Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Q2 2024 Earnings Presentation
25 slides from Banco Davivienda SA's earnings presentation, August 2024
Slide 1: Davivienda Consolidated Financial Results 2Q24
Davivienda Consolidated Financial Results 2Q24
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: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Economic Activity Index (Y/Y) Monetary Policy Rate, Inflation and Funding Rate Term Deposits 360 Days Dec. 23 MPR Inflation * 10.75%** 10.60%** 6.86%* Jun. 24 Quarterly Average 10.64% 11.75% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-10 Dec-12 Dec-14 Dec-1
Slide 4: 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% 30.8%* Consumer 20.8%* 11.8% 22.6% Total 9.6% Mortgage 16.3%* 8.0%* 11.7% Mortgage 6.2% Commercial 11.1% 9.7% 15.5%* 3.1% 2.8%* Commercial Total 14.4%
Slide 5: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Costa Rica 4.2%** 8.9% Honduras 3.3%* Honduras 5.0% El Salvador 4.1% 4.7% 5.1%** 2.6%* El Salvador Panamá 2.6% 2.4% 2.0% 1.5%* 1.7%* Panamá 0.5% 0.9%* Costa Rica 0.0%** Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-17
Slide 6: 2Q24 Main Results
2Q24 Main Results PDLs and Provision Expense $139.6 Gross Loans Asset quality continues to Tn Q/Q: +3.0% Y/Y: -1.0% gradually improve, supported in better trends in the consumer segment. 5.91% 3M NIM FX&D Q/Q: +20 bps Y/Y: +32 bps Provision expenses have already reached their peak, in line with the
Slide 7: Evolution of our Margins
Evolution of our Margins Funding Mix (%)1 Term Deposits Maturity Profile 39.7% 39.7% 40.6% 39.7% 39.4% Amount (Tn COP) Low-Cost Demand Deposits Term Deposits Bonds Credits Maturity Other Demand Deposits2 Monthly Implicit Rates3 Funding mix in adjustment process. CDs maturity profile allows repricing a
Slide 8: Evolution of our Margins
Evolution of our Margins Implicit Rates by Segment1 Loans & Investments Implicit Rates1 NIM2 & NIM (FX&D)3 (3M Annualized) Loan rates beginning to decrease in line with cap rate and inflation decreases, as well as higher competition. Investment income is expected to normalize. Interest-rate risk mana
Slide 9: Evolution of Credit Risk
Evolution of Credit Risk Consumer Portfolio Disbursements Consumer Loan Mix (%) (Trillion COP) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Consumer Ex. Credit Card Credit Card Unsecured Personal Loans Payroll Credit Card Vehicle Revolving Loans Jan. 21 Consumer Portfolio - Vintages N
Slide 10: Balance Sheet - Assets
Activo Balance Sheet - Assets By Operation1 Q/Q Y/Y Cash 11.9% 0.0% Assets Q/Q Y/Y Net Investments 2.8% 9.0% Colombia 2.8% 0.6% Gross Loans 3.0% -1.0% COP 7.9% 3.4% CAM Loan Loss Reserves -1.0% -11.0% USD 0.0% 4.1% Others 6.3% 11.7% Assets 4.1% 1.3% Figures in COP Trillion Ex. FX Impact* 1.7% 1.3% T
Slide 11: Balance Sheet - Gross Loans
Balance Sheet - Gross Loans Growth by Operation (Y/Y)1 Growth by Segment (Y/Y) Gross Loans Mix Ex. FX Impact* 141.1 139.6 136.0 135.6 139.6 Q/Q Y/Y Q/Q Y/Y Commercial 6.2% 2.9% 3.8% 2.9% Consumer -2.0% -15.0% -3.7% -14.9% Mortgage 2.5% 8.1% 1.6% 8.0% Gross Loans 3.0% -1.0% 1.2% -1.0% Figures in COP
Slide 12: 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 13: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management CoR1 & Provision Expenses 2Q24 Accumulated $ Q/Q $ Y/Y Provision Expenses 1,488 -15.1% 3,240 26.3% Loans by Stages Coverage by Stages Figures in COP Billion. The average rate COP/USD depreciated 0.2% Q/Q and appreciated 14.6% Y/Y 1. Cost of Risk = Provision Exp
Slide 14: Balance Sheet - Funding Sources and Liquidity
Balance Sheet - Funding Sources and Liquidity Funding Sources ($) Funding Ratios Q/Q Y/Y 2.6% 1.8% -4.4% -21.4% -1.2% -9.9% 6.5% 14.0% 1.3% -0.1% 1 Funding Mix (%) Liquidity Ratios Demand Deposits 2 3 Figures in COP Trillion. The closing rate COP/USD depreciated 8.0% Q/Q and appreciated 0.7% Y/Y 2.
Slide 15: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios 7.0% 1 Equity & RWAs2 Leverage Ratio 2Q24 Q/Q Y/Y Accounting Equity 15.5 1.3% -1.2% Common Equity Tier 1 13.5 0.1% -4.9% Additional Tier 1 2.1 6.3% -0.6% Total Technical Capital 19.1 1.2% -5.0% RWAs 133.0 2.9% 0.8% Credit Risk 111.3 2.9% -1.9
Slide 16: P&L - Financial Margin
P&L - Financial Margin 2Q24 Accumulated Gross Financial Margin $ Q/Q $ Y/Y Loan Income 4,528 -3.7% 9,228 -9.4% Investment and Interbank Income 549 -4.8% 1,126 -18.2% Financial Income 5,077 -3.8% 10,354 -10.4% Financial Expenses 2,906 -4.3% 5,943 -8.7% Gross Financial Margin 2,171 -3.0% 4,410 -12.7%
Slide 17: P&L - Non Financial Income & Operating Expenses
P&L - Non Financial Income & Operating Expenses 2Q24 Accumulated 2Q24 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Fee Income1 499 7.0% 965 6.3% Personnel Expenses 653 8.2% 1,257 7.5% Other Net Income & Expenses 64 -66.0% 251 44.1% Operating Expenses and Others 893 3.0% 1,760 0.6% Non Financial Income 563 -1
Slide 18: P&L - Net Profit
P&L - Net Profit 2Q24 Accumulated Net Profit2 $ Q/Q $ Y/Y Gross Financial Margin 2,171 -3.0% 4,410 -12.7% Provision Expenses 1,488 -15.1% 3,240 26.3% Net Financial Margin 683 40.1% 1,171 -52.9% FX Changes, Derivatives 145 -443.3% 103 -119.9% Non Financial Income1 563 -13.9% 1,216 12.4% Operating Expen
Slide 19: Expectations 2024
Expectations 2024 1Q24 2024 E 2Q24 2024 E (Previous / May.24) (Current) (Aug. 24) Growth -6.5% Δ Y/Y 5% - 7% Δ Y/Y -1.0% Δ Y/Y 5% - 7% Δ Y/Y Loan Portfolio PDL > 90 4.84% 4.0% - 4.5% 4.66% 4.0% - 4.5% NIM* 5.47% 6.1% - 6.4% 5.55% 6.0% - 6.2% Cost of Risk 4.89% 3.5% - 3.8% 4.72% 3.5% - 3.8% Profitabil
Slide 20: Investor Relations
Investor Relations www.ir.davivienda.com ir@davivienda.com + 57 (601) 220 3495 Bogotá - Colombia
Slide 21: Appendix
Appendix B DNAVIVIENDN
Slide 22: Results of our Sustainable Strategy
Results of our Sustainable Strategy Reaffirming the commitment to ESG Risk Management we have This quarter upheld for a decade. Thus we: Sustainable Loan Portfolio Davivienda adhered to the Equator Continued integrating social and environmental criteria in our ERM (Enterprise Risk Management) processe
Slide 23: Progress in Digital Transformation
Progress in Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales 1 (% of monetary transactions) (% of products) Digital Clients (COP Trillion) 92.9% -19% Y/Y 45% Y/Y 56% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of monetary transactions) (% of
Slide 24: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits Income (Million) (COP Billion) (COP Billion) 10% 7% Y/Y Y/Y 9% Y/Y 12% Y/Y With Products DaviPlata as Common with Monthly Transactional Subsidy Deposits Funding FTPs1 in the Sector Only Product Davivienda Average Income Income Trans
Slide 25: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 5% Y/Y -59% -29% Y/Y Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) 10.9pts Y/Y -1 pp -50% Y/Y Y/Y -42% 0.2pts Y/Y Y/Y 2 1.Current cards 2. CAC in USD estimated with the average exchang