Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — LarrainVial 11th Annual Andean Conference 2017
23 slides from Banco De Bogota Sa's conference presentation, March 2017
Slide 1: Investor Presentation
Investor Presentation LarrainVial 11th Annual Andean Conference March 7th - 8th 2017 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: Colombia: Economic activity decelerated in 2016, but should pickup in 2017
Colombia: Economic activity decelerated in 2016, but should pickup in 2017 Quarterly GDP (YoY %) Annual GDP growth by sector (YoY %) 2014 2015 2016 2017e -8% -6% -4% -2% 0% 2% 4% 6% 4.6% 3.1% 2.0% 2.4% 8% GDP 2.0% 3.1% Agriculture 0.5% 6% 2.5% Oil & Mining-6.5% 0.2% 4% Industry 3.0% 2016 1.7% 2.0% E
Slide 4: Colombia: Inflation continues to moderate, Central Bank will likely reduce interest rate gradually during 2017
Colombia: Inflation continues to moderate, Central Bank will likely reduce interest rate gradually during 2017 Core and total inflation (YoY %) Exchange Rate (USD/COP) 10% Headline inflation Core inflation 4 (1) 4Q15 3Q16 4Q16 8% Average 3,061.74 2,948.97 3,009.53 Inflation End of period 3,149.47 2,
Slide 5: Colombia: Balance of payments adjustment is underway
Colombia: Balance of payments adjustment is underway Current Account (% GDP, quarterly) Trade balance (USD M, % GDP, monthly) Current account 6% 2014 2015 2016e 2017e 1,500 4% -USD487 M 4% -5.2% -6.4% -4.5% -4.0% -2.1% GDP 1,000 2% 2% 1.9% 0% 500 0% -3.7% -2% 0 -2% -4% -1.2% -4.8% -500 -4% -6% -1.7%
Slide 6: Tax Reform Summary – Corporate
Tax Reform Summary – Corporate VAT increase Projected Fiscal Deficit with & without Tax Reform • VAT Rate: 300 bps increase, from 16% to 19%. (% of GDP) Current and projected fiscal deficit Projected fiscal deficit without Tax Reform • VAT is expected to contribute an additional COP 6 trillion per y
Slide 7: Tax Reform Summary – Personal
Tax Reform Summary – Personal Income Tax Income Tax Breakdown: The Reform lowered the income tax threshold from Corporates & Individuals COP$3.6MM to COP$2.5MM, which will result in a widening of Corporates Individuals the base by more than 400,000 individuals. However, the significant majority of
Slide 8: Central America: Strong growth, stable inflation, low rates
Central America: Strong growth, stable inflation, low rates GDP (YoY %) Exchange Rates (Index= 2014) 6 5.8 160 2016 2017f 2017e 5.2 150 5 4.5 4.3 4.3 4.3 4.0 4.2 140 141 MX 4 3.8 3.6 3.7 3.5 130 3 2.4 2.4 120 2 110 NI 110 109 HO 1 103 CR 100 99 GU 0 90 El Salvador Honduras Guatemala Cenam Costa Rica
Slide 9: Trump: Uncertain effect, Mexico possibly most impacted. Central America, possibly less so.
Trump: Uncertain effect, Mexico possibly most impacted. Central America, possibly less so. US Trade Balance ($Bn) Imports to US from Central America by product 2015 40 CAFTA 1 Total: $19.5 Bn CA Medical Others 20 PAN Devices 15.6% Textile BRA 7.7% products 0 GUA SAL 38.8% HON Electric -20 CRI NIC ma
Slide 10: Diversified sources of income
Diversified sources of income Overview Banco de Bogotá’s Structure Founded in 1870, Banco de Bogotá is Colombia’s oldest financial institution and the principal subsidiary of Grupo Aval, the leading Colombian Banking Group financial group in Colombia. Principal subsidiaries of Banco de Bogotá Asso
Slide 11: Significant player in a competitive Colombian market
Significant player in a competitive Colombian market Total Assets Net Loans System: US$ 182.7 bn System: US$ 125.1 bn 26.6% 25.2% 26.5% 25.0% 14.6% 13.3% 14.5% 13.2% 9.4% 10.1% Categoría 1 Categoría 1 Deposits 1/ Net Income 2016 System: US$ 116.3bn System: US$ 3.8bn 27.1% 44.6% 22.6% 36.7% 14.1% 12.
Slide 12: BAC is market leader in Central America
BAC is market leader in Central America Total Assets 1/ Net Loans 1/ System: US$228.8 bn System: US$142.6 bn 9.8% 9.1% 8.7% 7.8% 7.1% 6.8% 6.3% 5.4% 4.7% 4.2% Deposits 1/ Net Income (11 months) 1/ System: US$156.8 bn System: US$2.5 bn 12.4% 8.4% 8.0% 10.0% 7.1% US$211 mm 5.7% 7.4% 4.4% 5.8% 4.8% Sou
Slide 13: Strong Balance Sheet Structure, December 2016
Strong Balance Sheet Structure, December 2016 Figures in USD. Billions Banco de Bogotá Unconsolidated Assets: $26.8 Funding : $20.5 Growth Growth 4.9% 1.6% Dec16/Dec15: 7.9% 6.0% Dec16/Dec15: 6.7% Checking Accounts 8.8% 22.2% Savings Accounts 11.5% 27.6% Cash Time Deposits Investments 20.8% Bonds Lo
Slide 14: Loan Portfolio Evolution
Loan Portfolio Evolution Figures in USD. Billions Growth (%) Loan Portfolio, Banco de Bogotá Unconsolidated Dec 16 / Dec 15 Total Loans 7.9% $16.2 $17.5 0.7% 0.8% 4.7% Microcredit 1.1% 4.0% 19.1% 18.7% Mortgage 24.7% Consumer 10.0% 76.5% 75.5% Commercial 6.6% Dec-15 Nov-16 Dec-16 Loan Portfolio, BAC
Slide 15: Diversified, high-quality commercial loan portfolio as of December 2016
Diversified, high-quality commercial loan portfolio as of December 2016 Figures in USD. Billions Banco de Bogotá Unconsolidated Central America 0.5% Commercial Loans $13.2 Commercial Loans $5.9 1.8% 0.2% 3.2% 2.6% 2.7% 2.9% 3.3% 2.7% 3.8% 11.1% 3.7% 14.0% 4.1% 3.9% 10.4% 9.9% 4.8% 4.4% 5.2% 5.3% 9.3
Slide 16: Loan Portfolio Quality
Loan Portfolio Quality Banco de Bogotá Unconsolidated and BAC Banco de Bogotá BAC Unconsolidated Dec-2015 Dec-2016 Dec-2015 Dec-2016 Delinquency Ratio 30 day PDLS / Gross Loans 2.7% 3.0% 2.2% 2.3% 90 day PDLS / Gross Loans 1.9% 2.2% 1.0% 1.2% Cost of Risk (1) Provision expense, net of recoveries 1.5
Slide 17: Evolution of Deposits
Evolution of Deposits Figures in USD. Billions Deposits, Banco de Bogotá Unconsolidated Growth (%) Dec 16 / Dec 15 $16.4 $14.9 Total Deposits 9.9% 32.4% 33.7% Time Deposits 14.4% Savings Accounts -1.9% 45.8% 40.8% Checking 28.0% Accounts 21.8% 25.4% Dec-15 Nov-16 Dec-16 Deposits, BAC Growth (%) $13.
Slide 18: Net Interest Margin
Net Interest Margin Banco de Bogotá Unconsolidated Net Interest Margin on Investments (1) Net Interest Margin on Loans (2) Net Interest Margin (3) 5.8% 5.6% 5.3% 5.1% 1.1% 0.3% Dec-15 Dec-16 BAC 7.8% 7.9% 7.3% 7.3% 1.5% 1.9% Dec-15 Dec-16 (1) Investments Net Interest Margin : Net Interest income on
Slide 19: Capital Adequacy
Capital Adequacy Consolidated Capital Adequacy (1) Tier I Tier II 13.9% 13.6% Regulatory Minimum: 4.2% 4.9% Total: 9.0% 9.4% 9.0% Tier I: 4.5% Dec-15 Dec-16 Banco de Bogotá Unconsolidated (1) BAC (2) (3) Tier I Tier II Tier I Tier II 20.8% 19.4% 7.2% 13.6% 13.3% 6.6% 0.0% 2.3% 12.8% 13.6% 13.6% 11.0
Slide 20: Fee Income
Fee Income Figures in USD. Millions Fee Income Break Down (2) Fee Income Ratio (1) $ 1,300 Others 5.3% Banco de Bogotá Unconsolidated $ 1,122 1.7% 3.8% Fiduciary Activities 20.6% 21.5% 3.7% 2.6% 20.1% Colombia 22.4% Fiduciary Activities 1.7% BAC Pension Funds Dec-15 Dec-16 46.8% Colombia 47.7% BAC B
Slide 21: Efficiency
Efficiency Banco de Bogotá Unconsolidated (1) BAC 56.4% 54.3% 47.1% 45.6% Dec-15 Dec-16 Dec-15 Dec-16 (1) Calculated as Personnel plus administrative expenses divided by net interest income plus net trading income, other income and fees and other services income, net (excluding equity method Income,
Slide 22: Profitability
Profitability Banco de Bogotá Unconsolidated ROAE (1) ROAA (2) 3.3% 16.2% 2.8% 13.4% Dec-15 Dec-16 Dec-15 Dec-16 BAC ROAE (1) ROAA (2) 1.8% 1.8% 15.5% 14.7% Dec-15 Dec-16 Dec-15 Dec-16 NOTE: Ratios for Banco de Bogotá Unconsolidated are calculated excluding the extraordinary gain from the loss of co
Slide 23: Contact Information
Contact Information: María Luisa Rojas Giraldo Chief Financial Officer mrojas@bancodebogota.com.co IR Contact: Investor.relations@bancodebogota.com.co
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