Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Debt Investor Presentation (June 2012)
33 slides from Banco Davivienda SA's debt investor presentation, June 2012
Slide 1: Roadshow Presentation
Confidential Roadshow Presentation June 2012
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by Davivienda S.A. (together with its subsidiaries, the “Company”) solely for use at presentations held in connection with the proposed offering of subordinated notes of the Company (the “Transaction”). The information herein is only a su
Slide 3: Presenting Team
Presenting Team Alvaro Carrillo Marco Franco EVP, Corporate Banking, since 2007 Treasury Director, since 2003 21 years of experience at Davivienda 20 years of experience in the financial sector Economist (Colegio Mayor de Nuestra Señora del Civil Engineer (UIS, Bucaramanga, Colombia), Rosario, Bogot
Slide 4: Offering Summary
Offering Summary Issuer Banco Davivienda S.A. ("Davivienda" or the "Issuer") Issuer Rating Baa3/BBB-/BBB- [Moodys/S&P/Fitch] Expected Issue Rating [Ba1/BB+] [Moodys/Fitch] Structure Tier 2 – unsecured subordinated notes Amount [ TBD ] Tenor 10 years Distribution 144A / RegS Purchase HSBC's Central A
Slide 5: Davivienda at a glance
Davivienda at a glance A leading universal bank… ... with a history of strong results Amount Market Share¹ Rank Davivienda has never reported an annual net loss Assets US$20.9bn 10.8% #3 2200 Davivienda Colombian banking net income system net income Loans² US$16.4bn 12.9% #2 Commercial3 US$7.9bn 10.
Slide 6: A track record of prudent growth
A track record of prudent growth Introduces Daviplata, becoming a pioneer in financial inclusion Equity follow on Becomes a universal Acquires bank Confinanciera Acquires Banco Issues subordinated 2012 República in Venezuela bonds to the IFC 2011 (sold in 2001) 2010 Davivienda is incorporated 2007 $
Slide 7: Successful transition from a mortgage-oriented to a leading full service bank
Successful transition from a mortgage-oriented to a leading full service bank Banco Davivienda has diversified its loan portfolio… 1997 Mar-12 Mortgages ¹ Commercial 8% 16% Consumer 10% Commercial 52% Consumer Mortgages 32% 82% ¹ Mortgage loans include housing leasing … leveraging successful acquisi
Slide 8: Davivienda continues its history of successful acquisitions expansion to Central America
Davivienda continues its history of successful acquisitions expansion to Central America Davivienda has an agreement to acquire HSBC’s operations in Costa Rica, El Salvador and Honduras for US$801mm Davivienda and HSBC – geographical In January 2012, Davivienda announced an agreement to footprint pu
Slide 9: Investment Highlights
Investment Highlights Solid macro and financial Strong management team and fundamentals controlling group Colombian financial sector is poised Seasoned management team with a for growth due to strong economic long track record in the industry Solid macro and fundamentals and low banking Strong manag
Slide 10: Macroeconomic performance
Macroeconomic performance Decreasing inflation (%) GDP growth Inflation avg '05-'11 Inflation avg '12E-'15E GDP growth avg '05-'11 GDP growth avg '12E-'15E 5.1% 4.5% 4.8% 4.4% 4.1% 4.0% 3.6% 3.3% 2.5% 2.6% 2.1% 2.1% 2.3% 1.0% 1.2% 0.7% Top Latam¹ Top Latam¹ Colombia Euro Area US Colombia Euro Area U
Slide 11: Financial system provides strong platform for growth
Financial system provides strong platform for growth Domestic credit to private sector as Colombia - domestic credit to private % of GDP sector as % of GDP 139.4% 60% Top Latam¹ 50% 58.4% 40% 36.3% 36.3% 30% 20% Top Latam¹ 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 12: Investment Highlights
Investment Highlights Solid macro and Strong management financial team and controlling fundamentals group Leading banking franchise Leader in consumer banking Top-notch risk Strong brand recognition management One of the most innovative financial and asset Leading institutions in Colombia quality ba
Slide 13: One of the largest banking franchises in Colombia
One of the largest banking franchises in Colombia Total loans¹ Total deposits 21.4% 17.3% 14.4% 2nd 3rd 12.9% 12.6% 10.9% 9.3% 8.9% Bancolombia Banco de Bogota BBVA Bancolombia Banco de Bogota BBVA ¹Includes securitized loans ($1,205mm) Note: All charts based on stand-alone figures Source: Colombian
Slide 14: Leader in consumer banking
Leader in consumer banking Consumer Credit card 1st 1st 14.0% 13.4% 18.4% 15.8% 14.7% 9.7% 9.2% 10.6% Bancolombia BBVA Banco Popular Colpatria Bancolombia Citibank Mortgages¹ Commercial2 2nd 26.3% 24.1% 24.7% 17.8% 16.9% 3rd 10.0% 9.5% 8.9% Bancolombia BBVA BCSC Bancolombia Banco de Bogota Occidente
Slide 15: A proven record of steady market share gains and innovation
A proven record of steady market share gains and innovation Market share evolution since 1997 Davivienda name and logo are among the most recognized and respected brands in Colombia 25% 1997 2004 March-12 17% 14% 14% 10% 7% 1% 3% 3% Commercial Consumer Mortgages¹ 1972 Mar-12 Innovation Rank Market s
Slide 16: Daviplata
Daviplata Innovative financial inclusion solution that introduced the first mobile phone banking service in Colombia Daviplata was launched in February 2011 and allows users to access our mobile payment and money transfer platforms (pay bills, re-charge mobile devices accounts and withdraw cash at D
Slide 17: Investment Highlights
Investment Highlights Strong management Solid macro and team and controlling financial fundamentals group Top-notch risk management and asset Leading quality banking franchise Strong financial performance Strong financial performance Strong and consistent profitability Solid and healthy growth acros
Slide 18: Robust and consistent growth over time
Robust and consistent growth over time Assets Loans (US$ in millions) (US$ in millions) Loans LT funded loans 14,977 15,195 20,456 20,895 16,523 2,026 1,803 14,597 12,240 10,153 1,372 1,069 12,992 13,392 10,901 9,372 2009 2010 2011 Mar-12 2009 2010 2011 Mar-12 Note: LT funded loans are funded with b
Slide 19: Well balanced portfolio resulting in solid margins
Well balanced portfolio resulting in solid margins Loan portfolio breakdown Net interest income and NIM (US$ in millions) Mortgages¹ Net interest income 16% 8.8% 8.0% 7.9% 8.4% 8.3% NIM 1,277 1,082 1,015 Commercial 356 291 52% 2009 2010 2011 Mar-11 Mar-12 Note: All historical figures converted to US
Slide 20: Stable and diversified sources of funding
Stable and diversified sources of funding Balance Sheet structure Deposit evolution (US$ in millions) (US$ in millions) Savings Term Checking Other 12,848 13,422 1% 10,235 10,797 14% Total 1Q12: US$20,895mm 31% Other 1,700 8% 13% Equity 55% 2,734 5% Other Investments, net 3,020 14% 981 Development 2
Slide 21: Strong financial performance coupled with high profitability
Strong financial performance coupled with high profitability Net income ROAA¹ (US$ in millions) Average: 2.1% 323 352 2.5% 257 1.9% 2.1% 1.9% 120 96 2009 2010 2011 Mar-11 Mar-12 2009 2010 2011 Mar-12 ¹ROAA = net income / average assets; Ratios for March 2012 annualized Efficiency ratio before provis
Slide 22: Investment Highlights
Investment Highlights Strong management Solid macro and team and controlling financial fundamentals group Top-notch risk management and asset quality Top-notch Conservative approach to risk risk management management Healthy and diversified loan portfolio and asset Leading quality banking Solid capi
Slide 23: Healthy and diversified loan portfolio
Healthy and diversified loan portfolio NPLs¹ & Coverage ratios² Consumer NPLs Coverage ratio 301.4% 275.6% 211.5% 206.1% 3.8% 4.2% 2.8% 2.7% 260.5% 241.7% 226.6% 218.7% 2009 2010 2011 Mar-12 2.5% Commercial3 541.4% 2.3% 484.0% 2.1% 438.2% 2.0% 310.8% 1.7% 0.8% 0.7% 0.8% 2009 2010 2011 Mar-12 Mortgag
Slide 24: Healthy and diversified loan portfolio (cont'd)
Healthy and diversified loan portfolio (cont’d) Loan portfolio Loan evolution by business segment Commercial Consumer Mortgage¹ Commercial 52.6% 15,195 14,977 Commercial 15.9% services, 6.4% Construction, 12,240 6.3% 10,153 Retail trading, 31.5% 5.0% Other, 16.5% Transp. and communications, 4.0% 52.
Slide 25: Strong capitalization that will further strengthen with the bond issuance
Strong capitalization that will further strengthen with the bond issuance Total regulatory capital evolution TCE (as % of RWA)¹ Regulatory Capital = 9.0% Tier 1 Tier 2 15.4% 14.4% 14.3% 13.1% 3.7% 12.0% 3.0% 2.5% 3.4% 3.7% 11.8% 11.8% 9.0% 11.4% 11.7% 11.7% 9.6% 6.3% 8.4% 2009 2010 2011 Mar-12 Pro-f
Slide 26: Investment Highlights
Investment Highlights Strong management team and part of a leading local conglomerate Seasoned management team with a long track record in the industry Controlled by Grupo Bolivar, one of Colombia’s largest and most successful conglomerates Strong management Solid macro and team and controlling fina
Slide 27: Experienced management and high standards of Corporate Governance
Experienced management and high standards of Corporate Governance Davivienda boasts a seasoned management team with a long and successful track record in the industry Management Top-notch management team has successfully steered the Company through different economic cycles • Management’s strength h
Slide 28: Subsidiary of Grupo Bolivar, one of Colombia's leading conglomerates
Subsidiary of Grupo Bolivar, one of Colombia’s leading conglomerates Davivienda’s shareholder structure Sociedades Bolivar overview One of Colombia’s most important economic conglomerates IFC • Over 70 years of experience Cúsezar 3.9% • Presence in 6 Latin American countries 17.5% • Presence in the
Slide 29: Investment Highlights
Investment Highlights Solid macro and financial Strong management team and fundamentals controlling group Colombian financial sector is poised Seasoned management team with a for growth due to strong economic long track record in the industry Solid macro and fundamentals and low banking Strong manag
Slide 30: Appendix
Appendix 29
Slide 31: Key financial highlights
Key financial highlights Key indicators summary (US$ in millions) Balance Sheet 2009 2010 2011 Mar-12 CAGR 2009 - Mar-12¹ Assets $14,597 $16,523 $20,456 $20,895 17.3% Cash & banks 895 940 1,861 1,738 34.3% Investments, net 2,553 2,451 2,648 3.020 7.8% Loans, net 9,528 11,589 14,256 14,436 20.3% Good
Slide 32: Strong and consistent generation of net income
Strong and consistent generation of net income Income statement and key ratios (US$ in millions) Income statement 2009 2010 2011 Mar-11 Mar-12 Net interest income $1,015 $1,082 $1,277 $291 $356 Allowance, net of recoveries (397) (205) (346) (67) (113) Net interest income after allowance 618 877 931
Slide 33: Roadshow Presentation
Roadshow Presentation June 2012