP3 PR RS

5 Business Platforms In evolution (+RMs) (> Efficiency)

MG RJ SC GO MT Campinas Ribeirão Preto

7 41% 38% 36%

13% 14% 14% 9% 8% 8%

27% 26% 27% 10% 14% 15%


Belo Horizonte

South

Rio de Janeiro

São Paulo - Countryside

São Paulo - Capital

1,878 2,029 2,271

Strategy, business segments and products 5




Ownership structure


Funding & Ratings

Diversified funding with access to local and international sources

Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Investment Grade

Local

brAA+

Aa1.Br

AA

Global

BBB-

Baa3

BBB-

13% 13% 14% 14% 13%

5% 6% 7% 7% 7% Subordinated Debt

Shareholders' Equity

2,227 2,347 2,618 2,676 2,781

19% 18% 15% 15% 14% BNDES

2,279 2,165 1,854 1,856 1,886

12% 10% 8% 8% 10%

6% 8% 10% 13% 15% Notes, Deposits & Others

Trade Finance

2,140 2,226 2,186 2,611 3,390

9% 9% 9% 10% 9%

9% 9% 8% 8% 7%

11% 10% 10% 5% 4%

10% 9% 9% 9% 9%

6% 8% 10% 11% 12% Local Bonds (LFs)

Individual Investors

Financial Institutions

Institutional Investors

Corporate Investors

41% 45% 45% 46% 43%

5,353 5,575 5,542 5,395 5,772

12,000 12,313 12,199 12,538 13,830 Total (BRL million)


International

Local

7

Assets & Liabilities by maturity

4,983

3,617

2,707

3,599

758 705

2,494

4,121

3,406 3,069

303

1,179

2,490

(504) (699) 530 455

(474)

1-30 days 31-180 days 181-360 days 1-3 years 4-5 years >5 years

Assets Liabilites Gap

(BRL million)

2,490 1,985 1,286

1,817 2,271 1,798

Accumulated Gap


(As of June, 2013)

8

Basel Index & Shareholders’ Equity

10.2% 10.9% 10.6% 10.8% 10.9%

4.0% 4.1% 5.3% 5.0% 5.4%

Jun/12 Sep/12 Dec/12 Mar/13 Jun/13

Tier II

Tier I (Core Capital)

14.2% 15.0% 15.9% 15.8% 16.3%

Capital Adequacy (BRL million) Jun/13 Mar/13 Chg 3M

(%) / p.p. Jun/12

Chg 12M (%) / p.p.

Capital 2,690.8 2,573.7 4.6% 2,180.8 23.4%

Mininum Capital Required 1,819.9 1,791.9 1.6% 1,687.7 7.8%

Capital Surplus 870.9 781.8 11.4% 493.0 76.6%

Basel Ratio 16.3% 15.8% 0.5 14.2% 2.1

Tier I (Core Capital) 10.9% 10.8% 0.1 10.2% 0.7

Tier II 5.4% 5.0% 0.4 4.0% 1.4


2,181 2,257 2,507 2,574 2,691

1,566 1,639 1,680 1,757 1,794

Patrimônio de Referência

Patrimônio Líquido (R$ milhões)

Reference Equity

Shareholders’ Equity

9




Ownership structure


Credit Portfolio Quality

Past Due above 90 days (% of loan portfolio)

Loan Loss Reserve (% of loan portfolio)

3.33% 3.64% 3.63% 3.60% 3.59% 3.45%

3.02% 3.00% 3.68% 4.06% 3.99% 4.02% 4.27% 3.83%

1.86% 1.74% 1.64% 1.62% 1.72% 1.69% 1.69% 1.73% 1.95% 2.04% 2.24% 2.15%

1.85% 1.98%

1.52% 1.29% 1.17% 1.13% 1.22% 1.18% 1.30% 1.33% 1.41% 1.48% 1.74% 1.54% 1.14% 1.40%

Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13

Middle

Total

Corporate

0.65% 0.60% 0.71%

0.39% 0.57%

0.40% 0.51% 0.50%

0.87% 1.02% 1.03% 0.95% 1.06% 0.76%

0.31% 0.21% 0.21% 0.11% 0.17% 0.15% 0.19% 0.21%

0.57% 0.52% 0.56% 0.36%

0.25% 0.22%

0.23% 0.12% 0.09% 0.05% 0.06% 0.08% 0.09% 0.11%

0.47% 0.39% 0.42%

0.17% 0.01% 0.05%


Middle

Total

Corporate


Midsized Business

Midsized Business

11

Credit Portfolio Quality

Write Off in the quarter (% of loan portfolio)

Transactions between D-H rating (Resolution 2682 of Brazilian Central Bank)

0.37% 0.50% 0.46%

0.27%

0.47% 0.32%

0.77% 0.57%

0.22% 0.21%

0.55% 0.64% 0.55% 0.60%

0.29% 0.10% 0.15% 0.08% 0.10% 0.06%

0.24% 0.15% 0.06% 0.08%

0.20% 0.40% 0.46%

0.15%

0.27%

0.00% 0.07% 0.03% 0.00% -0.01% 0.08% 0.02% 0.01% 0.04% 0.10%

0.32% 0.44%

0.00%


Middle

Total

Corporate

3.1% 3.0% 2.4%

2.1% 2.0% 1.9% 2.0%

2.4%

2.7% 2.5% 2.6%

3.3% 3.1% 3.2%


D-H


Midsized Business

12 12

Financial Margin

NIM (% p.a.)

(BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)

Net Interest Income before Loan Loss Provision (LLP) 145.3 147.1 -1.3% 144.4 0.6% 292.4 285.3 2.5%

Shareholders' Equity Remunerated at CDI Rate 31.4 26.2 19.8% 32.0 -2.1% 57.6 68.8 -16.4%

Financial Margin with Clients 97.0 97.4 -0.4% 89.6 8.2% 194.4 174.5 11.4%

Financial Margin with Market 16.9 23.6 -28.4% 22.7 -25.7% 40.5 42.0 -3.6%

Loan Loss Provision (LLP) (31.3) (16.9) 85.5% (28.7) 9.4% (48.2) (52.4) -7.9%

Managerial Financial Margin 113.9 130.3 -12.5% 115.7 -1.6% 244.2 232.9 4.8%

5.0% 4.8% 4.7% 4.6% 4.3% 5.1%

4.5%

2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13


Income from Services

14.9 16.5 17.4 19.6 20.8 22.6 23.5 23.8 24.2 26.0 27.4 26.6 27.2 30.2

7.1 8.1 4.9

6.9 6.8 5.4 4.2 3.8 3.3 4.1

4.6 6.3 4.8

7.9

2.4 1.6

0.5

8.2 2.0 2.8 2.4

7.2 1.9

2.0 3.1

7.9

1.0

6.4

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Capital Markets and M&A Fees

Banking Tariffs

Guarantees Issued

(BRL million)

20.5% 20.1% 17.6% 23.8%

19.7% 20.3% 18.3% 20.6% 18.3% 19.0% 20.7% 23.2% 19.7%

23.2% Income from Services

Total Revenues

Banking Service Fees (BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)

Guarantees Issued 30.2 27.2 11.1% 26.0 16.0% 57.4 50.2 14.3%

Capital Markets and M&A Fees 6.4 1.0 534.6% 2.0 223.7% 7.5 3.9 92.0%

Banking Tariffs 7.9 4.8 65.2% 4.1 92.0% 12.6 7.4 71.0%

Total 44.5 33.0 35.0% 32.1 38.6% 77.4 61.4 26.0%

Financial highlights 14

Expenses

Efficiency Ratio (Cost/Income)

36.9% 35.3% 38.4% 39.2% 36.4% 35.5% 37.7%

2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13

Expenses (BRL million) 2Q13 1Q13 Chg (%) 2Q12 Chg (%) 6M13 6M12 Chg (%)

Personnel (34.7) (32.7) 6.0% (32.2) 7.5% (67.4) (63.3) 6.4%

Other Administrative Expenses (18.5) (17.6) 5.1% (19.6) -5.9% (36.0) (35.3) 2.0%

Profit Sharing (20.6) (18.6) 11.0% (13.1) 57.4% (39.2) (23.1) 69.6%

Total (73.8) (68.9) 7.1% (65.0) 13.5% (142.6) (121.8) 17.1%


Profitability

Net Income (BRL Million)

ROAE (% p.a.)

55.0 55.1 59.6 60.1 64.7

111.9 124.8

2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13

14.2% 13.8% 14.4% 14.1% 14.6% 14.6% 14.3%

2Q12 3Q12 4Q12 1Q13 2Q13 6M12 6M13





Ownership structure

Investor Presentation August 2013

Ownership Structure

ABC Brasil

58.5%

7.1%

34.4%

Total Capital

89.5%

10.5%

Voting Capital

59.4%

29.7%

10.9%

Arab Banking Corporation (Parent Company)

International bank headquartered in Bahrain

Arab Banking Corporation

Local Management and Directors

Free-float

Central Bank of Libya

Kuwait Investment Authority

Free-float

(As of June, 2013)

Ownership structure

Controlling Shareholder

International bank headquartered in Bahrain

Listed on the Bahrain stock exchange

Total Assets: US$ 25.3 Bn

Shareholders’ Equity: US$ 3.8 Bn

BIS Ratio: 22.7%

Core capital (Tier I): 18.7%

Main Shareholders

Central Bank of Libya 59.4%

Kuwait Investment Authority 29.7%

Free-float 10.9%

Ownership structure 19

Contact

Website: www.abcbrasil.com.br Phone: +55 (11) 3170-2500

20

Expanded Credit Portfolio

(BRL million) Jun/13 Mar/13 Chg 3M (%) Jun/12 Chg 12M (%)

Loans 8,937.4 8,607.7 3.8% 8,519.8 4.9%

Corporate 6,785.0 6,638.3 2.2% 6,680.2 1.6%

Midsized Business 2,152.4 1,969.4 9.3% 1,839.6 17.0%

Guarantees Issued 7,055.5 6,421.6 9.9% 5,882.3 19.9%

Corporate 6,971.1 6,362.3 9.6% 5,843.8 19.3%

Midsized Business 84.4 59.3 42.3% 38.6 119.0%

Corporate Securities 886.1 790.2 12.1% 536.0 65.3%

Corporate 852.3 760.8 12.0% 505.3 68.7%

Midsized Business 33.8 29.4 15.1% 30.7 10.2%

Expanded Credit Portfolio 16,879.0 15,819.6 6.7% 14,938.1 13.0%

Corporate Total 14,608.4 13,790.8 5.9% 13,059.9 11.9%

Midsized Business 2,270.6 2,028.8 11.9% 1,878.2 20.9%

Appendix 21

Corporate Structure

Appendix 22

(As of October, 2013)

Board of Directors

Members

Anwar Ali Al Mudhaf (Kuwaiti) ABC Brasil Chairman & Arab Banking

Corporation Board Member

Tito Enrique da Silva Neto (Brazilian) Vice Chairman & Former CEO of

Banco ABC Brasil

Roy Hannay Gardner (Scottish) Arab Banking Corporation Executive

Vernom Handley (British) Arab Banking Corporation Executive

Paul Henry Jennings* (British) Arab Banking Corporation Executive

Ricardo Alves Lima (Brazilian) Independent Member

Edgar Uchôa (Brazilian) Independent Member

* Waiting ratification by the Central Bank of Brazil.

Appendix 23

(As of October, 2013)

Brazilian Banking Sector

ABC Brasil focuses on the Corporate and Middle Market segments.

Appendix 24

History in Brazil

Appendix 25

Disclaimer

The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information.

This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results.

The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.

Abc brasil investor_presentation2q13_eng

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