Analyst _ Investor meeting - Bus by jianglifang

VIEWS: 6 PAGES: 76

									Analyst & Investor meeting
Business Unit Brazil of C&CC



BU Brazil, 21 June 2002
  Table of Contents
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                        2
                           0
  Economic environment
 8 years of economic plan “Real Plan”: economic stability,
  inflation under control and primary fiscal surplus.
   90%
                                                                                                               COLLOR I - Mar 90
   80%
   70%
   60%
   50%                                                                    VERÃO - Jan 89
                                                                                                                         COLLOR II                     REAL - Jul 94
   40%                                                         BRESSER - Jun 87
                                                                                                                         Feb 91
   30%                                 CRUZADO II - Nov 86

   20%                     CRUZADO I - Feb 86

   10%
   0%
         Jan-80
                  Jan-81
                           Jan-82
                                    Jan-83
                                             Jan-84
                                                      Jan-85
                                                                 Jan-86
                                                                           Jan-87
                                                                                    Jan-88
                                                                                             Jan-89
                                                                                                      Jan-90
                                                                                                                Jan-91
                                                                                                                         Jan-92
                                                                                                                                  Jan-93
                                                                                                                                           Jan-94
                                                                                                                                                    Jan-95
                                                                                                                                                             Jan-96
                                                                                                                                                                      Jan-97
                                                                                                                                                                               Jan-98
                                                                                                                                                                                        Jan-99
                                                                                                                                                                                                 Jan-00
                                                                                                                                                                                                          Jan-01
                                                                                                                                                                                                                   Jan-02
     Source:FGV

                                                                                                                                                                                                                            3
                                                                                                      0
    Economic environment
 Interest rates are expected to decline further...
Base rate   50%
 (Selic)
            45%
            40%
            35%
            30%
            25%
            20%
            15%
            10%
            5%
            0%
                  Jan-98




                                                      Jan-99




                                                                                          Jan-00




                                                                                                                              Jan-01




                                                                                                                                                                  Jan-02
                                    Jul-98




                                                                        Jul-99




                                                                                                            Jul-00




                                                                                                                                                Jul-01
                           Apr-98



                                             Oct-98



                                                               Apr-99



                                                                                 Oct-99



                                                                                                   Apr-00



                                                                                                                     Oct-00



                                                                                                                                       Apr-01



                                                                                                                                                         Oct-01



                                                                                                                                                                           Apr-02
                                                                                                                                                                                    4
                                                                                   0
Economic environment
…which will continue to benefit economic activity...
  137

  132

  127

  122

  117

  112

  107

  102
        Jan-       Jan-   Jan-   Jan-   Jan-   Jan-   Jan-   Jan-   Jan-
         94         95     96     97     98     99     00     01     02
         Source: IBGE


                                                                           5
                                        0
Economic activity
…and will also positively benefit consumer confidence.
130,0                           Consumer Confidence Index (100 = neutral)
120,0
110,0
100,0
 90,0
 80,0
 70,0
 60,0
 50,0
 40,0
        Jan Feb Mar Apr          May Jun Jul Aug Sep Oct Nov Dec              Jan Feb Mar Apr
        01 01 01 01              01 01 01 01 01 01 01 01                      02 02 02 02
                  Consumer intentions index   Current consumption   Future consumption
        Source: FCSP


                                                                                                6
                                                  0
  Economic environment
 The market has clearly recognized the differences
  between Argentina and Brazil.
  6,450                                           Country Risk (bp over treasuries)
                                                           Embi_Arg                          Embi_Brazil
  5,450

  4,450

  3,450

  2,450

  1,450

   450
                                                                 02-00
                                                                         04-00
                         04-99
                                 06-99


                                                 10-99




                                                                                 06-00
                                                                                         08-00
                                                                                                 10-00
                                                                                                         12-00
                                                                                                                 02-01
                                                                                                                         04-01
                                                                                                                                 06-01
                                                                                                                                         08-01
                                                                                                                                                 10-01
                                                                                                                                                         12-01
                                                                                                                                                                 02-02
                                                                                                                                                                         abr/02
                                         08-99
          12-98




                                                         12-99
                  2-99




          Source: Bloomberg


                                                                                                                                                                                  7
                                                                                     0
        Economic environment
 The Net Public Debt / GDP ratio is relatively stable
 Primary Fiscal Surplus to be repeated in 2002 and 2003,
  as a result of the Fiscal Responsibility Law (May/00).
                  Net Public Debt / GDP (%)                        Primary Fiscal Surplus / GDP (%)
60.0
                                                       4,50%
50.0
40.0                                                   3,50%

30.0                                                   2,50%
20.0
                                                       1,50%
10.0
                                                       0,50%
 0.0
                                                       -0,50%
       1995 1996 1997 1998 1999 2000 2001 2002 F                1995 1996 1997 1998 1999 2000 2001 2002F
       Source: Brazilian Central Bank


                                                                                                      8
                                                   0
  Higher credit demand
 As a result of declining interest rates and economic
  stability, Brazilian banks have increased their credit
  portfolio
  250,000

  200,000

  150,000

  100,000

   50,000

       0
            Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 jul/00* jan/01* jul/01* jan/02*

                                         Corporate       Individuals    Total
        Source: Brazilian Central Bank

                                                                                               9
                                                     0
  Brazil still undervalued
 Compared to other countries, Brazil is still
  underleveraged: room for credit growth.
                                Credit / GDP
       Mexico
    Argentina
        Brazil
    Indonesia
          Italy
      Canada
         USA
  South Korea
    Singapore
     Thailand
        Japan
            UK
     Germany
                  20,0   40,0        60,0      80,0   100,0   120,0   140,0

                                                                              10
                                     0
  Political scenario
 Presidential elections: Cardoso to be replaced on January
  2003

 Stronger candidates: Lula (labor party PT) and Serra
  (Cardoso’s party PSDB). Second round expected

 While Serra would represent the continuity of Cardoso’s
  policy, Lula may redefine Government priorities




                                                              11
                               0
Political scenario

 Should Lula win: for more than 20 years, PT’s representatives
  have been elected Governors and mayors of important Brazilian
  States and cities like São Paulo, Rio Grande do Sul, Brasilia, etc.
  The outcome has been generally positive - fiscal balance,
  expenses under control and proper business environment.

 Fiscal Responsibility Law:
   - Created on May 2000
   - Tight parameters regarding public expenditures
   - Congress has to approve changes to the Government budget
   - Public administrators (mayors, governors, etc) now have criminal
     responsibility for budget mismanagement


                                                                        12
                                        0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    13
                           0
      Timeline
         1917                    1925                     1963                     1971
ABN AMRO Bank           Clemente de Faria        Banco Holandês Unido    Banco de Lavouras de
initiates its           establishes              acquires 50% of         Minas Gerais, which
operations in Brazil    "Cooperativa             Aymoré de Crédito,      two years before had
under the name          Bancária", three years   Financiamento e         established its
"Banco Holandês de      later renamed as         Investimento, which     headquarters in São
América do Sul."        Banco de Lavoura de      Will become a leader    Paulo, is renamed as
The first offices are   Minas Gerais, the        In the segment of car   Banco Real S.A.
located in Rio de       predecessor of Banco     Loans. The remaining
Janeiro and Santos      Real                     50% was acquired in
                                                 1970

        1993                     1994                     1998                 2000                   2001
Banco Holandês is        The Brazilian           In July ABN AMRO        Banco Real             ABN AMRO
renamed as ABN           operation of ABN        announces the           mergers with           Bank acquires
AMRO Bank and            AMRO presents           acquisition of          Banco ABN              Paraiban
moves its                the third largest       Banco Real,             AMRO S.A.
headquarters from        net income of the       completed in
Rio de Janeiro to        international           November. Also in
São Paulo                network                 November ABN
                                                 AMRO acquires
                                                 Bandepe S.A.


                                                                                                          14
                                                       0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    15
                           0
   ABN AMRO Brazil – Overview
 Banco ABN AMRO Real has a leading presence in Brazil’s
  financial services sector
  – Retail Banking       - 2nd largest foreign institution
  – Consumer Finance     - Largest car financier in Brazil
  – Commercial Banking - Maintains relationships with more than 2,500
                         companies
  – Insurance            - Fastest growing insurance company in Brazil
                           currently positioned as the 7th largest insurer
  – Wholesale Banking    - Maintains relationships with over 400 of the
                           largest corporations in Brazil
  – Asset Management - 8th largest Asset Manager in Brazil, with R$
                       17 bln of assets under management


                                                                     16
                                0
         ABN AMRO Brazil – Overview
          Total Assets (in R$ mln)                            Total Loans (in R$ mln)
                                     31,811
                         27,514
                                                                                                   14,065
23,450      22,260                                                           11,701
                                                                9,577
                                                     8,538




1998         1999         2000        2001           1998        1999          2000                 2001

                                     Net Income (in R$ mln)
                                                                784
                                                    649


                                       420
                           272



                                                                            1998 figures adjusted to reflect full
                          1998         1999         2000        2001        Banco Real results

                                                                                                      17
                                               0
Retail banking




                     Branch Network (incl Mini-branches)
                     Bank              # of Branches Rank
                     Bradesco                   4,002    1
                     Banco Itaú                 3,537    2
                     Santander                  1,968    3
                     Banco Real                 1,664    4
                     HSBC                       1,636    5
                     Unibanco                   1,306    6



                     Mini-branches: branches on companies’ premises

                                                                      18
                 0
  Consumer finance
 ABN AMRO                Dec 2001, R$ bln             Credit Portfolio
  Consumer Finance        ABN AMRO                            4.8
                          BRADESCO(1)                         4.3
  division is Brazil’s    FIAT                                3.5
  largest car financer.   VOLKSWAGEN                          2.4
                          GENERAL MOTORS                      2.3
                          FININVEST(2)                        1.7
                          LOSANGO(3)                          1.4
                          PANAMERICANO                        1.0
                          BMC                                  0.7
                          DAIMLERCHRYSLER                      0.7
                          BMG                                  0.6
                          BANCO ZOGBI                          0.6
                          SOFISA                               0.5
                          CACIQUE                              0.5
                          (1) Includes Continental, Mercantil-Finasa & Ford
                          (2) Owned by Unibanco; (3) Owned by Lloyds Bank

                                                                              19
                           0
  Commercial banking
 The commercial banking segment is responsible for the
  relationship with non-WCS corporate customers, with
  annual sales higher than R$20mln (EUR 8 mln).
                         204                                    3.000

      160                                            2.574
                                       2.304




     2001               2002F         Dec 2000      Apr 2002   Dec 2002F

      Gross revenue, R$ million                  Client base


                                                                           20
                                  0
        Insurance
Consolidated Revenues (2001)
       Pensions                                                         Business Line                Rank        GWP Market Share
         19%
                                                                        Property&Casualty                  7                     4.7%
                                                                          Auto                             5                     6.3%
       Cap.
                                                                        Life                           11                        2.7%
       11%
                                                                        Pensions*                          9                     2.1%
                                     Insurance                            Pension PGBL*                    4                     6.6%
                                        70%                             Capitalisation*                    9                     2.8%
        Total = R$1,153 mln

          1997 - 2001 Premium Written CAGR                       2001 ROAE (%)
  20.7%                                                          32.6     31.0
          15.1%                                                                     26.8
                  14.2%     13.1% 12.0%                                                      21.2
                                        11.0%                                                       15.1       14.5
                                                                                                                      9.7
                                                 2.2%                                                                            4.6



                                                        -7.6%
                                                                Source: Company financials
(*) Based on mathematical reserves

                                                                                                                            21
                                                            0
  Wholesale banking
 Commercial and Investment Banking products
 Around 410 WCS clients
 83% of the WCS clients are subsidiaries of large
  multinational companies
   Client segment Breakdown                         Product Breakdown
             YTD April 2002                              YTD April 2002
                 Consumer                          GTS Cash
                   9%          Diversified           23%
                                  14%                                      GTS Trade
    Automotive
       20%                                                                   27%


                                   Energy
     FIPS                           17%
      6%                                           LP                      GTS Custody
                                                   25%                        4%
         TMT
         16%                  Chemical / M&M          C&CC Prod.     GFM
                 Healthcare      16%                                 17%
                   2%                                    4%

                                                                                   22
                                               0
  Asset management
 8th largest considering total assets under management
 5th largest asset manager for Retail segment
 ABN AMRO recently acquired the Brazilian portfolio of
  Dresdner Asset Management
                                           Assets Under   Market   Growth
            Apr/02 - R$ b ln               Management     Share     2002
            Banco do Brasil                         63 17.21%      10.44%
            Itaú                                    55 14.91%       0.80%
            Bradesco                                46 12.66%       1.93%
            CEF                                     20 5.42%       15.22%
            Citibank                                18 4.89%        0.79%
            HSBC                                    18 4.82%        4.72%
            Unibanco                                17 4.66%        0.53%
            ABN AMRO                                17  4.64%      11.53%
            Growth in 2002: April 02 / Dec 01

                                                                            23
                                            0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    24
                           0
  Size
 ABN AMRO Brazil is the 5th largest privately owned Brazilian
  bank, by total assets, and 4th by loans.




                                                             25
                              0
  Efficiency
 The investments made after the acquisition of Banco
  Real are now starting to positively impact the efficiency
  ratio.
  100%                Efficiency Ratio
   90%              Dec 99     Dec 00       Dec 01

   80%

   70%

   60%

   50%

   40%

   30%

   20%
         Bradesco       Itaú     Unibanco         ABN   BSCH   HSBC   BBVA
                                                 AMRO

                                                                             26
                                             0
      Asset quality

               Loans / Total Assets ratio                Ranking E-H Loans
                                                         (criteria: > 90 days past due, a.o.)

50%
                                  Dec-00    Dec-01
45%                                                                                             7,9%

                                                          6,3%        6,5%       6,5%
40%

35%

30%

25%

20%
      Brad   Itaú   UBB    ABN   BSCH HSBC BBVA          Unibanco     ABN       Bradesco    Banco Itaú
                          AMRO                                       AMRO
                                                                                           Dec-01




                                                                                                    27
                                                     0
       Results
   ABN AMRO Brazil achieved in 2001 a ROE of 22.9%
    (behind Itau and Bradesco), and an ROA of 2.5%
    (behind Itau only).

                                                                     5.0%
40%
35%                                                                  4.0%
30%
25%                                                                  3.0%
20%
                                                                     2.0%
15%
10%
                                                                     1.0%
5%
0%                                                                   0.0%
       ABN   Bradesco   Itau     Unibanco   BSCH   HSBC   BBVA               ABN   Bradesco   Itau    Unibanco       BSCH    HSBC    BBVA
      AMRO                                                                  AMRO

                               ROE   ROE Adj                                                         ROA   ROA Adj




  ROE and ROA Adj refers to recurring results                                                                               Dec-01
  as disclosed in the Financial Statements


                                                                                                                                     28
                                                                 0
  Headcount
 ABN AMRO Brazil headcount decreased since the
  acquisition of Banco Real on November 1998:

                                   57 57
                           52 53
                      47

                                                                35 35
                                                         32
                                                    30
                                              27
   24
        22 21 22 23                                                                22 22 21
                                                                         20                   20 19 19 20 19
                                                                              17




    ABN AMRO               Bradesco                      Itau                 Unibanco            HSBC

                              Nov/98       Dec/99    Dec/00         Dec/01    Apr/02




                                                                                                               29
                                                         0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    30
                           0
Management team
F. C. Barbosa
CEO
             Commercial Functions                                  Support Functions
M. Kerbert           J. Bierrenbach   E. Souza         F. Nunes      J. L. Majolo   M. Matioli
Bank                 Insurance        C. Finance       Support       Risk Mgmt      Planning
L. R. Felipak                                          N. Pasini     Operations     TBD
Distribution                                           Legal                        Treasury
E. Costa                                               E. Andery                    P. Longuini
Products                                               Audit                        Financial Control
F. Cardamone                                                                        C. E. Fonseca
Segments                                                                            Technology
M. Helfrich                                                                         E. Fregni
Direct Channels                                                                     e-Business
O. Prado                                                                            F. Lanzer
Commercial Clients                                                                  Human Resources
C. Antunes                                                                          M. L. Pinto
Bandepe                                                                             Social Responsibility
C. Camargo
Private Clients
L. E. Costa
Corporate Finance
F. Martins
Marketing

                                                                                                    31
                                                   0
Our Strategic Vision
                 PEOPLE
CLIENT                             COMPETITIVE    CORPORATE
               SKILLED AND
FOCUS                            INFRASTRUCTURE     VALUES
               COMMITTED




                  CLIENT SATISFACTION



                        RESULTS




SHAREHOLDERS            EMPLOYEES            COMMUNITY

                                                         32
                             0
  Employee satisfaction survey
 Key achievements:
  - “I’m proud to work at AAB Brazil” - from favorable 92% in
     2001 to favorable 93% (6% neutral) in 2002.
  - “I’m optimistic about the future of AAB Brazil” - from 87% to
     88% (9% neutral).
  - “I clearly know the objectives of my area” - stable at 92%
    (5% neutral).
  - “The Bank has an ethical relationship with its clients” - from
     86% to 87% (10% neutral).
  Surveys were conducted in 2002 and 2001, by the HR consultants Quota+, to evaluate employee satisfaction with
  ABN AMRO Brazil.



                                                                                                             33
                                                     0
Our Strategic Vision
                 PEOPLE
CLIENT                             COMPETITIVE    CORPORATE
               SKILLED AND
FOCUS                            INFRASTRUCTURE     VALUES
               COMMITTED




                  CLIENT SATISFACTION



                        RESULTS




SHAREHOLDERS            EMPLOYEES            COMMUNITY

                                                         34
                             0
Social responsibility model
                     Social Responsibility

   Management                                      Social Action

     Building                                       Correction

     Balance                                        Unbalance

  Provoked by the                                 Provoked by the
    New System                                        System


  Inspiring Ethics                                Limiting Ethics


   Strength/Power                            Straight Jacket/Obligation
 Imagination/Dream                              Responsibility/Need


     Profitable                                    Unprofitable

                                                                          35
                              0
     Social responsibility: initiatives

  MARKET COMMITTEE        MANAGEMENT COMMITTEE SOCIAL ACTION COMMITTEE

      INITIATIVES:              INITIATIVES:          INITIATIVES:

 Credit Policy            Diversity            The Bank at School

 Credit for Education     Suppliers            Trail of Tiles

 Ethical Fund             Environment          Branch Network -
                                                  Social Projects
 Microcredit              Academy

 Senior Citizen Talent    IEB
  Prize

 Playing in the Web

                                                                     36
                                        0
Client base ABN AMRO Brazil
       Active clients
       Retail Banking
       SME’s, Corporates
       Consumer Finance
 8,0   Credit Card and Saving Accounts
       Clients inactive > 180 days             6.8      6.9
 7,0                          6.2
         5.6                                   1,5      1,5
 6,0                          1,4
 5,0    1,3
                                                        1,1
 4,0
                                                        1,2
 3,0                                                    0,2     5,4
                                               5,3
        4,3                   4,8
 2,0
                                                        2,9
 1,0

 0,0
       Dec-99               Dec-00            Dec-01   Mar-02
                                in million clients

                                                                      37
                                         0
      Client segmentation

    Monthly               Breakdown of Active            Breakdown by Affinity
    Income                Checking Accounts (2001)       Group (2001)

                                       11%                        5%
                                                             7%
   Premium Clients:                                    9%
                                                                                 38%
    > R$4,000
                                               24%
   Special Clients:
                                                       17%
    R$4,000 - R$1,200   65%

   Classic Clients:
                                                                  24%
    < R$1,200                                            College Students
                        Premium   Special    Classic
                                                         Senior Citizens
                                                         Military
                                                         Professionals of Education
                                                         Medical Doctors
                                                         Other


                                                                                 38
                                  0
Client segmentation

                Average account revenue per segment
 1000                                                   951

  800

  600                                            562

  400
                              284
  200
          100

   0

        Classic            Special           Premium   SME's

                   Index: Avg Classic revenue = 100


                                                               39
                                     0
     Client loyalty versus results

Clients of Banco Real


                                                    Partially
                        Total   Loyal   Satisfied             Unsatisfied
                                                    Satisfied
                          %        %          %           %               %

Gross margin            100      126        109          78          51
Avg results = 100




Source: Gallup, 2001



                                                                     40
                                   0
    Client loyalty versus relationship
    approach
Clients of Banco Real


                                                         Partially
                             Total   Loyal   Satisfied               Unsatisfied
                                                         Satisfied

                              %       %         %           %            %


Priority is "Sell"            52      24        45          72           82


Priority is "Relationship"    45      72        51          26           17




Source: Gallup, 2001


                                                                               41
                                     0
CRM: integrated client view




                              42
                0
    Client acquisition: alternative
    initiatives
   ABN AMRO owns 100% of
    Brazil’s leading automotive
    website with a 86% market
    share;

   WebMotors has a database
    of 2.7 mln users, with detailed
    car ownership information for
    760 thousand.

   Currently, Webmotors has
    operating agreements with
    other companies in addition
    to ABN AMRO’s consumer
    finance division.



                                          www.webmotors.com.br

                                                                 43
                                      0
            Clients versus channels
           Segment / Channel      Premium                 Special                Classic              Commercial      Potential Customers


                                   Special
             Call Center                                General Attendants–         Customized script per segment      General information
                                  Attendants


            Telemarketing                               General Attendants–         Customized script per segment



           Internet Banking      Customized and          personalized content for each segment and affinity group      General information



                ATM                     Services differentiated by type of locality (branch, shopping center, etc.)      Few services



                    Greeter                                         General information and direction to clients


                                                                                                         Corporate
Branches




                    Tellers    Premium Cashier                    Regular tellers                                        Regular tellers
                                                                                                        Cashier

                    Account    Premium Account          Special             Classic Account          Commercial
                                                                                                                         All Managers
                   Mangers        Manager           Account Manager            Manager             Account Manager




                                                                                                                                        44
                                                                    0
   Our focus region
 ABN AMRO Brazil focus
  region for organic growth:
  the marked area, the States’
  capitals and Brazil’s main
  cities.

                 Focus Region as %
                     of Brazil
GDP                            59%
Population                     44%
GDP per Capita    134% of Brazilian
                            average
Area                           11%
Deposits                       69%
Loans                          65%
Clients                        62%
                                      45
                                 0
Distribution channel: our branch
network




                                   46
                 0
   Branch network
 ABN AMRO Brazil has a network of 791 retail branches, 58
  Consumer Finance branches, 815 mini-branches.
 The Bank's distribution network is further enhanced by non-
  traditional channels, such as a Call Center and Internet Banking.

   ABN AMRO Brazil - Distribution Network

                 Banco Real Bandepe Paraiban Consumer Total
   Branches             729      54        8       58   849
   Mini-branches        760      47        8       0    815
   Total              1,489     101       16       58 1,664




                                                                      47
                                  0
    Branch network - organic expansion
   Growth focused in the         Expected Evolution in Number of Branches
    most economically
    developed regions of the
                                                                     967
    country                                                  917
                                                     849
   Presence in all state
    capitals                                 739
                                     680
   Although acquisitions
    such as Bandepe and
    Paraiban are focused on
    client acquisition, they
    also contribute to increase
    the number of branches.          1999    2000    2001    2002   2003




                                                                           48
                                      0
Non-traditional distribution channels
are more cost efficient
               Avg Costs per Transaction - in US$   Min    Max
               Branch                               1.00   2.50
               Call Center                          0.20   2.25
               ATM                                  0.15   0.50
               Internet                             0.02   0.10
               Source Gartner Group


    Internet



       ATM



 Call Center



    Branch


               0        0.5           1       1.5      2          2.5   3


                                                                            49
                                          0
  Non-traditional distribution channels
 Non-branch transactions are growing regularly, reducing
  costs and increasing client convenience.

  100%
                                             25%        21%       22%
           33%        36%        30%
   80%

   60%

   40%                                       75%        79%       78%
           67%        64%        70%

   20%

    0%
         Jan-Mar/98 Jan-Mar/99 Jan-Mar/00 Jan-Mar/01 Jan-Mar/02   Abr/02


                       Non Branches          Branches


                                                                           50
                                         0
     Non-traditional distribution channels
    ATM Network                   Call Center                 Internet Banking
 One of the country’s        Last year the number of        Full service internet
  largest ATM networks         ABN AMRO’s Call                 banking, started early
 Currently 6.4 thousand       Centers sites was               2000.
                               reduced from 41 to 2, in
  ATM, up from 3.1                                            Currently counting with
  thousand on December         Brazil’s largest cities Sao     almost 500 thousand
  1998.                        Paulo and Rio de Janeiro.
                                                               individual users and 64
 All ATMs are technically    Inbound and outbound            thousand corporate
  up to date.                  calls are segmented             users (mainly SMEs).
                               according to the origin or
                                                              Community sites
                               destination of the call         enhance relationship
                               (region, affinity group,
                                                               with affinity groups: Real
                               client segmentation, etc).
                                                               Médicos (for medical
                                                               doctors), Real
                                                               Universitário (for
                                                               university students), etc.

                                                                                        51
                                          0
             ATM network
       Investments done since 1998 created competitive infrastructure
        to Banco Real

                           Mainframe
                     Usage & Capacity (MIPS)                                                                                Number of ATM’s   6393
                                                                                         4637                                        6040
5,000
                                                                                                                         4912
4,000
                                                                                                                3992
                                                                3243
3,000                                                2400
                                     2286

2,000             1603

1,000

  -
                          Jul-00




                                                              Jul-01




                                                                                                   Jul-02
        Jan-00




                                            Jan-01




                                                                                Jan-02
                                   Oct-00




                                                                       Oct-01
                 Apr-00




                                                     Apr-01




                                                                                          Apr-02




                                                                                                                Dec-99   Dec-00     Dec-01    Apr-02




                                                                                                                                                 52
                                                                                                            0
  Call center
 Call center implemented in Brazil in 1985
 7 days X 24 hours
 98% availability
 700 workstations
 1,224 people
 60% of the calls answered without personal assistance
 Full service
 Inbound and proactive outbound activities
 15 million calls per month
 1.95 transactions per call
                                                          53
                               0
          Internet banking
 Real Internet Banking was started on February 2000. Since
  then, nearly 20% of Real’s clients have become users of this
  service.
                               Number of Real Internet                                                                                                      Number of Transactions
                                 Bkg users (x 1000)                                                                                                       done through internet (in mln)

                                                                                                           492
                                                                                                     472                7.0
                                                                                               441456                                                                                                                                                                6.1
                                                                                   405421                               6.0
                                                                                                                                                                                                                                                5.7            5.7
                                                                       387
                                                                    364                                                                                                                                                                5.0            5.1
                                                                 337                                                    5.0                                                                                                      4.7
                                                           318                                                                                                                                                          4.7
                                                        299
                                                  282                                                                                                                                                3.9 4.2
                                           248 264                                                                      4.0                                                             3.5 3.3                   3.5
                               217231                                                                                                                                      3.2 3.1
                      197                                                                                                                                     2.6 2.5
                   177                                                                                                  3.0
          156
   129                                                                                                                                           1.9 2.2
108                                                                                                                                     1.7
                                                                                                                        2.0   1.2 1.3
                                                                                                                        1.0

                                                                                                                    -
                                                                                                                              Aug-00


                                                                                                                                        Oct-00


                                                                                                                                                     Dec-00


                                                                                                                                                                  Feb-01


                                                                                                                                                                               Apr-01


                                                                                                                                                                                            Jun-01


                                                                                                                                                                                                         Aug-01


                                                                                                                                                                                                                        Oct-01


                                                                                                                                                                                                                                       Dec-01


                                                                                                                                                                                                                                                      Feb-02


                                                                                                                                                                                                                                                                     Apr-02
 Ago/00

          Out/00

                      Dez-00

                                  Fev-01




                                                        Jun-01

                                                                 Ago-01

                                                                          Out-01

                                                                                      Dez-01

                                                                                                  Fev-02

                                                                                                           Abr-02
                                              Abr-01




                                                                                                                                                                                                                                                           54
                                                                                                                    0
  Corporate internet banking
 Launched on August 2000, Real Internet Empresa (Banco
  Real’s office bank through internet) was awarded by Speer &
  Associates as America’s 2nd best Internet Office Banking. More
  than 60 thousand corporate and SME clients of Real are users
  of this service.
   70000
   60000
   50000
   40000
                                                                                                         Number of companies
   30000                                                                                                 using Real Internet
                                                                                                         Empresa
   20000
   10000
      0
                    Nov-00




                                                                              Nov-01
                             Jan-01




                                                        Jul-01




                                                                                       Jan-02
           Sep-00




                                      Mar-01




                                                                     Sep-01
                                               May-01




                                                                                                Mar-02
                                                                                                                        55
                                                                 0
Internet affinity group: medical
doctors




                                   56
                  0
Internet affinity group: university
students




                                      57
                  0
     Non-traditional distribution channels
ABN AMRO sees the ATM Network, the Call Center and its
Internet Banking Platform as vital tools to increase:
Availability         Efficiency               Convenience        Profitability
Always available     Increased number         Maximises client   Greater cross-sell
when clients         of transactions          satisfaction and   opportunities and
demand services      through cost-            loyalty            segmented
                     effective channels                          approach

Key Initiatives for 2002
   Focus on maximizing cross-sell opportunities
   Focus on acquisition of new clients
   Intensify outbound CRM
   Develop second-generation e-Banking

                                                                                 58
                                          0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    59
                           0
  Brazil: contribution to Global C&CC
 Brazil accounted for 19% of C&CC’s global result in 2001,
  and 17% in 1stQ2002.

            8%
                          19%
   12%



                                           C&CC Pre-Tax Profit (2001)




                 61%
      Brazil           North America
      Netherlands      Other




                                                                        60
                                       0
C&CC Brazil: gross revenues
 Evolution total C&CC Brazil gross revenues (NIR + fees)
 R$ million
                                                     1.057   1.036
                                    1.019
     912             886




    1Q01            2Q01             3Q01            4Q01    1Q02


                                                                     61
                                       0
C&CC Brazil: fee income retail
Evolution fee income Retail C&CC Brazil
R$ million

                                                         572

                                          485
                             416
            392




            1999            2000          2001          2002F*

                                                 * based on current run rate

                                                                               62
                                      0
C&CC Brazil: total expenses
Evolution total expenses C&CC Brazil
R$ million



                                              753
                                       644           682
      575             575




     1Q01             2Q01             3Q01   4Q01   1Q02



                                                            63
                                        0
 C&CC Brazil: credit scoring
Reducing manual approvals of credit limits
# of approvals in thd


            27,8%                                                 101

                          21,9%                                                          83
                                                     68
                     62
                                   58
                                                                                51
       47

                                    6,9%          6,3%
                                                                  3,0%         4,2%
                                                                                        3,0%


      jan/00        jun/00        dec/00         jan/01           jun/01       dec/01   may/02

                                   # approvals            % manual approvals



                                                                                                 64
                                                 0
C&CC Brazil: credit portfolio
Although past due loans are presently proportionally higher….
(past due loans > 15 days, % of total credit portfolio)
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
        Jun-00




                                                              Jun-01
                 Aug-00




                                                                       Aug-01
                          Oct-00




                                                     Apr-01




                                                                                Oct-01




                                                                                                           Apr-02
                                   Dec-00


                                            Feb-01




                                                                                         Dec-01


                                                                                                  Feb-02
                                                                                                                    65
                                                     0
C&CC Brazil: credit portfolio
...The effective credit losses (write-offs) are under control.
(effective losses, R$ million)

      196                195                                     200

                                            162




     1H00              2H00               1H01               2H01




                                                                       66
                                      0
C&CC Brazil: Profit & Loss R$ million

R$ mln                      2000      2001      %change

Revenues                    3,510     3,852       9.7

Expenses                    (2,321)   (2,549)     9.8

Operating Profit            1,189     1,303       9.6

Provisions                  (283)     (394)      39.6

Oper. Profit Before Taxes    907       909        0.2

Taxes                       (172)      (75)      (56.0)

Net Profit                   735       833       13.3

Efficiency Ratio             66%       66%        NA


                                                          67
                             0
C&CC Brazil: Profit & Loss R$ million

 R$ mln                     1Q01    1Q02    %change

Revenues                    910     1,036    13.8

Expenses                    (579)   (682)    17.8

Operating Profit            331     354       6.9

Provisions                  (115)   (116)     0.9

Oper. Profit Before Taxes   216     238      10.2

Taxes                           1    (66)     NA

Net Profit                  216     172      (20.4)

Efficiency Ratio            64%     66%       NA


                                                      68
                            0
C&CC Brazil: Profit & Loss R$ million

R$ mln                      4Q01    1Q02    %change

Revenues                    1,055   1,036     (1.8)

Expenses                    (753)   (682)     (9.5)

Operating Profit            301     354      17.5

Provisions                  (108)   (116)     7.4

Oper. Profit Before Taxes   193     238      23.2

Taxes                        (71)    (66)     (6.5)

Net Profit                  123     172      40.3

Efficiency Ratio            71%     66%       NA


                                                      69
                             0
1 Current Brazilian Business Environment
2 Background
3 Overview of Banco ABN AMRO Real S.A. – Legal Entity
4 Competitive Analysis
5 Overview of Business Unit C&CC Brazil
6 C&CC Brazil - Financial Performance
7 ABN AMRO Brazil - The Way Forward



                                                    70
                           0
  The way forward: Productivity
 Main retail productivity targets for 2002:
  - improve revenue / client by 12%
  - improve fee income as a % of total income from 23% to 25%


 As from this year, the performance appraisal of all ABN
  AMRO Brazil’s directors is also linked to:
  - productivity targets (ratio differs per area)
  - client satisfaction ratios, as measured by Gallup, from 72%
    to 75%.



                                                                  71
                                 0
    72
0
C&CC Brazil: Profit & Loss (EUR mln)
  EUR mln                    2000      2001      %change

 Revenues                    2,113     1,920       (9.1)

 Expenses                    (1,427)   (1,290)     (9.6)

 Operating Result             686       630        (8.2)

 Provisions                  (171)     (193)      12.9

 Oper. Profit Before Taxes    515       437       (15.1)

 Taxes                       (106)      (39)      (63.2)

 Profit After Taxes           409       398        (2.7)

 Minority Interest            (50)       (9)      (82.0)

 Net Profit                   359       389        8.4

 Efficiency Ratio             68%       67%        NA

                                                           73
                                0
C&CC Brazil: Profit & Loss (EUR mln)
  EUR mln                     1Q01    1Q02    %change

  Revenues                    500     536       7.2

  Expenses                    (325)   (355)     9.2

  Operating Result            175     181       3.4

  Provisions                  (62)    (59)      (4.8)

  Oper. Profit Before Taxes   113     122       8.0

  Taxes                               (34)      NA

  Profit After Taxes          113      88      (22.1)

  Minority Interest            (5)     (3)     (40.0)

  Net Profit                  108      85      (21.3)

  Efficiency Ratio            65%     66%       NA

                                                        74
                               0
C&CC Brazil: Profit & Loss (EUR mln)
  EUR mln                     4Q01    1Q02    %change

  Revenues                    493     536       8.7

  Expenses                    (358)   (355)     (0.8)

  Operating Result            135     181      34.1

  Provisions                  (49)    (59)     20.4

  Oper. Profit Before Taxes    86     122      41.9

  Taxes                       (34)    (34)      0.0

  Profit After Taxes           52      88      69.2

  Minority Interest            3       (3)      NA

  Net Profit                   55      85      54.5

  Efficiency Ratio            73%     66%       NA


                                                        75
                              0
    76
0

								
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