Doral Financial Corporation

1
Doral Financial Corporation

• Amanda Clark
• DRL
• March 29, 2005

2
Mission

• To serve a diverse and growing market in Puerto
  Rico and the U.S. mainland with superior service
  and competitive financial products that
  facilitate
• ?Individual home ownership and residential and
  commercial real estate development through our
  mortgage banking unites and commercial banking
  subsidiaries
• ?Savings, the accumulation of wealth and the
  availability of consumer and commercial credit
  through out commercial banks
• ?Investments that meet the financial needs of
  corporate and institutional clients in the public
  and private sectors through out NASD-licensed
  broker-dealer subsidiary
• ?Protection of assets by providing insurance
  products through out insurance agency subsidiary

3
History

• 1972
• Doral Financial Corporation formed
• 1989
• Spun-off as an independent Company
• 1993
• Commercial Bank Acquired
• 1996
• Formed broker/dealer operation
• 1997
• Became Federal Reserve approved bank holding
  company
• 1998
• Established commercial real estate lending unit
  in New York City
• 1999
• Established savings bank subsidiary in New York
  City
• 2000
• Doral Financial Corporation became the first
  financial holding company in Puerto Rico approved
  by the Federal Reserve
• Established an insurance sales agency subsidiary
• Established two international banking entities
  (IBEs)
• 2003

4
Awards and Recognitions

• May 2003, ForbesForbes magazine selected Salomon
  Levis, CEO of Doral Financial Corporation, as one
  of the nations Top 10 Best Performing Bosses.  
• May 2003, American BankerAmerican Banker ranked
  Doral Financial Corporation second in its list of
  "Banking Companies By Return Of Assets" among the
  largest publicly traded holding companies in the
  fourth quarter of 2002.  
• April 2003, Investors Business DailyInvestors
  Business Daily ranked Doral Financial Corporation
  tenth in its "Investors Business Daily 100",
  which tracks the innovation and growth of
  Americas leading companies.  
• April 2003, ForbesForbes magazine named Doral
  Financial Corporation one of its Top 500
  companies in the U.S.  
• May 2002, U.S. BankerU.S. Banker ranked Doral
  Financial Corporation No. 1 out of the nations
  Top 100 banking companies.

5
Competitors

• DRL FBP BPOP SBP Industry
• Market Cap 2.34B 1.69B 6.39B 1.25B 279.59M
• Employees 2,613 2,237 12,142 1,600 393
• Rev. Growth 38.90 8.80 5.80 2.90 4.40
• Revenue 571M 676M 2B 360M 69M
• Net Income 457M 139M 478M 84M 12M
• EPS 4.012 3.337 1.793 1.811 1.41
• PE 5.39 12.52 13.36 14.75 17.11
• PEG 0.32 1.14 1.23 1.82 1.41
• PS 4.19 2.58 2.91 3.53 3.77
• FBP First Bancorp (Puerto Rico)
• BPOP Popular Inc
• SBP Santander Bancorp
• Industry Regional Banks

6
Recent News

• 3/15 Files Annual Report with SEC
• 3/16 Doral Financial tumbles after downgrade
• 3/18 Doral Unaware of Reason for Stock Drop
• 3/21 Doral Rebounds, recovers part of 44 plunge
• 3/23 Coral Finl may sell part of portfolio
• 3/29 Has Doral Fallen Far http//www.fool.com/Serv
  er/FoolPrint.asp?File/news/mft/2005/mft05032906.h
  tm

7
Ratio Comparison

• Sector Financial
• Industry Regional Banks
• DRL vs Industry Leaders
• Leader DRL Rank (505)
• Market Cap 56.53B 2.33B 60
• P/E Ratio 222.98 5.37 482
• PEG Ratio 11.05 1.32 229
• Revenue Growth 342.99 29.36 99
• EPS Growth 7700.00 60.32 50
• LT Growth rate 43.0 19.0 11
• ROE 47.38 38.11 2
• Dividend Yield 14.12 3.25 81

8
Intrinsic Value

• Intrinsic value 163.41
• Most recent price 21.70
• Recommendation Hold, but keep a close
  eye