Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Q3 2023 Earnings Presentation
24 slides from Banco Davivienda SA's earnings presentation, Nov 1, 2023
Slide 1: Consolidated Financial Results - 3Q23
Davivienda Consolidated Financial Results - 3Q23
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: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals 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 D
Slide 4: Financial System Colombia
Financial System Colombia System Loan Portfolio Sept. 23 Interest Rates on Loans Apr. 23 47.1% 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% Commercia
Slide 5: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM 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. *September, 2022
Slide 6: 3Q23 Main Results
3Q23 Main Results NIM & CoR $139.6 1 Gross Loans Q/Q: -1.0% Y/Y: -0.4% -21 bps -10 bps Q/Q Y/Y 66 bps 185 bps Q/Q Y/Y 4.73% PDL Q/Q: 31 bps Y/Y: 181 bps 2019 2020 2021 2022 2Q23 3Q23 3.21% 2 Cost to Assets Q/Q: 2 bps Y/Y: 7 bps ROAE & CET14 Non Financial Income Ratio 18.6% Q/Q: 61 bps Y/Y: 152 bps -
Slide 7: Evolution of our Margins
Evolution of our Margins Asset Implicit Rates1 Liabilities Implicit Rates1 Term Deposits Loans Funding Sources2 Investments 5.4% Demand Deposits 2019 3Q22 2Q23 3Q23 2019 3Q22 2Q23 3Q23 Funding Mix (%) Going Forward… Balance sheet profile positioned to benefit from the monetary policy rate decrease. Fu
Slide 8: Evolution of Credit Risk
Evolution of Credit Risk Consumer Portfolio Disbursements Consumer Loan Mix (%) (Trillion COP) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Consumer Ex. Credit Card Credit Card Consumer Portfolio - Vintages Gross Provision Expenses - Consumer Portfolio 6% Expected Consolidated CoR 2023: 4.0% - 4.2%
Slide 9: Balance Sheet - Assets
Activo Balance Sheet - Assets By Operation Assets Q/Q Y/Y Colombia 1.0% 5.2% COP -4.1% -6.6% CAM USD -1.2% 5.8% Q/Q Y/Y Loan Loss Reserves / Gross Loans Cash 6.3% 27.5% Net Investments -1.9% 6.1% Gross Loans -1.0% -0.4% Loan Loss Reserves -1.0% 11.2% Others 1.5% -3.1% Assets -0.3% 1.9% 2019 3Q22 2Q2
Slide 10: 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* 140.2 144.8 145.0 141.1 139.6 Q/Q Y/Y Q/Q Y/Y Commercial -1.3% 0.0% -0.4% 3.2% Consumer -3.3% -7.4% -2.7% -5.4% Mortgage 2.1% 7.8% 2.5% 9.0% Gross Loans -1.0% -0.4% -0.3% 2.0% Figures in COP
Slide 11: 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: Loan Loss Reserves / Loans > 90 days 11
Slide 12: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management CoR1 & Provision Expenses 3Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 1,631 7.2% 4,197 97.8% Ex. FX Impact* 7.6% 96.2% Loans by Stages Coverage by Stages Figures in COP Billion. The average rate COP/USD appreciated 4.0% Q/Q and depreciated 8.3% Y/Y 1. Cost
Slide 13: Balance Sheet - Funding Sources and Liquidity
Activo Balance Sheet - Funding Sources and Liquidity Funding Sources ($) Y/Y Funding Ratios 3.4% 1.9% -17.4% 39.8% 71.0 73.2 65.9 61.9 61.4 -12.7% -15.3% 1 Funding Mix (%) Liquidity Ratios 48.0% 46.8% 41.7% 40.6% 40.1% Other Demand Deposits 2 3 High-Cost Demand Deposits (Col) Figures in COP Trillion
Slide 14: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 3Q23 Q/Q Y/Y Accounting Equity 15.2 -2.6% -4.0% Common Equity Tier 1 13.6 -3.8% -5.9% Additional Tier 1 2.1 -1.4% -11.7% Total Technical Capital 19.5 -3.1% -8.2% RWAs 133.1 0.9% 1.4% Credit Risk 114.3 0.8% -2.2
Slide 15: P&L - Financial Margin
P&L - Financial Margin 3Q23 Accumulated Gross Financial Margin $ Q/Q $ Y/Y Loan Income 4,851 -4.0% 15,033 42.9% Investment and Interbank Income 427 -36.1% 1,804 429.2% Financial Income 5,279 -7.8% 16,837 55.0% Financial Expenses 3,266 -0.2% 9,774 123.5% Gross Financial Margin 2,012 -17.9% 7,063 8.9%
Slide 16: P&L - Non Financial Income & Operating Expenses
P&L - Non Financial Income & Operating Expenses 3Q23 Accumulated 3Q23 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Fee Income 455 -1.2% 1,362 10.1% Personnel Expenses 570 1.8% 1,740 16.3% Other Net Income & Expenses 32 -60.6% 206 12.2% Operating Expenses and Others 897 4.1% 2,646 15.6% Non Financial Income1
Slide 17: P&L - Net Profit
P&L - Net Profit 3Q23 Accumulated Net Profit2 $ Q/Q $ Y/Y Gross Financial Margin 2,012 -17.9% 7,063 8.9% Provision Expenses 1,631 7.2% 4,197 97.8% Net Financial Margin 381 -59.0% 2,866 -34.4% FX Changes, Derivatives 24 111.5% -492 -263.9% Non Financial Income1 486 -10.1% 1,568 10.4% Operating Expenses
Slide 18: Expectations 2023 & 2024
Expectations 2023 & 2024 2023 E 3Q23 2023 E 2024 E (Previous / Aug.23) (Current) (Adjusted / Nov.23) (Nov. 2023) Growth ~0% Δ Y/Y -0.4% Δ Y/Y -6% -3% Δ Y/Y 6% - 8% Δ Y/Y Loan Portfolio PDL* 4.0% - 4.5% 4.73% 4.2% - 4.7% 3.8% - 4.2% NIM 6.0% - 6.3% 5.94% 5.7% - 6.0% 6.0% - 6.2% Cost of Risk 3.6% - 3.
Slide 19: 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
Slide 20: Appendix
Appendix 20
Slide 21: Results of our Sustainable Strategy
Results of our Sustainable Strategy Davivienda adhered to the United Nations Sustainable Loan Portfolio Principles for Responsible Banking (PRB): 20% To continue aligning and strengthening our commercial strategy to the Y/Y global goals: 17% Increase positive impacts and reduce risks for people and
Slide 22: 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 92.4% -23% Y/Y 29% Y/Y 90% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of products) (% of monetary t
Slide 23: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Income (Million) (COP Billion) (COP Billion) 11% 1% 9% 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 N
Slide 24: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 26% Y/Y 5% Y/Y -12% Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) 140% Y/Y -9.9pts Y/Y -5 pp Y/Y -0.3pts Y/Y 1.Current cards 24