Banco Del Bajio Sa · BMV:BBAJIO/O
Banco Del Bajio Sa — Investor Presentation (November 2020)
18 slides from Banco Del Bajio Sa's investor presentation, November 2020
Slide 1: A Leading Specialized Bank set for Long-Term Profitable Growth
A Leading Specialized Bank set for Long-Term Profitable Growth Corporate Presentation November | 2020 Information as of 3Q20
Slide 2: Disclaimer
Disclaimer The material that follows presents general background information about Banco del Bajío, S.A., Institución de Banca Múltiple (the “Company” or “BanBajio”) as of the date of the presentation. This information consists of publicly-available information concerning the Company. It is informa
Slide 3: Evolution from an emerging local bank to a specialized leader with national presence
Evolution from an emerging local bank to a specialized leader with national presence ◥ BanBajio Today ◥ BanBajio’s History in Four Phases Evolution of Branch Network (#) 3rd largest locally-controlled bank in Mexico(1), with ~US$12.2 Bn (2) in total assets. 1 Founding 2 Diversification 3 Growth 4
Slide 4: Our well-invested platform allows us to offer a full multi-channel solution to our customers
Our well-invested platform allows us to offer a full multi-channel solution to our customers ◥ Branch Distribution by Region 13 North Center 28 North 19 Northwest 308 Branches 29 States 9 Aguascalientes 79 Cities 12 San Luis Potosi 15 Pacific 15 Queretaro 48 Southwest 32 Metropolitan North Corporat
Slide 5: Specialized Bank on SME and Corporate Loans
Specialized Bank on SME and Corporate Loans ◥ BanBajio is Highly Specialized on SME and Corporate Loans ◥ BanBajio’s Unique Access and Capabilities to Better Serve Companies Company Loans as % of Total Loans │ 3Q20 1 85% Deep and technical knowledge of our 80% customers and their businesses 54% 2 5
Slide 6: Developing other business lines, based on the digital transformation process
Developing other business lines, based on the digital transformation process As we have been successful in our company loans-focused strategy, we believe that there is also growth potential in the individuals segment to diversify and increase our revenue sources. Taking advantage of our base of i
Slide 7: Loan Growth Portfolio and Deposits
Loan Growth Portfolio and Deposits ◥ Total Loan Portfolio | Million Pesos ▪ Total Loan Portfolio grew 7.0% in 3Q20 Y o Y. CAGR ‘17 -‘3Q20: 11.5% System (1) 6.5% ▪ Company Loans, which represents our core business, increased 3.6 %. 200,000 190,000 180,000 YoY Yield 170,000 Company Loans* 3.6 % 3Q19
Slide 8: Loan Portfolio, BanBajio's main asset
Loan Portfolio, BanBajio’s main asset ◥ Loan Portfolio Breakdown | By Type 3Q19 | % 3Q20 | % Mortgage Consumer Mortgage Consumer Government 4% 1% Government 4% 1% Financial Institutions 7% Financial Institutions 9% Companies Companies 5% 6% 80% 83% Corporates SMEs Corporates SMEs 54% 27% 53% 29% ◥
Slide 9: Loan Portfolio, BanBajio's main asset
Loan Portfolio, BanBajio’s main asset ◥ Commercial portfolio Use 3Q20 | % 5.5 0.5 0.1 FIXED ASSETS 6.1 22.7 WORKING CAPITAL 6.6 LIABILITIES PAYMENT GOVERNMENT INFRASTRUCTURE 9.0 FINANCIAL INSTITUTIONS/FUNDING COMMERCIAL REAL ESTATE 49.5 HOUSING REAL ESTATE PUBLIC WORKS ◥ Commercial portfolio Covera
Slide 10: We have consistently maintained industry-leading asset quality
We have consistently maintained industry-leading asset quality ◥ Best-in-Class Asset Quality 3Q20 │ % ◥ NPLs ◥ NPLs Adjusted for Write-Offs (1) 2.62% 5.71% 2.61% 5.08% 2.09% 4.77% 2.03% 4.24% 1.92% 4.51% 1.21% 3.55% 0.87% 2.30% 0.80% 1.71% 0% 1% 2% 3% 0% 1% 2% 3% 4% 5% 6% Source: Company informatio
Slide 11: Asset Quality
Asset Quality ▪ High asset quality and outstanding risk profile ◥ NPL Ratio | % ◥ NPL Ratio adjusted | % 2.50 5.00 2.30 4.50 4.64 4.73 2.10 2.24 4.53 2.18 4.00 1.90 2.05 1.70 3.50 1.50 3.00 1.30 2.50 1.05 1.10 0.97 0.87 2.00 1.67 1.71 0.90 1.32 0.70 1.50 0.50 1.00 3Q18 3Q19 3Q20 3Q18 3Q19 3Q20 ◥ C
Slide 12: Cost of Funding and Liquidity
Cost of Funding and Liquidity ▪ Funding Breakdown | Ps$ Bn COST OF COST OF FUNDING FUNDING 5.64 % 3.72 % 226.5 1% 198.6 20% 5.30 % 20% 7.56 % 3% Notes 5% Interbank Loans 3.94 % (Primarily Development 40% 6.61 % Bank Loans) 42% Repos Time Deposits 1.29 % 2.49 % 36% Demand Deposits 33% 3Q19 3Q20 ▪ Ca
Slide 13: Efficiency Ratio
Efficiency Ratio ▪ Efficiency Ratio for 3Q20 stood at 46.9% and 46.4% for 9M20, System 53.2%. ◥ Efficiency Ratio Evolution vs. Peers ◥ Total Revenues and Expenses (1) Operating Expenses/Total Revenues (1) | % Ps$ MM | Quarterly 52.0% $4,000 3,271 $3,500 49.3% 48.9% $3,000 46.9% $2,500 $2,000 1,535
Slide 14: Solid corporate governance standards
Solid corporate governance standards ◥ Board of Directors Composition Non-Independent 38% Independent 62% Total: 13 Members ◥ High Corporate Governance Standards Independent board members selected for their ample experience in banking, risks, economy and technology. Unique IT Board committee,
Slide 15: Supplemental Financial Information
Supplemental Financial Information
Slide 16: Income Statement
Income Statement Var. Ps$ MM 3Q19 2Q20 3Q20 YoY QoQ ▪ Interest Income $5,943 $5,124 $4,692 -21.0% -8.4% ▪ Interest Expense ($2,804) ($2,239) ($2,061) -26.5% -7.9% Financial Margin $3,139 $2,885 $2,631 -16.2% -8.8% ▪ Net Fees & Commissions $456 $443 $480 5.3% 8.4% ▪ Trading Income $155 $60 $148 -4.5
Slide 17: Income Statement
Income Statement Var. Ps$ MM 9M 19 9M 20 YoY ▪ Interest Income $17,346 $15,248 -12.1% ▪ Interest Expense ($8,062) ($6,641) -17.6% Net Interest Income $9,284 $8,607 -7.3% ▪ Net Fees & Commissions $1,286 $1,380 7.3% ▪ Trading Income $374 $270 -27.8% ▪ Other Operating Income / (Expense) * $12 $50 316.
Slide 18: Balance Sheet
Balance Sheet Var. Ps$ MM 3Q19 2Q20 3Q20 YoY QoQ ▪ Cash & Cash Equivalents $26,120 $27,184 $31,619 21.1% 16.3% ▪ Investment in Securities $10,695 $11,168 $11,639 8.8% 4.2% ▪ Cash & Investments $36,815 $38,352 $43,258 17.5% 12.8% ▪ Performing Loan Portfolio $176,990 $182,386 $189,528 7.1% 3.9% ▪ Non
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