Investor
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1H20 Earnings Results

Highlights:

  • In line with its relationship banking strategy, Agibank made an important move in the period by reducing by 22,7% the average interest rate on non-payroll deductible personal loans, as shown in BACEN’s website;
  • The Bank posted a total of 805,1 thousand accounts in June 2020, a year-over-year increase of 25.1%;
  • Digital transactions volume increased by 86.8% in 1H20, an indication of a significant advance in customer usage of the Bank’s products and services, together with a 42.0% decrease in cost per transaction, indicative of the capture of economies of scale;
  • TheCredit Portfolio amounted to R$ 1,642.4 million in the period, down 1.4% from Dec/2019, of particular importance being the 92.0% of the total credit portfolio now backed by federal government risk in June 2020;
  • Defaulting decreased in the period, as measured by two indicators: NPL (E-H) was down from 34.6% of the gross credit portfolio in Jun/19 to 16.7% in Jun/20, the lowest since 2018; and LLP, which  was 32.6% of the gross credit portfolio in Jun/19, reached 14.0% in Jun/20, down 18.6 p.p.;
  • Basel Capital Adequacy Ratio of13.9% and LCR of 7,040.1% illustrate the institution’s capital and liquidity positions, respectively;
  • The Bank’s Cash position was R$ 1,115.4 million in Jun/20, up 12.8% year-over-year;
  • Net Earnings amounted to R$ 38.7 million in 1H20 (+178.4% YoY). This was mainly the product of higher intermediation result, largely generated by a gradual change in the credit portfolio’s profile towards lower-risk lines which generated lower LLP expenses, resulting in a ROAE of 21.9% and a ROAA of 4.3%;
  • Net Equity reached R$ 550.2 million in June 2020 (+14.3% YoY).

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