Banco Davivienda SA · BVC:PFDAVVNDA
Banco Davivienda SA — Davivienda — 4Q23 Earnings Presentation
29 slides from Banco Davivienda SA's earnings presentation, Feb 1, 2024
Slide 1: Davivienda Consolidated Financial Results - 4Q23
Davivienda Consolidated Financial Results - 4Q23
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 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 4: 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 5: 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 6: 2023 Main Results
2023 Main Results 23.6 M 8.2% Y/Y Gross Loans Customers1 $136 Tn Q/Q: -2.6% Y/Y: -6.1% Key figures Value Creation Initiatives & Digital Capabilities 10.25% CET1 52% Q/Q: 2 bps Y/Y: -82 bps 10.9% Y/Y Google Pay Wallet of new clients were Mortgage +27k enrolled clients Retail portfolio added through di
Slide 7: Evolution of our Margins
Evolution of our Margins 12M Implicit Rate and MPR Dec 23. vs Sept 21. Loans and Investments NIM 12M +600 bps +1,125 bps Loans Implicit Rate +722 bps Funding Implicit Rate Monetary Policy Rate 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 10.86% 9.98% 9.19% 12.30% 15.20% Investments NIM Loans NI
Slide 8: Recent Evolution of our Margins & Going Forward
Recent Evolution of our Margins & Going Forward Monthly Implicit Rates - Deposits1 Term Deposits Implicit Rate Going Forward… Demand Deposits Implicit Rate Balance sheet profile positioned to benefit from monetary policy rate decreases. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Funding mix in a
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 Consumer Ex. Credit Card Credit Card Unsecured Personal Loans Payroll Credit Card Vehicle Revolving Loans Jan. 21 Consumer Portfolio - Vintages Net Provisi
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: Leveraging on our Innovating DNA to build the Digital Bank of the future
Leveraging on our Innovating DNA to build the Digital Bank of the future Among the most comprehensive digital banking offering for individuals in Colombia Promoting Financial Inclusion in Colombia, and Digital banking pioneer in Central small-businesses growth and with high America monetization pote
Slide 12: Our New Apps: a new way to support our customers and go beyond banking
Our New Apps: a new way to support our customers and go beyond banking Super App for Individuals Business App Integrates financial and non-financial High security standards and services. accessibility anytime, anywhere. +130 Functionalities A leading edge experience Sales, transactions, services, ecos
Slide 13: Davivienda announces a new stock issuance offering
Davivienda announces a new stock issuance offering Issuance ~76.1% ~23.9% To maintain capital levels and Details Common $720B Preferred leverage business growth and shares 36M Shares shares Purpose the development of our Total Offering strategy Potential Impacts on Capital Adequacy Ratios ~55 bps Tot
Slide 14: Balance Sheet - Assets
Activo Balance Sheet - Assets By Operation Assets Q/Q Y/Y Colombia 0.0% 3.4% COP -1.6% -16.4% CAM USD 4.4% 5.2% Q/Q Y/Y Loan Loss Reserves / Gross Loans Cash 3.2% 9.9% Net Investments 0.8% 3.0% Gross Loans -2.6% -6.1% Loan Loss Reserves -8.1% -3.9% Others 1.5% 4.7% Assets -1.2% -3.2% 2019 4Q22 3Q23
Slide 15: 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* 144.8 145.0 141.1 139.6 136.0 Q/Q Y/Y Q/Q Y/Y Commercial -3.9% -7.0% -2.2% -1.0% Consumer -5.0% -14.2% -3.8% -9.8% Mortgage 2.1% 5.5% 2.9% 8.7% Gross Loans -2.6% -6.1% -1.3% -1.3% Figures in
Slide 16: Balance Sheet - Credit Risk Management
Balance Sheet - 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 = (L
Slide 17: Balance Sheet - Credit Risk Management
Balance Sheet - Credit Risk Management CoR1 & Provision Expenses 4Q23 Accumulated $ Q/Q $ Y/Y Provision Expenses 1,720 5.5% 5,917 71.7% Ex. FX Impact* 5.5% 71.2% Loans by Stages Coverage by Stages Figures in COP Billion. The average rate COP/USD appreciated 1.9% Q/Q and depreciated 1.5% Y/Y 1. Cost
Slide 18: Balance Sheet - Funding Sources and Liquidity
Activo Balance Sheet - Funding Sources and Liquidity Funding Sources ($) Y/Y Funding Ratios -2.5% -24.6% -14.3% 29.2% 73.2 -11.5% 65.9 61.9 61.4 63.2 -18.5% 1 Funding Mix (%) Liquidity Ratios 46.8% 41.7% 40.6% 41.4% 40.1% 2 3 Other Demand Deposits High-Cost Demand Deposits (Col) Figures in COP Trill
Slide 19: Balance Sheet - Capital Structure
Balance Sheet - Capital Structure Capital Adequacy Ratios 1 Equity & RWAs2 Leverage Ratio 4Q23 Q/Q Y/Y Accounting Equity 14.8 -3.2% -9.5% Common Equity Tier 1 13.1 -3.8% -11.6% Additional Tier 1 1.9 -7.3% -20.6% Total Technical Capital 18.6 -4.6% -14.8% RWAs 127.8 -4.0% -4.6% Credit Risk 109.7 -4.1%
Slide 20: P&L - Financial Margin
P&L - Financial Margin 4Q23 Accumulated Gross Financial Margin $ Q/Q $ Y/Y Loan Income 4,749 -2.1% 19,782 30.5% Investment and Interbank Income 745 74.3% 2,549 264.4% Financial Income 5,494 4.1% 22,331 40.8% Financial Expenses 3,266 0.0% 13,039 86.0% Gross Financial Margin 2,229 10.8% 9,292 5.0% Pro
Slide 21: P&L - Non Financial Income & Operating Expenses
P&L - Non Financial Income & Operating Expenses 4Q23 Accumulated 4Q23 Accumulated $ Q/Q $ Y/Y $ Q/Q $ Y/Y Fee Income1 531 16.8% 1,894 12.8% Personnel Expenses 573 0.4% 2,312 13.0% Other Net Income & Expenses 85 169.7% 291 42.8% Operating Expenses and Others 982 9.5% 3,628 13.3% Non Financial Income
Slide 22: P&L - Net Profit
P&L - Net Profit 4Q23 Accumulated Net Profit2 $ Q/Q $ Y/Y Gross Financial Margin 2,229 10.8% 9,292 5.0% Provision Expenses 1,720 5.5% 5,917 71.7% Net Financial Margin 508 33.4% 3,374 -37.6% FX Changes, Derivatives -120 -602.8% -613 -319.8% Non Financial Income1 617 26.8% 2,185 16.1% Operating Expenses
Slide 23: Expectations 2024
Expectations 2024 2023 E 4Q23 2024 E 2024 E (Previous / Nov.23) (Current) (Previous / Nov.23) (Feb. 2024) Growth -6% -3% Δ Y/Y -6.1% Δ Y/Y 6% 8% Δ Y/Y 6% - 8% Δ Y/Y Loan Portfolio PDL* 4.2% - 4.7% 4.94% 3.8% - 4.2% 4.0% - 4.5% NIM 5.7% - 6.0% 5.87% 6.0% - 6.2% 6.1% - 6.4% Cost of Risk 4.0% - 4.2% 4.
Slide 24: Visit us at ir.davivienda.com
Investor Relations ir@davivienda.com + (57 601) 220 3495 www.davivienda.com Bogotá - Colombia Visit us at ir.davivienda.com
Slide 25: Appendix
Appendix 25
Slide 26: Results of our Sustainable Strategy
Results of our Sustainable Strategy 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 cer
Slide 27: Results of our Digital Transformation
Results of our Digital Transformation Digital Products Portfolio2 Transactions by Channel Digital Sales (% of products) (COP Trillion) (% of monetary transactions) 1 Digital Clients 92.7% -22% Y/Y 37% Y/Y 90% Y/Y Digital Clients1 Transactions by Channel Digital Sales (% of products) We strengthened
Slide 28: DaviPlata, a Neobank for Everyone
DaviPlata, a Neobank for Everyone Customer Base Low-Amount Deposits (Million) (COP Billion) 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 QR4, the only one of its type in the country We have reached 15% of With Products i
Slide 29: 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 -36% -2 pp Y/Y Y/Y -37% 0.1pts Y/Y Y/Y 2 1.Current cards 2. CAC in USD estimated with the average exchang