Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Investor Presentation (October 2023)
25 slides from Banco De Bogota Sa's investor presentation, Oct 23, 2023
Slide 1: Investor Visit, October 23rd, 2023
Cambiando Contigo Investor Visit October 23rd, 2023: • JP Morgan • M&G PLC • JP Morgan Asset Management TÍTULO The Issuers Recognition-IR granted by the Colombian Securities Exchange is not a certification about the quality of the securities listed at BVC nor the solvency of the issuer
Slide 2: Disclaimer
Disclaimer Banco de Bogotá is an issuer of securities in Colombia and, as such, it is required to comply with periodic reporting requirements and corporate governance practices. As a financial institution, the Bank is subject to inspection and surveillance from Colombia’s Superintendency of Finance.
Slide 3: Business Overview
Business Overview ✓ Founded in 1870, Banco de Bogotá is Colombia’s oldest financial institution and Presence and Key Figures Q2 2023 the main subsidiary of Grupo Aval, the leading financial group in Colombia. ✓ Universal bank with a strong presence in the commercial and consumer lending segments. ✓
Slide 4: Corporate Structure Reflects Business Diversification
Corporate Structure Reflects Business Diversification Universal Bank with a wide portfolio of products and services. Presence across Colombia and Panama. Agencies in Miami and New York.(1) Aval Soluciones Subsidiaries in Digitales S.A. Colombia 94.99% 95.81% (2) 94.90% 38.90% Bogotá Finance Ficentro
Slide 5: Our Corporate Strategy Supports Long-term Goals
Our Corporate Strategy Supports Long-term Goals Customer Sustainable Growth We ensure positive and memorable We grow the business profitably by experiences to achieve customer developing value offerings that loyalty and recommendation, allow us to accompany and support through differentiated solutio
Slide 6: Highlights of Our Corporate Strategy in 2022
Highlights of Our Corporate Strategy in 2022 Customer Risk Control • Work plans established to allow us to manage • 100% of the renovation plan established for 2022 was completed, with 325 ATMs with state-of-the-art solutions to cybersecurity incidents and guarantee technology. the safety of our inf
Slide 7: Sustainable Growth Leads To Strong Financial Results
Sustainable Growth Leads To Strong Financial Results Figures in USD millions Total Assets Breakdown Q2 2023 Gross Loan Portfolio Q2 2023 (2) Deposits Q2 2023 0.3% 0.3% 13.8% 11.8% 7.7% 33.9% $32,584 22.9% $23,393 $21,624 49.7% 10.4% 68.1% 65.0% 16.1% Loans & Leases, Net Fixed Income Investments Comm
Slide 8: Digital Transformation
Digital Transformation Active Digital Retail Clients (k) Sales Channel Transformation ∆ CAGR 25.6% 76% 8 out of 10 1,582 2,191 2,494 66.9% of all transactions were performed through digital products sold are digital of our customers use channels digital channels Q2-21 Q2-22 Q2-23 TÍTULO World’s Best
Slide 9: Risk Control at the Core of our Operations
Risk Control at the Core of our Operations Asset Quality-PDLs Net Cost of Risk Coverage Impairment loss, Net / Allowances / PDLs average loans 5.6% 1.67x 2.2% 1.43x 1.27x 4.6% 0.99x 1.3% 3.9% 3.5% Q2-22 Q2-23 Q2-22 Q2-23 Q2-22 Q2-23 Commercial Loan Portfolio PDLs Consumer Loan Portfolio PDLs Mortgag
Slide 10: International and Local Risk Ratings Reflect our Creditworthiness
International and Local Risk Ratings Reflect our Creditworthiness International ratings Moody’s Investors Service Fitch Ratings Baa2 “The bank's BCA reflects its strong and resilient earnings BB+ “The bank’s ratings also reflect its consistent financial Stable generation and its steady access to low
Slide 11: Q2-2023 Performance Overview
Q2-2023 Performance Overview Attributable Net Income for Q2-2023 was $277.3 billion pesos leading to an annualized 7.2% ROAE. 0.8% 7.2% • Annualized profitability metrics were 0.8% for ROAA and 7.2% for ROAE ROAA ROAE in Q2-2023. Net Interest Margin 4.6% • NIM decreased 5 bps to 4.6%. Lending NIM gr
Slide 12: Digital Transformation
Digital Transformation Active Digital Retail Clients (k) Sales Channel Transformation ∆ CAGR 25.6% 76% 8.0 out of 10 1,582 2,191 2,494 66.9% of all transactions were performed through digital products sold are digital of our customers use channels digital channels Q2-21 Q2-22 Q2-23 TÍTULO World’s Be
Slide 13: ESG 2023
ESG 2023 Low Carbon Business Action Latam ConstruVerde Award, Silver The European Union’s delegation Medal. and Low Carbon Business Action Retail branch transformation project Latam recognized the Bank in its through sustainable construction. effort to reduce carbon emissions in 30% energy reduction
Slide 14: Context – Colombia Macroeconomic Overview
Context – Colombia Macroeconomic Overview 30% Monthly Activity Indicator vs. GDP 1 (YoY %) Inflation vs. Central Bank Rate (YoY %) 13.12% 13.25% 25% GDP 2020 2021 2022 2023e* Central bank rate 20% (YoY %) -7.3% 11.0% 7.5% 1.5% 12.00% 11.78% Headline inflation 15% 10% 5% 1.7% 5.62% 0% 0.3% 2021 2022
Slide 15: Assets & Loan Portfolio Detail – Consolidated
Assets & Loan Portfolio Detail – Consolidated Figures in trillions of pesos Total Assets Breakdown Gross Loan Portfolio Structure $136.1 Trade & trourism, 1.3% $97.7 Other (1) Government, 2.3% Mining & oil, 0.7% Equity Investments, Assets, 13.8% Agricultural, 3.0% Other, 0.5% 7.7% Chemical productio
Slide 16: Loan Portfolio Quality – PDLs / Gross Loans
Loan Portfolio Quality – PDLs / Gross Loans 30-day PDL Ratio 90-day PDL Ratio 5.8% 5.5% 3.9% 4.0% 3.8% 4.9% 5.6% 5.3% 3.8% 3.9% 3.5% 4.7% 4.5% 3.1% 3.0% 4.6% 2.2% 3.2% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2023 2022 2023 30-day PDLs by Type 90-day PDLs by Type 14.1% 15.4% 24.1% 20.7% 11.0% 11.6% TÍTULO
Slide 17: Loan Portfolio Quality – Allowances
Loan Portfolio Quality – Allowances 30-day Coverage Ratio 90-day Coverage Ratio 1.37x 1.78x 1.65x 1.27x 1.18x 1.67x 1.55x 1.08x 1.48x 1.43x 1.05x 0.99x Allowances / 30-day PDLs Allowances / 90-day PDLs 0.82x 0.55x 0.55x 0.36x 0.61x 0.41x Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2023 2022 2023 Allowances /
Slide 18: Loan Portfolio Quality – Cost of Risk & Charge-offs
Loan Portfolio Quality – Cost of Risk & Charge-offs Net Cost of Risk Net Provision Loss / Avg. Loans 2.4% 2.2% 1.8% 1.4% 1.7% 1.3% 0.9% 1.1% 0.8% Q2 Q3 Q4 Q1 Q2 2022 2023 Panama figures measured in USD. Charge-offs / 90-day PDLs Charge-offs / Average Loans TÍTULO 70% 2.7% 55% 2.0% 50% 1.8% Q2 Q3 Q4
Slide 19: Consolidated Funding
Consolidated Funding Figures in trillions of pesos Total Funding Q2-22 Q1-23 Q2-23 YoY: 4.2%; Exc. FX: 4.1% 2.1 0.3 2.4 QoQ.: -1.5%; Exc. FX: 0.4% 11.2 11.0 10.0 13.8 17.0 13.5 % Q2-23 $111.5 $117.9 $116.2 Deposits 77.7 Bank and others 11.6 84.4 89.6 90.3 Long Term Bonds 8.6 Interbank Borrowings 2.1
Slide 20: Equity & Capital Adequacy as Reported
Equity & Capital Adequacy as Reported Figures in trillions of pesos Equity Composition ∆ YoY: -1.0% Tangible Capital Ratio & Equity / Assets ∆ QoQ: 1.4% 16.3 15.8 12.1% 11.2% 11.5% 15.7 15.4 15.6 0.04 0.04 0.05 0.05 0.05 11.2% 10.2% 10.5% 15.7 16.3 15.8 15.5 15.3 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2
Slide 21: Consolidated NIM
Consolidated NIM Figures in billions of pesos Net Interest Income Growth Rate Q2-22 Q1-23 Q2-23 YoY Exc. Fx QoQ Exc. Fx Net Interest Income 1,126.5 1,278.8 1,284.4 14.0% 12.5% 0.4% 1.0% Net Interests Margins Yields by Quarter 5.4% 5.0% 5.4% 12.6% 13.3% 4.6% 4.7% 9.0% 4.4% 10.7% 8.4% 7.9% 3.1% 8.2% 3
Slide 22: Fees and Other Income
Fees and Other Income Figures in billions of pesos Fee Structure 24.4% 27.6% 23.9% ∆ YoY: 20.7% 480 485 402 31 Other 33 ∆ QoQ: 1.0% 57 51 Fiduciary Activities 31 39 Banking Fees 332 391 403 Total Fees Fee Income Ratio (1) Q2 Q3 Q4 Q1 Q2 Pro forma 2022 2023 Other income 315.7 Equity Method Income fro
Slide 23: Efficiency
Efficiency Figures in billions of pesos ∆ YoY: 11.6% ∆ YoY: 18.3% Total Income (1) Total Operating Expenses ∆ QoQ: -7.6% ∆ QoQ: 0.5% 1,952.6 909.5 913.9 1,804.8 772.7 1,617.3 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Pro forma 2022 2023 Pro forma 2022 2023 Efficiency (2) 47.8% 50.6% 46.6% TÍTULO Cost to income
Slide 24: Profitability as Reported & of Comparable Operations
Profitability as Reported & of Comparable Operations Figures in billions of pesos Net Attributable Income by Quarter 642 493 154 2022 277 488 493 277 Discontinued Operations 1,120 Continued Operations 1,685 Net Attributable Income 2,805 Q2 Q3 Q4 Q1 Q2 2022 2023 (1) Profitability 2022 TÍTULO 16.6% 12
Slide 25: Contact Information
www.bancodebogota.com Contact Information Germán Salazar Castro – Executive Vice-President Javier Dorich Doig – FP&A, Corporate Development and IR Head investor.relations@bancodebogota.com.co Mejor Banco de Colombia 2022: • Euromoney • Global Finance Great Place To Work 2022 Sustainability Yearbook
Banco de Bogotá — Investor Presentation (October 2023) on 6ix