Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Q3 2023 Earnings Presentation
32 slides from Banco Davivienda SA's earnings presentation, Nov 1, 2023
Slide 1: Davivienda Corporate Presentation - 3Q23
Davivienda Corporate Presentation - 3Q23
Slide 2: Disclaimer and forward-looking statements
The information hereby presented is exclusively for informative and illustrative purposes and it is not, nor does it pretend to be, a source for legal or financial assessment of any kind. Certain statements in this presentation are “forward-looking” statements within the meaning of the U.S. Private S
Slide 3: Content
Content Page Page 1 About Davivienda 4 7 Digital Transformation and DaviPlata 13 2 Grupo Bolívar 5 8 Wealth Management 17 3 Ownership Structure 6 9 Credit Risk Management 18 4 Results of Our Sustainable Management 8 10 Capital Structure 20 5 History 9 11 Key Ratios 21 6 Loan Portfolio and Funding So
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Loans: $ 15.4Bn Loans: $ 11.6Bn Main Figures Customers: 9.3M Customers: 378k USD Billion Y/Y 2 Assets $ 44.5 1.9% 2 Gross Loans $ 34.4 -0.4% Deposits $ 29.9 6.6% Equity $ 3.8 -4.0% Net Profit1 -$ 23.2 -106.5% Deposits: $200.3M Loans: $ 7.4Bn Customers: +16.8M Customers: 1
Slide 5: Our Main Shareholder: Grupo Bolívar
Our Main Shareholder: Grupo Bolívar Among the most important conglomerates in Colombia with over 80 years of experience. Consolidated figures USA (Miami) Assets USD 48.5 billion Equity USD 4.7 billion Honduras Customers +23.3 million El Salvador Employees +25.7 k Costa Rica Colombia Countries 6 Panam
Slide 6: Ownership Structure
COMMON SHARES Ownership Structure TOTAL SHARES 76.1%² PREFERRED SHARES 100%¹ 23.9%³ 1. Total Outstanding Shares: 451,670,413. 2. Common Shares Account for 76.1% of Total Shares (343,676,929). 3. Preferred Shares Account for 23.9% of Total Shares (107,993,484). Figures as of September 30, 2023. 6
Slide 7: Our Sustainable Management
Our Sustainable Management THE WORLD IS THRIVING INCLUSIVE GREEN OUR HOME LET’S MAKE IT MORE Material Issues ● Finance and Sustainable Funding ● Inclusion and Financial Education ● Climate Change ● Responsible Investment ● Equality, Diversity, and Inclusion ● Eco-efficiency ● Corporate Governance ● Co
Slide 8: Results of Our Sustainable Management
Results of Our Sustainable Management Davivienda adhered to the United Nations Sustainable Loan Portfolio Principles for Responsible Banking (PRB): 20% To continue aligning and strengthening our commercial strategy to the Y/Y global goals: 17% Increase positive impacts and reduce risks for people an
Slide 9: Milestones of Sustainable Growth
Milestones of Sustainable Growth Proven Track Record of Organic and Inorganic Growth The Corporation The Local Bank A Regional Banking Platform Creating Ecosystems 2021 2023 2020 CF4 13.8% 2019 2023 2015 15.7% 11.8% Market Share by 1994 Assets2 3.8% 2018 2016 14.9% Assets Market Share by 2015 2012 $
Slide 10: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 3Q23 Y/Y Commercial 0.0% Consumer -7.4% $1.3 $34.4 Mortgage 7.8% Total -0.4% Y/Y Colombia COP 1.8% $1.3 $34.4 International USD 2 -4.7% Colombia USD -11.4% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of September
Slide 11: A Portfolio Focused on Strategic Segments and Products
A Portfolio Focused on Strategic Segments and Products USD Billion 2% Mortgage Loans Consumer Loans 2% Unsecured Personal Loans Leasing Payroll Low Income Housing $9.2 $9.9 Credit Cards Vehicle Residential Revolving Loans Commercial Loans1 $15.4 Figures in USD Billion. 1. Energy and hydrocarbons: mi
Slide 12: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Demand deposits Term deposits $38 Credits Bonds Loans to Deposits 130.7% 128.9% 122.3% 120.2% 120.8% 115.1% Loans to Funding Sources 97.2% 95.9% 93.4% 91.4% 92.6% 91.2% International Issuances Portfolio Securitization3 Amount Yield to Coupon Maturity
Slide 13: Results of our Digital Transformation
Results of our Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales (% of products) (USD Billion) (% of monetary transactions) 1 Digital Clients 92.4% -23% Y/Y 29% Y/Y 90% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of products) (% of monetary tr
Slide 14: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Leader in Financial Inclusion 99%2 Ofterritory Colombian Mobile Transfer Money¹ Pay Bills Withdraw Money Mobile Airtime Top-Up Ecosystems with Social Impact Products Platform Savings Pocket Make Purchases Receive Remittances Buy Insurances Nanocredits Payment Shops:
Slide 15: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Income (Million) (USD Million) (USD Million) 11% 1% 9% Y/Y Y/Y Y/Y With Products in DaviPlata as Common with Monthly Transactional Deposits Subsidy Income Funding FTPs1 the Sector Only Product Davivienda Average Income DaviPlata’s N
Slide 16: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 26% Y/Y 5% Y/Y -12% Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) 140% Y/Y -9.9pts Y/Y -5 pp Y/Y -0.3pts Y/Y 1. Current cards 16
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y -6.0% Investment Funds Securities Brokerage, Investment -7.8% Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services -39.8% Assets Under Custody 12.9% Trust Funds International Investments Market Share • The Trust
Slide 18: Credit Risk Management
Credit Risk Management Total PDL & Coverage 1 1 PDL by Segment Coverage by Segment2 1. Total >120: (Mortgage > 120 days + Commercial > 90 days + Consumer > 90 days) / Gross Loans 2. Coverage: Asset Allowances / Loans > 90 days 18
Slide 19: Credit Risk Management
Credit Risk Management CoR1 & Provision Expenses 3Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 370 7.2% 952 97.8% Ex. FX Impact* 7.6% 96.2% Loans by Stages Coverage by Stages Figures in USD Million. The average rate COP/USD appreciated 4.0% Q/Q and depreciated 8.3% Y/Y. 1. Cost of Risk = Provision
Slide 20: Capital Structure
Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 3Q23 Q/Q Y/Y Accounting Equity 3.8 -2.6% -4.0% Common Equity Tier 1 3.4 -3.8% -5.9% Additional Tier 1 0.5 -1.4% -11.7% Total Technical Capital 4.8 -3.1% -8.2% RWAs 32.8 0.9% 1.4% Credit Risk 28.2 0.8% -2.2% Market Risk 1.1 -7.
Slide 21: Key Ratios
Key Ratios ROAA & ROAE NIM Non-Financial Income and Fee Ratios Cost-to-Income and Cost-to-Assets Non Financial Income Ratio 12 M Cost-to-Income Excluding Non-Recurring Income Fee Income Ratio 12 M Excluding Goodwill Impairment Cost-to-Assets ROAE = Net Profit (12 months) / Average Equity (5 periods)
Slide 22: A Leading Banking Institution in Colombia
A Leading Banking Institution in Colombia Customers¹ +21.4M Branches 531 ATMs 2.3k Banking Correspondents 33k Employees 13.7k Market 3Q23 Y/Y Ranking USD Billion Share Assets $ 34.5 4.3% 2 13.8% Gross Loans $ 26.1 0.1% 2 15.7%² Commercial $ 11.0 1.8% 3 12.4% Consumer $ 7.5 -11.1% 2 15.0% Mortgage $
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Sep. 23 Y/Y Assets 10,949 5.8% El Salvador Gross Loans 7,406 7.9% Customers +1.6M Commercial 3,745 3.3% Branches 138 Costa Rica Consumer 2,159 20.3% ATMs 558 Employees +4.2 K Panama Mortgage 1,501 4.2% Deposits 7,221 5.9%
Slide 24: Board of Directors and Corporate Governance Committees
Board of Directors and Corporate Governance Committees BoD Members2 Audit Committee Supports BoD in supervising effectiveness of internal controls. Composed of three directors, two are independents members of the BoD. Reviews financial audited statements prior submission to the BoD. Corporate Governa
Slide 25: Experienced Management Team
Experienced Management Team Javier Suarez Chief Executive Officer ● Civil Engineer from Universidad de los Andes, with a Master’s degree in Finance and a Master’s degree in Actuarial Sciences from Georgia State University. ● Over 30 years of experience in the financial industry. Ricardo León Pedro Urib
Slide 26: Appendix
Appendix
Slide 27: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Economic Activity Index (Y/Y) Latam Exchange Rates (Index 100 = Dec 2017) Brazil 148.2* * Chile 146.7* Colombia 137.3* Peru 117.2* Mexico 88.9* Quarterly Average Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Source: National D
Slide 28: Financial System Colombia
Financial System Colombia System Loan Portfolio Sept. 23 Interest Rates on Loans Apr. 23 47.1% Sept. 23 (Annual Growth) (4-week moving average) 42.1% Cap Rate1 38.3%** 31.2% Consumer 27.6%* Mortgage Total 11.8% 22.6% 20.3%* 8.0%* 9.6% Commercial Mortgage 6.2% 7.0%* 11.7% 19.0%* Total 11.1% Commercia
Slide 29: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Panama 9.5%* Costa Rica 5.1% 5.6%*** Honduras 4.1% El Salvador 6.1% 3.8% 3.1%** 4.7% El Salvador Honduras 3.0% 2.5% 2.6% 3.0%** 2.0% Panama 0.5% 2.3% Costa Rica -2.2% Source: Central Banks of Central America. *September, 2022
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 3Q22 2Q23 3Q23 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 3,361 4,031 4,286 256 6.3% 925 27.5% Investments 4,461 4,823 4,733 - 91 -1.9% 271 6.1% Net Loans 33,108 33,151 32,814 - 337 -1.0% - 294 -0.9% Commercial 15,382 15,590 15,386 - 204 -1.3% 3 0.0% C
Slide 31: Consolidated P&L
Consolidated P&L USD Million 3Q22 2Q23 3Q23 $ Q/Q Q/Q $ Y/Y Y/Y Sep 2022 Sep 2023 $Y/Y Y/Y Total Income 953 1,299 1,197 - 101 -7.8% 245 25.7% 2,464 3,819 1,355 55.0% Loans 907 1,147 1,101 - 46 -4.0% 193 21.3% 2,387 3,410 1,024 42.9% Investment 34 131 66 - 65 -49.3% 33 96.9% 54 337 283 522.0% Overnig
Slide 32: Visit us at ir.davivienda.com
Investor Relations and Capital Management ir@davivienda.com + (57 601) 220 3495 ir.davivienda.com Bogotá - Colombia Visit us at ir.davivienda.com