Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Q3 2024 Earnings Presentation
32 slides from Banco Davivienda SA's earnings presentation, November 2024
Slide 1: Davivienda Corporate Presentation 3Q24
Davivienda Corporate Presentation 3Q24
Slide 2: Disclaimer
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 18 4 Sustainable Management 7 10 Capital Structure 20 5 History 9 11 Key Ratios 21 6 Loan Portfolio and Funding Sources 10 12 Col
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Loans: $13.9 Bn Loans: $11.8 Bn Main Figures Customers: 9.7 M Customers: 430k USD Billion Y/Y 2 Assets $ 43.7 1.1% 2 Gross Loans $ 33.7 0.8% Deposits $ 31.0 6.9% Equity $ 3.8 2.9% Net Profit¹ $ 27.5 -130.0% Deposits: $225.3 M Loans: $8.0 Bn Customers: 18.3 M Customers: 1.
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 49.9 billion Equity USD 4.6 billion Honduras Customers +28 million El Salvador Employees 25.5 k Costa Rica Colombia Countries 6 Panama F
Slide 6: Ownership Structure
Ownership Structure Inversiones Meggido Other 1.7% 11.6% Inversiones Other companies Cusezar Common shares 3.3% 11.9% 371,069,401 Foreign Retail 76.1% 74.7% investors 1.3% 4.9% Inversiones Meggido Inversiones Meggido 9.2% Retail 1.3% Inversiones Other 5.3% Inversiones Cusezar Total shares companies
Slide 7: Our Sustainable Management
Our Sustainable Management INCLUSIVE PROSPEROUS THE WORLD IS OUR HOME LET’S MAKE IT MORE Our Material Issues ● Prosperity ● Well-being ● Natural Capital ● Economic Capital ● Inclusion GREEN ● Trust ● Service Ratings Reporting Memberships 7
Slide 8: Recent progress in ESG
Recent progress in ESG We designed a new policy to identify assets or activities that we Sustainable Sustainable Loan Portfolio Strategy Policy want to promote through our businesses, aligned with our purpose of contributing to a more prosperous, inclusive and green world. 4.7 14% of total loan +24%
Slide 9: Milestones of Sustainable Growth
Milestones of Sustainable Growth Proven Track Record of Organic and Inorganic Growth Savings and Loans The Local Bank A Regional Banking Platform Creating Ecosystems Nov. 2023 Holding Internacional Mar. 2024 3Q24 2021 US$172M share 13.3% issuance CF4| 3Q24 2015 2020 15.1% 11.8% Market Share by 1994
Slide 10: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 3Q24 Y/Y Commercial 5.7% Consumer -13.2% $1.3 $33.7 Mortgage 7.8% Total 0.8% Y/Y Colombia COP -2.6% $1.3 $33.7 International USD 2 8.3% Colombia USD 5.3% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of September 20
Slide 11: A Portfolio Focused on Strategic Segments and Products
A Portfolio Focused on Strategic Segments and Products USD Billion 2% Mortgage Loans 2.0% Consumer Loans 7.4% Unsecured Personal Loans Leasing Payroll Low Income Housing $9.6 $8.3 Credit Cards Vehicle Residential Revolving Loans Commercial Loans1 FINANCIAL, INSURANCE AND INVESTMENT $15.8 CONSTRUCTIO
Slide 12: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Demand deposits Term deposits $37.5 Credits Bonds Loans to Deposits 130.7% 128.9% 122.3% 120.2% 120.8% 110.2% 108.6% Loans to Funding Sources 97.2% 95.9% 93.4% 91.4% 92.6% 89.1% 89.9% International Issuances Portfolio Securitization2 (USD Million) Is
Slide 13: Progress in Digital Transformation
Progress in Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales 1 (% of monetary transactions) (% of products) Digital Clients (USD Billion) 93.2% -13% Y/Y 60% Y/Y 57% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of monetary transactions) (% of p
Slide 14: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Entrepreneurships, Informal Wallet Payment method Financial Offering Businesses, and P2P Ecard Loans - Popular Economy Micro Businesses Payment of utilities PSE Savings Mobile top-up QR Insurance Your option to solve Remittances your financial needs. Youth, Migrants,
Slide 15: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Transactions1 and Purchases2 Customer Base Low-Amount Deposits (Million) (USD Billion) 9% 20% 58% Y/Y Y/Y Y/Y 16% Y/Y 30% Y/Y With Products DaviPlata as Common with End of Monthly in the Sector Only Product Davivienda Period Average Income Daviplata’s Credits4 (USD
Slide 16: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 4% Y/Y -26% -64% Y/Y Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) 6.0pts Y/Y -42% -1 pp Y/Y Y/Y 0.3pts -36% Y/Y Y/Y 2 1.Current cards 2. CAC in USD estimated with the average exchange
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y USD $9.2 Billion in AUM Trust Business 402.7 thousand customers 11% -6.2% USD $7.8 Billion in AUM 44.1% Brokerage Business 108.5 thousand customers 11.7% Funds and Portfolios Assets Under Custody Trust Funds Investment Funds & Securities Brokerage & Vo
Slide 18: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management Total PDL & Coverage1 Coverage + Collaterals3 2 3 PDL by Segment Coverage1 1. Coverage: Loan Loss Reserves / Loans > 90 days 2. Total >120: (Mortgage > 120 days + Commercial > 90 days + Consumer > 90 days) / Gross Loans 3. Coverage + Collaterals = (Loan Loss Re
Slide 19: Credit Risk Management
Credit Risk Management CoR1 & Provision Expenses 3Q24 Accumulated 3Q24 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Provision Expenses 265 -29.1% 1,079 2.3% Provision Expenses 0.265-29.1% 1.0792.3% Loans by Stages Coverage by Stages Figures in USD Million. The average rate COP/USD appreciated 0.73% Q/Q and 3
Slide 20: Capital Structure
Capital Structure Capital Adequacy Ratios CET1 7.0% 1 Equity & RWAs2 Leverage Ratio 3Q24 Q/Q Y/Y Accounting Equity 3.8 1.4% 2.9% Common Equity Tier 1 3.3 1.9% 0.7% Additional Tier 1 0.5 2.4% 3.2% Total Technical Capital 4.7 2.0% 0.0% RWAs 31.6 -0.6% -0.7% Credit Risk 26.4 -0.9% -3.6% Market Risk 0.7
Slide 21: Key Financial Ratios
Key Financial Ratios NIM & Cost of Risk Other Income Ratios Non Financial Income Ratio 12 M Fee Income Ratio 12 M Efficiency Ratios ROAA & ROAE Cost-to-Income 12 M Excluding Non-Recurring Income Excluding Goodwill Impairment Cost-to-Assets NIM = Net Interest Income (12 months) / Average Earning Assets
Slide 22: A Leading Banking Institution in Colombia
A Leading Banking Institution in Colombia Customers¹ +22.8M Branches 520 ATMs 2.3k Banking Correspondents 34k Employees 12.7k September Market Y/Y Ranking USD Billion 2024 Share Assets $ 33.3 -0.4% 2 13.3% Gross Loans $ 24.9 -1.6% 2 15.1%² Commercial $ 11.3 5.7% 3 12.7% Consumer $ 5.8 -21.0% 3 12.2%
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Sep. 24 Y/Y Assets 11,590 5.9% El Salvador Gross Loans 8,019 8.3% Customers 1.8 M Costa Rica Commercial 3,962 5.8% Branches 140 Consumer 2,428 12.4% ATMs 561 Panama Mortgage 1,630 8.6% Employees +4.3 K Deposits 8,036 11.3%
Slide 24: Board of Directors and its Supporting Committees
Board of Directors and its Supporting 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 Governance &
Slide 25: Experienced Management Team
Experienced Management Team Javier Suárez Chief Executive Officer ● Civil Engineer from Universidad de los Andes, with a Masterʼs degree in Finance and a Masterʼs degree in Actuarial Sciences from Georgia State University. ● Over 30 years of experience in the financial industry. Ricardo León Pedro Ur
Slide 26: Appendix
Appendix B DNAVIVIENDN
Slide 27: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Economic Activity Index (Y/Y) Monetary Policy Rate, Inflation and Funding Rate Annual Average Term Deposits 360 Days Dec. 23 Quarterly Average MPR Inflation 2024 2.0% 2023 2.3% 9.75%** 0.7% 2.9%* 9.80%** 0.9% 5.41%* Sep. 24 9.87% 10.75% Dec-17 Dec-18 Dec-19 Dec-20 D
Slide 28: Financial System Colombia
Financial System Colombia System Loan Portfolio Interest Rates on Loans Apr. 23 47.1% (Annual Growth) Dec. 23 (4-week moving average) Cap Rate1 31.2% 28.9%* Consumer 19.8%* 11.8% 22.6% Total 9.6% Mortgage 15.7%* 7.6%* 11.7% Mortgage 6.2% Commercial 11.1% 9.7% 13.6%* 3.1% 2.7%* Commercial Total 13.4%
Slide 29: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) 2023 Quarterly Average Inflation (Y/Y) 7.6% 5.0% 3.6% Costa Rica 4.2%* 3.5% Honduras 5.0% 3.9%* 4.1% Panamá Honduras 4.7% 4.5%* 3.7% 2.5%* 2.6% El Salvador 2.4% El Salvador 2.0% 0.6%* 1.4%* Costa Rica 0.5% -0.1%* Panamá -0.2%* Dec-17 Dec-18
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 3Q23 2Q24 3Q24 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 4,159 3,912 3,392 - 520 -13.3% - 766 -18.4% Investments 4,591 5,099 5,133 34 0.7% 541 11.8% Gross Loans 33,417 33,418 33,698 281 0.8% 281 0.8% Commercial 14,927 15,565 15,779 214 1.4% 852 5.7% C
Slide 31: Consolidated P&L
Consolidated P&L Quarter Accumulated USD Million 3Q23 2Q24 3Q24 $ Q/Q Q/Q $ Y/Y Y/Y 3Q23 3Q24 $Y/Y Y/Y Total Income 1,326 1,276 1,244 - 32 -2.5% - 82 -6.2% 4,230 3,845 - 385 -9.1% Loans 1,219 1,138 1,084 - 54 -4.7% - 135 -11.1% 3,777 3,402 - 375 -9.9% Investment 74 107 132 25 23.6% 58 79.0% 373 346
Slide 32: Investor Relations
Investor Relations www.ir.davivienda.com ir@davivienda.com + 57 (601) 220 3495 Bogotá - Colombia