Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Webinar Seminario SAB, December 14th, 2022
27 slides from Banco De Bogota Sa's conference presentation, Dec 14, 2022
Slide 1: Webinar Seminario SAB
Webinar December 14th, 2022 SEMINARIO SAB 1 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 Ownership ✓ Founded in 1870, Banco de Bogotá is Colombia’s oldest financial institution and the principal subsidiary of Grupo Aval, the leading financial group in Colombia 68.9% 11.8% 8.3% 11.0% ✓ 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. Agencies in Miami, New York and Panama.(1) Aval Soluciones Subsidiaries in Digitales S.A. Colombia 94.99% 94.93% 94.90% 38.90% Bogotá Finance Ficentro Foreig
Slide 5: Our Corporate Strategy Supports Long-term Goals
Our Corporate Strategy Supports Long-term Goals Customer We ensure positive and Sustainable Growth memorable experiences to our We expand our business in a profitable customers in order to achieve manner focusing on capturing new their loyalty and referral, through clients and on the integral manage
Slide 6: Highlights of Our Corporate Strategy in 2021
Highlights of Our Corporate Strategy in 2021 • New Experience Management Center • Adjustment of our analytical and fraud prevention models in order to enhance credit • Optimization of customers’ onboarding origination processes. reducing process time from 40 to 3 minutes • Completed 51 digital branc
Slide 7: Sustainable Growth Leads To Strong Financial Results
Sustainable Growth Leads To Strong Financial Results Figures in million USD Gross Loan Portfolio (1) Deposits 3Q-22 Consolidated Figures and Ratios 3Q-22 Balance: $20,092 3Q-22 Balance: $18,208 Total Assets: $29,221 NIM: 4.5% 11.7% 0.3% 0.5% 35.3% Total Liabilities: $25,661 Cost to Income: 49.4% 22.
Slide 8: Digital Transformation
Digital Transformation Sales Channel Transformation Service Channel Transformation Cumulative Total Digital Sales (k) 1 Active Digital Retail Clients (k) 1,515 1,594 ∆ CAGR 21.9% 884 8.1 out of 10 1,421 1,748 2,110 Outstanding Products sold in consumer ratings in our Colombia banking App are digital
Slide 9: Risk Control at the Core of our Operations
Risk Control at the Core of our Operations Asset Quality Cost or Risk Coverage 4.6% 1.67x 4.6% 1.8% 1.63x 1.7% 3.5% 1.3% 1.4% 1.27x 3.4% 1.21x 2Q-22 3Q-22 2Q-22 3Q-22 2Q-22 3Q-22 Gross Loan Provision / Average Loans Allowances / 30 day PDLs 30 day PDLs 90 days PDLs Net Loan Provision / Average Loans
Slide 10: International and Local Risk Ratings Reflect our Creditworthiness
International and Local Risk Ratings Reflect our Creditworthiness International rating Moody’s Investor Services 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: ESG Strategy is Key to Increase Positive Impact
ESG Strategy is Key to Increase Positive Impact We are committed to managing our activities in a responsible and innovative manner, striving to improve the quality of people’s lives, contributing to the economic prosperity of society and to the mitigation and reduction of our negative impact on the
Slide 12: International Recognitions and Awards
International Recognitions and Awards International magazines have highlighted our role in economic recovery and our leadership in resuming the path towards growth. On the digital front, they have underscored our strategy to attract and serve customers, the variety and ease of access to our on-line
Slide 13: 3Q-2022 Performance Overview
3Q-2022 Performance Overview Attributable Net Income for 3Q-2022 was $435.4 billion pesos leading to an annualized 10.9% ROAE. 1.3%(1) 10.9%(1) • Net Interest Income amounted to $1.2 trillion pesos ROAA ROAE growing 6.9% when excluding FX. Net Interest Margin 4.5% • Total NIM was 14 bps higher than
Slide 14: Digital Transformation
Digital Transformation Sales Channel Transformation Service Channel Transformation Cumulative Total Digital Sales (k) 1 Active Digital Retail Clients (k) 1,515 1,594 ∆ CAGR 21.9% 884 8.1 out of 10 1,421 1,748 2,110 Outstanding Products sold in Consumer Ratings in Colombia our Banking App are digital
Slide 15: Context – Global Macro Performance
Context – Global Macro Performance Global GDP (YoY %) Global PMIs (Neutral index = 50) 8 65 Global 3.2% 2.7% 6 60 Advanced Emerging 3.7% 3.7% 55 4 50.3 50.2 50 49.9 2 2.4% 45 0 1.1% 40 -2 35 -4 30 oct.-19 oct.-20 oct.-21 oct.-22 -6 2019 2020 2021 2022 2023 Global Advanced Emerging Neutral (50) Globa
Slide 16: Context – Colombia Macro Performance
Context – Colombia Macro Performance Monthly activity indicator vs. GDP1 (YoY %) Inflation vs. Central bank rate (YoY %) 30% 14% 2020 2021 2022e 2023e 12.22% 12% 20% Inflation (YoY %) 1.6% 5.6% 12.2% 7.7% 12.6% Central Bank Rate (%) 1.75% 3.00% 12.00% 8.50% 11.00% 10% 10% 8.6% 8% 0% 6% Central bank
Slide 17: Assets & Loan Portfolio Detail – Consolidated
Assets & Loan Portfolio Detail – Consolidated Figures in Ps. Trillions Total Assets Breakdown Total Gross Loan Portfolio Structure $134.1 Consumer Secured, 3.2% Credit Cards, 3.1% $92.2 Agricultural, 3.2% Other, 0.5% Chemical production, 3.6% Other Commercial services, 20.9% Assets,(1) Public servic
Slide 18: Loan Portfolio Quality – Consolidated
Loan Portfolio Quality – Consolidated 30 days PDLs / Gross Loans Cost of Risk (1) 90 days PDLs / Gross Loans Loan provision (net of recoveries of charged-off assets) / 30 days PDLs / Gross Loans Average Loans 90 days PDLs / Gross Loans Loan provision / Average Loans 5.4% 4.6% 4.6% 1.9% 1.8% 1.7% 4.1
Slide 19: Loan Portfolio Quality – Colombia and Central America
Loan Portfolio Quality – Colombia and Central America Colombia (COP) Panama (USD) Pro forma Pro forma 2Q-22 3Q-22 2Q-22 3Q-22 3Q-21 3Q-21 Delinquency Ratio 30-days PDLS / Gross Loans 5.8% 4.9% 4.9% 3.5% 3.2% 3.6% 90-days PDLS / Gross Loans 4.5% 3.8% 3.8% 2.1% 2.2% 1.9% Cost of Risk (1) Net Provision
Slide 20: Loan Portfolio Quality – Breakdown
Loan Portfolio Quality – Breakdown 30 days PDLs 90 days PDLs Pro forma Pro forma 2Q-22 3Q-22 2Q-22 3Q-22 3Q-21 3Q-21 Commercial 4.6% 4.3% 4.4% 4.1% 3.8% 3.8% Consumer 7.6% 5.2% 5.1% 4.3% 2.7% 2.5% Mortgage 5.4% 4.8% 4.6% 3.0% 2.9% 2.8% Microcredit 31.8% 24.1% 16.9% 27.1% 20.7% 14.1% Total Loans 5.4%
Slide 21: Consolidated Funding
Consolidated Funding Figures in Ps. Trillions Total Funding Total Deposits YoY: 9.1%; Exc. FX: 5.7% YoY: 6.7%; Exc. FX: 3.7% QoQ: 2.7%; Exc. FX: 0.9% QoQ: -1.0%; Exc. FX: -2.5% 111.5 114.5 104.9 78.3 84.4 83.6 Pro forma 3Q-21 2Q-22 3Q-22 Pro forma 3Q-21 2Q-22 3Q-22 Pro forma Pro forma % 2Q-22 3Q-22
Slide 22: Equity and Capital Adequacy as Reported
Equity and Capital Adequacy as Reported Figures in Ps. Trillions Attributable Equity + Minority Interest Tangible Common Equity YoY: -33.4% YoY: -12.3% QoQ: 3.8% QoQ: 3.8% 24.5 0.07 15.7 16.3 0.04 0.04 24.5 17.0 14.4 14.9 15.7 16.3 3Q-21 2Q-22 3Q-22 3Q-21 2Q-22 3Q-22 Total Equity Shareholders' Equit
Slide 23: Consolidated NIM
Consolidated NIM Figures in Ps. Billions Net Interest Income (Billions of COP) Growth Rate Pro forma 2Q-22 3Q-22 3Q-21 YoY Exc. Fx QoQ Exc. Fx Net Interest Income 1,026.1 1,126.5 1,219.3 18.8% 16.7% 8.2% 6.9% 5.4% 5.3% 5.0% Net Interest Margin (1) 4.3% 4.4% 4.5% Net Interest Margin on Loans (2) Net
Slide 24: Fees and Other Income
Fees and Other Income Figures in Ps. Billions Gross Fee income YoY: 20.1%; Exc. FX: 19.0% Fee Income Ratio (1) QoQ: 8.4%; Exc. FX: 7.5% 24.6% 21.9% 25.1% 401.9 435.8 363.0 7.6% 7.7% 9.0% 9.4% Other 9.8% 10.6% Fiduciary activites 80.4% 82.6% 82.9% Banking fees Pro forma 3Q-21 2Q-22 3Q-22 Other Operat
Slide 25: Efficiency
Efficiency Figures in Ps. Billions Efficiency (Billions of COP) Growth Rate Pro forma 2Q-22 3Q-22 3Q-21 YoY Ex FX QoQ Ex FX Total Operating Expenses 740.1 772.7 828.5 12.0% 9.7% 7.2% 5.4% Total Income 1,493.0 (1) 1,771.3 1,678.1 12.4% 10.4% -5.3% -6.4% Cost to income (2) Cost to Assets (3) 49.6% 49.
Slide 26: Profitability
Profitability Net Attributable Income Figures in Ps. Billions Continued Operations 75% of BHI 2,012.2 Porvenir's one-time income 1,302.3 641.9 435.4 342.2 367.7 3Q-21 2Q-22 3Q-22 ROAA (1) 3.7% 5.0% 2.5% 2.0% 1.3% 0.0% 3Q-21 2Q-22 3Q-22 ROAE (2) 50.0% 34.5% 16.6% 12.2% 10.9% 0.0% 3Q-21 2Q-22 3Q-22 1.
Slide 27: Banco de Bogota G
Banco de Bogota G
Banco de Bogotá — Webinar Seminario SAB, December 14th, 2022 on 6ix