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					                                                                                                                        2000 Fourth Quarter Results
                                                                                                                                           GFInbur
                           Fabiola Molina (525) 325 2814
                             March 14th 2001                                                                                                 HOLD
                           The Financial Group posted net losses of Ps 747.7 million, comparing unfavorably to net losses of Ps 233 million in
                           3Q00 and net earnings of Ps 2,614 million in the 4Q99. This result was due mainly to net losses posted by the banking
                           and insurance subsidiaries in the quarter of Ps 636.2 million and Ps 123.4 million, respectively. Highlights of the bank’s
                           results include the following: (1) Net interest income dropped 6.2% and 34.6% vs. 3Q00 and 4Q99, respectively, as a
                           consequence of higher interest paid on funding and deposits during the quarter; (2) In non-interest income, the bank
                           posted a Ps 421 million loss, mainly attributable to the Telmex and Telecom stock portfolio spin-off and the financial
                           market volatility. (3) Although non-interest expense dropped 20.8% vs 4Q99; it increased 38.3% vs. 3Q00 due to the new
                           retail banking strategy. (4) For the second consecutive quarter, the bank created an important amount of loan loss
                           provisions through the income statement, this quarter of Ps 378.1 million, this time related to the 57.1% increase, during
                           the same period, of past due loans. (5) The bank’s subsidiaries posted losses of Ps 75.8 million, due to the reversal of the
                           gains obtained by Sinca Inbursa (and registered in the 3Q00) from selling it’s stake in Acir to Televisa, since the antitrust
                           authorities objected Televisa´s intention to acquire the controlling stake in Radio Acir. The only two positive aspects of
                           this report were the 27.2% and 11.7% increases in performing loans vs. 4Q99 and 3Q00, respectively, (due to higher
                           commercial loans granted), and the strong capitalization levels of the banking subsidiary, which registered in the quarter a
                           capitalization ration (including credit and market risks) of 25.1% during the quarter, despite the spin-off. As a
                           consequence of weak quarterly and annual results, the stock spin-off, which reduced the group’s equity by 13.8%
                           (making P/BV valuation more expensive) and the recent implementation of the retail banking strategy by the banking
                           subsidiary, we continue to recommend the stock as a HOLD. At least until we can get a better picture of how the retail
                           strategy is working and see the potential of the bank’s core income without the losses or gains generated by the stock
                           portfolio that was spun-off.
March 13th, 2001 Price O:                                 Ps 32.00                                             Shares Outstanding:                                         1.0 Billion
52 Week Range:                                            Ps 47.2 a 30.7                                       P/BV                                                             1.49x
Market Capitalization:                                    US$ 3.5 Billion                                      P/E 12m                                                         25.27x
GROUP AND OTHER SUBSIDIARIES INCOME                               4Q99       3Q00        4Q00     4Q00 vs        4Q00 vs                          1999            2000         % Chg.
(in constant Ps millions)                                                                          4Q99           3Q00
Inbursa Bank                                                     1,797        -307        -636          N.C.       107.4%                        3,235             981        -69.7%
Inversora                                                           49          50         -33          N.C.         N.C.                          147             241         64.4%
Insurance Sector                                                    53         -13        -123          N.C.       828.2%                          347             -15          N.C.
Funds Operation                                                    744          29          22       -97.1%        -23.6%                        1,564              70        -95.5%
Bonding                                                            -32           7          21          N.C.       187.7%                           54              48          N.C.
Real Estate                                                          0           1           0       188.4%        -70.6%                            0               2       2616.2%
Services                                                             0           0           3          N.C.         N.C.                            2               3         36.7%
Total subsidiaries recognized                                    2,611        -233        -747          N.C.       220.4%                        5,349           1,331        -75.1%
Headquarters                                                         3          -1          -1          N.C.       -32.6%                           16              -8          N.C.
Total Group Net Income                                           2,614        -235        -748          N.C.       218.8%                        5,365           1,323        -75.3%
Quarterly EPS                                                     2.50       -0.22       -0.72          N.C.       218.8%                         5.13            1.27        -75.3%
12 mo. EPS                                                        5.13        4.48        1.27       -75.3%        -71.8%                        5.13            1.27         -75.3%
BV/SHARE (Ps)                                                    21.33       24.28       21.50         0.8%        -11.5%                       21.33           21.50           0.8%
BANK INCOME STATEMENT
(in constant Ps millions)
Net Interest Income                                                956         667        625         -34.6%         -6.2%                       2,710           2,846           5.0%
NIM (*)                                                          8.8%        6.1%       5.7%        -3.14 pp      -0.45 pp                       6.3%            6.5%         0.22 pp
Total Non-Interest Income                                        2,747        -171       -421           N.C.        145.7%                       4,652           1,055         -77.3%
Operating Efficiency                                             7.8%       33.2%     111.4%        103.7 pp       78.2 pp                       9.4%           17.0%         7.65 pp
Total Non-Interest Expense                                         287         165        228         -20.8%         38.3%                         689             664          -3.7%
Other Income & (expenses)                                          -57         -96        -20         -64.7%        -79.2%                        -115            -276        139.5%
Inc. Before Prov., Repomo and Tx.                                3,359         234        -43           N.C.          N.C.                       6,558           2,961         -54.8%
Provisions for loan losses                                         482         576        378         -21.6%        -34.4%                         660             672           1.8%
Monetary Gain (loss)                                              -243        -217       -301          23.5%         38.3%                      -1,083            -995          -8.2%
Taxes                                                              187          83         43         -77.2%        -48.7%                         669             909          35.8%
Deferred Income Tax                                                749        -316       -206           N.C.        -34.9%                       1,057            -415           N.C.
 Discounted Operations, extraordinary items                          -3            -3           -1         -53.7%          -59.7%                       -8              -8        -5.9%
 Net Income before Subs.                                          1,694        -330          -560             N.C.          70.0%                    3,079            791        -74.3%
 Minority Interest                                                    0             0            0            N.C.           N.C.                        0               0         N.C.
 Subsidiaries Net Income                                            103           23          -76             N.C.           N.C.                      156            190         21.5%
 NET INCOME                                                       1,797        -307          -636             N.C.        107.4%                     3,235            981        -69.7%
 BALANCE SHEET                                                                                                                                                 3Q00            4Q00
 (in constant Ps millions)
 Past-due Loans                                                     691         220           345          -50.0%           57.1% PDL/TL                             0.9%          1.2%
 Total Gross Loans                                              22,197      24,705        27,702            24.8%           12.1% NPDL/TL                           -6.7%         -6.8%
 Total Gross Loans                                              22,197      24,705        27,702            24.8%           12.1% NPDL/EQ.                          -7.4%         -9.9%
 Provisions for Loan Losses                                      -1,680      -1,866        -2,224           32.4%           19.2% LLR/PDL                         848.4%         643.6%
 Net Loan Portfolio                                             20,518      22,840        25,479            24.2%           11.6% Trad. Fund./Tot. Liab.           27.0%          47.1%
 Net Loan Portfolio                                             20,518      22,840        25,479            24.2%           11.6% Dep./Tot. Loans                  57.3%          70.6%
 TOTAL ASSETS                                                   42,309      43,936        44,426             5.0%            1.1% Capitalization ratio             26.3%          25.1%
 CORE DEPOSITS                                                  17,986        5,865       12,000           -33.3%         104.6% Funding Cost                      39.4%          36.0%
 TOTAL FUNDING                                                  23,494      14,165        19,563           -16.7%           38.1% Return on LP&securit.            19.7%          20.2%
 TOTAL LIABILITIES                                              26,279      21,756        25,483            -3.0%           17.1% ROAE                             17.5%           4.8%
 TOTAL STOCKHOLDERS EQUITY                                      16,030      22,180        18,943            18.2%          -14.6% ROAA                               7.9%          2.2%
 (*) Calculated using Average Assets
The information contained herein has been obtained from sources that we believe to be reliable, but we make no representation as to its accuracy or completeness. Neither CASA DE BOLSA
BANORTE, S.A. DE C.V. nor AFIN SECURITIES INTERNATIONAL accepts any liability for any losses arising from any use of this report or its contents.
                                                                                          1
                                                                                                                        2000 Fourth Quarter Results
                                                                                                                                           GFInbur
                                                                                                                                                                             HOLD
Operating Results
Trading losses of Ps 576.5 million, attributable in part to the Telmex and Telecom stock spin-off that took place on December 4th 2000 and also, to
the volatility of the Financial markets during the quarter; the 34.5% and 6.2% decline (vs. 4Q99 and 3Q00 respectively) in net interest income; and
the strong creation of reserves for loan losses totaling Ps 378.1 million during the period, were the main causes behind Banco Inbursa’s net losses
of Ps 636.2 million posted this quarter. This result compares unfavorably to net losses of Ps 307 million in 3Q00 and net earnings of Ps 1,797
million posted in the 4Q99.
The quarterly decline in net interest income was largely due to higher interest paid on deposits and funding, in turn attributable to a 38.1% increase
in total deposits during the same period. While the annual reduction is explained by a 9.8- pp decrease in the loan portfolio and securities return, in
turn explained by a 6.2-pp reduction in interest rates during the year. Given the above, the net interest income to average assets ratio dropped 3.1-
pp and 0.45-pp vs. 4Q99 and 3Q00, to 5.7% this quarter.
In order to reduce volatility in the bank’s income and to obtain a better allocation of it’s stock portfolio, GFInbur decided to spin-off it’s stake in
Telmex “L, Telmex “ADR” and Telecom “A1, this operation took place on December 4th 2000. Due to the prior, and also to the financial market
volatility observed during the quarter, Banco Inbursa posted losses under non-financial income of Ps 421.2 million. As a consequence of lower
total income for the quarter and 38.3% higher non-interest expense vs. 3Q00 (associated with the bank’s new retail banking strategy), operating
efficiency eroded from 33.2% in 3Q00 to 111.4% in 4Q00.
During the quarter Banco Inbursa registered a Net loss, under other non-consolidated subsidiaries of Ps 75.8 million, mostly related to the
reversal of the gains obtained by Sinca Inbursa (and registered in the 3Q00) from selling it’s stake in Acir to Televisa, due to the fact that the
antitrust authorities objected Televisa´s intention to acquire the controlling stake in Radio Acir.
Finally, it is important to mention that Ps 378.1 million in reserves for loan losses were charged against results this quarter, these reserves
correspond to a credit that went from performing to past-due, during the quarter.

Financing and Deposit Activities
Performing loans rose 27.2% and 11.7% as compared to the 4Q99 and 3Q00 respectively, mainly due to 27.4% and 11.7% increases, during
the same periods in Commercial loans. For their part, past-due loans were down 50% vs. 4Q99, but up 57.1% compared to the 3Q00, the latter
was due to a single credit that went from performing to past-due, during the quarter.
Total deposits increased 38.1% vs. 3Q00, as a reflection of strong growth in term deposits, which increased 165.5% during the period, as a result
of a higher volume of resources from treasuries. It’s important to note that, although the bank has focused mainly on treasury funding, in the 2Q00
Banco Inbursa announced a change in its growth strategy, whereby the bank will focus strongly on retail banking. In order to collect deposits and
allocate resources, management of the group and bank, have mentioned that they will use their insurance branches instead of opening new bank
branches.
Finally, it’s important to mention, that despite the stock spin-off, Banco Inbursa’s capitalization ratio (including credit and market risks)
remains strong, as it only decreased by 1.2-pp to 25.1%.

Other Subsidiaries
Seguros Inbursa (insurance) posted net losses of Ps 123.5 million in 4Q00, comparing unfavorably to net earnings of Ps 53.1 million
recorded in 4Q99 and net losses of Ps 13.3 posted during the 3Q00. These losses are mainly due to higher reserve creation, in turn due
to the growth experienced in the annuities business, and higher monetary adjustments. For its part, Inversora Bursatil (brokerage) posted
net losses of Ps 32.9 million, due to the financial market volatility experienced during the quarter. Finally, Operadora Inbursa reported
net earnings of Ps 21.9 million, 97.1% and 23.6% lower than in the 4Q99 and 3Q00, respectively.

Outlook
As a consequence of weak quarterly and annual results, the stock spin-off, which reduced the group´s equity by 13.8% (making P/BV
valuation more expensive) and the recent implementation of the retail banking strategy by the banking subsidiary, we continue to recommend
the stock as a HOLD, with a price target of Ps 38.00 for February 2002. At least, until we can get a better picture of how the retail strategy
is working, and see the potential of the bank’s core income without the losses or gains generated by the stock portfolio that was spun-off.




                                                                                                                            Fabiola Molina fvmolina@cbbanorte.com.mx
The information contained herein has been obtained from sources that we believe to be reliable, but we make no representation as to its accuracy or completeness. Neither CASA DE BOLSA
BANORTE, S.A. DE C.V. nor AFIN SECURITIES INTERNATIONAL accepts any liability for any losses arising from any use of this report or its contents.
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