1 / 37

GFNorte 2Q05 Results

GFNorte 2Q05 Results. August-2005. Contents. 2Q05 Results • GFNorte • Recovery Bank • Long Term Savings Sector Snapshot of New Products Economic Environment Final Remarks. 1. 2Q05 Results. GFNorte Highlights. 168%. 74%. 42%. MILLION PESOS. 1H 04. 1H05. Net Income.

kordell
Download Presentation

GFNorte 2Q05 Results

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. GFNorte 2Q05 Results August-2005

  2. Contents • 2Q05 Results • • GFNorte • • Recovery Bank • • Long Term Savings Sector • Snapshot of New Products • Economic Environment • Final Remarks

  3. 1. 2Q05 Results

  4. GFNorte Highlights 168% 74% 42% MILLION PESOS 1H 04 1H05 Net Income 1,172 3,142 168% Net Income w/o one offs 1,172 2,346 100% ROE 16% 37% ROE w/o one offs 16% 28% Stock Price 40.83 70.89 4.3% 7.8% Net Interest Margin 2.32 6.23 EPS 1.36 1.93 P/BV Performing loan growth 4% 19% Past due loan ratio 3.5% 1.8% Reserve Coverage 131% 161%

  5. Evolution of GFNorte´s Net Income MILLION PESOS Variation 2Q04 1Q05 2Q05 QoQ YoY Net Income w/o one offs 588 1,092 1,253 15% 113% Net Income 588 1,092 2,049 87% 249%

  6. GFNorte´s Net Income MILLION PESOS Variations 1H04 1H05 2Q04 2Q05 YoY QoQ Banking 994 2,791 181% 541 1,890 250% 103 229 122% Long Term Savings 17 101 502% 41 42 3% Brokerage 10 16 68% 43 94 121% Auxiliary Organizations 24 51 109% - (12) N.A. Pronegocio - (8) N.A. (9) (3) N.A. Holding (4) (1) N.A. 1,172 3,142 168% GFNORTE 588 2,049 249%

  7. Net Income 1H05 Million pesos Recurrent Net Income 2,346 VAT 684 AHMSA 215 IPAB (103) IPAB Audits (71) Provisions – IPAB Prepayments (32) Extraordinary Items 796 Total 3,142

  8. GFNorte´s Income Statement MILLION PESOS Variations 2Q04 2Q05 1H04 1H05 YoY QoQ Net Interest Income after Repomo 2,285 3,378 48% 4,493 6,246 39% 1,281 1,625 27% Non Interest Income 3,002 3,082 3% Services 1,062 1,042 (2%) 2,175 2,150 (1%) Recovery 130 80 (38%) 259 246 (5%) Forex 157 38 (76%) 287 98 (66%) Trading (68) 465 280 587 N.C. 109% Total Income 3,566 5,003 40% 7,495 9,328 24% Non Interest Expense 2,789 2,679 (4%) 5,691 5,318 (7%) Net Operating Income 777 2,324 199% 1,804 4,010 122% Loan loss and loss sharing provis. (331) (388) 17% (468) (635) 36% 257 928 261% 77 964 1,147% Non Operating Income (net) (107) (808) 651% (268) (1,219) 356% Income tax and profit sharing Subsidiaries and minority interest (7) (8) 1% 27 22 (19%) 588 2,049 249% 1,172 3,142 168% Net Income

  9. Net Interest Margin vs. CETES 9.7 9.0 8.1 7.1 6.3 5.6 PERCENTAGES 88% 8.5 CETES 7.3 6.2 75% 5.1 4.4 4.2 NIM 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

  10. Non Interest Income 1H01 1H05 Services 32% Trading & FX 22% Trading & FX 27% Services 70% Recovery 8% Recovery 41% $1.35 billion pesos $3.08 billion pesos 128 %

  11. Non Interest Expense 1H04 1H05 Total Expense 5.7 5.3 (7%) BILLION PESOS EFFICIENCY RATIO 86% 76% 57% Including one offs 53% 2Q03 2Q04 2Q05

  12. Core Deposits BILLION PESOS Deposits 2Q04 1Q05 2Q05 Demand 62 64 66 Time 36 36 37 Total 98 100 103 Mix Demand 63% 64% 64% Time 37% 36% 36% 100% 100% 100%

  13. Performing Loan Portfolio BILLION PESOS 96 91 80 2Q04 1Q05 2Q05 Variation 2Q04 1Q04 2Q05 QoQ YoY Consumer 26 30 32 8% 23% Commercial 30 34 35 4% 17% Corporate 14 15 15 2% 12% Government 10 13 13 2% 28% Total 80 91 96 5% 19%

  14. Performing Consumer Loan Portfolio BILLION PESOS 32 30 26 2Q04 1Q05 2Q05 Variation 2Q04 1Q05 2Q05 QoQ YoY Mortgage 15 18 19 7% 23% Car loans 6 6 6 1% 2% Credit Card 3 4 5 21% 51% Payroll loans 2 2 2 13% 46% Consumer 26 30 32 8% 23%

  15. Loan Portfolio Transformation 2Q01 2Q05 Government 14% Government 15% Commercial & Consumer 70% Commercial & Consumer 54% Corporate 16% Corporate 31% $29.2 billion pesos $95.6 billion pesos 227%

  16. Asset Quality BILLION PESOS 2Q04 1Q05 2Q05 Total Loan Portfolio 85 95 99 Past Due Loans 3.0 1.8 1.8 Loan Loss Reserves 3.9 2.7 2.9 Past due loan ratio Reserve Coverage 160.6% 3.5% 130.7% 154.1% 1.9% 1.8% 2Q04 1Q05 2Q05 2Q04 1Q05 2Q05

  17. Banking Sector’s Capitalization Ratio 2Q03 2Q04 2Q05 Tier 1 11.2% 10.7% 14.1% Tier 2 2.4% 3.8% 3.3% TOTAL 13.6% 14.5% 17.4% Percentage of Tier 1 82% 74% 81%

  18. Recovery Bank

  19. Recovery Bank MILLION PESOS 1H03 1H04 1H05 106 278 337 Net Income 1H03 1H05 Proprietary 51% Proprietary 29% Managed 49% Managed 71%

  20. Long Term Savings Sector

  21. Long Term Savings Sector NET INCOME Billion pesos Long Term Savings Sector 229 122% 103 1H04 1H05 Afore Insurance Annuities 76 128 25 52 17 34 42% 49% 271% 1H04 1H05 1H04 1H05 1H04 1H05

  22. Afore ASSETS UNDER MANAGEMENT BILLION PESOS 34 29 24 42% 2Q03 2Q04 2Q05 CUSTOMERS Millions 3.0 2.9 2.7 11% 2Q03 2Q04 2Q05

  23. Insurance PREMIUMS SOLD BILLION PESOS 2.4 140% 1.0 0.8 1H03 1H04 1H05 CUSTOMERS Millones 3.1 138% 2.2 1.3 2Q03 2Q04 2Q05

  24. GFNorte´s ROE and ROA ROE ROA 37% 4% 16% 28% Recurrent 3% Recurrent 1% 1H04 1H05 1H04 1H05

  25. 2. Snapshot of New Products

  26. Pronegocio Evolution Jan ‘05 Authorization from Hacienda. 25 Jul ‘05 36 branches operating. 4 to be open in 2H05. Characteristics of the Loans: • Amount: $10 to $50 thousand pesos. • Interest Rate: 3.5% - 4% per month. • Initial fee: 3%. • Term: Up to 24 months. • Guarantee: 80% from NAFIN. Results as of July 25: • 5,968 clients. • $145 million pesos of loans.

  27. “Ya bájale” Mar´05 Launch of creditcard balance transferring program. Characteristics: • 25% fix interest rate. • Term: 6 to 36 months. • 4 months at 0% interest rate. • No annual fee. Results as of July 25: • 22,647 clients • $630 million pesos in loans. • $28 thousand pesos of average balance per client. • 70% rejection rate.

  28. Banorte Fácil Nov´04 Launching of Banorte Fácil debit card. Characteristics: • No minimum balance. • No fees. • Accepted in ATM´s and stores. Results as of July 26: • 214,437 accounts activated. • 1,700 accounts opened daily on average. • $646 million pesos balance.

  29. BANORTE –TELECOMM Alliance Jul´05 Alliance with Telecomm. GFNorte will be able to use its 1,554 branches. Benefits: • Largest payment network in the country. • Increase revenues via commissions and deposits. • Penetrate in 518 municipalities currently un-banked. Program implementation in 3 stages: • Stage I: Pilot Program in San Luis Potosi (3 months). • Stage II: Expand to a national level starting November 2005. • Stage III: Promote new products and services.

  30. 3. Economic Environment

  31. Economic Outlook Macroeconomic variables 2005-2006 Variables 2005 2006 GDP 3.60% 3.20% Inflation 3.80% 3.65% Fiscal stance (% GDP) (0.15%) (0.15%) 28 days Cetes (Average) 9.36% 8.30% Dollar exchange rate (End of period) 11.40 11.80 Trade balance (10,500) (12,000) FDI 14,500 13,500

  32. Current Economic and Political Environment in Mexico • Mexican macroeconomic fundamentals continue strong, sustained by prudent fiscal and monetary policies. • However, political noise could generate market volatility by the end of 2005. At present, the market is focusing in the selection of presidential candidates. • Mexico City´s Mayor, Andrés López Obrador, is today the leading man on the 2006 presidential polls with a wide margin. • On the positive side, both Institutional build up, as well as solid fundamentals, shield against populism and/or bad economic management. • On the negative side, there is low probability of structural reforms being approved, at best, until 2007.

  33. 4. Final Remarks

  34. Long Term Goals • Vision 20/20. • ROE of 20% sustainable. • Net Income growth of 20% per year: doubling it every 4 years. • Continue improving the efficiency ratio. • Innovation and bancarization. • Acquisition and retention of high worth customers.

  35. Market Capitalization MILLION DOLLARS 3,365 1,792 1,420 CAGR 54% 2Q03 2Q04 2Q05

  36. Average Daily Volume MILLION DOLLARS 7.2 5.4 2.0 1H03 1H04 1H05

More Related