Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — Q4 2023 Earnings Presentation
33 slides from Banco Davivienda SA's earnings presentation, Mar 1, 2024
Slide 1: Davivienda Corporate Presentation - 4Q23
Davivienda Corporate Presentation - 4Q23
Slide 2: Disclaimer
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 8 Digital Transformation and DaviPlata 14 2 Grupo Bolívar 5 9 Wealth Management 18 3 Ownership Structure 6 10 Credit Risk Management 19 4 Results of Our Sustainable Management 8 11 Capital Structure 21 5 History 9 12 Key Ratios 22 6 Our Main Strategic Focuses 1
Slide 4: Banco Davivienda at a Glance
Banco Davivienda at a Glance Loans: $ 16.1Bn Loans: $ 11.8Bn Main Figures Customers: 9.4M Customers: 412k USD Billion Y/Y 2 Assets $ 46.6 -3.2% 2 Gross Loans $ 35.6 -6.1% Deposits $ 32.3 3.0% Equity $ 3.9 -9.5% Net Profit1 -$ 86.1 -123.0% Deposits: $259.6M Loans: $ 7.6Bn Customers: +17.4M Customers:
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 53.1 billion Equity USD 5.0 billion Honduras Customers 23.7 million El Salvador Employees 26.3 k Costa Rica Colombia Countries 6 Panamá
Slide 6: Ownership Structure
COMMON SHARES Ownership Structure 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). Figures as of December 31, 2023. 6
Slide 7: Our Sustainable Management
Our Sustainable Management THE WORLD IS THRIVING INCLUSIVE GREEN OUR HOME LET’S MAKE IT MORE Material Issues ● Finance and Sustainable Funding ● Inclusion and Financial Education ● Climate Change ● Responsible Investment ● Equality, Diversity, and Inclusion ● Eco-efficiency ● Corporate Governance ● Co
Slide 8: Results of Our Sustainable Management
Results of Our Sustainable Management Davivienda has been a member of the MILA Pacific Alliance Index for 10 years in a row Sustainable Loan Portfolio Part of the top 15% of companies in the DJSI Sustainability Yearbook 2024 20% During 2023 we were renewable energy recertified and Y/Y carbon neutral c
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 2023 CF4 13.8% 2020 2019 2023 2015 15.4% 11.8% Market Share by 1994 Assets2 3.8% 2018 2016 14.9% Assets Market Share by 2015 2012 $
Slide 10: Our Main Strategic Focuses: Prioritize Profitability and Risk Management
Our Main Strategic Focuses: Prioritize Profitability and Risk Management Selective growth Calibration of origination process and policies. Payment business Strengthening collection models Gradually increase low-cost deposits Fee and services income Balance sheet management Ecosystems Loan Portfolio a
Slide 11: A Diversified Loan Portfolio
A Diversified Loan Portfolio¹ USD Billion 2004 4Q23 Y/Y Commercial -7.0% Consumer -14.2% $1.3 $35.6 Mortgage 5.5% Total -6.1% Y/Y Colombia COP -2.1% $1.3 $35.6 International USD 2 8.0% Colombia USD -22.2% 1. Consolidated Gross Loans 2. Growth in USD Figures in USD Billion Exchange Rate as of December
Slide 12: A Portfolio Focused on Strategic Segments and Products
A Portfolio Focused on Strategic Segments and Products USD Billion 2% Mortgage Loans Consumer Loans 2% Unsecured Personal Loans Leasing Payroll Low Income Housing $9.9 $10.0 Credit Cards Vehicle Residential Revolving Loans Commercial Loans1 $15.7 Figures in USD Billion. 1. Energy and hydrocarbons: m
Slide 13: Stable and Diversified Funding Sources
Stable and Diversified Funding Sources USD Billion Demand deposits Term deposits $39,9 Credits Bonds Loans to Deposits 130.7% 128.9% 122.3% 120.2% 120.8% 110.2% Loans to Funding Sources 97.2% 95.9% 93.4% 91.4% 92.6% 89.1% International Issuances Portfolio Securitization3 (USD Million) Amount Yield to
Slide 14: Results of our Digital Transformation
Results of our Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales (% of products) (USD Billion) (% of monetary transactions) 1 Digital Clients 92.7% -22% Y/Y 37% Y/Y 90% Y/Y Transactions by Channel Digital Sales Digital Clients1 (% of monetary transactions) (% o
Slide 15: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Leader in Financial Inclusion 99%2 Ofterritory the Colombian Mobile Transfer Money¹ Pay Bills Withdraw Money Mobile Airtime Top-Up Ecosystems with Social Impact Products Platform Savings Pocket Make Purchases Receive Remittances Buy Insurances Nanocredits Payment Sh
Slide 16: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits (Million) (USD Million) 8% +1M Interoperable QRs were 11% Y/Y deployed during 2023 (76% Y/Y 7% market share) We deployed a new sales Y/Y verification QR, the only one of its type in the country We have reached 15% of With Products in
Slide 17: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Cross-Selling Results Ecards1 DaviPlata / Davivienda (Million) 7% Y/Y -11% Y/Y -21% Y/Y Active Users CAC Customer Satisfaction (30 Days) (12 Months) -8.1pts Y/Y -2 pp Y/Y -37% Y/Y 0.1pts Y/Y 2 1.Current cards 2. CAC in USD estimated with the average exchange rate. 1
Slide 18: Wealth Management
Wealth Management USD Billion AUM Evolution Y/Y -4.8% -11.9% Investment Funds Securities Brokerage, Investment Voluntary Pension Funds Funds, Research and Investment Funds and Portfolios Banking Services -28.9% Assets Under Custody 12.1% Trust Funds International Investments Market Share • The Trust
Slide 19: Credit Risk Management
Credit Risk Management Total PDL & Coverage1 Coverage + Collaterals3 2 3 PDL by Segment Coverage by Segment1 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 Reserve
Slide 20: Credit Risk Management
Credit Risk Management CoR1 & Provision Expenses 4Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 398 5.5% 1,369 71.7% Ex. FX Impact* 5.5% 71.2% Loans by Stages Coverage by Stages Figures in USD Million. The average rate COP/USD appreciated 1.5% Q/Q and depreciated 1.9% Y/Y. 1. Cost of Risk = Provisi
Slide 21: Capital Structure
Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 4Q23 Q/Q Y/Y Accounting Equity 3.9 -3.2% -9.5% Common Equity Tier 1 3.4 -3.8% -11.6% Additional Tier 1 0.5 -7.3% -20.6% Total Technical Capital 4.9 -4.6% -14.8% RWAs 33.4 -4.0% -4.6% Credit Risk 28.7 -4.1% -8.0% Market Risk 0.
Slide 22: Key Ratios
Key Ratios ROAA & ROAE NIM Non-Financial Income and Fee Ratios Cost-to-Income and Cost-to-Assets Non Financial Income Ratio 12 M Cost-to-Income Excluding Non-Recurring Income Fee Income Ratio 12 M Excluding Goodwill Impairment Cost-to-Assets ROAE = Net Profit (12 months) / Average Equity (5 periods)
Slide 23: A Leading Banking Institution in Colombia
A Leading Banking Institution in Colombia Customers¹ +21.9M Branches 532 ATMs 2.3k Banking Correspondents 31k Employees 13.5k Market 4Q23 Y/Y Ranking USD Billion Share Assets $ 36.3 1.1% 2 13.8% Gross Loans $ 27.0 -4.0% 2 15.4%² Commercial $ 11.2 -3.8% 3 12.3% Consumer $ 7.5 -16.5% 2 14.2% Mortgage
Slide 24: Our Operations in Central America
Our Operations in Central America Honduras Total Central America¹ USD Million Dec. 23 Y/Y Assets 11,426 5.2% El Salvador Gross Loans 7,646 8.0% Customers +1.7M Commercial 3,868 4.4% Branches 141 Costa Rica Consumer 2,251 17.3% ATMs 555 Employees +4.4 K Panama Mortgage 1,527 4.9% Deposits 7,730 10.4%
Slide 25: 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 26: Experienced Management Team
Experienced Management Team Javier Suárez Chief Executive Officer ● Civil Engineer from Universidad de los Andes, with a Masterʼs degree in Finance and a Masterʼs degree in Actuarial Sciences from Georgia State University. ● Over 30 years of experience in the financial industry. Álvaro Cobo Ricardo L
Slide 27: Appendix
Appendix
Slide 28: Macroeconomic Fundamentals Colombia
Macroeconomic Fundamentals Colombia Gross Domestic Product (Y/Y) Monetary Policy Rate, Inflation and Funding Rate 10.8% Term Deposits 360 Days 18.1% MPR 7.3% Inflation 12.75%** 2.6% 3.2% 11.60%** 1.4% 0.6% 8.35%* Dec. 23 5.98% 13.42% 4.75% 4.09% 13.00% 9.28% -7.2% 2017 2018 2019 2020 2021 2022 2023 De
Slide 29: Financial System Colombia
Financial System Colombia System Loan Portfolio Interest Rates on Loans Apr. 23 47.1% (Annual Growth) (4-week moving average) Cap Rate1 37.6%* 31.2% Consumer 25.6%* Total 11.8% 22.6% 19.0%* 9.6% Mortgage 7.7%* Mortgage 11.7% 6.2% Commercial 11.1% 18.3%* 9.7% Commercial 3.1% 2.7%* 17.0%* Total 2.0%*
Slide 30: Macroeconomic Fundamentals CAM
Macroeconomic Fundamentals CAM Gross Domestic Product (Y/Y) Inflation (Y/Y) Sept. 23 Panama 9.0%* 5.1% Costa Rica 4.1% 5.3%** Honduras Honduras 4.7% 3.7% 5.2% 4.3%* 2.6% Panama 2.5% El Salvador 2.0% 1.9% 3.6%* 0.5% El Salvador 1.2% Costa Rica -1.8% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet USD Million 4Q22 3Q23 4Q23 $ Q/Q Q/Q $ Y/Y Y/Y ASSETS Cash and Interbank Funds 4,273 4,546 4,694 147 3.2% 421 9.9% Investments 4,913 5,019 5,059 39 0.8% 145 3.0% Gross Loans 37,882 36,532 35,576 - 955 -2.6% - 2,306 -6.1% Commercial 16,845 16,318 15,674 - 644 -3.9% - 1,171
Slide 32: Consolidated P&L
Consolidated P&L USD Million 4Q22 3Q23 4Q23 $ Q/Q Q/Q $ Y/Y Y/Y Dec 2022 Dec 2023 $Y/Y Y/Y Total Income 1,157 1,221 1,271 50 4.1% 114 9.9% 3,670 5,166 1,497 40.8% Loans 1,074 1,122 1,099 - 24 -2.1% 25 2.3% 3,508 4,577 1,069 30.5% Investment 66 68 134 66 98.1% 68 102.8% 121 478 356 293.5% Overnight 1
Slide 33: Visit us at ir.davivienda.com
Investor Relations ir@davivienda.com (+57) 601 220 3495 ir.davivienda.com Bogotá - Colombia Visit us at ir.davivienda.com