Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Debt Investor Presentation (April 2018)
24 slides from Banco De Bogota Sa's debt investor presentation, Apr 4, 2018
Slide 1: 4Q-2017 and FY 2017 Consolidated Results
4Q-2017 and FY 2017 Consolidated Results Colombia Fixed Income Investor Trip - ITAU IFRS April 4th, 2018 The IR Recognition granted by the Colombian Securities Exchange (Bolsa de Valores de Colombia S.A) is not a certification of the registered securities or the solvency of the issuer.
Slide 2: Disclaimer
Disclaimer Banco de Bogotá is an issuer of securities in Colombia. As a financial institution, the Bank, as well as its financial subsidiaries, is subject to inspection and surveillance from the Superintendency of Finance of Colombia. As an issuer of securities in Colombia, Banco de Bogotá is requir
Slide 3: Macroeconomic Context - Colombia (1/4)
Macroeconomic Context - Colombia (1/4) GDP (YoY %, quarterly) GDP growth by sector (YoY %) as of December GDP (%) 2015 2016 2017 2018e 7 Agriculture 4.9% 8% 1.6% 3.1% 2.0% 1.8% 2.5% 3.8% 24 Financial sector 2017 4.4% 17 Social services 2016 3.4% 6% 2.0% 14 Commerce 1.2% 2.6% 4 Utilities 1.1% 4% -0.8
Slide 4: Macroeconomic Context - Colombia (2/4)
Macroeconomic Context - Colombia (2/4) Total and core* inflation (YoY%) Food, tradables and indexed inflation (YoY %) 10% 16% Headline inflation 14% Core inflation 4 * Food 8% 12% Tradables 6% 10% Indexed 8% 4% 4.0% 6% 6.6% 3.4% 4% 2% Headline inflation 2015 2016 2017 2018e 2% 2.5% 6.8% 5.8% 4.1% 3.
Slide 5: Macroeconomic Context - Colombia (3/4)
Macroeconomic Context - Colombia (3/4) Current Account (% GDP, 12 month) Trade balance (% GDP, 12 month) Current account 2% 4% 2015 2016 2017 2018e -6.4% -4.3% -3.3% -3.2% 1% 2% 2.2% 0% 0% -2.6% -2% -1% -1.3% -1.5% -4% -3.3% -2% -1.5% -6% -3% -8% -4% -10% Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 -5% Trade
Slide 6: Macroeconomic Context - Colombia (4/4)
Macroeconomic Context - Colombia (4/4) Government revenues from oil* (% GDP) Fiscal deficit vs. targets under Fiscal Rule (% GDP) 4% 0% 3.3% 3% 2.6% 2.6% -1% -1.0% -1.1% -1.0% -1.3% 2% 1.6% -2% -1.6% 1.1% 0.9% -2.2% 1% -2.4% -3% 0.1% -3.0% -3.1% Government deficit - MFMP 0% 2017 -0.1% -4% -3.6% -4.0
Slide 7: Macroeconomic Context – Central America
Macroeconomic Context – Central America GDP (YoY %) Trade balance with United States (% of GDP) 6 5.6 20 2017e 2018e 5.3 5 4.5 10 4.3 4.0 3.9 3.9 4 3.8 3.8 0 3.6 3.2 3.4 3 -10 2.3 2.1 2 -20 1 -30 2001 2005 2009 2013 2017 0 Costa Rica El Salvador Guatemala Honduras El SalvadorGuatemala Honduras Costa
Slide 8: Business Overview
Business Overview Key Facts Banco de Bogotá’s Structure Founded in 1870, Banco de Bogotá is Colombia’s oldest financial institution and the principal subsidiary of Grupo Aval, the leading Principal Subsidiaries of Banco de Bogotá Associated financial group in Colombia Current shareholding struct
Slide 9: 2017 FY Performance Highlights
2017 FY Performance Highlights Attributable Net Income for 2017 was $1,908 billion pesos, which represented a 7.5% decrease versus 2016(1). Key Metrics Commentary • ROAA: 1.5% / ROAE: 11.5% • ROAA decreased 30bps. ROAE decreased 160bps. • Net Interest Margin: 6.0% • NIM increased 10bps between 2016
Slide 10: Significant player in a competitive Colombian market
Significant player in a competitive Colombian market As of December 2017 Total Assets Net Loans (1) System: USD$194.8 bn System: USD$132.3 bn 26.2% 25.2% 25.9% 25.6% 14.3% 13.5% 14.8% 9.9% 13.0% 10.5% Categoría 1 Categoría 1 Deposits (1) Net Income 2017 System: USD$122.4 bn System: USD$2.6 bn 27.5%
Slide 11: BAC is market leader in Central America at December 2017
BAC is market leader in Central America at December 2017 As of December 2017 Total Assets (1) Net Loans (1) System: US$239.2 bn System: US$150 bn 10.1% 9.2% 9.0% 7.8% 7.3% 7.6% 6.8% 5.8% 4.0% 4.8% Bac Bancolombia Banco General BI Scotiabank Bac Bancolombia Banco General BI Scotiabank Deposits (1) Ne
Slide 12: Consolidated Balance Sheet Structure
Consolidated Balance Sheet Structure Figures in Ps. Trillions Total Assets Growth excluding FX 4Q17/4Q16: 5.6% 4Q17/4Q16: 5.9% 4Q17/3Q17: 4.3% 4Q17/3Q17: 3.5% 141.4 143.3 149.4 4Q-16 3Q-17 4Q-17 Assets Breakdown 4Q-16 3Q-17 4Q-17 20.2% 18.7% 18.7% 3.2% 3.3% 3.2% 8.6% 8.3% 7.9% 68.7% 69.3% 69.8% Colo
Slide 13: Consolidated Loan Portfolio Breakdown by Business Segment
Consolidated Loan Portfolio Breakdown by Business Segment Figures in Ps. Trillions Gross Loan Portfolio Growth excluding FX 4Q17/4Q16: 5.8% 4Q17/4Q16: 5.6% 4Q17/3Q17: 3.1% 4Q17/3Q17: 2.4% 97.0 99.3 102.4 4Q-16 3Q-17 4Q-17 Gross Loan Portfolio Breakdown Commercial Consumer Mortgage Microcredit Growth
Slide 14: Loan Portfolio Quality (1/3) – Consolidated
Loan Portfolio Quality (1/3) – Consolidated 30 days PDLs/ Gross Loans Cost of Risk (1) 90 days PDLs / Gross Loans Provision loss (net of recoveries of charged-off assets) / Average Loans 30 days PDLs / Gross Loans 90 days PDLs / Gross Loans Provision loss / Average Loans Excluding Electricaribe (3)
Slide 15: Loan Portfolio Quality (2/3) – Colombia and Central America
Loan Portfolio Quality (2/3) – Colombia (1) and Central America Colombia COP Central America USD 2016 2017 2016 2017 Delinquency Ratio 30 day PDLS / Gross Loans 2.9% 4.3% 2.3% 2.4% Excluding Electricaribe 3.6% 90 day PDLS / Gross Loans 2.2% 3.5% 1.2% 1.2% Excluding Electricaribe 2.7% Cost of Risk Pr
Slide 16: Loan Portfolio Quality (3/3) – Consolidated
Loan Portfolio Quality (3/3) – Consolidated 30 days PDLs 90 days PDLs 4Q-16 3Q-17 4Q-17 4Q-16 3Q-17 4Q-17 Commercial 1.8% 2.9% 2.8% 1.6% 2.5% 2.5% Excluding Electricaribe 2.2% 2.1% 1.9% 1.8% Consumer 4.4% 4.9% 4.9% 2.1% 2.5% 2.5% Mortgage 2.5% 3.0% 3.2% 1.2% 1.5% 1.7% Microcredit 14.2% 15.3% 15.1% 9
Slide 17: Consolidated Funding
Consolidated Funding Figures in Ps. Trillions Growth excluding FX Growth excluding FX Total Funding 4Q17/4Q16: 5.9% Total Deposits 4Q17/4Q16: 8.0% 4Q17/3Q17: 3.7% 4Q17/3Q17: 5.6% 4Q17/4Q16: 5.6% 4Q17/4Q16: 7.8% 4Q17/3Q17: 4.4% 4Q17/3Q17: 6.4% 120.9 126.2 94.9 100.9 119.5 93.7 4Q-16 3Q-17 4Q-17 4Q-16
Slide 18: Equity and Capital Adequacy
Equity and Capital Adequacy Figures in Ps. Trillions Attributable Equity + Minority Interest Shareholders ‘ Equity 4Q17/4Q16: 5.5% 4Q17/4Q16: 4.8% 4Q17/3Q17: 2.7% 4Q17/3Q17: 2.5% 17.7 18.2 16.8 17.2 17.2 16.4 0.8 0.9 1.0 16.4 16.8 17.2 4Q-16 3Q-17 4Q-17 4Q-16 3Q-17 4Q-17 Total Equity Shareholders' E
Slide 19: Consolidated Net Interest Margin
Consolidated Net Interest Margin Quarterly Net Interest Margin Growth excluding FX Net Interest Income (Billion COP) Net Interest Income (Billion COP) 4Q17/4Q16: 6.5% Growth Rate Growth Rate 4Q-16 3Q-17 4Q-17 4Q17/4Q16 4Q17/3Q17 2016 FY 2017 FY 2017/2016 4Q17/3Q17: 0.5% 1,614.9 1,700.2 1,711.7 6.0%
Slide 20: Fees and Other Operating Income
Fees and Other Operating Income Figures in Ps. Billions Gross Fee income Growth excluding FX 4Q17/4Q16: 7.6% 4Q17/4Q16: 8.1% 4Q17/3Q17: 7.9% 4Q17/3Q17: 7.8% 1,038.7 1,035.2 1,117.2 3.2% 2.4% 2.4% Other 18.6% 21.9% 20.7% 2016 FY 2017 FY 2017/2016 3.8% 3.8% 3.7% Pension fees 3,950.0 4,190.2 6.1% Fiduc
Slide 21: Consolidated Efficiency Ratio
Consolidated Efficiency Ratio Operating Expenses (1) Operating Expense (1) (Billion COP) Operating Expense (1) (Billion COP) Growth Rate Growth Rate 4Q-16 3Q-17 4Q-17 4Q17/4Q16 4Q17/3Q17 2016 FY 2017 FY 2017/2016 1,451.0 1,396.2 1,491.8 2.8% 6.8% 5,518.8 5,666.9 2.7% Operating Expenses/ Total Income
Slide 22: Distribution Network and Transactions per Channel
Distribution Network and Transactions per Channel Optimization of our footprint and acceleration of migration towards lower-cost digital channels Branches Electronic Platforms Banking Correspondents (BC) Right size network coverage New Platforms: Kiosks/Multi-functional ATM New alliances with specia
Slide 23: Digital Strategy – Strategic Management Focus
Digital Strategy – Strategic Management Focus 100+ Individuals, skillset mix around commercial, technical, financial and design capabilities Undertake transformation of our core products and channels with the ultimate goal of positioning ourselves as Digital Market Leaders Omni-channel 100% Fully au
Slide 24: Profitability
Profitability Figures in Ps. Billions Net Income attributable to controlling interest 520.5 536.4 2016 FY(3) 2017 FY 2,062.7 1,908.0 547.7 458.1 409.7 4Q-16 3Q-17 4Q-17 Excluding Electricaribe + CRDS (5) ROAA (1) 1.7% 1.6% 1.6% 1.4% 1.3% 2016 FY(4) 2017 FY 1.8% 1.5% 4Q-16 3Q-17 4Q-17 ROAE (2) 12.5%
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