Banco Del Bajio Sa · BMV:BBAJIO/O

Banco Del Bajio Sa — Investor Presentation (March 2019)

22 slides from Banco Del Bajio Sa's investor presentation, March 2019

  1. Slide 1: Corporate Presentation

    A Leading Specialized Bank set for Long-Term Profitable Growth Corporate Presentation March | 2019

  2. 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

  3. Slide 3: Guidance 2019

     Guidance 2019 ▪ Loan Growth 9% - 11% ▪ Deposits Growth 9% - 11% ▪ NIM 5.7% - 5.8% ▪ Revenues, Net of Reserves 13% - 14% ▪ Expenses Growth 14% - 16% ▪ Efficiency Below 45% ▪ Cost of Risk Below 1% ▪ Tax Rate 24.0% - 26.0% ▪ Net Income $5,500 - $5,700 Growth 8.1% - 12.0% ▪ ROAE 18.1% - 18.7% ▪ NPL Ra

  4. Slide 4: 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$11.4 Bn(2) in total assets. 1 Founding 2 Diversification 3 Growth 4

  5. Slide 5: 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 12 North Center 28 North 19 Northwest 305 Branches 28 States 9 Aguascalientes 79 Cities 12 San Luis Potosi 15 Pacific 15 Queretaro 48 Southwest 33 Metropolitan North Corporat

  6. Slide 6: 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 │ 4Q18 1 Banregio 84% Deep and technical knowledge of our Bajio 81% customers and their bus

  7. Slide 7: Loan Portfolio, BanBajio's main asset

    Loan Portfolio, BanBajio’s main asset ◥ Loan Portfolio Breakdown | By Type 4Q17 | % 4Q18 | % Mortgage Consumer Mortgage Consumer Government 5% 1% Government 4% 1% Financial Institutions 5% Companies Financial Institutions 7% Companies 7% 82% 6% 82% Corporates Corporates SMEs SMEs 54% 53% 28% 29% ◥

  8. Slide 8: Loan Portfolio, BanBajio's main asset

    Loan Portfolio, BanBajio’s main asset ◥ Commercial portfolio Use 4Q18 | % • No consolidated 6.3 0.3 0.1 FIXED ASSETS 21.6 WORKING CAPITAL 8.2 LIABILITIES PAYMENT 6.3 GOVERNMENT INFRASTRUCTURE 7.9 FINANCIAL INSTITUTIONS/FUNDING COMMERCIAL REAL ESTATE 49.3 HOUSING REAL ESTATE PUBLIC WORKS ◥ Commercia

  9. Slide 9: We have consistently maintained industry-leading asset quality

    We have consistently maintained industry-leading asset quality ◥ Best-in-Class Asset Quality 4Q18 │ % ◥ NPLs ◥ NPLs Adjusted for Write-Offs (1) Santander 2.36% Santander 5.25% Citibanamex 2.24% Citibanamex 5.18% Scotiabank 2.18% BBVA 4.85% BBVA 2.00% HSBC 4.81% HSBC 1.92% Banorte 3.86% Banorte 1.67

  10. Slide 10: Asset Quality

     Asset Quality ▪ High asset quality and outstanding risk profile ◥ NPL Ratio | % ◥ NPL Ratio adjusted | % 2.40 6.20 2.20 5.70 5.20 4.95 4.79 2.00 2.15 2.15 2.11 4.57 4.70 1.80 4.20 1.60 3.70 1.40 3.20 1.20 2.70 1.00 0.88 0.94 2.20 1.89 0.83 0.80 1.70 1.30 1.44 0.60 1.20 4Q16 4Q17 4Q18 4Q16 4Q17 4Q1

  11. Slide 11: Increasingly diversified and low-cost funding base

    Increasingly diversified and low-cost funding base ◥ Funding Breakdown | Ps$ Bn ◥ Total Deposits Growth (Demand + Time) Low cost funding 20.0% 18.1% 185.0 18.0% 163.7 22% 6.5% 16.0% 23% Interbank Loans 14.0% 12.6% 12.7% 5% (Primarily Development 12.0% 7% 10.3% Bank Loans) 10.0% 42% 5.7% Repos 8.0%

  12. Slide 12: Continuous upward trend in Revenues

     Continuous upward trend in Revenues • Million Pesos ◥ Revenues 3,800 3,624 ▪ Strong performance in Revenues 3,600 increasing 19.6% in 12M and 3,400 15.5% in 4Q18 YoY. 3,200 3,139 3,000 ▪ Financial Margin grew as a result 2,800 of an increase in volume and 2,600 2,375 interest rates. 2,400 2,200 2,

  13. Slide 13: Historical Net Income Performance

     Historical Net Income Performance ▪ Net Income was Ps. 1,382 million in 4Q18, 30.0% higher than 4Q17. 12M18 was Ps. 5,090, 32.3% higher than 12M17. • Million Pesos 5,500 5,090 5,000 4,500 4,000 3,848 3,500 3,000 2,500 2,237 2,000 1,500 1,382 1,063 1,000 637 500 0 12M16 4Q16 12M17 4Q17 12M18 4Q18 1

  14. Slide 14: Strong Results boosted Returns and EPS

     Strong Results boosted Returns and EPS ◥ ROAE • Annualized quarter ▪ Strong Results drove the increase 19.9% 20.0% in ROAE and ROAA. 18.0% 18.0% ▪ Continuous growth in Earnings, 16.0% 14.9% resulted in a 70% increase in EPS 14.0% since the IPO, and 32% in 2018. 12.0% 10.0% 4Q16 4Q17 4Q18 ◥ ROAA ◥

  15. Slide 15: Net Interest Margin

     Net Interest Margin ▪ NIM expanded mainly by the increases in the reference rate. 6.00% 5.75% 5.50% 5.42% 5.00% 4.50% 4.44% 4.00% 3.50% 3.00% 4Q16 4Q17 4Q18 15

  16. Slide 16: Efficiency Ratio

     Efficiency Ratio ▪ A higher growth in revenues compared to expenses allowed us to maintain similar levels of efficiency to those of 2017 and below the peers average. ◥ Efficiency Ratio Evolution vs. Peers ◥ Total Revenues and Expenses (1) Operating Expenses/Total Revenues (1) | % Ps$ MM | Quarterl

  17. Slide 17: Capital Adequacy Ratio

     Capital Adequacy Ratio ▪ Solid capitalization ratio with 98.8% TIER 1 18% 17% 16.65% * 16% 15.57% 15% 14% 13% 12.09% 12% 11% 10% 9% 8% 4Q16 4Q17 4Q18 * ICAP December 2018 17

  18. Slide 18: Solid corporate governance standards

    Solid corporate governance standards ◥ Board of Directors Composition Non-Independent 46% Independent 54%  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,

  19. Slide 19: Supplemental Financial Information

    Supplemental Financial Information

  20. Slide 20: Income Statement

     Income Statement Var. Ps$ MM 4Q17 3Q18 4Q18 YoY QoQ ▪ Interest Income $4,364 $5,177 $5,478 25.5 % 5.8 % ▪ Interest Expense (1,871) (2,187) (2,410) 28.8 % 10.2 % Financial Margin $2,493 $2,990 $3,068 23.1 % 2.6 % ▪ Net Fees & Commissions 409 422 441 7.8 % 4.5 % ▪ Trading Income 159 17 56 -64.8 % 22

  21. Slide 21: Income Statement

     Income Statement Var. Ps$ MM 12M 17 12M 18 YoY ▪ Interest Income $15,948 $19,917 24.9 % ▪ Interest Expense (6,734) (8,468) 25.7 % Financial Margin $9,214 $11,449 24.3 % ▪ Net Fees & Commissions 1,505 1,677 11.4 % ▪ Trading Income 373 227 -39.1 % ▪ Other Operating Income / (Expense) 228 188 -17.5 %

  22. Slide 22: Balance Sheet

     Balance Sheet Var. Ps$ MM 4Q17 3Q18 4Q18 YoY QoQ ▪ Cash & Cash Equivalents $18,012 $16,914 $20,976 16.5 % 24.0 % ▪ Investment in Securities 16,108 18,384 18,121 12.5 % -1.4 % ▪ Cash & Investments $34,120 $35,298 $39,097 14.6 % 10.8 % ▪ Performing Loan Portfolio 144,955 160,823 168,655 16.3 % 4.9 %

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