Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Q1 2023 Earnings Presentation
32 slides from Banco Davivienda SA's earnings presentation, June 2023
Slide 1: Davivienda Corporate Presentation - 1Q23
Davivienda Corporate Presentation - 1Q23
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: $ 17.2Bn Loans: $ 14.0Bn Main Figures Customers: 8.9M Customers: 392k USD Billion Y/Y 2 Assets $ 40.2 18.6% 2 Gross Loans $ 31.2 19.0% Deposits $ 26.4 22.8% Equity $ 3.5 16.3% Net Profit1 $ 50 -53.7% Deposits: $168.4M Loans: $ 7.3Bn Customers: +16.0M Customers: 1.6
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 43.8 Billion Equity USD 4.2 Billion Honduras Customers +22 Million El Salvador Employees +24.7k Costa Rica Colombia Countries 6 Panamá
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 March 31st, 2022. 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 Sustainable Loan Portfolio Climate Strategy Carbon Footprint 25% 11 k Scopes 1 & 21 Carbon Neutral Verified in 2022 Y/Y Ton CO2e 13% Financed carbon emissions: 70% Y/Y 2.89 M Scope 32 of Colombia’s commercial loan Ton CO2e 62% portfolio measured Y/Y 2.9 M Ton CO2
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 $40.2 Bn 1 Market Sha
Slide 10: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 1Q23 Y/Y Commercial 21.9% Consumer 16.6% $1.3 $31.2 Mortgage 16.8% Total 19.0% Y/Y Colombia COP 12.4% $1.3 $31.2 International USD 2 16.5% Colombia USD 19.5% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of March 20
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 $7.8 $9.4 Credit Cards Vehicle Residential Overdraft Commercial Loans $14.0 Figures in USD Billion. Exchange Rate as of March 2023: COP/U
Slide 12: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Savings Accounts Checking Accounts $34 Term Deposits Bonds Credits Loans to Deposits 130.7% 128.9% 122.3% 120.2% 120.8% 118.2% Loans to Funding Sources 97.2% 95.9% 93.4% 91.4% 92.6% 91.9% International Issuances Portfolio Securitization3 Amount Yield
Slide 13: Results of our Digital Transformation
Results of our Digital Transformation 90.0% Digital Clients1 CR SV HN PA 91.8% Digital Clients 66.9% Digital Clients Digital Products Portfolio1 (USD $ Billion) 94% 75% 3% Y/Y PN SV 32% Y/Y 74% 43% 53% Y/Y CR HN Digital Sales Transactions by Channel Digital Sales Transactions by Channel (% of produc
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) 12% 15% 57% Y/Y Y/Y Y/Y With Products in DaviPlata as Common with Transactional Subsidy Income Funding FTPs1 the Sector Only Product Davivienda Income Transactions2 and Purchases3 DaviPla
Slide 16: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 43% Y/Y 12% Y/Y 32% Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) +100% Y/Y -11pts Y/Y -6 +1.7pts Y/Y pp +0.4pts Y/Y 1.Current cards 16
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y 7.1% -7.9% Investment Funds Securities Brokerage, Investment Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services 11.4% Assets Under Custody 17.7% International Investments Trust Funds 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 1Q23 $ Q/Q Y/Y Provision Expenses 219 -21.2% 49.3% Ex. FX Impact* -21.3% 47.2% Loans by Stages Coverage by Stages Figures in USD Million. As of 1Q23 the average exchange rate depreciated 11.8% Q/Q and 21.7% Y/Y 1. Cost of Risk = Provision Expenses / G
Slide 20: Capital Structure
Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 1Q23 Q/Q Y/Y Accounting Equity 3.5 -0.6% 16.3% Common Equity Tier 1 3.2 -0.9% 17.0% Additional Tier 1 0.5 -1.8% 24.0% Total Technical Capital 4.6 -1.7% 14.7% RWAs 30.1 4.5% 24.8% Credit Risk 25.8 0.7% 21.9% Market Risk*100/9 1
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 +20.7M Branches 530 ATMs 2.2K Banking Correspondents 30K Employees 13.8K Market 1Q23 Y/Y Ranking USD Billion Share Assets $ 30.3 13.8% 2 14.0% Gross Loans $ 23.1 12.5% 2 16.0%² Commercial $ 9.7 13.1% 3 12.7% Consumer $ 7.2 9.8% 2 15.9% Mortgage $
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Mar. 23 Y/Y Assets 11,086 14.6% El Salvador Gross Loans 7,346 16.5% Customers +1.6M Commercial 3,882 20.7% Branches 138 Costa Rica Consumer 2,005 19.8% ATMs 558 Employees +4.2 K Panamá Mortgage 1,459 2.9% Deposits 7,316 14
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 Gross Domestic Product (Y/Y) Latam Exchange Rates (Index 100 = Dec 2017) *2021 = 11.0% *2022 = 7.3% *2018 = 2.6% *2019 = 3.2% ** *2020 = -7.3% Source: National Administrative Department of Statistics (DANE) * Annual growth. 2022 figure revised Source: Bloomberg Fin
Slide 28: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Interest Rates on Loans Right Time to Acquire (4-week moving average) Financial Obligations (%) March. 2023 Source: Colombia Central Bank. *April 14th, 2023 Source: Banco Davivienda *March, 2023 **April, 2023 PDL by Segment (> 30 days) 28 Source: Financial Superin
Slide 29: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Source: Central Banks of Central America. *September, 2022.This data are being Source: Central Banks of Central America *January, 2022 **April, 2023 recalculated by Panama's National Institute of Statistics and Census. **Dece
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 1Q22 4Q22 1Q23 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 3,376 3,515 3,748 233 6.6% 372 11.0% Investments 3,608 4,042 4,498 456 11.3% 890 24.7% Net Loans 25,055 29,803 29,820 17 0.1% 4,765 19.0% Commercial 11,491 13,858 14,009 151 1.1% 2,518 21.9% Con
Slide 31: Consolidated P&L
Consolidated P&L USD Million 1Q22 4Q22 1Q23 $ Q/Q Q/Q $ Y/Y Y/Y Total Income 651 1,051 1,226 175 16.7% 575 88.2% Loans 641 975 1,077 102 10.4% 437 68.2% Investment 7 60 129 69 115.0% 123 1818.1% Overnight 4 15 19 4 27.4% 15 370.3% Financial Expenses 216 554 680 125 22.6% 463 214.0% Demand Deposits 5
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