Banco Del Bajio Sa · BMV:BBAJIO/O
Banco Del Bajio Sa — Investor Presentation (October 2019)
24 slides from Banco Del Bajio Sa's investor presentation, October 2019
Slide 1: Bolsa Mexicana de Valores relevant event filing
Bolsa Mexicana de Valores SAB. de CV MeGrupo BMV Cantidades monetarias expresadas en Miles [800050] Eventos relevantes de Emisoras Evento relevante (Reporte) © Clave Cotizacién © Fecha © Razén Social Lugar © Asunto © Mercado Exterior © Documento adjunto ® Tipos de evento relevante [Eje] @ Otros even
Slide 2: A Leading Specialized Bank set for Long-Term Profitable Growth
A Leading Specialized Bank set for Long-Term Profitable Growth Corporate Presentation October | 2019 Information as of 3Q19
Slide 3: Disclaimer
Disclaimer The material that follows presents general background information about Banco del Bajío, S.A., Institución de Banca Múltiple (the “Company” or “BanBajio”) as of the date of the presentation. This information consists of publicly-available information concerning the Company. It is informa
Slide 4: Evolution from an emerging local bank to a specialized leader with national presence
Evolution from an emerging local bank to a specialized leader with national presence ◥ BanBajio Today ◥ BanBajio’s History in Four Phases Evolution of Branch Network (#) ✓ 3rd largest locally-controlled bank in Mexico(1), with ~US$12.2 Bn(2) in total assets. 1 Founding 2 Diversification 3 Growth 4
Slide 5: Our well-invested platform allows us to offer a full multi-channel solution to our customers
Our well-invested platform allows us to offer a full multi-channel solution to our customers ◥ Branch Distribution by Region 13 North Center 28 North 19 Northwest 306 Branches 29 States 9 Aguascalientes 79 Cities 12 San Luis Potosi 15 Pacific 15 Queretaro 47 Southwest 33 Metropolitan North Corporat
Slide 6: Specialized Bank on SME and Corporate Loans
Specialized Bank on SME and Corporate Loans ◥ BanBajio is Highly Specialized on SME and Corporate Loans ◥ BanBajio’s Unique Access and Capabilities to Better Serve Companies Company Loans as % of Total Loans │ 3Q19 1 84% Deep and technical knowledge of our 83% customers and their businesses 60% 2 5
Slide 7: Developing other business lines, based on the digital transformation process
Developing other business lines, based on the digital transformation process ✓As we have been successful in our company loans-focused strategy, we believe that there is also growth potential in the individuals segment to diversify and increase our revenue sources. ✓Taking advantage of our base of i
Slide 8: Loan Portfolio Growth YoY
Loan Portfolio Growth YoY ▪ Total Loan Portfolio grew 10.0% in 3Q19, ◥ TOTAL LOAN PORTFOLIO above the 5.8% of the system. 20.6% ▪ Company Loans, which represents our 20.0% core business, increased 12.0 %. 18.0% 16.0% 14.9% 14.0% YoY 12.0% Company Loans 12.0 % 9.8% 10.2% 10.0% 10.0% Financial Insti
Slide 9: Loan Portfolio, BanBajio's main asset
Loan Portfolio, BanBajio’s main asset ◥ Loan Portfolio Breakdown | By Type 3Q18 | % 3Q19 | % Mortgage Consumer Mortgage Consumer Government 4% 1% Government 4% 1% Financial Institutions 6% Companies Financial Institutions 7% Companies 7% 82% 5% 83% Corporates Corporates SMEs SMEs 55% 56% 27% 27% ◥
Slide 10: Loan Portfolio, BanBajio's main asset
Loan Portfolio, BanBajio’s main asset ◥ Commercial portfolio Use 3Q19 | % 5.6 0.3 0.1 FIXED ASSETS 5.6 23.2 WORKING CAPITAL 5.9 LIABILITIES PAYMENT 7.9 GOVERNMENT INFRASTRUCTURE FINANCIAL INSTITUTIONS/FUNDING COMMERCIAL REAL ESTATE 51.4 HOUSING REAL ESTATE PUBLIC WORKS ◥ Commercial portfolio Covera
Slide 11: We have consistently maintained industry-leading asset quality
We have consistently maintained industry-leading asset quality ◥ Best-in-Class Asset Quality 3Q19 │ % ◥ NPLs ◥ NPLs Adjusted for Write-Offs (1) 2.33% 5.97% 2.24% 5.09% 2.23% 4.71% 2.12% 4.29% 1.91% 3.84% 1.85% 3.20% 1.57% 2.19% 0.97% 1.67% 0% 1% 2% 3% 0% 1% 2% 3% 4% 5% 6% 7% Source: Company informa
Slide 12: Asset Quality
Asset Quality ▪ High asset quality and outstanding risk profile ◥ NPL Ratio | % ◥ NPL Ratio adjusted | % 2.50 5.20 4.79 2.30 4.64 4.70 4.53 2.10 2.24 2.09 2.18 4.20 1.90 3.70 1.70 3.20 1.50 1.30 2.70 1.05 2.20 1.10 0.97 1.58 1.67 0.88 1.70 0.90 1.32 0.70 1.20 3Q17 3Q18 3Q19 3Q17 3Q18 3Q19 ◥ Covera
Slide 13: Strong growth in Total Deposits
Strong growth in Total Deposits ◥ Funding Breakdown | Ps$ Bn ◥ Total Deposits Growth (Demand + Time) Cost of funding 21.0% 198.7 183.0 19.0% 20% 7.6% 16.9% 20% 17.0% 5% Interbank Loans 15.2% 7% (Primarily Development 15.0% Bank Loans) 13.3% 42% 6.6% Repos 13.0% 40% Time Deposits 10.7% 11.0% Demand
Slide 14: Continuous upward trend in Revenues
Continuous upward trend in Revenues • Million Pesos ◥ REVENUES 4,000 3,790 ▪ Revenues increased 9.5% in 3Q19 YoY and 11.9% in 9M19. 3,500 3,461 ▪ Strong performance in the Non 3,000 2,958 Interest Income. 2,500 2,000 1,500 3Q17 3Q18 3Q19 3Q19 YoY 9M19 YoY ▪ Net Interest Income* 3,139 7.6 % 9,284 1
Slide 15: Historical Net Income Performance
Historical Net Income Performance ▪ Net Income was Ps. 1,389 million in 3Q19, 4.6% higher than 3Q18, despite a higher effective tax rat due to a lower level of inflation. For the 9M19 period, Net Income totaled Ps. 4,211 million, 13.6% higher than 9M18. • Million Pesos 4,500 4,211 4,000 3,708 3,50
Slide 16: Returns and EPS in line with our guidance
Returns and EPS in line with our guidance ◥ EPS • Pesos 17 % ▪ We continue to post an above 5.00 4.69 18% level of ROAE since the IPO. 4.50 4.01 4.00 ▪ Continuous growth in Earnings, 3.50 resulted in a 86.6% increase in EPS 3.00 2.88 since the IPO, and 16.9% YoY. 2.50 2.00 1.50 3Q17 3Q18 3Q19 ◥ RO
Slide 17: Net Interest Margin
Net Interest Margin ▪ NIM contracted 21 bps in 3Q19 YoY, as a result of: The Ps. $2 billion dividend payment paid in May 10th that was replaced with interest bearing liabilities. A higher growth in deposits compared to loans. A reduction in the reference rate. 6.5% 6.0% 5.8% 5.6% 5.5% 5.4% 5
Slide 18: Efficiency Ratio
Efficiency Ratio ▪ Efficiency Ratio for 3Q19 remains stable at 43.0%. ◥ Efficiency Ratio Evolution vs. Peers ◥ Total Revenues and Expenses (1) Operating Expenses/Total Revenues (1) | % Ps$ MM | Quarterly $4,000 3,790 49.3% 49.0% $3,500 47.9% $3,000 $2,500 $2,000 1,631 42.8% 43.0% 43.0% $1,500 $1,0
Slide 19: Capital Adequacy Ratio
Capital Adequacy Ratio ▪ Solid capitalization ratio with 99.9% TIER 1 17% 16.75% 15.79%* 16% 15.25% 15% 14% 13% 12% 11% 10% 3Q17 3Q18 3Q19 * ICAP September 2019 preliminary 18
Slide 20: Solid corporate governance standards
Solid corporate governance standards ◥ Board of Directors Composition Non-Independent 38% Independent 62% Total: 13 Members ◥ High Corporate Governance Standards ✓ Independent board members selected for their ample experience in banking, risks, economy and technology. ✓ Unique IT Board committee,
Slide 21: Supplemental Financial Information
Supplemental Financial Information
Slide 22: Income Statement
Income Statement Var. Ps$ MM 3Q18 2Q19 3Q19 YoY QoQ ▪ Interest Income $5,177 $5,827 $5,943 14.8 % 2.0 % ▪ Interest Expense (2,187) (2,764) (2,804) 28.2 % 1.4 % Net Interest Income* $2,990 $3,063 $3,139 5.0 % 2.5 % ▪ Net Fees & Commissions 422 423 456 8.1 % 7.8 % ▪ Trading Income * 17 132 155 811.8
Slide 23: Income Statement
Income Statement Var. Ps$ MM 9M 18 9M 19 YoY ▪ Interest Income $14,439 $17,346 20.1 % ▪ Interest Expense (6,058) (8,062) 33.1 % Net Interest Income* $8,381 $9,284 10.8 % ▪ Net Fees & Commissions 1,236 1,286 4.0 % ▪ Trading Income* 171 374 118.7 % ▪ Other Operating Income / (Expense) 129 151 17.1 %
Slide 24: Balance Sheet
Balance Sheet Var. Ps$ MM 3Q18 2Q19 3Q19 YoY QoQ ▪ Cash & Cash Equivalents $16,914 $28,419 $26,120 54.4 % -8.1 % ▪ Investment in Securities 18,384 11,226 10,695 -41.8 % -4.7 % ▪ Cash & Investments $35,298 $39,645 $36,815 4.3 % -7.1 % ▪ Performing Loan Portfolio 160,823 174,504 176,990 10.1 % 1.4 %
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