27 slides from Banco Bilbao Vizcaya Argentaria Colombia Sa Class B's earnings presentation, May 2018
Slide 1: BBVA Colombia Results 1Q18
BBVA COLOMBIA Results 1Q18 May 2018 The IR Recognition granted by Bolsa de Valores de Colombia S.A. (the Colombian Stock 1 Exchange) is not a certification of the registered securities or the solvency of the issuer.
Slide 2: Disclaimer
BBVA Colombia Results 1Q18 Disclaimer 2
Slide 3: Macroeconomic Outlook
BBVA Colombia Results 1Q18 Macroeconomic Outlook Global growth remains firm at 3.8% in both 2018 Colombian economy shows signs of recovery, especially and 2019. However there are rising risks related in private consumption. In 2018, we estimate GDP will to trade protectionism, US fiscal policy and g
Slide 4: 2018 First Quarter Performance Highlights
BBVA Colombia Results 1Q18 2018 First Quarter Performance Highlights Results (Million) $ 655.732 $ 818.076 $ 160.662 Very strong results in +15% YoY +6% YoY +39% YoY the quarter Net Interest Income Gross Margin Net Profit Balance Sheet (Billion) 10.42% $ 56.894 $ 4.089 $ 43.862 $ 44.812 Market share
Slide 5: Continued progress in the digital transformation of the financial sector
BBVA Colombia Results 1Q18 Continued progress in the digital transformation of the financial sector Digital Sales Outstanding trend in digital sales Digital Sales (ex insurance) / Total sales and customers 15% «BBVA opens the door to 10% 7% e-commerce to more than three million customers» 1Q17 4Q17
Slide 6: Index
BBVA Colombia Results 1Q18 Index 01 Results 1Q18 02 Balance Sheet and Business Activity 03 Solvency Annex 6
Slide 7: Results 1Q18
BBVA Colombia Results 1Q18 01 Results 1Q18 7
Slide 8: Consolidated Results for the Quarter
BBVA Colombia Results 1Q18 Consolidated Results for the Quarter +39% Net Income Million of COP 162,039 160,662 -0.8% 115,409 1Q17 4Q17 1Q18 ROE % ROA % 1.7 13 1.4 11 16 1.4 11 0.8 1.1 0.7 10 11 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 BBVA Sector BBVA Sector Strong results supported by recurring income Source:
Slide 9: Strong Recurring Income Growth
BBVA Colombia Results 1Q18 Strong Recurring Income Growth Net Interest Income Million of COP +15% 664,425 -1.3% 655,732 Net interest income continues to benefit from lower interest rates and 570,309 high commercial spreads 1Q17 4Q17 1Q18 Spreads NIM/Spread Costumer/Spread 5.92 5.76 5.62 4.77 4.57 4.
Slide 10: Given our strategy towards digital channels, fee income saw a reduction in 1Q18
BBVA Colombia Results 1Q18 Given our strategy towards digital channels, fee income saw a reduction in 1Q18 Net fee income Million of COP -37.7% Annual fee income decrease due to: 71,935 57,604 -50.1% • A reduction of digital 35,904 interbank-transfer-fees • Migrating customers to electronic channels
Slide 11: Expenditure Control and Efficiency Improvement
BBVA Colombia Results 1Q18 Expenditure Control and Efficiency Improvement Administrative costs Efficiency Ratio Billion $ % +1.6% 420,039 48.95 -8,7% 383,400 377,511 47.02 46.87 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 Expenses grew well below inflation compared to 1Q17 Consolidated figures 11
Slide 12: Balance Sheet and Business Activity
BBVA Colombia Results 1Q18 02 Balance Sheet and Business Activity
Slide 13: Diversified and Growing Business
BBVA Colombia Results 1Q18 Diversified and Growing Business Portfolio Composition Gross Loan Portfolio Growth Billion 1Q2017 4Q2017 1Q2018 18,104 17,864 39.654 43.650 43.862 +10% YoY Commercial 15,817 +12.9% YoY 24% 25% 24% 15,573 15,162 35% 35% 36% Consumer 13,994 +11.3% YoY 40% 41% 41% 10,384 9,84
Slide 14: Strategic Management of Our Funding Sources
BBVA Colombia Results 1Q18 Strategic Management of Our Funding Sources 1Q2017 4Q2017 1Q2018 Deposits 42.805 43.980 44.812 +5% YoY Composition 15% 13% 14% 45% 46% 47% 42% 40% 39% Deposits Growth +4.7% Billions Term 20,086 21,189 19,136 Deposits +10.7% YoY Saving 17,908 17,464 17,307 • Growth driven b
Slide 15: Leaders in Retail Banking
BBVA Colombia Results 1Q18 Leaders in Retail Banking Market Share Gains in 1Q18 Loan Portfolio Deposits $44 Market Share 10.4% YoY Growth +53 bps $44 Market Share 11.7% YoY Growth +28 pbs Trillion Trillion Individuals Saving Commercial Accounts Market share Market share Market share 14.74% 7.30% Che
Slide 16: NPL Evolution
BBVA Colombia Results 1Q18 NPL Evolution NPL (%)* • NPL ratio show a slight 3.46 3.59 deterioration of 13 bps taking, showing an improved trend 3.53 2.71 3.35 • In line with our portfolio 2.38 admission policies, consumer NPLs have a reduced deterioration compared to the 1Q17 4Q17 1Q18 previous quar
Slide 17: Consolidated Balance Sheet
BBVA Colombia Results 1Q18 Consolidated Balance Sheet Var TAM Million of COP 1Q17 1Q17 * 4Q17 1Q18 abs % Adjustment Cash and cash equivalents 5,982,573 5,982,573 5,777,721 5,398,209 -584,364 -9.8 Investments 6,601,826 6,601,826 7,330,899 6,474,430 -127,396 -1.9 Derivative Financial Instruments and C
Slide 18: Restatement of the Financial Statements 1Q2017 Adjusted
BBVA Colombia Results 1Q18 Restatement of the Financial Statements . 1Q2017 Adjusted Goodwill Credit Elimination: The bank registered until 31st of December 2016 a goodwill credit (commercial fund) that emerged from the acquisition of Granahorrar back in 2006. During the time of implementation of th
Slide 19: Solvency
BBVA Colombia Results 1Q18 03 Solvency 19
Slide 20: Strong Capital Adequacy
BBVA Colombia Results 1Q18 Capital Adequacy Billion COP 2,183 2,183 2,372 2,107 Strong 3,069 3,054 2,967 3,154 Capital Position 1Q17 1Q17 Adj 4Q17 1Q18 TIER I TIER II Evolution of the capital ratio % 12.82 12.84 12.26 12.24 324 basis points 7.48 7.48 6.81 7.33 Above the required level of Total Solve
Slide 21: Contact
BBVA Colombia Results 1Q18 Contact E-mail: bbvacolombia-ir@bbva.com Investor Relations Team: Carolina Ramírez López Tel 3471600 Ext. 12842 carolina.ramirezlopez@bbva.com Director– IR Katherine García Buitrago Tel 3471600 Ext. 11286 katherine.garcia@bbva.com IR – Professional Bogotá, Colombia. BBVA C
Slide 22: Annex
BBVA Colombia Results 1Q18 Annex
Slide 23: Consolidated Income Statement of the Quarter
BBVA Colombia Results 1Q18 Consolidated Income Statement of the Quarter Million of COP Var TAM 1Q17 4Q17 1Q18 abs % Loan Portfolio 1,173,771 1,186,482 1,164,963 (8,808) (0.8) Interest Expense (603,462) (522,056) (509,231) 94,231 (15.6) Net interest income 570,309 664,425 655,732 85,423 15.0 Net comm
Slide 24: Individual Balance Sheet
BBVA Colombia Results 1Q18 Individual Balance Sheet Million COP Var TAM 1Q17 * 1Q17 1Q18 abs % Adjustment Cash 4,286,328 4,286,328 4,146,975 -139,353 -3.3 Active Positions in monetary market 1,691,294 1,691,294 1,244,892 -446,402 -26.4 Investment Securities & Derivatives 7,583,493 7,583,493 7,835,07
Slide 25: Individual Income Statement of the Quarter
BBVA Colombia Results 1Q18 Individual Income Statement of the Quarter Million COP Var TAM 1Q17 4Q17 1Q18 abs % Loan Portfolio 1,173,771 1,182,697 1,195,242 21,470 1.8 Interest Expense (604,291) (522,888) (509,842) 94,449 (15.6) Net interest income 569,480 659,809 685,400 115,919 20.4 Net commission
Slide 26: Our Bank…
BBVA Colombia Results 1Q18 Our Bank… March 2018 ATM’s Branch Offices Employees 1.339 550 5.221 YoY Growth YoY Growth YoY Growth variation variation variation +1.05% -3.41% -14.86% Banking Agents 5.854 YoY Growth variation +0.48% 26
Slide 27: Local Market
BBVA Colombia Results 1Q18 Participation in Colombia Sector Peer 1 32% 100% 68% Col Central America Peer 3 Peer 2 Focused on the 24% Local Market 43% 57% 76% Col Central America Source: Annual Report of each bank, March 2017 Col Central America 27