Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Q3 2024 Earnings Presentation
26 slides from Banco Davivienda SA's earnings presentation, November 2024
Slide 1: Davivienda Consolidated Financial Results 3Q24
Davivienda Consolidated Financial Results 3Q24
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: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Economic Activity Index (Y/Y) Monetary Policy Rate, Inflation and Funding Rate Annual Average Term Deposits 360 Days Dec. 23 Quarterly Average MPR Inflation 2024 2.0% 2023 2.3% 9.75%** 0.7% 2.9%* 9.80%** 0.9% 5.41%* Sep. 24 9.87% 10.75% Dec-17 Dec-18 Dec-19 Dec-20 D
Slide 4: Financial System Colombia
Financial System Colombia System Loan Portfolio Interest Rates on Loans Apr. 23 47.1% (Annual Growth) Dec. 23 (4-week moving average) Cap Rate1 31.2% 28.9%* Consumer 19.8%* 11.8% 22.6% Total 9.6% Mortgage 15.7%* 7.6%* 11.7% Mortgage 6.2% Commercial 11.1% 9.7% 13.6%* 3.1% 2.7%* Commercial Total 13.4%
Slide 5: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) 2023 Quarterly Average Inflation (Y/Y) 7.6% 5.0% 3.6% Costa Rica 4.2%* 3.5% Honduras 5.0% 3.9%* 4.1% Panamá Honduras 4.7% 4.5%* 3.7% 2.5%* 2.6% El Salvador 2.4% El Salvador 2.0% 0.6%* 1.4%* Costa Rica 0.5% -0.1%* Panamá -0.2%* Dec-17 Dec-18
Slide 6: 3Q24 Main Results
3Q24 Main Results NIM & CoR NIM (FX&D) supported by lower financial expenses and our $140.8 Gross Loans interest-rate risk management Tn Q/Q: +0.8% Y/Y: +0.8% strategy through derivatives. Provision expenses decreasing 5.64% 12M NIM FX&D as a result of continuous Q/Q: +9 bps Y/Y: +3 bps improvements
Slide 7: Evolution of our Margins
Evolution of our Margins Funding Mix 1 Loan Mix Loan Growth Q/Q Y/Y Cost of funding with still some 7.2% ~70% 0.4% -2.1% space to continue capturing of our term deposits will 1.5% 4.6% benefits, supported by: mature in the -3.2% -21.3% i) Decrease in the intervention 116 Tn next 12 months 107 Tn 1.6%
Slide 8: Evolution of Credit Risk - Consumer Portfolio
Evolution of Credit Risk - Consumer Portfolio Disbursements Loan Mix (%) (Trillion COP) Consumer Ex. Credit Card Credit Card Unsecured Personal Loans Payroll Credit Card Vehicle Revolving Loans Jan. 21 Vintages Net Provision Expenses 6% 4% PDL > 30 Days 2% Disbursement Date 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 9: Evolution of Credit Risk
Evolution of Credit Risk PDL by Segment Total PDL and CoR Coverage + Collaterals 2024 Expected PDL: 4.0% - 4.5% 125% CoR: 3.5% - 3.8% 144% 142% CoR 3M Annualized 4.67% 5.06% 5.17% 4.26% 3.00% COP 65.9 Tn Highly diversified portfolio in terms of industries and operation size. 46.8% Share The corporate
Slide 10: ePayco: Complementing our Payments Offering
ePayco: Complementing our Payments Offering Empower businesses with a more comprehensive payment-acceptance offering that provides added value through: We are strengthening our digital payment solutions to be the best partner for businesses Digital Payments (QR codes, POS, contactless payments, payme
Slide 11: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Transactions1 and (Million) (COP Billion) Purchases2 9% 20% 30% Y/Y Y/Y Y/Y 16% Y/Y 58% Y/Y With Products DaviPlata as Common with End of Monthly in the Sector Only Product Davivienda Period Average Income Daviplata’s Credits4 (COP
Slide 12: Recent progress in ESG
Recent progress in ESG We designed a new policy to identify assets or activities that we want Sustainable Sustainable Loan Portfolio Strategy Policy to promote through our businesses, aligned with our purpose of contributing to a more prosperous, inclusive and green world. 19.8 14% of total loan +24
Slide 13: Balance Sheet - Assets
Activo Balance Sheet - Assets By Operation1 Q/Q Y/Y Cash -13.3% -18.4% Assets Q/Q Y/Y Net Investments 0.7% 11.8% Colombia -1.0% -1.5% Gross Loans 0.8% 0.8% COP 1.2% 9.1% CAM Loan Loss Reserves -5.4% -14.9% USD 0.4% 5.9% Others -2.6% 7.2% Assets -0.5% 1.1% Figures in COP Trillion Ex. FX Impact* -0.8%
Slide 14: Balance Sheet - Gross Loans
Balance Sheet - Gross Loans Growth by Operation (Y/Y)1 Growth by Segment (Y/Y) Gross Loans Mix Ex. FX Impact* 139.6 136.0 135.6 139.6 140.8 Q/Q Y/Y Q/Q Y/Y Commercial 1.4% 5.7% 1.0% 4.3% Consumer -1.3% -13.2% -1.5% -14.1% Mortgage 1.8% 7.8% 1.6% 7.0% Gross Loans 0.8% 0.8% 0.5% -0.3% Figures in COP T
Slide 15: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management Total PDL & Coverage1 Coverage + Collaterals3 2 3 PDL by Segment Coverage1 1. Coverage: Loan Loss Reserves / Loans > 90 days 2. Total >120: (Mortgage > 120 days + Commercial > 90 days + Consumer > 90 days) / Gross Loans 3. Coverage + Collaterals = (Loan Loss Re
Slide 16: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management CoR1 & Provision Expenses 3Q24 Accumulated $ Q/Q $ Y/Y Provision Expenses 1,055 -29.1% 4,294 2.3% Loans by Stages Coverage by Stages Figures in COP Billion. The average rate COP/USD depreciated by 1.5% Q/Q and appreciated by 9.7% Y/Y 1. Cost of Risk = Provision
Slide 17: Balance Sheet - Funding Sources and Liquidity
Balance Sheet - Funding Sources and Liquidity Funding Sources ($) Funding Ratios Q/Q Y/Y 0.9% 2.2% 6.1% -18.4% -6.1% -11.1% 5.9% 17.6% -4.2% -3.6% 1 Funding Mix (%) Liquidity Ratios Demand Deposits 2 3 Figures in COP Trillion. The closing rate COP/USD depreciated by 0.7% Q/Q and 3.1% Y/Y 2. Liquidit
Slide 18: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios CET1 7.0% 1 Equity & RWAs2 Leverage Ratio 3Q24 Q/Q Y/Y Accounting Equity 15.7 1.4% 2.9% Common Equity Tier 1 13.7 1.9% 0.7% Additional Tier 1 2.1 2.4% 3.2% Total Technical Capital 19.5 2.0% 0.0% RWAs 132.2 -0.6% -0.7% Credit Risk 110.3 -0.9%
Slide 19: P&L - Financial Margin
P&L - Financial Margin 3Q24 Accumulated Gross Financial Margin $ Q/Q $ Y/Y Loan Income 4,313 -4.7% 13,541 -9.9% Investment and Interbank Income 638 16.2% 1,764 -2.2% Financial Income 4,951 -2.5% 15,305 -9.1% Financial Expenses 2,772 -4.6% 8,715 -10.8% Gross Financial Margin 2,179 0.4% 6,590 -6.7% Pr
Slide 20: P&L - Non Financial Income & Operating Expenses
P&L - Non Financial Income & Operating Expenses 3Q24 Accumulated 3Q24 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Fee Income1 471 -5.5% 1,437 5.4% Personnel Expenses 625 -4.4% 1,882 8.2% Other Net Income & Expenses 84 31.5% 335 62.7% Operating Expenses and Others 874 -2.1% 2,634 -0.4% Non Financial Income 5
Slide 21: P&L - Net Profit
P&L - Net Profit 3Q24 Accumulated Net Profit2 $ Q/Q $ Y/Y Gross Financial Margin 2,179 0.4% 6,590 -6.7% Provision Expenses 1,055 -29.1% 4,294 2.3% Net Financial Margin 1,124 64.6% 2,295 -19.9% FX Changes, Derivatives 16 -88.7% 119 -124.2% Non Financial Income1 555 -1.4% 1,771 13.0% Operating Expenses
Slide 22: Expectations 2024
Expectations 2024 2Q24 2024 E 3Q24 2024 E (Previous / Aug.24) (Current) (Nov. 24) Growth -1.0% Δ Y/Y 5% - 7% Δ Y/Y 0.8% Δ Y/Y 5% - 7% Δ Y/Y Loan Portfolio PDL > 90 4.66% 4.0% - 4.5% 4.64% 4.0% - 4.5% NIM* 5.55% 6.0% - 6.2% 5.64% 5.7% - 6.0% Cost of Risk 4.72% 3.5% - 3.8% 4.27% 3.5% - 3.8% Profitabili
Slide 23: Investor Relations
Investor Relations ir.davivienda.com ir@davivienda.com + 57 (601) 220 3495 Bogota - Colombia
Slide 24: Appendix
Appendix B DNAVIVIENDN
Slide 25: Progress in Digital Transformation
Progress in Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales 1 (% of monetary transactions) (% of products) Digital Clients (COP Trillion) 93.2% -13% Y/Y 60% Y/Y 57% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of monetary transactions) (% of
Slide 26: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 4% Y/Y -64% -26% Y/Y Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) 6.0pts -42% Y/Y -1 pp Y/Y Y/Y -36% 0.3pts Y/Y Y/Y 2 1.Current cards 2. CAC in USD estimated with the average exchange