Banco Bilbao Vizcaya Argentaria Colombia Sa Class B · BVC:BBVACOL
Banco Bilbao Vizcaya Argentaria Colombia Sa Class B — BBVA Colombia — Q1 2019 Earnings Presentation
30 slides from Banco Bilbao Vizcaya Argentaria Colombia Sa Class B's earnings presentation, May 31, 2019
Slide 1: Results 1Q19
BBVA Colombia Results 1Q19 1 May 31th, 2019 Results 1Q19 May 31th 2019 The IR Recognition granted by Bolsa de Valores de Colombia S.A. (the Colombian Stock Exchange) is not a certification of the registered securities or the solvency of the issuer
Slide 2: Disclaimer
BBVA Colombia Results 1Q19 2 May 31th, 2019 Disclaimer 2
Slide 3: Index
BBVA Colombia Results 1Q19 3 May 31th, 2019 Index 1 Economic Environment 2 Digital Sales 3 Consolidated Results 1Q19 4 Balance Sheet and Business Activity 5 Solvency Annex
Slide 4: Economic Environment
BBVA Colombia Results 1Q19 4 May 31th, 2019 1 Economic Environment
Slide 5: The acceleration in growth in 2019 will come from investment in machinery and equipment
BBVA Colombia Results 1Q19 5 May 31th, 2019 The acceleration in growth in 2019 will come from the investment in machinery and equipment GDP – 1Q19 Annual growth rate GDP y/y, % 2.9 2.6 2.7 2.8 2.4 2.7% 2.1 2.2 2.0 2.1% 1.7 1.6 1.2 1.3 1.3 1.4% 3.3% 3.0% 2.6% 2.1% 1.4% I II III IV I II III IV I II II
Slide 6: Low inflation, weak demand: Central Bank can wait until year-end to hike rates
BBVA Colombia Results 1Q19 6 May 31th, 2019 With low inflation, weak demand and external deficit widening by investment, the Central Bank can wait until the end of the year to hike rates Inflation Policy Interest Rates % y/y %, annual effective rate (TEA) 7.50 5.75 4.09 4.75 4.75 4.25 4.50 3.18 3.23
Slide 7: Main Consolidated Figures 1Q19
BBVA Colombia Results 1Q19 7 May 31th, 2019 Main Consolidated Figures 1Q19 Results (Billion) $ 579,910 $ 954,125 $ 204,028 Gross Margin -11.6% YoY +16.6% YoY +27.0% YoY supported by solid Net Interest Income Gross Margin Net Profit core revenue growth Balance Sheet (Billion) $ 63,756 $ 4,542 $ 45,94
Slide 8: Digital Sales
BBVA Colombia Resultados 1T19 8 31 de mayo de 2019 2 Digital Sales
Slide 9: The 'app' of BBVA, the most used of Colombian Financial System
BBVA Colombia Results 1Q19 9 May 31th, 2019 The 'app' of BBVA, the most used of Colombian Financial System Digital Sales Digital Sales (Ex insurance) / Total Sales 74% 15% 5% 1Q17 1Q18 1Q19 Digital Customers Mobile Customers Thousands of Customers Thousands of Customers +48% +27% +75% +32% 1,296 1,1
Slide 10: Consolidated Results 1Q19
BBVA Colombia Resultados 1T19 10 31 de mayo de 2019 3 Consolidated Results 1Q19
Slide 11: YoY decrease in cost of funds
BBVA Colombia Results 1Q19 11 May 31th, 2019 YoY decrease in cost of funds Net Interest Income Billion COP -11.6% 1,984 2,662 1,327 656 580 1Q18 2Q18 3Q18 4Q18 1Q19 Spreads 5.95 6.07 NII/Spread 5.92 5.84 5.88 +15 bps yoy 4.87 4.77 4.67 4.72 4.63 Customer/Spread 1Q18 2Q18 3Q18 4Q18 1Q19 11 11
Slide 12: Strong Fee Income Growth
BBVA Colombia Results 1Q19 12 May 31th, 2019 Strong Fee Income Growth Net fee income Billion COP +478.5% 367 262 208 176 36 1Q18 2Q18 3Q18 4Q18 1Q19 Annual fee income driven by: • Increase in in fiduciary business, increase in network service of branches and establishments affiliated to credit cards
Slide 13: Outstanding evolution in efficiency
BBVA Colombia Results 1Q19 13 May 31th, 2019 Outstanding evolution in efficiency Operational costs Efficiency Ratio Billion COP % -501 bps yoy +4.2% 46.87 1,557 43.98 44.02 1,149 43.59 41.86 762 383 399 1Q18 2Q18 3Q18 4Q18 1Q19 3M18 6M18 9M18 12M18 3M19 13
Slide 14: Favorable Performance During the Quarter
BBVA Colombia Results 1Q19 14 May 31th, 2019 Favorable Performance During the Quarter Net Income Billion of COP +27% 564 531 372 204 161 1Q18 2Q18 3Q18 4Q18 1Q19 ROE % ROA % 13.39 13.45 1.66 1.63 12.89 1.28 12.54 12.54 0.94 0.94 0.92 9.77 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 BBVA Sector BBVA Sector Source:
Slide 15: Consolidated Income Statement
BBVA Colombia Results 1Q19 15 May 31th, 2019 Consolidated Income Statement Accumulated – Million COP 3M18 3M19 Var TAM 1Q18 1Q19 abs % Interest Income 1,164,963 1,072,258 (92,705) (8.0) Interest Expense (509,231) (492,348) 16,883 (3.3) NET INTEREST INCOME 655,732 579,910 (75,822) (11.6) NET FEE INCO
Slide 16: Balance Sheet and Business Activity
BBVA Colombia Resultados 1T19 16 31 de mayo de 2019 4 Balance Sheet and Business Activity
Slide 17: Portfolio Growth Driven by Our Retail Portfolio
BBVA Colombia Results 1Q19 17 May 31th, 2019 Portfolio Growth Driven by Our Retail Portfolio Portfolio Composition Gross Loan Portfolio +4.7% yoy Billion 1Q17 1Q18 1Q19 17,908 17,864 39,654 43,467 45,519 Commercial 15,817 +0.2% YoY 16,532 25% 23% 24% 35% 36% 15,469 36% Consumer +6.9% YoY 13,994 39%
Slide 18: Strategic Management of Our Funding Sources
BBVA Colombia Results 1Q19 18 May 31th, 2019 Strategic Management of Our Funding Sources Deposits 1Q17 1Q18 1Q19 Composition 42,805 44,812 44,854 13% 14% 15% 45% 47% 42% 42% 39% 43% Deposits Growth +0.1% yoy Billion 21,189 18,739 19,136 Time Deposits -11.6% YoY 19,413 Saving 17,908 17,307 Accounts +
Slide 19: Focus on Strong Returns on Capital
BBVA Colombia Results 1Q19 19 May 31th, 2019 Focus on Strong Returns on Capital Market Shares Loan Portfolio Deposits $46 Market Share 10.18% -17 bps YoY $47 Market Share 11.16% -72 bps YoY Trillion Trillion Saving Individuals* Commercial Accounts Market Share Market Share Market share Checking 14.3
Slide 20: NPL Ratios drop close to the Sector's Average
BBVA Colombia Results 1Q19 20 May 31th, 2019 NPL Ratios drop close to the Sector’s Average NPL Ratio (%)* NPL + Write-offs (%) YoY 3.96 12.74 3.71 62 bps 8.72 8.64 3.73 3.69 8.02 3.59 3.53 6.92 6.01 91 bps 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 BBVA Sector Sector BBVA COMMERCIAL CONSUMER MORTGAGES 3.72 4.06
Slide 21: Consolidated Balance Sheet
BBVA Colombia Results 1Q19 21 May 31th, 2019 Consolidated Balance Sheet Var TAM Million COP 1Q18 1Q19 abs % Cash and cash equivalents 5,398,209 7,040,388 1,642,179 30.4 Investments 961,317 1,284,502 323,185 33.6 Derivative Financial Instruments and Cash 6,474,430 9,600,658 3,126,228 48.3 Operations
Slide 22: Solvency
BBVA Colombia Resultados 1T19 22 31 de mayo de 2019 5 Solvency
Slide 23: Strong Capital Adequacy
BBVA Colombia Results 1Q19 23 May 31th, 2019 Capital Adequacy Billion of COP 2,223 2,291 2,470 2,220 2,107 Strong 3,154 3,146 3,133 3,117 3,396 Capital Position 1Q18 2Q18 3Q18 4Q18 1Q19 TIER I TIER II 12.24 12.23 12.35 12.05 11.97 Evolution of the capital ratio % 9.00 9.00 9.00 9.00 9.00 7.23 297 bp
Slide 24: Contacto
BBVA Colombia Resultados 1T19 24 31 de mayo de 2019 Contacto E-mail: bbvacolombia-ir@bbva.com Equipo Relación con Inversores: Juan Pablo Herrera Gutiérrez Tel 3471600 Ext. 12892 juanpablo.herrera.gutierrez@bbva.com Director– IR María Camila Manosalva Rojas Tel 3471600 Ext. 17003 mariacamila.manosalv
Slide 25: Annex
BBVA Colombia Resultados 1T19 25 31 de mayo de 2019 Annex
Slide 26: Main Macroeconomic Variables
BBVA Colombia Results 1Q19 26 May 31th, 2019 Main Macroeconomic Variables Macroeconomic Forecast 2017 2018 2019 2020 GDP (% YoY) 1.4 2.6 3.0 3.3 Private Consumption (% YoY) 2.1 3.6 3.4 3.6 Public Consumption (% YoY) 3.8 5.6 4.1 2.9 Investment (% YoY) 1.9 1.5 2.9 4.0 Inflation (% YoY, eop) 4.1 3.2 3.
Slide 27: Individual Balance Sheet
BBVA Colombia Results 1Q19 27 May 31th, 2019 Individual Balance Sheet Million COP Var TAM 1Q18 1Q19 abs % Cash 4,146,975 6,586,117 2,439,143 58.8 Assets positions in money market operations 1,244,892 448,949 -795,943 -63.9 Investment and derivatives transactions 7,835,074 11,014,974 3,179,900 40.6 L
Slide 28: Consolidated Income Statement of the Quarter
BBVA Colombia Results 1Q19 28 May 31th, 2019 Consolidated Income Statement of the Quarter Million COP Var TAM 1Q18 1Q19 abs % Interest Income 1,195,242 1,210,982 15,740 1.3 Interest Expense (509,842) (492,751) 17,091 (3.4) NET INTEREST INCOME 685,400 718,231 32,831 4.8 NET FEE INCOME 44,801 41,288 (
Slide 29: Our Bank
BBVA Colombia Results 1Q19 29 May 31th, 2019 Our Bank March 2019 ATM’s Branch Offices Employees 1,347 551 5,392 YoY Growth YoY Growth YoY Growth variation variation variation +0.60% +0.18% +1.70% Banking Agents 6,770 YoY Growth variation +0.39% 29
Slide 30: Local Market
BBVA Colombia Results 1Q19 30 May 31th, 2019 Participation in Colombia Sector Peer 1 35% 65% 100% Col Central America Peer 2 Peer 3 Focused on the 20% 46% Local Market 80% 54% Col Central America Col Central America Source: Annual Report of each bank, December 2017 30