Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Q3 2022 Earnings Presentation
31 slides from Banco Davivienda SA's earnings presentation, December 2022
Slide 1: Davivienda Corporate Presentation - 3Q22
Davivienda Corporate Presentation - 3Q22
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 18 3 Ownership Structure 6 9 PDL, Coverage and Cost of Risk 19 4 Results of Our Sustainable Management 8 10 Capital Structure 21 5 History 9 11 Key Ratios 22 6 Loan Portfolio and Fu
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Main Figures Loans: $ 13.7Bn Loans: $ 10.0Bn Customers: 8.5M Customers: 376k USD Billion Y/Y 2 Assets $ 38.6 22.2% 2 Gross Loans $ 30.5 23.3% Deposits $ 24.8 25.4% Equity $ 3.5 13.4% Net Profit1 $ 342 68.9% Deposits: $175.5M Loans: $ 6.9Bn Customers: +15.2M Customers: 1.5
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 44.4 billion Honduras Equity USD 4.4 billion El Salvador Customers +20.9 million Employees +25.2 k Costa Rica Colombia Countries 6 Pana
Slide 6: Ownership Structure
Ownership Structure COMMON SHARES 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). 4. Figures as of September 30th, 2022.
Slide 7: Our Sustainable Strategy
Our Sustainable Strategy Sustainability Policy We enrich the lives of the people and planet thanks to the power of transformation underlying our business models, while we ensure our future existence by behaving responsibly before all of our stakeholders and by managing our business in a conscious wa
Slide 8: Results of Our Sustainable Management
Results of Our Sustainable Management COP USD Q/Q Y/Y Sustainable Portfolio 13.6 Tn 3.0 Bn 9.7% 24.3% Sustainable Funding 7.2 Tn 1.6 Bn 2.2% 19.0% Environmental Green Financing Social Social Financing (Million USD) (Billion USD) ● Sustainable Construction ● Low Income Housing ● Renewable Energy ● Lo
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 2022 13.8% 2019 2022 2015 16.3% 11.8% Market Share by 2016 1994 2013 Assets2 3.8% 2018 Assets 14.9% 2012 $38,6 MM 1 Market
Slide 10: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 3Q22 Y/Y Commercial 19.3% Consumer 34.6% $1.3 $30.5 Mortgage 18.2% Total 23.3% Y/Y Colombia COP 22.3% $1.3 $30.5 International USD 2 10.5% Colombia USD 4.6% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of September
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 $7.5 $9.4 Credit Cards Vehicle Residential Overdraft Commercial Loans $13.6 Figures in USD Billion. Exchange Rate as of September 2022: C
Slide 12: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Savings Accounts Term Deposits $32.3 Checking Accounts Bonds Credits Loans to Deposits 130.7% 128.9% 122.3% 119.1% 123.2% Loans to Funding Sources 97.2% 95.9% 93.4% 90.8% 94.6% International Issuances Portfolio Securitization4 Amount Yield to Coupon
Slide 13: Digital Transformation of Our Business
Digital Transformation of Our Business Digital Customers1 90% 91% 95% 80% 73% 40% CONS COL PN SV CR HN Credits Mortgage Employees and Retirees Vehicle Balance Transfer (Unsecured and Payroll) Consumer loans (Unsecured and Payroll) Insurances Payment methods LE FR AB I EN LI DL RE Pets Vehicle* Credi
Slide 14: Digital Transformation Evolution
Digital Transformation Evolution Digital Sales1 Retail Banking Digital Adoption3 Transactions by Channel1 (% of products) (% of monetary transactions) Digital Loans2 Digital Deposits2 Digital Investments2 77% 18% 10% Y/Y Y/Y Y/Y 101% 49% -13% Y/Y Y/Y Y/Y Digital loans represent 22% of 81% of new dep
Slide 15: DaviPlata, Our Digital Native Bank
DaviPlata, Our Digital Native Bank Customer Base (Million) +400K +1.9M Active Rating Q/Q Y/Y Users Android & iOS (30 Days) 4.5 & 4.8 36% (Sep. 2022) Common with Davivienda Market CAC DaviPlata as Only Product (12 Months) Place With Products in the Sector ~$1.05 USD 60 Brands DaviPlata’s DaviPlata /
Slide 16: DaviPlata, Our Digital Native Bank
DaviPlata, Our Digital Native Bank Outstanding Low Amount Deposits Transactional Income1 (USD $ Million) (USD $ Million) 45% Y/Y -35% Y/Y 21% Y/Y Ecards2 Quarterly Transactions3 Quarterly Purchases4 (Million) (Million) (USD $ Billion) 26% -0.3% Y/Y Y/Y 131% Y/Y 1. Quarterly Transactional Income 2. C
Slide 17: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y -1.1% -1.7% Investment Funds Securities Brokerage, Investment Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services -3.8% Assets Under Custody 0.9% Trust Funds International Investments Market Share • The Trust Co
Slide 18: Credit Risk Management
Credit Risk Management Total PDL & Coverage1 PDL by Type1 Coverage by Type2 1. PDL: Loans by type / Gross Loans 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 3Q22 Accumulated $ Q/Q $ Y/Y Provision 187 14.7% 521 -14.3% Expenses Loans by Stages Coverage by Stages Figures in USD Million. As of 3Q22 the average exchange rate depreciated 4% Q/Q and 10.1% Y/Y 1. Cost of Risk = Provision Expenses / Gross Loans 19
Slide 20: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 3Q22 Q/Q Y/Y Accounting Equity 3.5 6.8% 13.4% Common Equity Tier 1 3.2 7.2% 15.1% Additional Tier 1 0.5 12.5% 20.7% Total Technical Capital 4.6 5.9% 12.4% RWAs 28.6 7.6% 28.2% Credit Risk 25.5 8.0% 27.0% Market
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 +19.8M Branches 526 ATMs 2.1K Banking Correspondents +20K Employees 13.6K Market 3Q22 Y/Y Ranking USD Billion Share Assets $ 29.2 20.4% 2 13.8% Gross Loans $ 23.0 21.1% 2 16.3% Commercial $ 9.6 13.6% 3 13.0% Consumer $ 7.5 35.8% 2 14.5% Mortgage²
Slide 23: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Sep. 22 Y/Y El Salvador Assets 10,350 8.2% 6,861 10.5% Customers +1.5M Gross Loans 3,626 14.8% Branches 139 Costa Rica Commercial ATMs 548 Consumer 1,794 9.1% Panamá Employees +4.1 K Mortgage 1,441 2.5% Deposits 6,858 12.7
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
Aspectos Macroeconómicos Macroeconomic Fundamentals Colombia Colombia Gross Domestic Product (Y/Y) Davivienda’s PMI * Year-to-date average Source: Davivienda Source: National Administrative Department of Statistics (DANE). Exchange Rate and Oil Prices Monetary Policy Rate and Inflation Source: Financ
Slide 28: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Exchange Rate Monetary Policy Rate CRC/USD HNL/USD(rh) Source: Central Banks from Central America. *November 18th, 2022 28
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 3Q21 2Q22 3Q22 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 2,772 3,046 2,968 - 78 -2.6% 197 7.1% Investments 3,615 3,746 3,939 194 5.2% 325 9.0% Net Loans 23,534 27,216 29,237 2,021 7.4% 5,703 24.2% Commercial 11,388 12,421 13,584 1,162 9.4% 2,196 19.3%
Slide 30: Consolidated P&L
Consolidated P&L USD Million 3Q21 2Q22 3Q22 $ Q/Q Q/Q $ Y/Y Y/Y Sep 2021 Sep 2022 $Y/Y Y/Y Total Income 655 875 1,031 156 17.9% 377 57.5% 1,916 2,668 752 39.2% Loans 623 853 982 129 15.2% 359 57.6% 1,845 2,584 739 40.1% Investment 29 14 37 22 156.4% 8 28.1% 61 59 -2 -4.0% Overnight 3 8 12 5 58.9% 9
Slide 31: 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