Banco Davivienda SA · BVC:PFDAVVNDA

Banco Davivienda SA — Davivienda — Q2 2023 Earnings Presentation

24 slides from Banco Davivienda SA's earnings presentation, Aug 1, 2023

  1. Slide 1: Consolidated Financial Results - 2Q23

    Davivienda Consolidated Financial Results - 2Q23

  2. 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

  3. Slide 3: Macroeconomic Fundamentals Colombia

    Macroeconomic Fundamentals Colombia Economic Activity Index (Y/Y) Latam Exchange Rates (Index 100 = Dec 2017) Brazil 142.7 Chile 136.4 * Colombia 131.7 Peru 111.5 Quarterly Average Mexico 84.9 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 Depart

  4. Slide 4: Financial System Colombia

    Financial System Colombia System Loan Portfolio Interest Rates on Loans (Annual Growth) (4-week moving average) Consumer 30.1%* 22.6% Total Commercial 20.4%* 10.8%* Mortgage Mortgage 19.2%* 11.8% 11.7% Commercial 9.5%* 9.6% Total 11.1% 9.7% 17.9%* 6.2% 8.8%* Consumer 3.1% 5.1%* Dec-17 Dec-18 Dec-19

  5. Slide 5: Macroeconomic Fundamentals CAM

    Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Panama 9.5%* Costa Rica 5.1% 4.3%** 4.1% Honduras Honduras 3.8% 1.9%** 5.6% El Salvador 4.7% El Salvador 2.5% 0.8%** 2.6% 3.8% 2.0% 0.5% Panama -0.6% Costa Rica -1.0% Source: Central Banks of Central America. *September, 2022

  6. Slide 6: 2Q23 Main Results

    2Q23 Main Results $141.11 Gross Loan Portfolio 90 Days PDL $262.22 Accum. Net Profit 4.42% Q/Q: -2.7% Y/Y: 8.0% Q/Q: 75 bps Y/Y: 143 bps Accum. Y/Y: -77.6% S&P & BRC Ratified Davivienda’s NIM & CoR Credit Rating S&P (Global): BB+, stable outlook. 0 bps 12 bps BRC (Local): AAA. Q/Q Y/Y 68 bps 113 bps I

  7. Slide 7: Evolution of our Margins

    Evolution of our Margins Asset Implicit Rates1 Liabilities Implicit Rates1 Term Deposits Loans Investments Funding Sources2 Demand Deposits 2019 2Q22 1Q23 2Q23 2019 2Q22 1Q23 2Q23 Funding Mix Income affected by a lower base of performing loan portfolio, decreases in the inflation-linked unit, and a lo

  8. Slide 8: Evolution of Credit Risk

    Evolution of Credit Risk Gross Provision Expenses - Consumer Portfolio Consumer Portfolio Disbursements 65% (Trillion COP) Expected 25% Cons. CoR 10% 2023: 3.6% - 3.9% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Actual Adjusted Consum

  9. Slide 9: DaviPlata, a Neobank for Everyone

    DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Income (Million) (COP Billion) (COP Billion) 11% 11% 27% Y/Y Y/Y Y/Y With Products in DaviPlata as Common with Monthly Transactional Deposits Subsidy Income Funding FTPs1 the Sector Only Product Davivienda Average Income DaviPlata’s

  10. Slide 10: Balance Sheet - Assets

    Activo Balance Sheet - Assets By Operation Q/Q Y/Y Assets Q/Q Y/Y Cash -6.2% 16.8% Colombia -0.6% 7.7% Net Investments -6.4% 13.7% COP -10.1% 12.8% Gross Loans -2.7% 8.0% CAM Loan Loss Reserves 3.2% 17.4% USD 0.0% 12.0% Others 5.8% 4.2% Assets -3.2% 8.8% Figures in COP Trillion Ex. FX Impact* 0.8% 6

  11. Slide 11: Balance Sheet - Gross Loans

    Balance Sheet - Gross Loans Growth by Operation (Y/Y)1 Growth by Segment (Y/Y) Gross Loans Mix Ex. FX Impact* 130.6 140.2 144.8 145.0 141.1 Q/Q Y/Y Q/Q Y/Y Commercial -2.9% 10.8% 1.1% 8.5% Consumer -4.9% 1.5% -2.6% 0.6% Mortgage 0.2% 11.1% 2.2% 9.4% Gross Loans -2.7% 8.0% 0.2% 6.3% Figures in COP Tr

  12. Slide 12: 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 12

  13. Slide 13: Balance Sheet - Credit Risk Management

    Balance Sheet - Credit Risk Management CoR1 & Provision Expenses 2Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 1,522 46.0% 2,565 88.4% Ex. FX Impact* 46.5% 86.1% Loans by Stages Coverage by Stages Figures in COP Billion. The average rate COP/USD appreciated 3.5% Q/Q and depreciated 17.3% Y/Y 1. Co

  14. Slide 14: Balance Sheet - Liabilities

    Activo Balance Sheet - Liabilities Y/Y Funding Sources ($) Funding Ratios 9.1% 17.7% -19.2% 67.2% 72.0 71.0 73.2 -12.2% 65.9 61.9 -18.7% 1 Funding Mix (%) Liquidity Ratios 51.6% 46.8% 48.0% 41.7% 40.6% Other Demand Deposits High-Cost Demand Deposits (Col) 2 3 Figures in COP Trillion. The closing rat

  15. Slide 15: Balance Sheet - Capital Structure

    Balance Sheet - Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 2Q23 Q/Q Y/Y Accounting Equity 15.7 -3.3% 5.3% Common Equity Tier 1 14.2 -3.7% 4.9% Additional Tier 1 2.1 -11.6% 0.7% Total Technical Capital 20.1 -6.2% 0.3% RWAs 131.9 -5.8% 8.1% Credit Risk 113.4 -5.5% 4.7% M

  16. Slide 16: P&L - Financial Margin

    P&L - Financial Margin 2Q23 Accumulated Gross Financial Margin $ Q/Q $ Y/Y Loan Income 5,055 -1.4% 10,182 56.1% Investment and Interbank Income 669 -5.4% 1,377 872.6% Financial Income 5,724 -1.9% 11,558 73.5% Financial Expenses 3,273 1.2% 6,507 171.0% Gross Financial Margin 2,451 -5.7% 5,051 18.5% P

  17. Slide 17: P&L - Non Financial Income & Expenses

    P&L - Non Financial Income & Expenses 2Q23 Accumulated 2Q23 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Fee Income1 460 2.8% 908 10.4% Personnel Expenses 560 -8.0% 1,169 21.1% Other Net Income & Expenses 80 -14.4% 174 20.9% Operating Expenses and Others 861 -3.0% 1,749 17.9% Non Financial Income 541 -0.1% 1

  18. Slide 18: P&L - Net Profit

    P&L - Net Profit 2Q23 Accumulated Net Profit2 $ Q/Q $ Y/Y Gross Financial Margin 2,451 -5.7% 5,051 18.5% Provision Expenses 1,522 46.0% 2,565 88.4% Net Financial Margin 928 -40.4% 2,485 -14.3% FX Changes, Derivatives -209 -32.1% -516 -290.7% Non Financial Income 541 -0.1% 1,082 11.9% Operating Expense

  19. Slide 19: Expectations 2023

    Expectations 2023 2023 E 2Q23 2023 E (Previous / May. 23) (Current) (Aug. 23) Growth 6% - 8% Δ Y/Y 8.0% Δ Y/Y ~0% Δ Y/Y Loan Portfolio PDL* 2.9% - 3.3% 4.42% 4.0% - 4.5% NIM 6.2% - 6.4% 6.15% 6.0% - 6.3% Cost of Risk 2.4% - 2.8% 3.30% 3.6% - 3.9% Profitability Non Financial Income 14% - 16% 12.0% 14%

  20. Slide 20: Visit us at ir.davivienda.com

    Investor Relations and Capital Management ir@davivienda.com + (57 601) 220 3495 www.davivienda.com Bogotá - Colombia Visit us at ir.davivienda.com

  21. Slide 21: Appendix

    Appendix 21

  22. Slide 22: Key results of our Sustainable Strategy

    Key results of our Sustainable Strategy Recognized internationally for our Sustainable Strategy Sustainable Loan Portfolio 15% Y/Y 9% Y/Y Leadership in finance for Promoting employability Only Colombian winner during climate change adaptation and financial literacy of 2023. Winners for the second 30%

  23. Slide 23: Results of our Digital Transformation

    Results of our Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales (% of products) (COP Trillion) (% of monetary transactions) 1 Digital Clients 92.1% -16% Y/Y 31% Y/Y 77% Y/Y Transactions by Channel Digital Sales (% of products) (% of monetary transactions) Digi

  24. Slide 24: DaviPlata, a Neobank for Everyone

    DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 Mi Negocio DaviPlata / Davivienda (Million) 23% Y/Y 11% Y/Y 5% Y/Y 169% Y/Y -10% Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) -13pts +202% Y/Y Y/Y -4 -0.1pts pp Y/Y 1.Current cards 24

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