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3Q20 Earnings Results

Porto Alegre, November 11, 2020 – Banco Agibank S.A. (“Bank”, or “Agibank”), an omnichannel digital bank offering solutions to improve and facilitate people’s daily and financial lives, announces its results for the third quarter of 2020 (3Q20) and year-to-date for the first nine months of 2020 (9M20). The financial statements were prepared based on accounting practices in the Brazilian corporate legislation, associated with the rules and instructions of the National Monetary Council (CMN) and the Central Bank of Brazil (BACEN).

Highlights:

  • In line with the relationship banking strategy, over 230 thousand clients already receive their benefits or salary on Agibank, an increase of 250% YoY, granting cross selling opportunities and first-choice bank;
  • The digital transactions volume was up 3% in 3Q20 vis-à-vis 3Q19, indicating a significant gain in customer usage of the Bank’s products and services, together with a 35.5% decrease in cost per transaction, indicative of the capture of economies of scale;
  • Our NPS (Net Promoter Score) reached 75 points in September, which is substantially above the average for Brazilian banks;
  • The Credit Portfolio reached BRL 1,868.1 million in the quarter, up 6% from the Sep/19 balance, with emphasis on account holder personal credit (+125.7%), payroll-deductible loans (+168.7%) and credit card payroll-deductible loans (+56.7%) portfolios;
  • The portfolio which has the Federal-Government as clients’ source of income reached 93.2% of the total credit portfolio in Sep/20;
  • Reducing by 3% the average interest rate on non-payroll-deductible personal loans;
  • Delinquency decreased in the period, as measured by both NPL (E-H), which was down from 34.6% of the gross credit portfolio in Sep/19 to 0% in Sep/20, that is, less than half the previous year’s level; and by LLP, which was 30.2% of the gross credit portfolio in Sep/19 and reached 13.5% in Sep/20, a significant 16.7 p.p. reduction;
  • <li style="color: black"Gross Profit from Financial Intermediation was R$ 233,4 million in 3Q20, up 15.4% YoY;

  • Services Revenue grew by 50.0% in 3Q20, mainly due to the increase in fees from insurance brokerage, with over 300 thousand lives insured in September 2020;
  • Net Earnings amounted to BRL 32.0 million in 3Q20 (up 72.2% YoY), and BRL 70.7 in the year to date (up 117.7% YoY). This was mainly the product of higher intermediation income, 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 23.3% and a ROAA of 4.8%;
  • A Basel Capital Adequacy Ratio of 1% and LCR of 3,247.0% illustrate the institution’s satisfactory capital and liquidity positions, respectively;
  • Net Equity was BRL 591.2 million in the quarter (up 19.8% YoY) and the Bank’s Cash position in Sep/20 was BRL 913.3 million.

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