Slides
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Investor Presentation May 2025
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Strategy and Business Segments
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• Arab Banking Corporation and local management acquire Roberto Marinho Group’s shares • The bank’s name changes to Banco ABC Brasil S.A. History in Brazil • Arab Banking Corporation and Roberto Marinho Group jointly initiate Banco ABC Roma S.A. IPO • Revamp of Investment Banking operations, with Debt Capital Markets (DCM) and Mergers & Acquisitions (M&A) • Launching of the Middle client segment • Started to operate in Project Finance and Equity Capital Markets (ECM) • Beginning of operations of the Energy Trading Company • Launch of ABC Link – distribution of financial services through banking correspondents • Launching proprietary insurance brokerage • Beginning of operations of the Credit Recovery • Reorganization of the Investment Banking area 1989 2007 20191997 2013 2020 2021 2022 2023 2024 • Brand reformulation 3
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ABC Brasil Investment Case Reinvestment to support existing operations Investment in new initiatives to accelerate growth Shareholders’ Remmuneration • Expansion in initiatives with “right-to-win” • Diversify revenue streams • Unlock “hidden values” • Capture optionalities • Earnings power to sustain credit portfolio growth • Reduction in Client Acquisition Cost (CAC) and Cost to Serve (CTS) • Build scalability • Profitable franchise • Attractive dividend yield • History of consistent and growing dividend payments 4
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Focus on Companies Notes: 1 Includes Loans, Guarantees Issued and Corporate Securities portfolios 2 New client segmentation starting in January 2021. For comparison purposes, 2019 figures are also presented with the same breakdown ABC Brasil offers financial solutions to companies in the C&IB, Corporate and Middle segments Expanded Credit Portfolio1,2 (R$ million) Dec/07 85% 15% Dec/08 84% 16% Dec/09 13% Dec/10 86% 14% Dec/11 86% 14% Dec/12 87% 13% Dec/13 87% 13% Dec/14 84% 16% Dec/15 86% 14% Dec/16 83% 17% Dec/17 58% 42% Dec/18 42% 56% 2% Dec/19 40% 54% 6% Dec/20 38%87% 8% Dec/21 34% 57% 10% Dec/22 32% 59% 9% Dec/23 31% 60% 9% Dec/24 30% 61% 9% Mar/25 89%11% Dec/06 87% 13%3,045 5,227 6,660 8,651 11,762 13,169 15,318 17,782 54%21,534 22,700 24,530 25,570 30,148² 34,378 37,715 43,255 46,381 53,171 51,206 20,573 34% 16% 10% C&IB Corporate Middle 5
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Growth Strategy Expand Structural ROAE Capture Synergies among Operations Risk Exposure Dilution Lower Volatility Over the Cycles Clients ▪ Scale number of clients and transaction volume, through a segmented offer ▪ Serve all our clients’ stakeholders (suppliers, employees and clients) Products ▪ Expand the product portfolio ▪ Reduce the dependency on specific business lines ▪ Leverage on the existing infrastructure, diluting the cost to acquire and serve clients Channels ▪ Develop new distribution channels ▪ Use third party channels to distribute our services and products ▪ Distribute third-party services and products through our channels 6
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ABC Brasil Expansion Geographical Footprint Client Base in Commercial footprint 1Q24 2Q24 3Q24 4Q24 1Q25 4,894 4,946 5,033 5,207 4,854 50 cities 7
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Segments Highlights Geographical Breakdown of the Expanded Credit Portfolio per Segment 64.3% São Paulo 35.7% Rio de Janeiro and Minas Gerais 46.5% São Paulo 24.3% South 11.1%Center-West 9.6% Minas Gerais and Northeast 8.5% Rio de Janeiro 44.9% São Paulo 35.2% South, Northeast and Center-West 19.9% Rio de Janeiro and Minas Gerais C&IB1 Middle3 Average Ticket (R$ million) Average Term (days) Corporate Clients Corporate2 Mar/24 Dec/24 Mar/25 Mar/24 Dec/24 Mar/25 Mar/24 Dec/24 Mar/25 373 379 390 74.3 100.2 92.5 285 315 348 1,974 2,216 2,032 17.5 22.5 26.0 368 372 388 2,547 2,612 2,432 326 357 364 2.2 2.6 2.8 Total Mar/25 4,854 -1% Chg. 12M C&IB Corporate Middle Notes: 1 C&IB: Clients with annual sales above R$4 bn (may include companies within the Infrastructure, Energy and Private Equity segments, with annual sales below R$4 bn). 2 Corporate: Clients with annual sales between R$300 mm and R$4 bn. 3 Middle: Clients with annual sales between R$30 mm and R$300 mm. 8
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Expanded Credit Portfolio Note: 1 Includes Loans and Corporate Securities portfolios. 9 Expanded Credit Portfolio 1Q25 % Total 4Q24 % Total 1Q25x4Q24 1Q24 % Total 1Q25x1Q24 (R$ million) Res. 4,966 Res. 2,682 Chg 3M Res. 2,682 Chg 12M Loans 22,239 100% 24,050 100% -7.5% 23,434 100% -5.1% C&IB 3,436 15.4% 4,672 19.4% -26.5% 4,219 18.0% -18.6% Corporate 15,009 67.5% 15,372 63.9% -2.4% 15,299 65.3% -1.9% Middle 3,794 17.1% 4,006 16.7% -5.3% 3,916 16.7% -3.1% Corporate Securities 16,017 100% 15,607 100% 2.6% 11,093 100% 44.4% C&IB 4,000 25.0% 3,951 25.3% 1.2% 3,452 31.1% 15.9% Corporate 11,322 70.7% 10,946 70.1% 3.4% 7,330 66.1% 54.5% Middle 695 4.3% 710 4.5% -2.1% 312 2.8% 122.5% "Cash" Portfolio1 38,255 100% 39,656 100% -3.5% 34,528 100% 10.8% C&IB 7,435 19.4% 8,624 21.7% -13.8% 7,671 22.2% -3.1% Corporate 26,331 68.8% 26,317 66.4% 0.1% 22,629 65.5% 16.4% Middle 4,488 11.7% 4,716 11.9% -4.8% 4,228 12.2% 6.2% Guarantees Issued 12,951 100% 13,515 100% -4.2% 11,452 100% 13.1% C&IB 7,829 60.5% 7,756 57.4% 0.9% 7,886 68.9% -0.7% Corporate 5,086 39.3% 5,716 42.3% -11.0% 3,523 30.8% 44.4% Middle 36 0.3% 43 0.3% -17.5% 44 0.4% -18.8% Expanded Credit Portfolio 51,206 100% 53,171 100% -3.7% 45,980 100% 11.4% C&IB 15,264 29.8% 16,379 30.8% -6.8% 15,556 33.8% -1.9% Corporate 31,418 61.4% 32,033 60.2% -1.9% 26,151 56.9% 20.1% Middle 4,524 8.8% 4,759 9.0% -4.9% 4,272 9.3% 5.9%
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Economic Sectors & Collaterals Retail & Wholesale 7.0% Financial Services 6.1% Real Estate 7.4% Agribusiness 22.9% Energy 12.3% Economic Sectors (Expanded Credit Portfolio) Collaterals (Expanded Credit Portfolio) 90.3% Clean 6.6% Financial Assets 2.5% Receivables 0.3% Others 0.3% Properties 64.7% Clean 13.9%Receivables 11.4% Properties 5.3% Financial Assets 1.1% Agribusiness Colaterals 3.6% Others 50.4% Clean 25.5% Receivables 11.8% Properties 4.6% Financial Assets 7.7% Others Corporate C&IB Middle Collateralized Portfolio: 9.7% Collateralized Portfolio: 35.3% Collateralized Portfolio: 49.6% Transports & Logistic 7.3% Services 7.6% 10 5.6% Agriculture & Livestock 3.0% Agricultural Inputs 3.0% Sugar & Ethanol 8.7% Generation 2.5% Sale and Distribution1.1% Transmission 7.6% Services 5.9% Construction & Developers1.5% Others 1.4% Storage and Logistics 1.3% Maritime Transport 4.6% Others 1.8% Wholesale 1.5% Non Food Retail 3.7% Others 4.2% Insurance, Acquirers & Others 1.9%Banks 5.0%Oil, Gas & Chemicals 3.8%Consumer Goods Industry 3.4%Food Industry 2.9%Metal & Mining 2.6% 11.4% 2.1% Water & Sewage 1.6% Telecom 1.0% Automotive Heavy Construction Pulp & Paper 1.1% Textile Industry Grains Chain4.6% Others 1.2%
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Credit Portfolio Quality Expanded Provision Expenses Credit Loss Allowance 11 (R$ million) Expanded Provision Expenses Expanded Provision Expenses / Expanded Portfolio C&IB C M Total³ 4Q23 1.8% 1Q24 1.6% 2Q24 1.5% 3Q24 1.5% 4Q24 1.6% 1Q25 1.6% 5.5% 2.2% 1.7% 5.9% 2.4% 1.4% 6.3% 2.3% 1.5% 6.2% 2.3% 1.3% 6.1% 2.3% 0.8% 6.4% 2.1%2.4% Res. 2,6821 Notes: 1 % of Loan Portfolio. Excludes the isolated credit effect of C&IB, with the completion of its Chapter 11 restructuring in 3Q24 2 % of Expanded Portfolio 3 The Total credit loss allowance includes the Prospective provision of R$190 million 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 0.5% 54.4 0.4% 43.7 0.6% 73.3 0.6% 72.1 0.7% 91.3 0.5% 63.5 Res. 4,9662Res. 2,6821 Res. 4,9662
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Credit Portfolio Quality +90 Days Overdue (includes falling due and overdue installments) Overdue Balance 12 C&IB C M Total Res. 2,6821 Res. 4,9662 233 259 287 271 273 485 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 0.0% 0.4% 4.0% 1.0% 0.0% 0.5% 4.7% 1.1% 0.0% 0.8% 4.3% 1.3% 0.0% 0.7% 4.1% 1.2% 0.0% 1.0% 3.1% 1.1% 0.0% 1.0% 3.5% 0.9% Notes: 1 % of Loan Portfolio. Excludes the isolated credit effect of C&IB, with the completion of its Chapter 11 restructuring in 3Q24 2 % of Expanded Portfolio
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Credit Portfolio Quality Operations in Stage 3 and +90 Days Overdue Balance Coverage Ratio3 13 Res. 4,9662Res. 2,6821Res. 4,9662Res. 2,6821 247% 217% 182% 195% 198% 227% 90% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Credit Loss Allowance / Overdue +90 days Credit Loss Allowance / Stage 3 Stage 3 Overdue +90 days 1.0% 4Q23 1.1% 1Q24 1.3% 2Q24 1.2% 3Q24 1.1% 4Q24 2.4% 0.9% 1Q25 Notes: 1 % of Loan Portfolio. Excludes the isolated credit effect of C&IB, with the completion of its Chapter 11 restructuring in 3Q24 2 % of Expanded Portfolio 3 The Total credit loss allowance includes the Prospective provision of R$190 million
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Funding and Capital Base
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Funding Funding 1Q25 Funding Evolution 7,280 33,724 3,315 6,138 1Q24 8,716 35,336 3,340 6,235 2Q24 10,285 35,840 3,049 6,378 3Q24 11,571 36,936 3,624 6,387 4Q24 9,384 35,582 3,672 6,472 1Q25 50,456 53,628 55,551 58,518 55,111 Senior International Senior Domestic Subordinated Financial Letters Shareholders’ Equity 5.9% Trade Finance 11.1% Multilateral Agencies, Deposits & Others 35.1% Institutional18.7% Individuals 12.2%Corporates 5.2% BNDES Onlending 11.7% Equity (R$ million) 15
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Funding & Ratings Ratings Sovereign BB BB Ba1 Local brAAA AAA(bra) AAA.Br Global BB BB Ba1 1 LCA: Agriculture Credit Bills / LCI: Real State Credit Bills / COE: Structured Transactions Certificate 16 Funding (R$ million) 1Q25 % of Total 4Q24 % of Total 1Q24 % of Total Demand Deposits 487 0.9% 632 1.1% 378 0.7% Time Deposits 8,867 16.1% 10,476 17.9% 9,373 18.6% LCA, LCI & COE¹ 7,179 13.0% 6,885 11.8% 5,000 9.9% Financial Bills 16,443 29.8% 16,265 27.8% 16,284 32.3% Subordinated Local Notes (Letras Financeiras) 2,049 3.7% 2,056 3.5% 2,293 4.5% Interbank Deposits 187 0.3% 226 0.4% 583 1.2% Borrowing and Onlending Obligations Abroad 8,938 16.2% 11,571 19.8% 7,280 14.4% Borrowing and Onlending Obligations 2,865 5.2% 2,452 4.2% 2,107 4.2% Perpetual Sub. Financial Notes 1,623 2.9% 1,568 2.7% 1,022 2.0% Subtotal (Funding with Third Parties) 48,638 88.3% 52,130 89.1% 44,318 87.8% Shareholders' Equity 6,472 11.7% 6,387 10.9% 6,138 12.2% Total 55,111 100.0% 58,518 100.0% 50,456 100.0%
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Assets & Liabilities by Maturity 9,511 7,860 5,274 4,805 7,986 6,211 Accumulated Gap¹ 18,814 9,303 9,511 1-30 days 14,453 16,104 (1,651) 31-180 days 11,121 13,707 (2,586) 181-360 days 12,969 13,438 (469) 1-3 years 4,826 1,645 3,181 4-5 years 1,766 3,541 (1,775) >5 years Ativos Liabilities Gap(As of March, 2025) ALM Note: 1 Assuming Federal Government Securities liquid within 1-30 days, based on market prices, as they can be converted into cash through repurchase agreements or sold in the secondary market. (R$ million) 17
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Basel Ratio & Shareholders’ Equity (R$ million) 11.7% 2.1% 2.8% 1Q24 11.7% 2.1% 2.5% 2Q24 11.6% 2.0% 2.4% 3Q24 11.3% 2.9% 2.3% 4Q24 11.7% 3.1% 2.5% 1Q25 16.6% 16.3% 16.1% 16.5% 17.2% Tier 2 AT1 CET1 8,062 6,138 8,255 6,235 8,345 6,378 8,962 6,387 9,072 6,472 Reference Equity Shareholders’ Equity Basel Ratio 4Q24 vs. 1Q25 Basel Ratio 14.1% 2.3% Basel Ratio 4Q24 +0.4% Net Income -0.2% Interest on Capital (IoC) +0.1% Δ Debt Issuance (AT1 & Tier II) -0.1% Others +0.5% Δ RWA 14.7% 2.5% Basel Ratio 1Q25 16.5% 17.2% Tier II Tier I 18
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Financial Highlights
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Net Interest Income Shareholders’ Equity Remunerated at CDI Rate Financial Margin with Market Financial Margin with Clients Net Interest Income & NIM 625.6 Net Interest Income 4Q24 (18.9) Δ Financial Margin with Clients (52.3) Δ Financial Margin with Market 12.3 Δ Shareholders’ Equity Remunerated at CDI Rate 566.7 Net Interest Income 1Q25 Net Interest Income 4Q24 vs. 1Q25 4.1% 4.5% 4.4% 4.2% 3.8% NIM (R$ million) 326 379 367 359 341 80 98 127 135 83 125 120 128 131 143 1Q24 2Q24 3Q24 4Q24 1Q25 531 598 622 626 567 +6.8% -9.4% (% p.a.)(R$ million) 20
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Res. 4,966 Margin and Spread with Clients Annualized Spread with Clients Provision Expenses Mgn. w/ Clients adj. by Provisions 3.7% 3.3% 4.3% 3.5% 4.0% 3.2% 3.7% 2.7% 3.5% 2.8% Spread w/ Clients¹ Spread w/ Clients adj. by Provisions² 40.7 285.1 1Q24 71.9 307.3 2Q24 68.1 298.8 3Q24 97.6 261.9 4Q24 69.1 271.5 1Q25 325.7 379.2 366.9 359.5 340.6 Notes: 1 Spread with Clients is calculated as Financial Margin with Clients divided by the average Loans and Corporate Securities Portfolio. 2 Spread with Clients adjusted by Provisions includes Loan Loss Provision (LLP), Provision for the Devaluation of Securities (PDS), and Credit Recoveries. 21 (R$ million) Res. 2,682
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Service Revenues Insurance Brokerage Fees and Commercial Banking Investment Banking Guarantees Issued 23.9% 24.4% 24.2% 26.9% 23.1% Service Revenues / Service Revenues + Margin with Clients 132.5 Service Revenues 4Q24 (1.4) Δ Guarantees Issued (30.4) Δ Investment Banking 1.9 Δ Insurance Brokerage Fees and Commercial Banking 102.6 Service Revenues 1Q25 (R$ million) (R$ million) 36.1 41.6 24.5 1Q24 39.2 43.9 39.1 2Q24 39.6 48.9 28.7 3Q24 43.8 63.3 25.4 4Q24 42.3 32.9 27.3 1Q25 102.2 122.2 117.2 132.5 102.6 Service Revenues 4Q24 vs. 1Q25 Service Revenues 22
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Expenses and Efficiency Ratio 1Q24 2Q24 3Q24 4Q24 1Q25 39.4% 36.9% 37.8% 37.7% 42.1% Efficiency Ratio (Expenses/Revenues) 23 Expenses 1Q25 4Q24 1Q25x4Q24 1Q24 1Q25x1Q24 (R$ million) Res. 4,966 Res. 2,682 Chg 3M Res. 2,682 Chg 12M Personnel Expenses (126.9) (128.4) -1.2% (117.5) 8.0% Other Administrative Expenses (70.8) (73.3) -3.5% (61.3) 15.4% Subtotal (197.7) (201.8) -2.0% (178.8) 10.5% Profit Sharing (68.1) (75.2) -9.5% (64.8) 5.0% Total (265.7) (277.0) -4.1% (243.7) 9.1% Employees 1,291 1,300 -0.7% 1,276 1.2%
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Profitability Recurring Net Income Recurring ROAE 1Q24 2Q24 3Q24 4Q24 1Q25 223.0 250.1 255.1 243.1 225.6 +1.1% -7.2% 1Q24 2Q24 3Q24 4Q24 1Q25 15.1% 16.1% 16.2% 15.2% 14.1% (R$ million) (p.a.) 24
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Ownership and Organizational Breakdown
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Ownership Structure Central Bank of Libya Kuwait Investment Authority Free-float Mar/25 Dec/24 63.6%6.0% 30.4% Bank ABC Management² Free-float ABC Brasil¹ Bank ABC (Controlling Shareholder) 59.4% 29.7% 10.9% Notes: 1 Ex-Treasury 2 Management includes Company Executives, members of the Board and related persons to Banco ABC Brasil and affiliates companies. 26
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Corporate Structure (May/25) 27
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Corporate Governance Listed at B3 since 2007 • Minority shareholders with the right to appoint independent board members • All related-party transactions subject to CVM and B3 regulatory rules, including mandatory disclosure in the financial statements Included in the following B3’s indexes: Admitted at B3’s Level 2 of Corporate Governance since IPO Local management Partnership, supplemented by long- term alignment • Senior management with approximately 6.0%1 of the total capital of ABC Brasil, through long term incentive plans • Employees with a relevant part of their remuneration linked to performance goals, and relevant portion paid in ABC Brasil’s shares • ~30% free float • Active research coverage by sell-side analysts and credit rating agencies, with full disclosure 28 Note: 1 As of March 31, 2025
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ESG Highlights 29 • Allocation of more than R$20.7 billion¹ to asset operations linked to ESG criteria² • Issuance of more than R$1.9 billion¹ in sustainable Financial Bills and CDBs on the local market • Structuring ESG debt securities on the local capital market • BNDES Onlending ESG lines: Fundo Clima, FGEnergia and Finame Baixo Carbono • Access to ESG lines through global multilateral agencies: Climate Change • ESG advisory for decarbonization plans • Implementation of the Carbon Solutions Desk • Automated measurement of emissions related to financing activities • Strategy for reducing and offsetting scope 1 and 2 emissions Adhesion to the B3 Carbon Efficient Index Portfolio Sustainable Finance Signatory Investor Pacts and Commitments United Nations Global Pact Member More Women in Leardership Seal Governance Notas: 1 As of March 31, 2025 2 According to ABC Brasil's Sustainable Finance Framework, which has a second party opinion from S&P • Release of the Sustainability Report, relying on independent external assurance • ESG Committee, reporting directly to the Board of Directors • Mapping of the ESG maturity level of ABC Brasil’s ESG suppliers
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Appendix
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Managerial Income Statement 1Q25 4Q24 1Q25x4Q24 1Q24 1Q25x1Q24 (R$ million) Res. 4,966 Res. 2,682 Chg 3M Res. 2,682 Chg 12M Net Interest Income 566,7 625,6 -9,4% 530,7 6,8% Financial Margin with Clients 340,6 359,5 -5,3% 325,7 4,6% Shareholders' Equity remunerated at CDI Rate 143,4 131,1 9,3% 124,5 15,2% Financial Margin with Market 82,7 135,0 -38,7% 80,5 2,8% Provision Expenses 1 (69,1) (97,6) -29,2% (40,7) 69,8% Net Interest Income post-Provisions 497,6 528,1 -5,8% 490,0 1,6% Service Revenues 102,6 132,5 -22,6% 102,2 0,4% Guarantees Issued 42,3 43,8 -3,3% 36,1 17,4% Investment Banking 32,9 63,3 -48,1% 41,6 -20,9% Insurance Brokerage Fees and Commercial Banking 27,3 25,4 7,5% 24,5 11,4% Personnel & Other Administrative Expenses (197,7) (201,8) -2,0% (178,8) 10,5% Personnel Expenses (126,9) (128,4) -1,2% (117,5) 8,0% Other Administrative Expenses (70,8) (73,3) -3,5% (61,3) 15,4% Tax Expenses (34,7) (32,8) 5,9% (21,6) 61,0% Other Operating Income/Expenses (2,8) 5,3 -151,8% 4,2 -165,4% Non Operating Income 5,6 0,7 693,6% (0,6) -983,5% Earnings before Tax and Profit Sharing 370,6 432,1 -14,2% 395,4 -6,3% Income Tax and Social Contribution (73,9) (107,8) -31,5% (104,1) -29,0% Profit Sharing (68,1) (75,2) -9,5% (64,8) 5,0% Minority Interest (3,1) (6,0) -48,2% (3,5) -11,0% Recurring Net Income 225,6 243,1 -7,2% 223,0 1,1% Managerial Income Statement 31 Note: 1 Includes: Loan Loss Provision (LLP), Provision for the Devaluation of Securities (PDS), and Credit Recoveries. From 1Q25 onwards, it also includes the Provision for Guarantees Issued (PGI), in accordance with Resolution 4,966
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Contact Website: www.abcbrasil.com.br | ri.abcbrasil.com.br Phone: +55 (11) 3170-2000 32
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Disclaimer The following material, on this date, is a presentation containing general information about the Banco ABC Brasil S.A. and their affiliates. We offer no guarantee and make no declaration, implicitly or explicitly, as to the accuracy, completeness or scope of this information. This presentation may include forward-looking statements of future events or results according to the regulations of the Brazilian and International securities and exchange commissions. These statements are based on certain assumptions and analyses by the Company that reflect its experience, the economic environment, future market conditions and expected events by the company, many of which are beyond the control of the Company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and International economic conditions, technology, financial strategy, financial market conditions, uncertainty regarding the results of its future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives should have any responsibility for any losses that may result from the use or contents of this presentation.