investor presentation - banco de bogotá · 2018-02-26 · investor presentation the issuers...

Investor Presentation

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.

J.P. Morgan

9th Annual J.P. Morgan Global Emerging Markets Corporate Conference

February 26th – February 28th, 2018

2

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 required to comply with periodic reporting requirements and corporate governance practices. In 2009 the Colombian Congress enacted Law 1314 establishing the implementation of IFRS in Colombia. As a result, since January 1, 2015, financial entities and Colombian issuers of publicly traded securities, such as Banco de Bogotá, must prepare financial statements under IFRS, with some exceptions established by applicable regulation.

IFRS as applicable under Colombian regulations differs in certain aspects from IFRS as currently issued by the IASB. This report was prepared with unaudited consolidated financial information, which is in accordance with IFRS as currently issued by the IASB.

This report figures are presented in USD dollars, the translation use the exchange rate of December 31, 2017 (COP$2,984.00).

This report may include forward-looking statements and actual results may vary from those stated herein as a consequence of changes in general, economic and business conditions, changes in interest and currency rates and other risks factors. Recipients of this document are responsible for the assessment and use of the information provided herein. Banco de Bogotá will not have any obligation to update the information herein and shall not be responsible for any decision taken by investors in connection with this document. The content of this document is not intended to provide full disclosure on Banco de Bogotá or its subsidiaries.

In this document we refer to trillions as millions of millions and to billions as thousands of millions.

Details of the calculations of Non GAAP measures such as ROAA and ROAE, among others, are explained when required in this report.

3

0%

2%

4%

6%

8%

Dec-02 Dec-05 Dec-08 Dec-11 Dec-14 Dec-17

12M YoY %

20

40

60

80

Dec-14 Dec-15 Dec-16 Dec-17

WTI Oil (USD/barrel)

National & urban unemployment (%)

GDP (YoY %, quarterly)

Source: DANE, Bloomberg. Estimates Economic Research Banco de Bogotá.

2017

1.8%

Macroeconomic Context - Colombia (1/3)

WTI oil (USD/barrel)

2015 2016 2017 2018e

3.1% 2.0% 1.8% 2.5%

GDP growth by sector (YoY %, fourth quarter)

7

24

17

14

4

8

8

12

7

GDP (%) 4.9%

3.8%

3.4%

1.2%

1.1%

-0.1%

-0.7%

-1.0%

-3.6%

1.6%

4.4%

2.0%

2.6%

-0.8%

0.6%

4.5%

3.4%

-7.0%

-8% -6% -4% -2% 0% 2% 4% 6%

Agriculture

Financial sector

Social services

Commerce

Utilities

Transportation

Construction

Industry

Oil & mining

2017

2016

Price per Barrel US$

2015 2016 2017

End of Period 37.0 53.7 60.4

10.8% 10.4%

9.6% 9.1% 8.9%

9.2% 9.4%

11.4% 11.2% 10.6% 9.9%

9.8% 10.0% 10.6%

2011 2012 2013 2014 2015 2016 2017

National Unemployment as of December for each period

Urban and Metropolitan Unemployment as of Decemberfor each period

4

0%

2%

4%

6%

8%

10%

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Headline inflation

Core inflation 4

Total and core* inflation (YoY%)

Source: DANE, Banco de la República (BR). Estimates Economic Research Banco de Bogotá. * Average of four measures preferred by BR: 1) without foodstuff; 2) without foodstuff and regulated; 3) without foodstuff, public services and gasoline; and 4) core 20. ** Monthly average.

Central bank interest rate vs. DTF rate** (%)

Headline inflation

2015 2016 2017 2018e

6.8% 5.8% 4.1% 3.3%

*

2%

3%

4%

5%

6%

7%

8%


Tasa BR DTF

Central Bank Rate

2015 2016 2017 2018e

5.75% 7.50% 4.50% 4.50%

Central bank rate

3.7%

4.4%

4.50%

5.21%


Exchange Rate (USD/COP)

Positive change = COP appreciation Negative change = COP devaluation

0%

2%

4%

6%

8%

10%

12%

14%

16%


Food

Tradables

Indexed

7.4%

1.5%

3.2%

Food, tradables and indexed inflation (YoY %)

1,600

2,000

2,400

2,800

3,200

3,600


Exchange rate (USD/COP)

2016 2017 2017/2016

Average Acumulated Year

3,040.96 2,951.08 -2.96%

End of Period 3,000.71 2,984.00 -0.56%

5

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

Dec-09 Dec-11 Dec-13 Dec-15 Dec-17

Trade balance 12M (% GDP)

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Sep-09 Sep-11 Sep-13 Sep-15 Sep-17Trade balance Services balanceLabor and investment income Current transfersCurrent account

Foreign investment: direct and portfolio* (USD M, monthly)

Source: DANE, Banco de la República. Estimates: Economic Research Banco de Bogotá. * With information from Balanza Cambiaria.

428

438

0

500

1,000

1,500

2,000Other sectors Oil and mining

415

(1,000)

0

1,000

2,000

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

Portfolio

Current Account (% GDP, 12 month) Current account

2015 2016 2017e 2018e

-6.4% -4.4% -3.5% -3.0%

-3.6% -2.3%

2.1%

-2.2%

-1.2%


Trade balance (% GDP, 12 month)

-2.0%

International reserves (USD M, months of imports)

6

7

8

9

10

11

12

13

0

10

20

30

40

50

60

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

International reserves (USD million)

IR in months of imports

Historical average

12.3

47,718

8.9

6

-4

-2

0

2

4

6

8

Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

CR PA GU NI HO ES CENAM

2.6 2.0

3.3

0.5

5.7 5.7

4.7

Macroeconomic Context – Central America

Source: SECMCA, International Monetary Fund (IMF). ES: El Salvador, HO: Honduras, CR: Costa Rica, GU: Guatemala, NI: Nicaragua, PA: Panama, Cenam: Central America. * Monthly activity indicator.

Inflation (YoY %)

GDP (YoY %)

2.3

3.2

4.0 3.8 3.9

4.5

5.3

2.1

3.4 3.6

3.8 3.9

4.3

5.6

0

1

2

3

4

5

6

El SalvadorGuatemala Honduras Costa Rica Cenam Nicaragua Panama

2017e 2018e

Trade balance (% of GDP)

-30

-20

-10

0

10

20

2000 2004 2008 2012 2016

Costa Rica El Salvador Guatemala Honduras

Nicaragua Panama Cenam

Central bank interest rate (%)

0

2

4

6

8

Jan-15 Jan-16 Jan-17 Jan-18

Costa Rica Honduras Guatemala

4.75

2.75

5.75

7

Ownership

Grupo AvaI 20.0% 9.5%

Banco de Bogotá 100.0% 46.9% 38.5%

Banco de Occidente 33.1% 4.6%

Banco Popular 5.8%

Others 41.5%

Total 100.0% 100.0% 100.0%

Business Overview

Key Facts Founded in 1870, Banco de Bogotá is Colombia’s oldest financial

institution and the principal subsidiary of Grupo Aval, the leading financial group in Colombia

Current shareholding structure: Grupo Aval: 68.7%, Other Companies owned by Mr. Sarmiento Angulo 8.3%, Paz Bautista Group 13.3% and Public Float 9.6%

Leading presence in Colombia and Central America. Second largest bank in Colombia in terms of assets and deposits, and largest bank in Central America in terms assets, deposits and loans through BAC Credomatic

Universal bank with a strong presence in the commercial and consumer lending segments

Listed on the Colombian Stock Exchange (BVC), Banco de Bogotá’s market capitalization at December 31st, 2017 was US$7.5bn

Sources: Company information. (1) Rankings as of December 31st, 2017. Net Income rankings based on unconsolidated figures. (2) Rankings as of September 30th, 2017. Calculated based on data aggregated from the local bank superintendencies of Costa Rica, El Salvador, Guatemala, Honduras, Panamá and Nicaragua. (3) Reflects aggregate number of ATMs of Banco de Bogotá and BAC Credomatic as of December 31st,2017. (4) Reflects aggregate number of branches of Banco de Bogotá, Porvenir, Banco de Bogotá Panamá, Almaviva, Fiduciaria Bogotá and BAC as of December 31st,2017. Banco de Bogotá and BAC Credomatic jointly account for 1,424 branches. (5) Banco de Bogotá owns BAC Credomatic through Leasing Bogotá Panamá. (6) Banco de Bogotá controls Porvenir through shareholders agreements with Grupo Aval and Banco de Occidente. (7) As of December 31st, 2017.

Banco de Bogotá’s Structure

Pension Fund Central American

Banking Group

Principal Subsidiaries of Banco de Bogotá

(5) (6)

Colombia(1)

Central America(2)

Assets & Deposits

Loans

Loans

Net Income

1st

2nd

2nd

3rd

Regional Franchise

ATMs

3,733(3)

Branches

1,549(4)

Total Distribution Network

2nd Net Income

1st Assets & Deposits

Merchant Bank

Associated

51.0% 49.0%

Assets (E)

49.0% 51.0%

Colombia Operations

Central America Operations

Net Income (E)

Consolidated Assets and Net Income Breakdown by Geography(7)

USD$640 millions USD$50 billions

8 8

32.9% 29.3%

25.2%

14.5%

6.0%

Categoría 1

26.2% 25.2%

14.3% 13.5% 9.9%

Categoría 1

System: USD$194.8 bn

27.5%

23.4%

14.2% 13.1% 12.0%

Categoría 1

System: USD$122.4 bn System: USD$2.6 bn

Source: Unconsolidated information under IFRS filed with the Colombian Superintendency of Finance and published monthly; as of December 31, 2017. System: Sum of banks. Grupo Aval is the sum of Banco de Bogotá, Banco de Occidente, Banco Popular and Banco AV Villas. Exchange rate: 2,984.00 COP/USD (1) Figures excluding interbank & overnight funds for comparative purposes. Deposits are calculated as checking accounts, saving accounts and time deposits.

Total Assets

Net Income 2017 Deposits (1)

25.9% 25.6%

14.8% 13.0% 10.5%

Categoría 1

System: USD$132.3 bn

Net Loans (1) As of December 2017

Significant player in a competitive Colombian market

9

Total Assets (1)

System: US$147.6 bn System: US$235.2 bn

System: US$161.4 bn System: US$2.2 bn

8.9% 8.0% 7.3% 6.6%

4.1%

Bac Bancolombia Banco General BI Scotiabank

10.0% 9.2% 7.6%

5.6% 4.9%


8.7% 8.0% 7.0%

6.1% 4.5%


15.3% 12.7%

8.3% 6.5%

4.6%

Banco General BAC BI Bancolombia Banrural

BAC is market leader in Central America at September

2017

Source: Company filings. Calculated based on publicly disclosed data aggregated from the local superintendencies of Costa Rica, Honduras, El Salvador, Guatemala, Nicaragua and Panamá

(1) Market share is determined based on the consolidated operations in the aforementioned countries. Bancolombia includes Banistmo (Panamá), Bancolombia (Panamá), Grupo Agromercantil

(Guatemala) and Banco Agrícola (El Salvador)

As of September 2017 Net Loans (1)

Net Income (9 months) Deposits (1)

27.5%

15.0% 35.1%

0.4%

2.1%

18.4%

1.5% Checking Accounts

Savings Accounts

Time Deposits

Other Deposits

Bonds

Borrowings

13.3%

7.9%

68.7%

10.1% Cash

Fixed IncomeInvestments

Loans, net

Other assets

Strong Balance Sheet Structure, December 2017

Other assets includes Accounts receivable, PP&E, Goodwill and Intangible Assets, OREOs Net and Other

Exchange rate: 2.984,00 COP/USD

(1) Equity Investments: Includes participations in our associates (Corficolombiana and Casa de Bolsa), and subsidiaries as Leasing Bogotá Panamá and Porvenir, among others.

Assets: $23.5 Bn.

Growth Dec 17/Dec 16: 8.0%

Banco de Bogotá Unconsolidated

10

BAC

7.4% 5.5%

64.1%

4.0%

19.1%

Cash

Fixed IncomeInvestments

Loans, net

Other assets

EquityInvestments

19.8%

36.0%

27.1%

0.2% 10.7%

5.3% 0.8%

Checking Accounts

Savings Accounts

Time Deposits

Other Deposits

Bonds

Borrowings


Assets: $28.1 Bn.

Figures in USD. Billions


Funding: $18.9 Bn.


Funding: $20.9 Bn

(1)

13%

9%

6%

6%

5%

5%

5% 5% 5%

4%

4%

3%

3%

3% 2%

2% 2%

2%

1% 17%

Payrolls and Consumer Investment Groups

Coal, Gas and Oil Food, Beverage and Tabacco

Mortgages Civil Works

Construction Transportation

Credit Cards Wholesale and Retail Companies

Public Services Business Support

Agricultural Health

Automobile Chemical Products

Commercial Services Transportation Equipment

Microcredit Others Commercial


11

Diversified, high-quality gross loan portfolio as of

December 2017

Central America

Gross Loans $18.3 Bn. Gross Loans $15.5 Bn.


Exchange rate: 2,984.00 COP/USD

12% 0% 0%

5%

19%

1% 4%

1% 17%

5% 2%

3%

4%

1% 6%

1% 3%

2%

0% 14%

Payrolls and Consumer Investment Groups

Coal, Gas and Oil Food, Beverage and Tabacco

Mortgages Civil Works

Construction Transportation

Credit Cards Wholesale and Retail Companies

Public Services Business Support

Agricultural Health

Automobile Chemical Products

Commercial Services Transportation Equipment

Microcredit Others Commercial

41.4% 42.0%

37.9% 37.7%

20.7% 20.3%

Dec-16 Dec-17

Mortgage

Consumer

Commercial

75.5% 74.0%

19.1% 19.8%

Dec-16 Dec-17

Microcredit

Mortgage

Consumer

Commercial

Growth (%) Dec 17/Dec 16

5.3%

6.8%

8.8%

Loan Portfolio Evolution by Business Segment

12

Growth (%) Dec 17 / Dec 16 Gross Loan Portfolio, Banco de Bogotá Unconsolidated

2.3%

8.6%

20.8%

2.9%

0.7% 0.7%

4.7% 5.4%

$17.6 Bn. $18.3 Bn.

Gross Loan Portfolio, BAC

Total Loans 4.3%

Total Loans 7.3%

$14.5 Bn. $15.5 Bn.



13


BAC

Dec-2016 Dec-2017 Dec-2016 Dec-2017

Delinquency Ratio

30 day PDLs / Gross Loans 3.0% 4.4% 2.3% 2.4%

Excluding Electricaribe(1) 3.8%

90 day PDLs / Gross Loans 2.2% 3.6% 1.2% 1.2%

Excluding Electricaribe 2.9%

Cost of Risk (2)

Cost of Risk, Gross 2.2% 2.9% 2.4% 2.7%


Cost of Risk, Net 2.0% 2.7% 1.9% 2.1%


Charge-Off Ratio (2)

Charge offs / 90 days PDLs 0.88x 0.47x 1.46x 1.58x

Excluding Electricaribe 0.60x

Charge offs / Avg Loans 1.8% 1.4% 1.6% 1.9%

Coverage

Allowance / 30 days PDLs 1.12x 1.04x 0.61x 0.63x


Allowances / 90 days PDLs 1.51x 1.29x 1.22x 1.28x


Allowances / Gross Loans 3.3% 4.6% 1.4% 1.5%


(1) As of December 2017, 90+ days PDLs includes a 70% provision of Electricaribe (principal + interest). (2) Accumulated full year.

Loan Portfolio Quality Banco de Bogotá Unconsolidated and BAC

36.5% 35.2%

19.5% 19.2%

43.5% 45.0%

0.4% 0.6%

Dec-16 Dec-17

Other Deposits

Time Deposits

Saving Accounts

Checking Accounts

25.4% 23.9%

40.8% 43.3%

33.7% 32.6%

0.1% 0.2%

Dec-16 Dec-17

Other Deposits

Time Deposits

Saving Accounts

Checking Accounts

2.1%

Deposits, BAC

14

-0.7%

12.0%

$16.5 Bn. $17.4 Bn.

Growth (%) Dec 17 / Dec 16

Deposits, Banco de Bogotá Unconsolidated

Evolution of Deposits

Total Deposits 5.4%

Total Deposits 11.1% $13.4 Bn. $14.9 Bn.


Exchange rate: 2,984.00 COP/USD..

15.0%

7.3%

9.6%

Growth (%) Dec 17/Dec 16

89.2%

49.7%

15

0.3% 0.2%

5.8%

6.3%

5.3% 5.8%

Dec-16 Dec-17

Net Interest Margin on Investments (1) Net Interest Margin on Loans (2)

Net Interest Margin (3)


Net Interest Margin

BAC

(1) Investments Net Interest Margin : Net Interest income on fixed income securities + Net trading income from investment securities held for trading + income from interbank and overnight funds / Full year average securities + Interbank and overnight funds.

(2) Loans Net Interest Margin: Net Interest Income on Loans / Full year average loans and financial leases. (3) Net Interest Income for the period/ Full year average interest earning assets.

0.3% 0.4%

7.8% 7.4%

6.7% 6.4%

Dec-16 Dec-17

BdB Unconsolidated

Dec - 16 Dec - 17

Yield on Loans 11.1% 11.1%

Yield on Fixed Income

5.6% 5.0%

Funding Cost 5.5% 4.9%

Net Interest Margin

5.3% 5.8%

BAC Dec - 16 Dec – 17

Yield on Loans 11.1% 10.7%

Yield on Fixed Income

3.7% 3.7%

Funding Cost 3.3% 3.3%

Net Interest Margin

6.7% 6.4%

16

9.5% 9.1%

4.9% 4.9%

Sep - 16 Sep - 17

Tier I Tier II

5.3 5.6

0.3 0.3

Sep-16 Sep-17

Shareholders' Equity Non-controlling interest

14.4%

Total:

9.0%

Tier I:

4.5%

$5.3 Bn. $5.6 Bn.

Sep - 16 Sep - 17

$5.6 Bn.

Sep 17 / Sep 16: 7.1% Sep 17 / Sep 16: 6.5%

Consolidated Capital Adequacy (1)

Shareholders ‘ Equity Attributable Equity + Minority Interest

Regulatory Minimum:

(1) Capital Ratios are calculated under the methodology of the Colombian Superintendency of Finance. The capitalization generated by the deconsolidation of Corficolombiana was included as Tier I in Sep-16.

14.0%

$5.9 Bn.


Equity and Capital Adequacy

17

Dec-16 Dec-17

Pension Funds

Fiduciary Services

CR/DB Card Fees

Banking Fees

20.1% 20.3%

Dec-16 Dec-17

Banco de Bogotá Unconsolidated (2)

Fee Income

BAC

Fee Income Ratio (1)


Fee Income by Product

35.6% 35.8%

Dec-16 Dec-17

(1) Fee Income ratio is calculated: Gross Fee income / Net interest income before provision + Gross fee income + Net trading income from investment securities held for trading + Other Income(excluding equity method Income, dividends and others). (2) Ratios for Banco de Bogotá Unconsolidated are calculated excluding the extraordinary gain from the loss of control of CFC (USD $728 Million).

Figures in USD. Millions

Dec-16 Dec-17

Checking Fees

Branch Services

CR/DB Card Fees

Banking Fees

3.3% 2.9%

4.2% 3.5%

$301 $320


BAC

66.6% 65.8%

1.4% 1.4% $ 662 $ 692

45.4%

47.1% 48.1%

45.5% 26.9% 28.0%

5.0% 4.8%

18

2.6% 2.7%

Dec-16 Dec-17

46.7% 48.8%

Dec-16 Dec-17

Efficiency

(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, dividends and others). (2) Ratios are excluding the wealth tax. Including this tax, efficiency ratio was 50.5% for 2016 and 50.2% for 2017. (3) Calculated as annualized personnel plus administrative and other expenses divided by average of total assets.


55.1% 52.5%

Dec-16 Dec-17

BAC

4.8% 4.4%

Dec-16 Dec-17

Operating Expenses/ Total Income(1) (2)

Operating Expenses/Average Assets (3) Operating Expenses/Average Assets (3)

Operating Expenses/ Total Income(1)

48.4%

Excluding streamlining overhead in Colombia

2.6%

19

NOTE: Ratios for Banco de Bogotá Unconsolidated are calculated excluding the extraordinary gain from the loss of control of CFC (USD $728 Million)

(1) ROAE for each period is calculated as Net Income attributable to shareholders divided by average attributable shareholders' equity.

(2) ROAA for each period is calculated as Net Income divided by average of total assets.

12.5% 11.9%

Dec-16 Dec-17

2.5% 2.4%

Dec-16 Dec-17

ROAA (2) ROAE (1)

Profitability


BAC

ROAA (2) ROAE (1)

14.5% 14.8%

Dec-16 Dec-17

1.8% 1.8%

Dec-16 Dec-17

Contact Information:

María Luisa Rojas Giraldo Chief Financial Officer [email protected]

Julio Rojas Sarmiento Chief Strategy & Digital Officer [email protected]

IR Contact: [email protected]

investor presentation - banco de bogotá · 2018-02-26 · investor presentation the issuers...

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