Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Bank of America Merrill Lynch Emerging Markets Corporate Credit Conference 2018
26 slides from Banco De Bogota Sa's conference presentation, Jun 1, 2018
Slide 1: Investor Presentation
Investor Presentation Bank of America Merrill Lynch Emerging Markets Corporate Credit Conference May 30th – June 1st, 2018 The Issuers Recognition IR granted by the Colombian Stock Exchange is not a certification about the quality of the securities listed at the BVC nor 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: Business Overview
Business Overview Key Facts Principal Subsidiaries and Investments 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 sharehol
Slide 4: 2018 First Quarter Performance Highlights
2018 First Quarter Performance Highlights Attributable Net Income for the period was USD $219.3 million which represented a 9.2% increase versus 1Q17(1). Key Metrics Commentary • ROAA: 1.8% / ROAE: 14.9% • ROAA increased 11bps. ROAE increased 105bps (2). • NIM decreased 32bps from 1Q17. • Net Intere
Slide 5: Macroeconomic Context - Colombia (1/4)
Macroeconomic Context - Colombia (1/4) GDP (YoY %, quarterly) GDP growth by sector (YoY %) 10% 2015 2016 2017 2018e 6.1% Financial 6.4% 3.1% 2.0% 1.8% 2.5% mar-18 8% Government servs. 3.0% 5.9% mar-17 Professional servs. 5.6% 4.5% 6% Commerce 3.9% 0.5% Real estate 2.9% 4% 1Q-18: 3.1% 2.2% Others* 2.
Slide 6: 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 Core inflation 4 * 14% 8% Food 12% Tradables 6% 10% Indexed 8% 4% 3.4% 6% 6.4% 3.1% 2% 4% Headline inflation 2015 2016 2017 2018e 2% 1.5% 6.8% 5.8% 4.1% 3.0
Slide 7: 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 8: 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% 0% 3.5% 2.7% 3.0% 2.6% -1% 2.5% -1.6% -1.1%-1.1%-1.0%-1.0% 2.0% 1.6% -1.3%-1.2% -2.2% -1.5% -2% 1.5% 1.1% -1.8% 0.9% -2.2% 1.0% 0.9% -2.4% -2.4% Estructural def
Slide 9: Macroeconomic Context – Central America
Macroeconomic Context – Central America GDP Growth (YoY %) Trade balance with United States (% of GDP) 6 5.6 20 2017 2018e 5.4 4.8 4.9 5 4.7 10 4 3.6 3.7 3.9 0 3.5 3.2 3.2 3 2.8 -10 2.4 2.3 2 -20 1 -30 2001 2005 2009 2013 2017 0 Costa Rica El Salvador Guatemala Honduras El SalvadorGuatemala Honduras
Slide 10: Significant player in a competitive Colombian market as of March 2018
Significant player in a competitive Colombian market as of March 2018 March 2018 Assets Net Loans (1) System: USD$209.6 billons System: USD$142.9 billons 26.3% 25.1% 25.9% 25.7% 14.2% 13.4% 14.8% 9.8% 13.0% 10.4% Categoría 1 Categoría 1 Deposits (1) Net Income System: USD$132.9 billons System: USD$7
Slide 11: BAC is market leader in Central America at December 2017
BAC is market leader in Central America at December 2017 December 2017 Assets(1) Net Loans(1) System: US$239.2 bn System: US$150 bn 10.1% 9.2% 8.9% 7.8% 7.4% 7.5% 6.8% 5.7% 4.0% 4.7% Bac Bancolombia Banco General BI Scotiabank Bac Bancolombia Banco General BI Scotiabank Deposits (1) Net Income Syste
Slide 12: IFRS 9 Impact
IFRS 9 Impact Figures in USD. Millions Impact on Allowances Coverage Ratio (1) dec-17 Jan 1st, 2018 218 Colombia 142.0% 129.4% 89 Allowances/ Gross 4.5% 4.9% Loans Central America 237.6% 127.9% 1,467 1,249 Allowances/ Gross 1,161 1,161 1.5% 2.8% Loans Consolidated 163.1% 129.0% Allowances/ Gross 3.2
Slide 13: Consolidated Balance Sheet Structure
Consolidated Balance Sheet Structure Figures in USD. Billions Total Assets Growth excluding FX 1Q18/1Q17: -0.1% 1Q18/1Q17: 1.5% 1Q18/4Q17: -3.8% 1Q18/4Q17: -0.6% 51.7 53.7 51.7 1Q-17 4Q-17 1Q-18 Assets Breakdown 1Q-17 4Q-17 1Q-18 20.7% 18.7% 18.3% 3.2% 3.6% 3.2% 8.3% 8.5% 8.5% 67.5% 69.8% 69.5% Colo
Slide 14: Consolidated Loan Portfolio Breakdown by Business Segment
Consolidated Loan Portfolio Breakdown by Business Segment Figures in USD. Billions Gross Loan Portfolio (1) Growth excluding FX 1Q18/1Q17: 5.7% 1Q18/1Q17: 4.0% 1Q18/4Q17: 0.9% 1Q18/4Q17: -2.2% 34.6 36.8 36.0 1Q-17 4Q-17 1Q-18 Gross Loan Portfolio Breakdown (%) Excluding FX (2) 36.8 Growth Growth (%)
Slide 15: 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(2)
Slide 16: Loan Portfolio Quality (2/3) – Colombia and Central America
Loan Portfolio Quality (2/3) – Colombia (1) and Central America Colombia COP Central America USD 1Q-17 4Q-17 1Q-18 1Q-17 4Q-17 1Q-18 Delinquency Ratio 30 day PDLS / Gross Loans 4.0% 4.3% 4.6% 2.4% 2.4% 2.6% Excluding Electricaribe 3.3% 3.6% 3.8% 90 day PDLS / Gross Loans 2.8% 3.5% 3.6% 1.1% 1.2% 1.1
Slide 17: Loan Portfolio Quality (3/3) – Consolidated
Loan Portfolio Quality (3/3) – Consolidated 30 days PDLs 90 days PDLs 1Q-17 4Q-17 1Q-18 1Q-17 4Q-17 1Q-18 Commercial 2.7% 2.8% 3.0% 2.1% 2.5% 2.6% Excluding Electricaribe 2.1% 2.1% 2.3% 1.6% 1.8% 1.9% Consumer 4.7% 4.9% 5.3% 2.1% 2.5% 2.6% Mortgage 2.7% 3.2% 3.5% 1.2% 1.7% 1.7% Microcredit 14.6% 15.
Slide 18: Consolidated Funding
Consolidated Funding Figures in USD Billions Growth excluding FX Growth excluding FX Total Funding 1Q18/1Q17: 1.0% Total Deposits 1Q18/1Q17: 3.1% 1Q18/4Q17: -1.0% 1Q18/4Q17: -0.7% 1Q18/1Q17: -0.6% 1Q18/1Q17: 1.5% 1Q18/4Q17: -4.0% 1Q18/4Q17: -3.7% 43.8 45.4 43.6 34.5 36.3 35.0 1Q-17 4Q-17 1Q-18 1Q-17
Slide 19: Equity and Capital Adequacy
Equity and Capital Adequacy Figures in USD. Billions Attributable Equity + Minority Interest Shareholders ‘ Equity 1Q18/1Q17: 1.2% 1Q18/1Q17: 0.4% 1Q18/4Q17: -7.5% 1Q18/4Q17: -7.7% 6.0 6.5 6.1 6.2 5.7 5.7 0.3 0.3 0.4 5.7 6.2 5.7 1Q-17 4Q-17 1Q-18 1Q-17 4Q-17 1Q-18 Total Equity Shareholders' Equity N
Slide 20: Consolidated Net Interest Margin
Consolidated Net Interest Margin Quarterly Net Interest Margin Growth excluding Net Interest Income (USD Million) FX Growth Rate 1Q18/1Q17: 5.9% 1Q-17 4Q-17 1Q-18 1Q18/1Q17 1Q18/4Q17 585.3 615.6 613.0 4.7% -0.4% 1Q18/4Q17: 1.8% Net Interest Margin on Investments (1) Net Interest Margin on Loans (2)
Slide 21: Fees and Other Operating Income
Fees and Other Operating Income Figures in USD. Millions Gross Fee income Growth excluding FX 1Q18/1Q17: 5.4% 1Q18/1Q17: 6.5% 1Q18/4Q17: -4.9% 1Q18/4Q17: -2.8% 362.7 401.7 382.2 2.9% 2.4% 2.2% Other 23.8% 20.7% 23.8% 3.7% 3.8% Pension fees 3.8% Fiduciary activites 69.5% 73.2% 70.2% Banking fees 1Q-1
Slide 22: Consolidated Efficiency Ratio
Consolidated Efficiency Ratio Operating Expenses/ Total Income(1) Operating Expenses/Average Assets (2) Growth excluding FX Operating Expense (USD Million) 1Q18/1Q17: -1.5% Growth Rate 1Q-17 4Q-17 1Q-18 1Q18/1Q17 1Q18/4Q17 1Q18/4Q17: -8.2% 494.6 524.2 470.4 -2.6% -10.2% 49.8% 50.4% 46.4% 3.86% 4.08%
Slide 23: 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 24: Digital Strategy – Strategic Management Focus
Digital Strategy – Strategic Management Focus 150+ 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 25: Profitability
Profitability Figures in USD Millions Net Income attributable to controlling interest Excluding Electricaribe Excluding wealth tax Excluding Electricaribe & CRDS 221.8 231.1 192.9 200.8 219.3 147.4 1Q-17 4Q-17 1Q-18 ROAA (1) 1.9% 1.9% 1.7% 1.6% 1.8% 1.3% 1Q-17 4Q-17 1Q-18 ROAE (2) 15.3% 15.7% 12.6%
Slide 26: Contact Information
Contact Information: Julio Rojas Sarmiento Maria Luisa Rojas Giraldo Chief Financial Officer Financial Controller and Regulatory Officer jrsarmiento@bancodebogota.com.co mrojas@bancodebogota.com.co IR Contact: Investor.relations@bancodebogota.com.co