Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Debt Investor Presentation (October 2017)
29 slides from Banco Davivienda SA's debt investor presentation, October 2017
Slide 1: Roadshow Presentation
Roadshow Presentation October 2017
Slide 2: Disclaimer
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries, this “Presentation”) contains information regarding Banco Davivienda S.A. and its direct or indirect subsidiaries, as app
Slide 3: Today's Presenters
Today’s Presenters Efraín Forero | Chief Executive Officer Appointed CEO of Davivienda in 1990 Mr. Forero has over 31 years of experience in the financial sector, having served as CEO of Delta Bolivar prior to joining Davivienda. Mr. Forero also held several positions within Compañía de Seguros
Slide 4: Summary of Bond Offering
Summary of Bond Offering Issuer Banco Davivienda S.A. Ranking Senior Unsecured Expected Rating Baa3 | BBB (Moody’s | Fitch) Distribution Format 144A / Reg S Expected Size Benchmark Denomination Global Colombian Peso Tenor; Amortization Intermediate; Bullet Use of Proceeds Refinance Davivienda’s exis
Slide 5: Agenda
Agenda 1. Davivienda at a Glance 6 2. Credit Investment Highlights 10 3. Consolidated Financial Statements 26 5
Slide 6: 1. Davivienda at a Glance
1. Davivienda at a Glance DAVIMIENDN
Slide 7: Davivienda at a Glance
Davivienda at a Glance Third Largest Financial Institution in Colombia and One of the Leading Banking Franchises in LatAm Company Description Regional Footprint(2) Incorporated in 1972, Davivienda is one of the leading banking Honduras platforms in Latin America, being the third largest financial
Slide 8: Davivienda at a Glance (Cont'd): Track Record of Growth
Davivienda at a Glance (Cont’d) Proven Track Record of Organic and Inorganic Growth The Corporation The Local Bank A Regional Banking Platform 2016 Acquired Seguridad Compañía 2013 Administradora de Fondos de Inversión. Acquired Corredores Asociados, Completed the one of the most important broker me
Slide 9: Fully Integrated Financial Services Platform
Davivienda at a Glance (Cont’d) Fully Integrated Financial Services Platform Banco Davivienda S.A. Davivienda S.A. direct subsidiaries Colombia El Salvador Costa Rica Honduras Panama Inversiones Fiduciaria Grupo del Banco Davivienda Banco Davivienda 94.7% Financieras 96.1% 87.7% 94.2% 100% Daviviend
Slide 10: 2. Credit Investment Highlights
2. Credit Investment Highlights
Slide 11: Credit Investment Highlights
Credit Investment Highlights Sound Macroeconomic Fundamentals and Healthy and Underpenetrated Banking System One of the Leading Integrated Banking Franchises in Colombia and Central America Strong and Consistent Financial and Operating Performance with a Focus on Growth and Profitability Solid Balan
Slide 12: Countries Where Davivienda Operates Have Resilient Real GDP Growth
1 The Countries Where Davivienda Operates Have Demonstrated Resilient Real GDP Growth Colombia and Central America have recently outperformed their regional peers, however they still present room for economic development Average 2012-2016 Real GDP Growth(1) 2016 Nominal GDP per Capita(1) LatAm and t
Slide 13: Colombia Is One of the Most Important Economies in Latin America
1 Colombia Has Positioned Itself as One of the Most Important Economies in Latin America Colombia Has Presented Continuous Economic Growth(1)(2)… …Outperforming Most of its Regional Peers During the Last Decade(1)(3)… Real GDP Growth 2007-2016 Real GDP CAGR 2007-2016 CAGR: 3.8% 6.9% 6.6% 6.7% 4.9% 4
Slide 14: Colombia Has Had Successful Monetary Policy
1 Despite Recent Price Increases, Colombia Has Been Characterized by a Successful Monetary Policy Recent Recovery Has Allowed the Colombian Central Bank to Colombia’s Track Record on its Inflation-Targeting Regime(1) Undertake a Cutting Cycle to its Interest Rate(1) Data as of September 30, 2017 10.
Slide 15: Healthy and Underpenetrated Banking Systems
1 Colombia and Central America Depict Healthy and Underpenetrated Banking Systems Room for growth through banking systems with low penetration levels Strong Capitalization Levels(1)… …and Sound Asset Quality Indicators(1) BIS Ratio 90-days NPL Ratio 15.8% 16.1% 16.2% 2.9% 13.2% 13.5% 2.5% 2.0% 1.7%
Slide 16: Leading Banking Franchise in Colombia
2 Leading Banking Franchise in Colombia… Davivienda is one of the most recognized financial brands in Colombia Nationwide Footprint Supported by One of the Largest Distribution Networks in the Country(1) Leading Banking Institutions in Colombia(2) Assets Branches 24.0% 31 5 Denotes presence through
Slide 17: Presence in Key Central American Markets
2 …With Presence in Key Central American Markets, Resulting in a Cohesive Regional Platform One of the Leading Banking Platforms in the Region 734 branches, including a +5.3 million credit, ~9.2 million clients +2,300 ATMs +17,000 employees branch in Miami, FL Debit and prepaid cards Asset Breakdown
Slide 18: Strong Financial Performance with a Focus on Growth and Profitability
3 Strong Financial Performance with a Focus on Growth and Profitability Continuous growth… Total Assets Total Gross Loans US$bn US$bn +6.5% +5.0% +11.7% +13.8% $32.6 $25.1 $23.9 $30.7 $27.4 6.0% $21.0 5.9% 9.6% 21.8% 9.3% 21.6% 6.5% 9.6% 21.4% 10.1% 8.7% 8.9% 25.9% 26.3% 25.5% 76.2% 74.8% 74.5% 51.9
Slide 19: Strong Financial Performance (Cont'd)
3 Strong Financial Performance with a Focus on Growth and Profitability (Cont’d) …Coupled with track record of profitability Efficiency Ratio(1) Net Interest Margin(2) 46.8% 45.1% 47.1% 6.4% 6.3% 3.3% 2015 2016 Jun 2017 2015 2016 Jun 2017 ROAA(3) ROAE(4) 18.6% 15.3% 1.9% 1.6% 6.4% 0.7% 2015 2016 Jun
Slide 20: Solid Balance Sheet with a Diversified Loan Portfolio
4 Solid Balance Sheet with a Diversified Loan Portfolio… Originally specializing in mortgage lending, Davivienda has been able to diversify its product offering to become a full service commercial bank with controlled risk exposure Gross Loan Portfolio(1) Breakdown by Type Breakdown by Economic Sect
Slide 21: Depicting High Quality Assets
4 …Depicting High Quality Assets… Risk management policies in line with global best practices and credit, market and liquidity measurement and control strategies NPL Ratio(1) Coverage Ratio(2) Reserve Coverage Ratio(3) 164.0% 234.0% 197.6% 2.7% 115.7% 156.6% Total Gross 99.8% Loans 2.0% 1.6% 235.2%
Slide 22: Supported by Stable and Diversified Sources of Capital
4 …Supported by Stable and Diversified Sources of Capital Davivienda’s loan portfolio is supported by growing funding sources Balance Sheet Composition(1) $40 ,000 Funding Evolution $35 ,000 $30 ,000 $28,239 $30 ,000 $26,410 US$32,645mm $35 ,000 US$32,645mm $23,729 $3,607 12.8% $25 ,000 $3,143 $25 ,
Slide 23: Industry Leader in Innovation and Technology
5 Industry Leader in Innovation and Technology Pioneer in Electronic Banking Services in Colombia With DaviPlata, Davivienda offers users a mobile payment and money transfer platform 3.4 Million clients(3) The service includes the ability to receive deposits from any 390,0000 Davivienda branch in th
Slide 24: Highly Experienced and Talented Management Team
6 Highly Experienced and Talented Management Team… Highly Experienced Team with an Average Tenure of 20 Years Working for Davivienda Board of Directors And Corporate Governance Committees Grupo Bolivar, Chief Executive Officer since 2011 Holds a bachelor degree in economics from Stanford Univers
Slide 25: Support From Well Recognized Shareholders
6 … with Support From Well Recognized Shareholders The support from Grupo Bolivar results in continuous synergies and knowledge transfers, and produces a wide range of cross selling opportunities Grupo Bolivar: One of the Most Important Financial Davivienda’s Ownership Structure Conglomerates in Col
Slide 26: 3. Consolidated Financial Statements
3. Consolidated Financial Statements
Slide 27: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement For the Year Ended December 31, As of June 30, (1) Figures in COP Million 2015 2016 2016 (US$mm) 2017 2017 (US$mm) Cash 7,432,562 8,106,246 2,657 9,573,311 3,138 Interbank and overnight funds 506,847 282,199 93 942,531 309 Investments measured at fair value 7,249
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement For the Year Ended December 31, For the Six Month Period Ended June 30, (1) Figures in COP Million 2015 2016 2016 (US$mm) 2016 2017 2017 (US$mm) Interest income 6,530,875 8,674,997 2,970 4,369,027 4,717,910 1,615 Portfolio 6,066,429 7,869,538 2,694 3,840,601 4,35
Slide 29: Consolidated Key Metrics
Consolidated Key Metrics For the Year Ended December 31, As of June 30, 2015 2016 2017 (1) Efficiency ratio 46.8% 45.1% 47.1% Profitability and Net interest margin(2) 6.3% 6.4% 3.3% Efficiency Return on average assets(3) 1.6% 1.9% 0.7% Return on average equity(4) 15.3% 18.6% 6.4% Tier I ratio(5) 6.9
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