Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Q2 2023 Earnings Presentation
32 slides from Banco Davivienda SA's earnings presentation, Aug 1, 2023
Slide 1: Davivienda Corporate Presentation - 2Q23
Davivienda Corporate Presentation - 2Q23
Slide 2: Disclaimer and forward-looking statements
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: Content
Content Page Page 1 About Davivienda 4 7 Digital Transformation and DaviPlata 13 2 Grupo Bolívar 5 8 Wealth Management 17 3 Ownership Structure 6 9 Credit Risk Management 19 4 Results of Our Sustainable Management 8 10 Capital Structure 20 5 History 9 11 Key Ratios 21 6 Loan Portfolio and Funding So
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Loans: $ 15.1Bn Loans: $ 11.3Bn Main Figures Customers: 9.0M Customers: 399k USD Billion Y/Y 2 Assets $ 43.3 8.8% 2 Gross Loans $ 33.8 8.0% Deposits $ 28.8 12.4% Equity $ 3.7 5.3% Net Profit1 $ 57.1 -77.6% Deposits: $218.1M Loans: $ 7.4Bn Customers: +16.4M Customers: 1.6M
Slide 5: Our Main Shareholder: Grupo Bolívar
Our Main Shareholder: Grupo Bolívar Among the most important conglomerates in Colombia. with over 80 years of experience. Consolidated figures USA (Miami) Assets USD 48.7 Billion Equity USD 4.7 Billion Honduras Customers +22.7 Million El Salvador Employees +24.7k Costa Rica Colombia Countries 6 Panam
Slide 6: Ownership Structure
COMMON SHARES Ownership Structure TOTAL SHARES 76.1%² PREFERRED SHARES 100%¹ 23.9%³ 1. Total Outstanding Shares: 451,670,413. 2. Common Shares Account for 76.1% of Total Shares (343,676,929). 3. Preferred Shares Account for 23.9% of Total Shares (107,993,484). Figures as of June 30th, 2023. 6
Slide 7: Our Sustainable Management
Our Sustainable Management THE WORLD IS THRIVING INCLUSIVE GREEN OUR HOME LET’S MAKE IT MORE Material Issues ● Finance and Sustainable Funding ● Inclusion and Financial Education ● Climate Change ● Responsible Investment ● Equality, Diversity, and Inclusion ● Eco-efficiency ● Corporate Governance ● Co
Slide 8: Results of Our Sustainable Management
Results of Our Sustainable Management 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% Y/
Slide 9: Milestones of Sustainable Growth
Milestones of Sustainable Growth Proven Track Record of Organic and Inorganic Growth The Corporation The Local Bank A Regional Banking Platform Creating Ecosystems 2021 2020 CF4 2023 14% 2019 2023 2015 16% 11.8% Market Share by 2016 1994 2013 Assets2 3.8% 2018 Assets 14.9% 2012 $43.3 Bn 1 Market Sha
Slide 10: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 2Q23 Y/Y Commercial 10.8% Consumer 1.5% $1.3 $33.8 Mortgage 11.1% Total 8.0% Y/Y Colombia COP 6.8% $1.3 $33.8 International USD 2 12.5% Colombia USD 3.8% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of June 2023: C
Slide 11: A Portfolio Focused on Strategic Segments and Products
A Portfolio Focused on Strategic Segments and Products USD Billion 2% Mortgage Loans 2% Consumer Loans Unsecured Personal Loans Leasing Payroll Low Income Housing $8.7 $9.9 Credit Cards Vehicle Residential Revolving Loans Commercial Loans1 $15.1 Figures in USD Billion. 1. Services: services, transpo
Slide 12: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Savings Accounts Checking Accounts $36 Term Deposits Bonds Credits Loans to Deposits 130.7% 128.9% 122.3% 120.2% 120.8% 117.4% Loans to Funding Sources 97.2% 95.9% 93.4% 91.4% 92.6% 92.6% International Issuances Portfolio Securitization3 Amount Yield
Slide 13: Results of our Digital Transformation
Results of our Digital Transformation Digital Products Portfolio1 Transactions by Channel Digital Sales (USD $ Billion) (% of products) (% of monetary transactions) 1 Digital Clients -16% 92.1% Y/Y 31% Y/Y 77% Y/Y Transactions by Channel Digital Sales (% of products) (% of monetary transactions) Dig
Slide 14: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Leader in Financial Inclusion 99%2 Ofterritory Colombian Mobile Transfer Money¹ Pay Bills Products Withdraw Money Mobile Airtime Top-Up Platform Savings Pocket Make Purchases Ecosystems with Social Impact Receive Remittances Buy Insurances Nanocredits Payment Shops:
Slide 15: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Income (Million) (USD $ Million) (USD $ Million) 11% 11% 27% Y/Y Y/Y Y/Y With Products in DaviPlata as Common with Monthly Transactional Subsidy Income Deposits Funding FTPs1 the Sector Only Product Davivienda Average Income DaviPla
Slide 16: 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 16
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y 0.4% 8.2% Investment Funds Securities Brokerage, Investment Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services -39.6% Assets Under Custody 16.0% Trust Funds International Investments Market Share • The Trust Co
Slide 18: Credit Risk Management
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 18
Slide 19: Credit Risk Management
Credit Risk Management CoR1 - Provision Expenses 2Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 332 46.0% 559 88.4% Ex. FX Impact* 46.5% 86.1% Loans by Stages Coverage by Stages Figures in USD Million. As of 2Q23 the average exchange rate appreciated 3.5% Q/Q and depreciated 17.3% Y/Y 1. Cost of Ri
Slide 20: Capital Structure
Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 2Q23 Q/Q Y/Y Accounting Equity 3.7 -3.3% 5.3% Common Equity Tier 1 3.4 -3.7% 4.9% Additional Tier 1 0.5 -11.6% 0.7% Total Technical Capital 4.8 -6.2% 0.3% RWAs 31.6 -5.8% 8.1% Credit Risk 27.1 -5.5% 4.7% Market Risk*100/9 1.2
Slide 21: Key Ratios
Key Ratios ROAA & ROAE NIM Non-Financial Income and Fee Ratios Cost-to-Income Non Financial Income Ratio 12 M Fee Income Ratio 12 M Cost-to-Income Excluding Non-Recurring Income Excluding Goodwill Impairment ROAE = Net Profit (12 months) / Average Equity (5 periods) Non Financial Income Ratio= Non Fi
Slide 22: A Leading Banking Institution in Colombia
A Leading Banking Institution in Colombia Customers¹ +21.1M Branches 530 ATMs 2.3K Banking Correspondents 33K Employees 13.7K Market 2Q23 Y/Y Ranking USD Billion Share Assets $ 33.3 7.7% 2 14.0% Gross Loans $ 25.5 6.1% 2 16.0%² Commercial $ 10.7 9.1% 3 12.7% Consumer $ 7.7 -3.1% 2 15.9% Mortgage $ 7
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Jun. 23 Y/Y Assets 11,082 12.0% El Salvador Gross Loans 7,371 12.5% Customers +1.6M Commercial 3,817 12.3% Branches 138 Costa Rica Consumer 2,078 20.6% ATMs 558 Employees +4.2 K Panamá Mortgage 1,476 3.2% Deposits 7,354 10
Slide 24: Board of Directors and Corporate Governance Committees
Board of Directors and Corporate Governance Committees BoD Members2 Audit Committee Supports BoD in supervising effectiveness of internal controls. Composed of three directors, two are independents members of the BoD. Reviews financial audited statements prior submission to the BoD. Corporate Governa
Slide 25: Experienced Management Team
Experienced Management Team Javier Suarez Chief Executive Officer ● Civil Engineer from Universidad de los Andes, with a Master’s degree in Finance and a Master’s degree in Actuarial Sciences from Georgia State University. ● Over 30 years of experience in the financial industry. Ricardo León Pedro Urib
Slide 26: Appendix
Appendix
Slide 27: 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
Slide 28: 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
Slide 29: 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
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 2Q22 1Q23 2Q23 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 3,347 4,168 3,911 - 257 -6.2% 564 16.8% Investments 4,116 5,002 4,680 - 322 -6.4% 564 13.7% Net Loans 29,906 33,165 32,168 - 996 -3.0% 2,263 7.6% Commercial 13,649 15,580 15,128 - 452 -2.9% 1,47
Slide 31: Consolidated P&L
Consolidated P&L USD Million 2Q22 1Q23 2Q23 $ Q/Q Q/Q $ Y/Y Y/Y Jun 2022 Jun 2023 $Y/Y Y/Y Total Income 776 1,271 1,247 - 24 -1.9% 471 60.7% 1,451 2,517 1,066 73.5% Loans 756 1,116 1,101 - 16 -1.4% 345 45.6% 1,420 2,217 797 56.1% Investment 13 134 126 -8 -6.1% 113 895.2% 20 260 240 1223.8% Overnight
Slide 32: Visit us at ir.davivienda.com
Investor Relations and Capital Management ir@davivienda.com + (57 601) 220 3495 ir.davivienda.com Bogotá - Colombia Visit us at ir.davivienda.com