Banco De Bogota Sa · BVC:BOGOTA
Banco De Bogota Sa — Investor Presentation (March 2023)
26 slides from Banco De Bogota Sa's investor presentation, Mar 23, 2023
Slide 1: Investor Visit
Investor Visit March 23rd 2023: • JP Morgan • TWC • Loomis • Point Break Capital Management TÍTULO The Issuer´s IR - Recognition granted by the Colombian Securities Exchange is not a certification about the quality of the securities listed at BVC nor the solvency of the issuer
Slide 2: Disclaimer
Disclaimer Banco de Bogotá is an issuer of securities in Colombia and, as such, it is required to comply with periodic reporting requirements and corporate governance practices. As a financial institution, the Bank is subject to inspection and surveillance from Colombia’s Superintendency of Finance.
Slide 3: Business Overview
Business Overview ✓ Founded in 1870, Banco de Bogotá is Colombia’s oldest financial institution and Presence and Key Figures the main subsidiary of Grupo Aval, the leading financial group in Colombia ✓ Universal bank with a strong presence in the commercial and consumer lending segments ✓ Listed in
Slide 4: Corporate Structure Reflects Business Diversification
Corporate Structure Reflects Business Diversification Universal Bank with a wide portfolio of products and services. Presence across Colombia and Panama. Agencies in Miami and New York.(1) Aval Soluciones Subsidiaries in Digitales S.A. Colombia 94.99% 95.81% (2) 94.90% 38.90% Bogotá Finance Ficentro
Slide 5: Our Corporate Strategy Supports Long-term Goals
Our Corporate Strategy Supports Long-term Goals Customer Sustainable Growth We ensure positive and memorable We grow the business profitably by experiences to achieve customer developing value offerings that loyalty and recommendation, allow us to accompany and support through differentiated solutio
Slide 6: Highlights of Our Corporate Strategy in 2022
Highlights of Our Corporate Strategy in 2022 Customer Risk Control • Work plans established to allow us to manage • 100% of the renovation plan established for 2022 was completed, with 325 ATMs with state-of-the-art solutions to cybersecurity incidents and guarantee technology. the safety of our inf
Slide 7: Sustainable Growth Leads To Strong Financial Results
Sustainable Growth Leads To Strong Financial Results Figures in million USD Total Assets Breakdown Gross Loan Portfolio Q4 2022 (2) Deposits Q4 2022 0.3% 0.5% 12.5% 12.0% 36.7% 7.7% 44.3% $28,663 22.6% 10.7% $19,974 $18,300 69.1% 65.1% 18.5% Loans & Leases, Net Fixed Income Investments Commercial Co
Slide 8: Digital Transformation
Digital Transformation Sales Channel Transformation Service Channel Transformation Cumulative Total Digital Sales (k) 1 Active Digital Retail Clients (k) 2,189 ∆ CAGR 24.4% 2,349 1,515 7.7 out of 10 1,518 1,842 Outstanding 884 Products sold in consumer ratings in Colombia our banking App are digital
Slide 9: Risk Control at the Core of our Operations
Risk Control at the Core of our Operations Asset Quality-PDLs Net Cost or Risk Coverage Net provision loss / average loans Allowances / PDLs 5.0% 4.6% 1.59x 1.57x 1.8% 1.6% 3.9% 3.5% 1.23x 1.18x Pro forma Q4-21 Q4-22 Pro forma Q4-21 Q4-22 Pro forma Q4-21 Q4-22 Commercial Loans PDLs Consumer Loans PD
Slide 10: International and Local Risk Ratings Reflect our Creditworthiness
International and Local Risk Ratings Reflect our Creditworthiness International ratings Moody’s Investors Service Fitch Ratings Baa2 “The bank's BCA reflects its strong and resilient earnings BB+ “The bank’s ratings also reflect its consistent financial Stable generation and its steady access to low
Slide 11: 2022 Performance Overview
2022 Performance Overview Attributable Net Income for 2022 was $2.8 trillion pesos leading to an annualized 15.9% ROAE. 1.9% 1 15.9% 1 • ROAE of continuing operations was 13.9% and ROAA was 1.6% ROAA ROAE • Net Interest Income amounted to $4.7 trillion pesos for 2022, growing 16.1%, due to higher lo
Slide 12: Digital Transformation
Digital Transformation Sales Channel Transformation Service Channel Transformation Cumulative Total Digital Sales (k) 1 Active Digital Retail Clients (k) 2,189 ∆ CAGR 24.4% 2,349 1,515 7.7 out of 10 1,518 1,842 Outstanding 884 Products sold in consumer ratings in Colombia our banking App are digital
Slide 13: ESG 2022
ESG 2022 Governance Strengthening the Corporate Design of the Climate Strategy Strengthening the Climate Sustainability Strategy aligned to Net Zero Change Governance Model Climate Action Social Action • First Carbon Neutral Bank in Colombia • + $216,000 million pesos to support • + 1.8% of the tota
Slide 14: Context – Colombia Macroeconomic Overview
Context – Colombia Macroeconomic Overview Monthly Activity Indicator vs. GDP 1 (YoY %) Inflation vs. Central Bank Rate (YoY %) 30% 14% 13.25% 2020 2021 2022 2023e* 12.75% 25% 2020 2021 2022 2023e* 12% GDP Inflation (YoY %) 1.6% 5.6% 13.1% 8.5% 20% (YoY %) -7.3% 11.0% 7.5% 1.5% 10% Central Bank Rate
Slide 15: Context – Panama Macroeconomic Overview
Context – Panama Macroeconomic Overview GDP – IMF (YoY%) Monthly Activity Indicator– IMAE (YoY%) GDP by sector (YoY%, third quarter*) 20 40% 15.3 Hotels and restaurants 23.1 15 30% Construction 17.6 10 7.5 Other social services 15 20% 3.7 4.0 4.5 11.0% Commerce 13.1 5 3.0 10% Transport, communicatio
Slide 16: Assets & Loan Portfolio Detail – Consolidated
Assets & Loan Portfolio Detail – Consolidated Figures in trillion pesos Total Assets Breakdown Total Gross Loan Portfolio Structure $137.9 Consumer Secured, 3.2% Credit Cards, 3.2% $96.1 Agricultural, 3.2% Other, 0.5% Equity Investments, Other (1) Chemical production, 3.6% Commercial services, 20.5%
Slide 17: Loan Portfolio Quality – PDLs / Gross Loans
Loan Portfolio Quality – PDLs / Gross Loans 30-day PDL Ratio 90-day PDL Ratio 5.3% 4.2% 4.9% 4.8% 3.8% 3.6% 5.0% 3.9% 4.6% 3.5% 4.6% 3.4% 3.0% 3.9% 3.7% 3.6% 2.3% 1.9% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Pro forma 2021 2022 Pro forma 2021 2022 30-day PDL Ratio by Type 90-day PDL Ratio by Type 31.8% 27.5%
Slide 18: Loan Portfolio Quality – Allowances
Loan Portfolio Quality – Allowances 30-day Coverage Ratio 90-day Coverage Ratio 1.34x 1.34x 1.73x 1.69x 1.76x 1.33x 1.23x 1.18x 1.63x 1.57x 1.21x 1.59x Allowances / 30-day PDLs Allowances / 90-day PDLs 0.77x 0.79x 0.47x 0.42x 0.43x 0.55x Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Pro forma 2021 2022 Pro forma 20
Slide 19: Loan Portfolio Quality – Cost of Risk & Charge-offs
Loan Portfolio Quality – Cost of Risk & Charge-offs Cost of Risk Charge-offs / 90-day PDLs Net Provision Loss / Avg. Loans 133% 1.9% 1.8% 1.6% 1.8% 68% 1.4% 1.6% 60% 1.4% 1.3% 1.1% 65% 52% 49% 51% 39% 25% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Pro forma 2021 2022 Pro forma 2021 2022 Charge-offs / Average Loa
Slide 20: Consolidated Funding
Consolidated Funding Figures in trillion pesos Total Funding Pro forma Q4-21 Q3-22 Q4-22 YoY: 16.4%; Exc. FX: 12.4% 1.3 2.6 1.1 QoQ.: 3.4%; Exc. FX: 2.5% 11.3 12.3 11.3 12.2 17.9 % Q4-22 16.0 $101.6 $114.5 $118.4 Deposits 74.4 Bank and others 15.2 76.9 83.6 88.0 Long Term Bonds 9.5 Interbank Borrowi
Slide 21: Equity & Capital Adequacy as Reported
Equity & Capital Adequacy as Reported Figures in trillion pesos ∆ YoY: -37.6% Equity Composition Tangible Capital Ratio & Equity / Assets ∆ QoQ.: -3.3% 12.2% 25.3 11.5% 0.04 10.9% 15.7 16.3 15.8 11.3% 15.3 0.04 0.04 0.04 0.05 10.5% 25.3 15.3 15.7 16.3 15.8 7.8% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2021 202
Slide 22: Consolidated NIM
Consolidated NIM Figures in billion pesos 2021 2022 Yields by Quarter 11.5% 10.3% Yield on Loans 7.2% 9.7% 7.3% 6.6% 5.1% 6.4% Yield on Fixed Income (including 2.5% 4.5% 3.0% 5.1% interbank funds) Average Funding Cost 2.3% 4.6% 2.5% Q4 Q1 Q2 Q3 Q4 Pro forma 2021 2022 Net Interests Margins 2021 2022
Slide 23: Fees and Other Income
Fees and Other Income Figures in billion pesos Fee Structure ∆ YoY: 16.9% Total Fees 32.0% 25.1% ∆ QoQ.: 5.7% 25.1% 461 436 2021 2022 35 394 33 43 36 41 38 Other 122 130 Fiduciary Activities 156 161 361 382 Banking Fees 1,158 1,382 321 Total Fees 1,436 1,673 (1) Fee Income Ratio 23.1% 24.8% Q4 Q1 Q2
Slide 24: Efficiency
Efficiency Figures in billion pesos Efficiency Growth Rate Pro forma 2022 2021 YoY Ex. FX Total Operating Expenses 2,915.1 (1) 3,258.1 11.8% 9.8% Total Income (2) 6,112.7 6,716.2 9.9% 8.2% Cost to income Cost to Assets (3) 48.5% 47.7% 2.6% 2.5% Pro forma 2021 2022 Pro forma 2021 2022 1. Total operat
Slide 25: Profitability as Reported & of Comparable Operations
Profitability as Reported & of Comparable Operations Figures in billion pesos Net Attributable Income by Quarter 2021 2022 1,874 154 445 44 326 415 488 391 391 Discontinued Operations 2,994 1,120 Continous Operations 1,362 1,685 -952 Net Income 4,549 2,806 Net Attributable Income 4,356 2,805 Q4 Q1 Q
Slide 26: Contact Information
www.bancodebogota.com Contact Information Germán Salazar Castro – Executive Vice-President Javier Dorich Doig – FP&A, Corporate Development and IR Head investor.relations@bancodebogota.com.co Mejor Banco de Colombia 2022: • Euromoney • Global Finance Great Place To Work 2022 Sustainability Yearbook