Banco del Bajio SA · BMV:BBAJIO/O

Banco del Bajio SA — Q2 2022 Earnings Presentation

17 slides from Banco del Bajio SA's earnings presentation, July 2022

  1. Slide 1: Second Quarter 2022 Conference Call Presentation

    Second Quarter 2022 Conference Call Presentation July | 2022

  2. Slide 2: Contents

    Contents Executive Summary  Relevant Results 2Q22 vs. 2Q21 3 Clients’ Engagement 4 Digital Transformation- KPI´s 5 Loan Portfolio and Deposits Growth 6 Sound Asset Quality and Outstanding Risk Profile 7 Cost of Funding and Liquidity 8 Net Interest Margin 9 Revenues’ Performance 10 Efficiency Ratio

  3. Slide 3: Executive Summary: Relevant Results 2Q22 vs. 2Q21

     Executive Summary | RELEVANT RESULTS 2Q22 vs. 2Q21 ▪ Net Income growth 69.3 % ▪ Revenues (1) growth 32.0 % ▪ NII growth 39.6 % ▪ ROAE 19.0 % ▪ ROAA 2.5 % ▪ NIM 5.3 % ▪ Efficiency Ratio 39.8 % ▪ Total Loan Portfolio growth 3.5 % ▪ Company Loans Portfolio growth 5.5 % ▪ Total Deposits growth 7.6 % ▪

  4. Slide 4: Clients' Engagement

    Clients’ Engagement ◥ Total Clients *CAGR 2019 - Sep 2022: 10% 1,250,000 1,220,107 1,200,000 2Q22-2Q21 1,150,000 13% 1,081,251 1,100,000 1,050,000 996,710 1,000,000 950,000 924,527 900,000 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 ◥ Total Transactions ◥ Transactions Amount •

  5. Slide 5: Digital Transformation- KPI's

    Digital Transformation- KPI’s ◥ Total Digital Channel Transactions ◥ Digital Transactions at BanBajío 2Q22 9,000,000 8,841,390 35% 8,500,000 As of June 2022, approximately 72% of the 8,000,000 money volume and the number of transactions 7,500,000 are done through self-service channels (Digital 7,00

  6. Slide 6: Loan Portfolio and Deposits Growth

    Loan Portfolio and Deposits Growth ▪ Total Loan Portfolio stood at $204.1 bn, a growth of ◥ Total Loan Portfolio | Million Pesos 3.5% YoY in 2Q22. CAGR ‘19 -‘2Q22: 5.3% System (1) 3.4% ▪ Company Loans, which represents our core business, 210,000 increased 5.5 %. 2Q22 vs. 1Q22 200,000 1.4 % YoY Yiel

  7. Slide 7: Sound Asset Quality and Outstanding Risk Profile

    Sound Asset Quality and Outstanding Risk Profile ◥ NPL Ratio | % ◥ NPL Ratio adjusted | % May 22: System 2.41% 1.30 1.20 1.80 1.78 1.75 1.75 1.73 1.20 1.16 1.15 1.10 1.71 1.70 1.68 1.09 1.70 1.10 1.05 1.06 1.03 1.00 1.60 1.57 1.63 0.90 1.50 0.87 0.80 1.40 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q2

  8. Slide 8: Cost of Funding and Liquidity

    Cost of Funding and Liquidity ▪ Funding Breakdown | Ps$ Bn COST OF COST OF FUNDING FUNDING 234.6 3.08 % 246.7 3.91 % 18% 4.87% 16% 5.89% Interbank Loans 3% 3% (Primarily Development Bank Loans) ZERO-COST DEMAND DEPOSITS grew 19.6%, Repos 39% 4.96% bolstered by the growth 40% 3.41% Time Deposits in

  9. Slide 9: Net Interest Margin

     Net Interest Margin ▪ NIM expanded 136bps in 2Q22 YoY, as a result of better funding mix and higher interest rates. 6.0% 5.3% 2Q22 vs. 2Q21 5.0% 4.8% +47 bps due to MIX Improvement. 4.0% +89 bps due to TIIE 4.0% Sensibility. 3.0% 2Q20 2Q21 2Q22  As of June, NIM sensitivity is 34 bps for each 100

  10. Slide 10: Revenues' Performance

     Revenues’ Performance • Million Pesos ▪ Revenues increased 32.0% YoY in ◥ Total Revenues 2Q22, adjusted by IPAB Fee reclassification 4,300 4,196 8.0% ▪ For Net Fees & Commissions, which 4,100 7.0% are affected by the accounting 3,900 6.0% deferral, we would like to highlight 3,700 5.0% the perform

  11. Slide 11: Efficiency Ratio

    Efficiency Ratio ▪ Efficiency Ratio for 2Q22 stood at 39.8%, System 50.3%. ◥ Efficiency Ratio Evolution vs. System ◥ Total Revenues and Expenses* Operating Expenses/Total Revenues (1) | % Ps$ MM | Quarterly $4,500 4,196 56.7% $4,000 54.1% $3,500 50.3% $3,000 46.1% $2,500 43.4% $2,000 1,671 39.8% $1

  12. Slide 12: Extraordinary Dividend Payment 2022

    Extraordinary Dividend Payment 2022 ▪ Today, our Board of Directors approved the proposal of an extraordinary cash dividend to be submitted to the Shareholders’ Meeting, to be carried out in August 22, 2022. ▪ The amount to distribute is $4,600,000,000, payment will take place during August 30 of 2

  13. Slide 13: Capital Adequacy Ratio

    Capital Adequacy Ratio ▪ Solid capitalization ratio with 99.97% TIER 1 18% 17.54% Right after the 16.70%* 17% extraordinary dividend payment, the ICAP Ratio will be 14.7%. However, 16% 15.73% we expect to end the year above 15.3%. 15% 2Q20 2Q21 2Q22 * ICAP June 2022 preliminary. 13

  14. Slide 14: Guidance

    Guidance Assumptions: GDP Growth 1.5% -2.0%, Average Monetary Policy Rate of 7.67% (before 7.02%), Inflation Rate 7.5%- 8.5%. 2022 Original 2022 Revised April 2022 Revised July ▪ Loan Growth 6% - 8% 4% - 6% 4% - 6% ▪ Deposits Growth 8% - 10% 6% - 8% 6% - 8% ▪ NIM 5.0% 5.4% 5.7% ▪ Net Interest Incom

  15. Slide 15: Income Statement

    Income Statement Var. Ps$ MM 2Q21 1Q22 2Q22 YoY QoQ ▪Interest Income $4,437 $5,255 $6,043 36.2% 15.0% ▪Interest Expense ($1,798) ($2,005) ($2,358) 31.1% 17.6% Net Interest Income $2,639 $3,250 $3,685 39.6% 13.4% ▪Net Fees & Commissions $527 $442 $466 -11.6% 5.4% ▪Trading Income $219 $197 $221 0.9%

  16. Slide 16: Income Statement

    Income Statement Var. Ps$ MM 6M 21 6M 22 YoY ▪ Interest Income $8,764 $11,298 28.9% ▪ Interest Expense (3,560) (4,363) 22.6% Net Interest Income $5,204 $6,935 33.3% ▪ Net Fees & Commissions 1,027 908 -11.6% ▪ Trading Income 399 418 4.8% (1) ▪ Other Operating Income / (Expense) (510) (340) -33.3% No

  17. Slide 17: Balance Sheet

    Balance Sheet Var. Ps$ MM 2Q21 1Q22 2Q22 YoY QoQ ▪Cash & Cash Equivalents 29,067 20,525 22,390 -23.0% 9.1% ▪Investment in Securities 9,334 9,168 8,745 -6.3% -4.6% ▪Cash & Investments $38,401 $29,693 $31,135 -18.9% 4.9% ▪Performing Loan Portfolio Stage 1 195,110 196,298 198,980 2.0% 1.4% ▪Performing

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