Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Investor Presentation (February 2024)
47 slides from Banco Davivienda SA's investor presentation, February 2024
Slide 1: Preferred Shares Issuance
Preferred Shares Issuance Banco Davivienda February 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Davivienda S.A. (the "Issuer" or the "Company" or "Davivienda") for the exclusive use of the recipients thereof from the Company. This presentation is neither an offer to sell nor the request of an offer to purchase the preferred shares to which it rel
Slide 3: Disclaimer
Disclaimer The profitability of investments in Shares is subject to the Issuer's dividend policy and financial performance. There is no guaranteed rate of return. Investing in Daviviendaʼs Shares carries the risk of loss of the capital invested. This presentation does not contain all information nec
Slide 4: Contents
Contents 1. Characteristics of the issuance and use of funds 2. Investment thesis 2.1. Comprehensive service offering, leadership in Colombia and relevant presence in the region 2.2. Solid and diversified balance sheet structure that has supported growth and strategy development 2.3. Resilience again
Slide 5: Characteristics of the Issuance and Use of Funds
1. Characteristics of the Issuance and Use of Funds
Slide 6: Characteristics of the Program
Characteristics of the Program Common and Preferred Shares Issuance and Offering Program Type of Shares Common Shares and Preferred Shares Global amount 48,000,000 shares Term 5 years Davivienda plans to use 100% of the funds to ● Maintain its capital levels ● Leverage its growth Use of Funds ● Devel
Slide 7: Characteristics of the Issuances
Characteristics of the Issuances Total Offering: First Offer of the First issuance of Common Shares (27,392,472 shares) 36,000,000 shares Simultaneous 720 Billion COP Issuances Offer of the First issuance of Preferred Shares (8,607,528 shares) Potential Impacts on Capital Ratios This shares issuance is
Slide 8: First Issuance of Preferred Shares
First Issuance of Preferred Shares Current preferred shareholders1 Total Amount of the Offer 8,607,528 shares Recipients and assignees2 Price COP 20,000 Minimum bid 1 share Preferential Factor 0.0797041 per issued share Maximum bid 8,607,528 shares Allocation process Deadlines Start End Less than or
Slide 9: Investment Thesis
2. Investment Thesis
Slide 10: Investment Thesis
Investment Thesis Comprehensive service offering, leadership in Colombia and relevant 1 presence in the region Solid and diversified balance sheet structure that has supported 2 growth and strategy development Resilient against challenges and with recovery potential, thanks to a 3 constantly improvin
Slide 11: Comprehensive service offering, leadership in Colombia and presence in the region
1 Comprehensive service offering, leadership in Colombia1 and relevant presence in the region Davivienda has a comprehensive service offering that goes beyond banking. Over the years, Davivienda has complemented its offerings for both individuals and businesses, consolidating a portfolio of financial s
Slide 12: Presence in Colombia
1 Comprehensive service offering, leadership in Colombia1 and relevant presence in the region | Presence in Colombia Davivienda has a relevant presence in Colombia and is one of the most recognized brands in the country2. Davivienda is the second-largest bank in Colombia by assets, gross loans and de
Slide 13: Presence in Central America
1 Comprehensive service offering, leadership in Colombia1 and relevant presence in the region | Presence in Central America The presence in Central America provides diversification. Contribution of Central America to the consolidated results Assets2 Gross Loans2 The operation in Central America repre
Slide 14: Solid and diversified balance sheet structure
2 Solid and diversified balance sheet structure A solid balance sheet structure that has leveraged growth. Loans The bank's assets are primarily composed by loans and Initially specialized in mortgage loans, Davivienda investments, supported by a diversified liability base. has successfully diversif
Slide 15: Solid and diversified balance sheet structure | Capital
2 Solid and diversified balance sheet structure | Capital Capital management that seeks to maintain adequate levels to support business growth and strategy development. Davivienda's solvency levels exceed regulatory requirements by more than 300 basis points. Davivienda has a solid, high-quality cap
Slide 16: Resilience | Evolution of financial ratios
3 Resilience | Evolution of financial ratios Davivienda has demonstrated its ability to face various market conditions, thanks to a resilient financial structure. Net Interest Margin Cost of Risk 13.25% 12.00% Risk management aimed at Adjustment in credit risk providing stability to the appetite and
Slide 17: Resilience | Credit risk
3 Resilience | Credit risk Gradual improvement in the risk profile of the portfolio in line with adjustments in management, risk appetite and origination policies. Consumer Loan Disbursements1 Consumer Loan Mix (%)2 (Trillion COP) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 3T23 3T23 3Q23 Consumer
Slide 18: Sustainable Strategy | Framework
4 Sustainable Strategy | Framework We are committed to making the world a more prosperous, more inclusive, and greener place, and we align ourselves with the best standards to achieve this. Our strategy is sustainable and aligned with various standards and reporting frameworks. We have prioritized 7
Slide 19: Sustainable Strategy | Results
4 Sustainable Strategy | Results We aim to generate progress in the places where we operate, while caring for the planet and ensuring sustainable business growth. Sustainable Financing Main Milestones in the Last Years ~30% of women Adhesion to on the Board of UN PRB2 Climate change Directors 2023 D
Slide 20: Leadership in Innovation and Digital Transformation | Main milestones
5 Leadership in Innovation and Digital Transformation | Main milestones Davivienda has consolidated as one of the best Digital Banks in Latin America1. We continue to make progress in our transformation process, achieving a significant adoption among our customers, with 91% of them being digital2. C
Slide 21: Leadership in Innovation and Digital Transformation | Our new Apps
5 Leadership in Innovation and Digital Transformation | Our new Apps We launched new applications for individuals and businesses, a new way to be close to our customers and go beyond Banking. Super App for people Business App A modular and flexible Super App capable of It redefines the way merchants
Slide 22: Leadership in Innovation and Digital Transformation | Daviplata
5 Leadership in Innovation and Digital Transformation | Daviplata DaviPlata, a solution that leverages access to the financial system, supports the development of small businesses, and has great monetization potential. Wallet Payment method Financial Offering 16.8M 4.2M COP 812 bn P2P Ecard Loans - P
Slide 23: Investment Thesis
Investment Thesis Comprehensive service offering, leadership in Colombia and relevant 1 presence in the region Solid and diversified balance sheet structure that has supported 2 growth and strategy development Resilient against challenges and with recovery potential, thanks to a 3 constantly improvin
Slide 24: Investor Relations
Investor Relations www.ir.davivienda.com ir@davivienda.com (+57) 601 220 3495 Bogotá - Colombia
Slide 25: Annexes
Annexes
Slide 26: About Davivienda
About Davivienda
Slide 27: The second-largest bank in Colombia, with regional presence
Summary The second-largest bank in Colombia, with regional presence More than 50 years in the market Main figures ● Founded in 1972, Davivienda has a presence in Colombia, Costa 6 23.1M 672 2.8K 18.1K Rica, El Salvador, Honduras, Panama and the United States Countries Customers Branches ATMs Employe
Slide 28: History and growth
History and growth A bank with over 50 years of experience and a trend of sustainable growth 2021 2023 13.7% CF5 2020 2015 2023 11.8% 15.5% 2019 Market share by 1994 assets2 3.8% 2018 14.9% 2016 2004 Market share by gross 7.1% 2012 loans3 Assets1 4 2013 $ 180.5 Tn 2011 2007 2010 - 2011 COP 416 Bn IP
Slide 29: Support from our shareholders
Support from our shareholders Being part of the Grupo Bolívar generates synergies and enhances the growth of Davivienda. Shareholder structure Grupo Bolívar: one of the most important business groups in Colombia Foreign Others1 Relevant actor in the sector, with more than 80 years of experience Inve
Slide 30: Investment thesis
Investment thesis
Slide 31: Presence in Central America
1 Comprehensive service offering, leadership in Colombia1 and relevant presence in the region | Presence in Central America The presence in Central America provides diversification. Total Central America2 Gross Loans by Country USD Million 3T23 Annual Change Assets 10,949 5.8% Gross Loans 7,406 7.9%
Slide 32: Solid and diversified balance sheet structure
2 Solid and diversified balance sheet structure A solid balance sheet structure that has leveraged growth. Assets Liabilities Equity 13.6% -2.0% 14.0% -1.6% 9.3% -6.4% CAGR (ʼ18-ʼ22) Var (ʼ22-3Q23) CAGR (ʼ18-ʼ22) Var (ʼ22-3Q23) CAGR (ʼ18-ʼ22) Var (ʼ22-3Q23) 3Q23 3Q23 3Q23 Consolidated figures in Tri
Slide 33: Solid and diversified balance sheet structure | Loan portfolio
2 Solid and diversified balance sheet structure | Loan portfolio Initially specialized in mortgage loans, Davivienda has successfully diversified to become a bank with a comprehensive credit offering. Gross Loans Loan Portfolio Mix 13.3% CAGR (ʼ18-ʼ22) -3.6% Var (ʼ22-3Q23) 3Q23 3Q23 Commercial Loans1
Slide 34: Solid and diversified balance sheet structure | Funding sources
2 Solid and diversified balance sheet structure | Funding sources Diversified funding sources and market presence support the loan portfolio. Funding sources Funding Sources Mix 14.7% CAGR (ʼ18-ʼ22) -2.1% Var (ʼ22-3Q23) 3Q23 3Q23 Local and International Bonds Securitization Local Issuer Internationa
Slide 35: Solid and diversified balance sheet structure | Capital
2 Solid and diversified balance sheet structure | Capital Capital management that aims to maintain appropriate levels to support business growth and the development of the strategy. Concept 2018 2019 2020 2021 2022 2023 Amount of shares (million) 451.67 451.67 451.67 451.67 451.67 451.67 Declared di
Slide 36: Resilience | Credit risk
3 Resilience | Credit risk A constantly-improving risk management system will enable a return to normalized levels. PDL ratio1 Coverage2 Gross Loans Coverage3 Total Loans Commercial Loans Consumer Loans Mortgage Consolidated figures. 1. PDL ratio: Past due loans over 90 days. 2. Coverage: Loan Loss
Slide 37: Resilience | Credit risk
3 Resilience | Credit risk Davivienda has adequate coverage levels for the risky portfolio. Provision Expenses and Cost of Risk1 3Q23 Loans by Stages Coverage by Stages 3Q23 3Q23 Consolidated figures. 1. 12-month cost of risk.
Slide 38: Leadership in Innovation and Digital Transformation | Digital Transformation Figures
5 Leadership in Innovation and Digital Transformation | Digital Transformation Figures Davivienda continues to make progress in its transformation process, with 91% of its customers being digital and experiencing high adoption of digital products, transactions and sales. Colombia 1 2 Digital Custome
Slide 39: Leadership in Innovation and Digital Transformation | DaviPlata figures
5 Leadership in Innovation and Digital Transformation | DaviPlata figures DaviPlata has several monetization sources and growth potential. Customer Base Low-Amount Deposits Income (Million) (COP Billion) (COP Billion) 3Q23 3Q23 3Q23 Transactional Earnings by FTPs1 Funding Deposits Monthly Average Ea
Slide 40: Leadership in Innovation and Digital Transformation | DaviPlata figures
5 Leadership in Innovation and Digital Transformation | DaviPlata figures Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 3Q23 3Q23 Active Users CAC Customer Satisfaction2 (30 Days) (12 Months) 3Q23 3Q23 3Q23 1. Valid cards. 2. Figures available since 2020. 40
Slide 41: Management Team
Management Team
Slide 42: Board of Directors and Support Committees
Board of Directors and Support Committees Audit Committee Board of Directors Members2 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 Gover
Slide 43: Experienced Management Team
Experienced Management Team Javier Suárez Chief Executive Officer ● Civil Engineer from Universidad de los Andes, with a Masterʼs degree in Finance and a Masterʼs degree in Actuarial Sciences from Georgia State University. ● Over 30 years of experience in the financial industry. Álvaro Cobo Ricardo L
Slide 44: Macroeconomic Aspects and Financial System
Macroeconomic Aspects and Financial System
Slide 45: Macroeconomic Aspects - Colombia
Macroeconomic Aspects - Colombia Economic Activity Index (Y/Y) Latam Exchange Rates (Index 100 = Dec 2017) Brazil 148.2* * Chile 146.7* Colombia 137.3* Peru 117.2* Mexico 88.9* Quarterly Average Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Source: National Depa
Slide 46: Financial System - Colombia
Financial System - Colombia System Loan Portfolio Sept. 23 Interest Rates on Loans Sept. 23 (Annual Growth) (4-week moving average) 42.1% Cap Rate1 38.3%** 31.2% Consumer 27.6%* Mortgage Total 11.8% 22.6% 20.3%* 8.0%* 9.6% Commercial Mortgage 6.2% 7.0%* 11.7% 19.0%* Total 11.1% Commercial 3.1% 5.0%*
Slide 47: Macroeconomic Aspects - Central America
Macroeconomic Aspects - Central America Gross Domestic Product (Y/Y) Inflation (Y/Y) Panama 9.5%* Costa Rica 5.1% 5.6%*** Honduras 4.1% El Salvador 6.1% 3.8% 3.1%** 4.7% El Salvador Honduras 3.0% 2.5% 2.6% 3.0%** 2.0% Panama 0.5% 2.3% Costa Rica -2.2% Source: Central Banks of Central America. *Septe
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