1 Recovery Bank November 16, 2007 Banorte Investor Day.

Slides:



Advertisements
Similar presentations
© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.
Advertisements

1 3Q06 Results November, Q06 Results. 2.Stock Performance. Contents.
1 November 16, 2007 Banorte Investor Day Closing Remarks.
2004 Lehman Brothers Financial Services Conference September 13, 2004 KeyCorp Henry L. Meyer III Chairman & Chief Executive Officer Jeffrey B. Weeden Senior.
Analyzing Financial Statements
1 GFNORTE 1Q09 Results Conference Call April 30, 2009.
1 2Q06 Results August, Q06 Results. 2.Stock Performance. 3.Perspectives of the Banking Sector. Contents.
CONFERENCE CALL FIRST QUARTER May 12, 2000 Available at our site
1 GFNORTE: 4Q07 Results February, Q07 Overview. 2.Asset Quality. 3.Stock Metrics. 4.Final Considerations. Contents.
1 GFNORTE: 4Q07 Results February, Q07 Overview. 2.Asset Quality. 3.Stock Metrics. 4.Final Considerations. Contents.
GFNORTE 2Q09 July, Q09 Results 2.Asset Quality 3. Capital Management 4. Subsidiaries 5. Final Remarks Index.
1 GFNORTE 2Q04 Results. 2 Contents 1.GFNorte in the Industry 2.GFNorte’s Results 3.Banking Sector’s Results 4.Long Term Savings Sector’s Results.
Sources of Finance and the Cost of Capital. learning objectives sources of finance equity capital compared with debt capital gearing the weighted average.
© 2013 All rights reserved. Chapter 4 Real Estate Investments1 New York Real Estate for Brokers 5 th e By Marcia Darvin Spada Cengage Learning.
Citigroup Smith Barney Financial Services Conference January 27, 2004 Henry L. Meyer III Chairman & Chief Executive Officer Jeffrey B. Weeden Senior Executive.
Lehman Brothers Financial Services Conference September 10, 2003.
FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview
Chapter Seven Accounting for Liabilities © 2015 McGraw-Hill Education.
Overview of Finance. Financial Management n The maintenance and creation of economic value or wealth.
Goldman Sachs Bank CEO Conference December 2, 2003 Henry L. Meyer III Chairman & Chief Executive Officer Jeffrey B. Weeden Senior Executive Vice President.
1 GFNORTE: 1H07 Results September, H07 Overview. 2.Stock Metrics. 3.Final Considerations. Contents.
Financial Statements Ratio Analysis
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA CHAPTER.
1 GFNorte’s 2Q08 Results Conference Call July 25, 2008.
1 GFNorte´s 1Q07 Results Conference call April 27, 2007.
KeyCorp Annual Meeting May 13, PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE The presentation, including.
PIPER JAFFRAY COMPANIES APRIL 13, CAUTION REGARDING FORWARD-LOOKING STATEMENTS Statements contained in this presentation that are not historical.
1 Fourth Quarter 2003 Review January 16, 2004 Speakers: Henry Meyer Jeff Weeden.
The Mortgage Event Weston-Super-Mare 5 October 2005 Tracy Morshead Managing Director Principality.
1 Fourth Quarter 2002 Review January 15, 2003 Speakers: Henry Meyer Jeff Weeden.
1 First Quarter 2003 Review April 17, 2003 Speakers: Henry Meyer Jeff Weeden.
KeyCorp Annual Meeting May 22, PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE These presentation materials.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Analyzing Financial Statements Chapter 14.
D.A. Davidson & Co. Financial Services Conference Lee Irving KeyCorp.
Seattle Investor Meeting February 26, PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE These presentation materials.
Analysis of Financial Statements. Learning Objectives  Understand the purpose of financial statement analysis.  Perform a vertical analysis of a company’s.
THE MORTGAGE EVENT Manchester 23 September 2005 Adrian Coles Director-General The Building Societies Association.
CONFERENCE CALL THIRD QUARTER OF 2000 CONFERENCE CALL THIRD QUARTER OF 2000 October 25, :00 a.m.
Analyzing Financial Statements Chapter 13 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Analyzing Financial Statements
1 GFNorte’s 4Q07 Results Conference Call February 1, 2008.
1 GFNORTE 2Q09 Results Conference Call July 24, 2009.
Making an investment decision. Value  Investment value: The value determined in view of investment objectives, goals and constraints.  Market value:
Accounting for Liabilities Chapter 7 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
© Prentice-Hall of India Private Limited, All rights reserved.1 Financial Accounting: A Managerial Perspective Second Edition Prepared by R. Narayanaswamy.
11 GFNORTE November Yearly Recap Net Income Net Interest Margin ROA ROE Book Value Past Due Loan Ratio MILLION PESOS 3Q083Q07 1,740 15% 2,007.
1 GFNORTE 4Q08 Results Conference Call January 30, 2008.
Conference Call 1Q05 | 1 Consolidated Results 1 st Quarter 2005 Conference Call May 13, 2005 Investor Relations
1 GFNORTE 3Q08 Results Conference Call October 24, 2008.
1 March Q04 Results 4Q04 Results GFNORTE Results 2.Securitization of IPAB Loans 3.Relevant Events 4.Economic Outlook 5.Final Remarks.
1 GFNORTE 3Q09 Results Conference Call October 28, 2009.
1 GFNORTE 2Q04 Results. 2 Contents 1.GFNorte in the Industry 2.GFNorte’s Results 3.Banking Sector’s Results 4.Long Term Savings Sector’s Results 5.Economic.
11 GFNORTE February Yearly Recap BILLION PESOS Net Income Net Interest Margin ROA ROE Book Value Past Due Loan Ratio Efficiency Ratio Reserve.
1 GFNORTE: 1Q07 Results May Q07 Overview. 2.Stock Metrics. Contents.
1 June, 2008 GFNORTE: 1Q08 Results. 2 1.Recent Performance. 2.Asset Quality & Capitalization. 3.Final Considerations. Contents.
First Quarter 2013 Earnings Conference Call April 18, 2013.
Results 1Q14 May 16 th, Q14 2 1Q14 Highlights Continuous cash flows generation:  Net debt reduction to R$ 53 mm (14% of Equity);  Net debt ex-SFH.
September 12, Title Slide Annual Meeting of Shareholders.
1 GFNORTE August, Financial Performance. 2.Asset Quality. 3.Balance Sheet Management. 4.Final Considerations.
O C T O B E R 2 2, T H I R D Q U A R T E R Financial results.
1 GFNorte: 3Q05 Results November Contents 1.3Q05 Results 2.Snapshot of New Products 3.Economic & Political Environment 4.Final Remarks.
KeyCorp Investor Presentation October PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE 1 The presentation and.
Mortgage Leveraging for Maine
1Q02 RESULTS.
GFNorte: 4Q05 Results February-2006.
GFNorte 1Q05 Results May-2005.
Fourth Quarter and Full Year 2001 Financial Results
GFNorte´s 3Q07 Results Conference Call October 26, 2007.
Financial Results Conference Call
GFNORTE: 2006 Results January 2007.
Presentation transcript:

1 Recovery Bank November 16, 2007 Banorte Investor Day

2 Contents 1.Background 2.3Q07 Results 3.Perspectives 2008 – 2009

3 Background

4 Net Income MILLION CONSTANT PESOS Sólida Banorte Total in Ps$ Equivalent in US$ Accum 3Q * Exchange rate at end of September 07 (10.93). Effective Tax Rate (%)6%7%22%28%32%

5 Assets Under Management BILLION CONSTANT PESOS Proprietary IPAB 62 Sep ‘

Cash Foreclosed / Repossessed6335 Restructured77107 Effective Recovery Discounts Net Resolution100 PERCENTAGES Resolution Performance Accum 3Q

BILLION PESOS Asset Purchases Real Estate Assets Corporate Loans Mortgage Loans Total IPAB Private Banks Sources

8 Market Assessment 2007 Distressed assets market is at a crossroads… IPAB assets have been depleted. Commercial banks asset auctions: Portfolios with low collection margins and high legal risk. Newer portfolios yet to come to market. Sofoles yet to auction distressed mortgage portfolios. Currently negotiating purchase/administration with 5 Sofoles. INFONAVIT distressed mortgage auction pipeline: 100,000 mortgages over 3 years 5,000 before the end of 2007 Co-investment scheme.

9 Gross Margin Mortgage Loans Corporate Loans Price Paid26%11%19% Effective Recovery60%53%59% Gross Margin34%42%40% Real Estate 27% 75% 48% ACQUIRED LOANS / REAL ESTATE PERFORMANCE AS % OF UPB / COMM. VALUE WEIGHTED AVERAGE Q07 Weighted Total

10 3Q07 Results

11 Assets Under Management CONSTANT BILLION PESOS Total Assets Banorte Portfolio Acquired Credits Acquired Real Estate Investment Projects 98% Proprietary Assets 2% IPAB Assets Total Asset Origin Credit Portfolio Real Estate Investment Projects

12 Assets Under Management CREDIT PORTFOLIO IN CONSTANT BILLION PESOS TypeTotal Mortgage21 Consumer7 Commercial27 Total55 % 39% 12% 49% 100% Acquired Portfolio Banorte Portfolio

13 Assets Under Management REAL ESTATE IN CONSTANT BILLION PESOS % TypeAmount Houses 2.437% Urban Land 1.117% Non-Urban Land 0.610% Warehouses 0.710% Commercial 0.610% Buildings 0.35% Rights / Non-R.E. 0.46% Total % Others 0.35%

14 Assets Under Management INVESTMENT PROJECTS IN CONSTANT MILLION PESOS %PartnerAmount GEO 1,47379% URBI 30217% Internacional de Inversiones 824% Total1, % # Projects , ,856 Sep ‘07 0 # Projects

15 Assets Under Management PROPRIETARY ASSETS IN CONSTANT BILLION PESOS Total Assets Banorte Portfolio Acquired Credits Acquired Real Estate Investment Projects Total %$ Asset Origin Banorte Risk %$ Reserve and/or Discount 16958%742% %410% 4376%124% 2-0%2100% %1422% Sub-total %1220%

16 Resolution Performance CONSTANT MILLION PESOS Indicators % Cash / Effective Res. % Effective Resolution Asset Rotation (Years) 61%69%8 PP 83%77% (6 PP) (0.3) Variation $% Cash Foreclosed / Repossessed Restructured Effective Recovery Discounts Net Resolution Accum 3Q06 Accum 3Q07 2,933 2,703 (230)(8%) (60)(21%) % 3,531 3,525(6)(0%) 2,233 1,622 (611)(27%) 5,764 5,147 (617)(11%)

17 Income Statement CONSTANT MILLION PESOS Concept Accum 3Q06 Variation $% Accum 3Q07 Net Operating Revenues Administrative Expenses Operating Income Income Before Taxes & EPS Net Income 1,5111,448(63)(4%) (467)(468)(1)(0%) 1,044980(64)(6%) Other Expenses(107)(62)45(42%) Financial Expenses(195)(187)8(4%) (11)(1%) Income Taxes & EPS (196)(235)(39)20% (50)(9%) Effective Tax Rate (%)26%32%

18 Business Qualifications Rated since 2003 by Fitch Ratings Mexico. Latest rating obtained (December 06): AAFC1-(mex). AAFC1-(mex): Financial Credit Asset Manager Maximum possible rating: AAFC1(mex). Certified under ISO by SGS (Société Générale de Surveillance) since Latest review and ratification: May 2007.

19 Perspectives 2008 – 2009

20 Objectives OVERALL Generate annual net income of US$60 million. Maintain leadership (40% mkt share) in distressed assets business. Grow investment project business with selected partners and industries Ps $4 billion by the end of Improve the resolution process of delayed, past-due, and written-off loans originated in Banorte. Maintain AAFC-1(mex) rating and ISO certification.

21 Objectives ACQUIRED DISTRESSED ASSETS Participate in all relevant distressed assets auctions. Strengthen ties with financial intermediaries most likely to generate distressed assets for sale / administration. Leverage relationship with INFONAVIT, the largest mortgage originator in the country. Continue improving and differentiating the resolution schemes applied to the current distressed asset inventory.

22 Objectives INVESTMENT PROJECTS Continue select partner diversification in housing. Generate investments in infrastructure and tourism with at least 3 to 5 select partners. Broaden sources of funding via structured-finance.

23 Objectives Maximize loan regularization during the first days of delinquency. Maintain best-in-class past-due loan indicators. Accelerate legal collection processes to improve resolution time of past-due loans. Improve resolution schemes: Deepen segmentation of past-due and written-off loans. Focus. Differentiation. BANORTE PORTFOLIO

24 Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors.

25