Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Q4 2022 Earnings Presentation
31 slides from Banco Davivienda SA's earnings presentation, May 1, 2023
Slide 1: Davivienda Corporate Presentation - 4Q22
Davivienda Corporate Presentation - 4Q22
Slide 2: Disclaimer
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 14 2 Grupo Bolívar 5 8 Wealth Management 17 3 Ownership Structure 6 9 PDL, Coverage and Cost of Risk 18 4 Results of Our Sustainable Management 8 10 Capital Structure 20 5 History 9 11 Key Ratios 21 6 Loan Portfolio and Fu
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Loans: $ 16.7Bn Loans: $ 13.4Bn Main Figures Customers: 8.7M Customers: 384k USD Billion Y/Y 2 Assets $ 38.3 20.6% 2 Gross Loans $ 30.1 22.1% Deposits $ 24.9 20.3% Equity $ 3.4 14.1% Net Profit1 $ 380 28.1% Deposits: $191.6M Loans: $ 7.1Bn Customers: +15.6M Customers: 1.5
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 42.3 billion Honduras Equity USD 4.1 billion El Salvador Customers +22 million Employees +24.7 k Costa Rica Colombia Countries 6 Panamá
Slide 6: Ownership Structure
Ownership Structure COMMON SHARES 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 December 31th, 2022. 6
Slide 7: Our Sustainable Strategy
Our Sustainable Strategy Sustainability Policy We enrich the lives of the people and planet thanks to the power of transformation underlying our business models, while we ensure our future existence by behaving responsibly before all of our stakeholders and by managing our business in a conscious wa
Slide 8: Results of Our Sustainable Management
Results of Our Sustainable Management Sustainable Loan Portfolio Davivienda is within the top 15% companies with the best sustainable business practices amongst banks Included for the 9th consecutive year 19% CAGR Members of the MILA Pacific Alliance Index1 16% CAGR 25% CAGR Renewable Energy Verified
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 2020 CF4 2022 13.8% 2019 2022 2015 16.3% 11.8% Market Share by 2016 1994 2013 Assets2 3.8% 2018 Assets 14.9% 2012 $38,3 MM 1 Market
Slide 10: Our Main Strategic Focuses
Our Main Strategic Focuses Central Strengthen Actively manage America operations Loan Portfolio Leader in SMEs Margins and risk control Boost the Insurance Business Analytics-based targeting and origination Lead through BoostService and Efficiency experience End-to-end digitalization World-class proac
Slide 11: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 4Q22 Y/Y Commercial 20.1% Consumer 28.2% $1.3 $30.1 Mortgage 18.5% Total 22.1% Y/Y Colombia COP 19.4% $1.3 $30.1 International USD 2 12.4% Colombia USD 6.5% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of December
Slide 12: A Portfolio Focused on Strategic Segments and Products
A Portfolio Focused on Strategic Segments and Products USD Billion 2% Mortgage Loans 2% Consumer Loans Unsecured Personal Loans Leasing Payroll Low Income Housing $7.5 $9.2 Credit Cards Vehicle Residential Overdraft Commercial Loans $13.4 Figures in USD Billion. Exchange Rate as of December 2022: CO
Slide 13: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Savings Accounts Term Deposits $32.5 Checking Accounts Bonds Credits Loans to Deposits 130.7% 128.9% 122.3% 119.1% 120.8% Loans to Funding Sources 97.2% 95.9% 93.4% 90.8% 92.6% International Issuances Portfolio Securitization3 Amount Yield to Coupon
Slide 14: Digital Transformation of Our Business
Digital Transformation of Our Business 91.3% Digital Clients1 CR SV HN PA 69.5% Digital Clients1 Digital Sales and Digital Sales and Transactions Transactions 90% 1 CONSOLIDATED Digital Products Portfolio2 94% 80% (USD $ Billion) 98% CAGR 80% of new deposits were PN SV 44% opened digitally CAGR Digi
Slide 15: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Transactional Income (Million) (USD $ Million) (USD $ Million) 16% 33% CAGR CAGR 46% -9% CAGR CAGR 35% CAGR Common with DaviPlata as With Products in Davivienda Only Product the Sector Mobile Products Platform Payment Method Social
Slide 16: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Active Users Transactions1 Purchases2 Ecards3 (30 Days) (Million) (USD $ Billion) (Million) 41% 214% 30% -800 CAGR CAGR CAGR pbs DaviPlata’s Nanocredit Cross-Selling Results CAC Customer Satisfaction DaviPlata / Davivienda (12 Months) 822% CAGR 75% CAGR +4.8pts +100
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y 3.4% -4.4% Investment Funds Securities Brokerage, Investment Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services -1.6% Assets Under Custody 12.4% International Investments Trust Funds Market Share • The Trust Co
Slide 18: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management Total PDL & Coverage 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: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management CoR1 - Provision Expenses 4Q22 Accumulated $ Q/Q $ Y/Y Provision Expenses 311 74.1% 809 4.4% Loans by Stages Coverage by Stages Figures in COP Billion. As of 4Q22 the average exchange rate depreciated 4.6% Q/Q and 13.7% Y/Y. 1. Cost of Risk = Provision Expenses
Slide 20: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios Equity & RWAs2 Leverage Ratio 4Q22 Q/Q Y/Y Accounting Equity 3.4 2.6% 14.1% Common Equity Tier 1 3.1 2.5% 14.9% Additional Tier 1 0.5 3.1% 21.1% Total Technical Capital 4.5 2.8% 12.3% RWAs 27.8 2.1% 24.1% Credit Risk 24.8 1.9% 22.1% Market Ri
Slide 21: Key ratios
Key ratios ROAA & ROAE NIM Non-Financial Income and Fee Ratios Cost-to-Income Non Financial Income Ratio 12 M Fee Income Ratio 12 M Cost-to-Income Excluding Non-Recurring Income Excluding Goodwill Impairment ROAE = Net Profit (12 months) / Average Equity (5 periods) Non Financial Income Ratio= Non Fi
Slide 22: A Leading Banking Institution in Colombia
A Leading Banking Institution in Colombia Customers¹ +20.3M Branches 526 ATMs 2.2K Banking Correspondents +27.8K Employees 13.7K Market 4Q22 Y/Y Ranking USD Billion Share Assets $ 28.5 17.0% 2 13.9% Gross Loans $ 22.3 18.2% 2 16.3% Commercial $ 9.3 13.3% 3 13.0% Consumer $ 7.2 25.7% 2 16.4% Mortgage
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Dec. 22 Y/Y Assets 10,866 11.7% El Salvador Gross Loans 7,080 12.4% Customers +1.5M Commercial 3,704 15.5% Branches 142 Costa Rica Consumer 1,919 14.8% ATMs 552 Mortgage 1,456 2.6% Employees +4.2 K Panamá Deposits 7,032 10
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 Gross Domestic Product (Y/Y) Davivienda’s Confidence Index Dec. 2022 * Year-to-date average Source: Davivienda. *January 31st, 2023 Source: National Administrative Department of Statistics (DANE) Exchange Rate and Oil Prices Dic. 2022 Monetary Policy Rate and Inflat
Slide 28: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) *September, 2022 Exchange Rate Monetary Policy Rate Dec. 2022 Dec. 2022 * * * CRC/USD HNL/USD * 28 Source: Central Banks of Central America *February 20th, 2023 *February 20th, 2023
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Appendix 2 USD Million 4Q21 3Q22 4Q22 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 3,214 2,833 3,395 562 19.8% 181 5.6% Investments 3,326 3,760 3,903 144 3.8% 577 17.3% Net Loans 23,543 27,902 28,786 885 3.2% 5,244 22.3% Commercial 11,144 12,963 13,385 421 3.3% 2,24
Slide 30: Consolidated P&L
Consolidated P&L Appendix 2 USD Million 4Q21 3Q22 4Q22 $ Q/Q Q/Q $ Y/Y Y/Y Dec 2021 Dec 2022 $Y/Y Y/Y Total Income 655 986 1,174 188 19.1% 520 79.4% 2,487 3,725 1,239 49.8% Loans 625 939 1,090 151 16.0% 465 74.4% 2,389 3,561 1,172 49.1% Investment 26 35 67 32 92.4% 42 163.0% 84 123 39 46.8% Overnigh
Slide 31: 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