1 / 67

Retail Banking Presentation

Retail Banking Presentation. Banorte Day Miguel Huller Director General de Consumo. November 16, 2007. Contents. Market Overview Retail Lending Deposits Electronic Banking. Retail Banking – Overview. Credit Card. Mortgage. Retail Lending Evolution. Source: Banxico.

lluvia
Download Presentation

Retail Banking Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Retail Banking Presentation Banorte Day Miguel Huller Director General de Consumo November 16, 2007.

  2. Contents • Market Overview • Retail Lending • Deposits • Electronic Banking

  3. Retail Banking – Overview Credit Card Mortgage Retail Lending Evolution Source: Banxico Retail lending portfolio in O/S Retail lending had a dramatic growth at a CAGR of 39 % in the last years….. Mortgage and Credit Cards O/S 500,000 450,000 400,000 … and the major drivers were mortgages and credit cards growing at CAGR of 27% and 47 % respectively 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2000 2001 2002 2003 2004 2005 2006 2007 P$ Million

  4. Retail Banking – Overview TIIE 28 Days Average Annual Inflation Retail Lending Evolution Source: Banxico GDP per Capita in US$ Also, the GDP per capita has grown…. TIIE 28 Days Average Annual vs. Inflation 18% 17.0% 16% … and inflation and interest rate have gone down. 14% 12.8% 12% 9.6% 10% 8.7% 8.2% 7.6% 7.5% 8% 7.2% 6.8% 5.7% 5.2% 6% 4.4% 4.0% 4.1% 3.4% 3.3% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007E

  5. Retail Banking – Overview Retail Lending Evolution Comparison betwen Mortgage Loans

  6. Retail Banking – Overview 4.3% 4.5% 4.1% 4.0% 3.5% 3.0% 3.0% 2.5% 2.1% 2.0% 1.6% 1.5% 1.2% 1.0% 1.0% 0.8% 0.5% 0.0% 2000 2001 2002 2003 2004 2005 2006 1T07 Retail Lending Evolution Non guaranteed loans as a % of GDP Non guaranteed loans have grown as a percentage of the GDP … Non guaranteed loans as a % of GDP (2005) 18% 15.9% 16% 14.3% 14% 11.4% 12% 10.8% 9.6% 10% … but they are still way below other countries 8.0% 8% 6.5% 6% 4.5% 3.4% 3.1% 3.0% 3.0% 4% 2% 0% UK Italy USA Sweden Spain Turkey France Mexico Hungary Portugal Holland Germany

  7. Retail Banking – Overview Retail Lending Evolution Bank Mortgages as a % of GDP Mortgages have also grown but with a lower share….. Mortgage as a % of GDP (2005) 70% 65% 61% 60% 50% 43% … still, it is dramatically below developed countries and other LA countries 40% 29% 30% 20% 16% 7% 10% 1.5% 2% 0% UK EEUU European France Chile Mexico Mexico Brazil union (banks)

  8. Retail Banking – Overview Retail Enterprises Affluent Corporate and Government Middle Market Middle Market SME Entry Level

  9. Retail Banking – Overview (9M 2007) % Revenue/ Total GFNorte: • Mortgage • Car Loan • Payroll / Personal Loan • Credit Card 26% • ATM • POS/Debit • Internet Banking • Telephone Banking • Mobile Banking • Retail & Commercial: • Checking accounts • Saving accounts • Payroll accounts • Cash management % Revenue/ Total GFNorte: 7% % Revenue/ Total GFNorte: 32%

  10. Retail Lending

  11. Retail Lending Retail Lending Represents 37% of Banorte’s Total Outstandings with P$ 60 (Billions) (9M 2007) ROA: 3.1% Banorte: ROA: 1.8%

  12. Retail Lending Distribution of Outstandings by Type of Loan (9M 2007)

  13. Mortgage

  14. Mortgage Banorte has a Mortgage solution for every customer need… 87% • Residential acquisition • Home Equity • Debt consolidation • Construction and renovation • Land acquisition • Commercialacquisition 8% 5% … with great features and benefits

  15. Mortgage Distribution of sales by Channel in outstandings 2004 Branches 2007 Mortgage Centres Brokers Branches

  16. Mortgage CAGR = 27.4 % Mortgage Sales in P$ (Billions) Average loan in P$: 667,800 Banks’ average mortgage in P$: 609,000 Average loan period: 212 Months

  17. Mortgage CAGR = 21.9 % Total Year End Outstandings in P$ (Billions) * * * Growth considering the sale of FOVISSSTE portfolio and Securitization.

  18. Mortgage Past Due Loan Ratio by Booking year in P$ (Millions) PDLR Year Booked Outstandings Banorte before 1997 115 19.2% Bancrecer 1,222 8.4% Banorte after 1997 30,744 1.2% 32,081 2.4% Total

  19. Mortgage Past Due Loan Ratio by property value in P$ (Millions) Outstandings PDLR Property Value % Less than 300,000 1,168 3.6% 2.0% 300,000 - 500,000 3,648 11.4% 1.2% 500,000 - 700,000 5,853 18.2% 0.9% 700,000 - 900,000 3,868 12.1% 1.2% More than 900,000 17,543 54.7% 1.3% 100% 32,081 Total 1.2%

  20. Mortgage Past Due Loan Ratio by Bank (Source: Mexican Bank Association) PDLR 6.2% PDLR 3.0% HSBC Scotia BBVA Banamex Banorte Santander

  21. Mortgage Present and future: Key success factors Meet our costumers needs, with asset quality in a highly competitive Mexican mortgage market… Innovation: new products and features Efficient credit adjudication process Conservative risk management policies Long term customer relationship Strong relationship with developers

  22. Mortgage Market sales 07 (%) Avg. Market Share $40,895 75% 10.0% Market sales 07 (%) Avg. Market Share 21.0% $11,169 20% Market sales 07 (%) Avg. Market Share $2,174 5% 19.0% Present and Future Key Success Factors Regional Strategy by market potential Monterrey Mexico City Guadalajara Strategies Expected Intensive High Growth Moderate Mantain & Moderated Growth Medium Moderated Growth Figures in Million pesos (P$) Mexican Bankers Association

  23. Car Loan

  24. Car Loan CAGR = 6.4 % Total Year End Outstandings in P$ (Billions)

  25. Car Loan CAGR = 8.6 % Car loan Sales in P$ (Billions) Average loan in P$ 171,000 Industry’s Average Loan in P$ 142,000 Average loan period: 46 Months

  26. Car Loan Car sales by segment 2007e

  27. Car Loan Car Loans as a % of new cars sold in México 2005 2006 2007e Dealer Loans 58% 59% 58% Bank Loans 31% 32% 35% Self financing 10% 8% 7%

  28. Car Loan Past Due Loan ratio by bank (Source: Mexican Bank Association) PDLR 2.8% PDLR 2.0% BBVA Banamex HSBC Scotia Banorte

  29. Car Loan Present and future: Key success factors • Target: high value cars and enterprises • Special sales force for car dealers • Special offer for existing clients to trade up their cars • Attach car loans to payroll accounts to leverage • on asset quality • Launch new products: leasing • Improvement in credit adjudication process

  30. Payroll & Personal Loans

  31. Payroll & Personal Loan CAGR = 36.3 % Total Year End Outstandings in P$(Billions)

  32. Payroll & Personal Loan CAGR = 29.2 % Payroll and Personal Sales in P$ (Billions) Average loan in P$ 22,576 Industry’s Average Loan in P$ 13,000 Average loan period: 23 Months

  33. Payroll & Personal Loan % Payroll Loans / Payroll Accounts (Thousand Units) Payroll Accounts (Units) Payroll Loans (Units) % Loans / Accounts Year Estimated growth of 358,000 net new payrollaccounts for 2008

  34. Payroll & Personal Loan Past Due Loan ratio by bank (Source: Mexican Bank Association) PDLR 2.3% PDLR 2.0% HSBC Scotia BBVA Banamex Banorte Santander

  35. Payroll & Personal Loan Present And Future: Key Success Factors Existing Clients • Migrate customer mindset from fixed term loan to line • of credit • Diversify credit disbursement channels from • branches ATM and internet banking • New products and offers for first timers. • Channel diversification : sales force on site clients • Cross selling / pre-authorized credits New Clients

  36. Credit Card

  37. Credit Card CAGR = 56.4 % Cards Sold in Thousand

  38. Credit Card Cards Portfolio in Thousand CAGR = 57.1 %

  39. Credit Card Sales ChannelDiversification Branches Telemarketing Crossin selling Balance Tranfers Program Suplementary Cards

  40. Credit Card CAGR = 26% Purchases & Cash Advances in P$ (Billions) Market Share: 5.0 % as of Sep 07 from 4.6 % Sep 06

  41. Credit Card Total Year End Outstandings in P$ (Billions) 13 10 7 4 CAGR = 48.1 %

  42. Credit Card Product Mix Credit Limit in P$ Credit Limit in P$ Retail Enterprises Infinite $ 250,000 Platinum Corporate $ 40,000 Gold Standard Mujer $ 200,000 $ 10,000 SME Classic Standard Instant Issuing $ 6,000 Entry Level $ 3,000 New Products

  43. Credit Card Past Due Loan Ratio by Bank (Source: Mexican Bank Association) PDLR 6.3% PDLR 2.8% HSBC Scotia BBVA Banamex Banorte Santander 90+ 60+

  44. Credit Card Credit Cards in México (Source: Mexican Credit Bureau) 35.9 millions cards (sept 07) 2.46 cards per client Past Due Loan Ratio (90+)

  45. Credit Card Present and Future : Key Success Factors Sales channel diversification & consolidation Portfolio management Product development / Co-branded cards Balance transfers / Convenience checks Credit Risk Management / Risk based pricing Technological & operational efficiencies

  46. Credit Card Present and Future : Key Success Factors Cards Market Market size (%) Avg. Market Share 21.6 83% 3.5% Market size (%) Avg. Market Share 11.1% 3.5 13% Market size (%) Avg. Market Share 0.9 4% 5.6% Monterrey Mexico City Guadalajara Strategies Expected Intensive High Growth Moderate Mantain & Moderated Growth Medium Moderated Growth

  47. Deposits

  48. Deposits Total Number of Local Currency Account (millions) CAGR = 25.4%

  49. Deposits CAGR = 11.9 % Total Year End Balances in P$ (Billions)

  50. Deposits Average Funding Cost (As a % of CETES 28) (Source: Mexican Bank Association)

More Related