2021 continued to be a challenging year for everyone due to the evolution of the pandemic and economic recovery expectations. Conscious of our commitment with society, we mobilized all of our resources to increase the positive impacts, aligned with our higher purpose of enriching life with integrity.

This way, we continued to incorporate strategies focused on sustainability, innovation and our people across all our activities, aiming to exceed our stakeholders’ expectations.

Today, we count with 19.8 million customers who have trusted us and believe in the transformative power of our experiences.

Thanks to this confidence, we maintain our leadership in Colombia and Central America, where we play the lead role in people’s lives and business development by offering sustainable solutions which help them fulfill their goals.

OUR COMMITMENT TO A BETTER WORLD

A high sense of responsibility along with environmental awareness are some of the top characteristics of the management we pursue, which implies commitment and respect to those around us. Our business models and its transformative power enable us to continue fulfilling our purpose of enriching people’s lives and the planet. In this way, we generate well-being and boost our stakeholders’ progress, while, at the same time, assuring our continuity as a company in the future.

As a tangible result of this transformative, responsible and aware management, in 2021 we were included for the eighth consecutive year into S&P Global Dow Jones Sustainability Index, who also recognized us in their Sustainability Yearbook for the fifth consecutive year as one of the companies with the best sustainability practices in the world.

Everyday, we transform realities through our innovative financial products and services, whose tangible incentives contribute to changing the financial habits of customers. In 2021, our sustainable loan portfolio reached COP 11.1 trillion, growing by 8.1% over the year and representing 9.3% of our consolidated gross loans. We actively work to keep boosting sustainable finance in our financing, saving, insurance and investment products and services.

We minimized the impacts derived from our operation, while maximizing the benefits and managing our risks and opportunities in a precise and timely manner. With this, in 2021, we reduced our carbon footprint by 33% compared to 2019, and offset 76% corresponding to our Colombian operation. Additionally, as an annex to this document, we published our first management report related to climate change, aligned with the TCFD guidelines, which reflects our great commitment towards this world phenomenon.

Our responsible management also implies continuing to advance in equity, diversity and inclusion of our employees and customers, under the conviction that this starts with our own governing bodies and our workforce. Today, on average, 30% of the members of our Boards of Directors are women and 39% of management positions within our organization are held by women.

Moving on with the social front, initiatives like our youth Call Center and our segmented strategies of financial literacy stand out, these initiatives reflect our input towards work inclusion and financial health for everyone. On the other hand, with our Fundación Bolívar Davivienda, we advance in a decisive way in different programs with a high social impact, in which our Cultivarte centers stand out. These centers work towards the development of technical, artistic and social skills of children and young people.

All of the advancements and accomplishments achieved during 2021 regarding sustainability are a clear manifestation of our high grade of consciousness and sensitivity facing the challenges we have as a society. Towards the future, we will continue working for a joint solution of these problems, in hand with other players, who like us, recognize themselves as change agents.

OUR BET FOR A DIGITAL WORLD

In Davivienda we go beyond delivering financial products, offering our customers memorable experiences. For this purpose, digital transformation is one of our priorities and part of our essence.

In line with our vision, we get closer to our customers by offering them 100% digital solutions which make their lives easier. As a result, digital adoption continues growing with 88% of our customers considered digital, compared to 85% in 2020 and 76% in 2019.

We are committed to finding new ways to reach people and businesses, so we can offer them valuable solutions. In this sense, in 2021 we developed more than 45 new products and functionalities inside our digital channels, and different automations based on RPA and blockchain technology to make interactions with our customers truly unique.

We continue to position ourselves as leaders in the transformation of traditional banking. In 2021, 54% of our monetary transactions and 55% of our sales in Colombia were performed through digital channels. Similarly, digital deposits in Colombia increased 61% compared to the 2020 figure. Digital loans reached a COP 9.1 trillion balance, which represents a 170% growth over 2020.

We also delivered important progress for our Central American customers, where we highlight the launch of the mobile savings account, mobile loan and mobile credit card, as well as various features for individuals and businesses, such as QR payments and remittance transfers.

We will continue working hard to be close to our customers, with a friendly, trustworthy and unique digital offering which allows them to make their dreams come true.

DAVIPLATA, OUR DIGITAL NATIVE BANK

Through DaviPlata we are changing the way in which people manage their money, and during 2021 we reached nearly 13.8 million customers with a simple solution enabling them to fulfill different needs.

We continue transforming society by leading financial inclusion in Colombia: by the end of December, 4.1 million people relied on DaviPlata as their only financial product, which allowed them to access the sector and broaden their possibilities moving forward.

We can proudly say we reached 98% of municipalities in Colombia and close to 40% of the country’s adult population to place our digital native bank’s capabilities at the service of individuals, small businesses and companies.

Within these capabilities we have subsidy distribution, through which the government has been able to deliver their help to vulnerable populations in an efficient and timely manner; as well as the Social Seller Profile and the Marketplace, which boosted the growth of companies and entrepreneurs, as well as economic reactivation.

This allowed us to consolidate ourselves as the second largest neobank in Latinamerica by number of users, closing the year with a total deposits balance of COP 881 billion (1.7 times the balance recorded in 2020), and transactional income totaling COP 83 billion, demonstrating progress in our monetization strategy.

We are committed to strengthening businesses and communities, and will continue working to offer solutions to make people’s lives easier as well as promoting business growth through different abilities such as the integration in different types of ecosystems, and Daviplata’s organizational and technological structure reinforcement.

OUR PARTNERSHIPS AND INNOVATION ECOSYSTEM

We believe in innovation as a driver to create a different reality, and we have made efforts to deliver new ways of doing things, generating initiatives and solutions that add real value.

We are committed to developing innovation skills in all levels of the organization to design new experiences for our customers, responding to the challenges presented to us by this changing environment.

Aligned with this commitment, we were certified as a R&D+i (Research & Development + Innovation) unit by the Science, Technology and Innovation Ministry in Colombia, and in hand with Grupo Bolivar we have positioned ourselves as a reference in intellectual property at a national level, radicating 5 patent requests and obtaining 1 at the end of 2021.

We also believe that the world is a place for cooperation, and in this sense, we are open to work with the best players to build ecosystems which offer a broad world of possibilities to our customers.

This way, we are contributing to building a smart city ecosystem together with Metro de Medellin, with whom we have developed the CivicaPay functionality, facilitating the mobility of Medellin citizens and enriching their experience with additional services.

We also have an attractive and renovated offer for people to access financial services through RappiPay, our alliance with Rappi. In 2021 we received the Colombian Regulator’s authorization to create a new Digital Native Financial Entity with which we want to reach new population segments.

CONSOLIDATING OUR LEADERSHIP

2021 started out with a more positive outlook, which is why the efforts previously focused on addressing the crisis shifted to finding alternatives to boost economic recovery.

In this sense, we increased our consolidated gross loans by 11,2%, supporting the financing needs of individuals, homes and businesses. The mortgage portfolio grew by 17.4%, the consumer portfolio by 11.5% and the commercial portfolio by 7.8%, where we also strengthened SMEs financing, aligned with our goal of being the best offer for this important player in Latinamerican economies.

We are leaders in Colombia and Central America with a market share of 16% and 9.5% respectively, and we keep supporting families, remaining leaders in mortgage financing in Colombia.

Our financial results also showed positive trends: our profits amounted to COP 1.26 trillion over the year, yielding a 9.35% ROAE, increasing nearly 6.17 percentage points above the figures reported in 2020.

In terms of capital adequacy, we closed 2021 with a Total Capital Adequacy Ratio of 18%, exceeding regulatory minimums, reinforcing our financial strength.

Aligned with our purpose of developing innovation skills throughout the whole organization, we became the first Colombian Bank to issue in the international markets a perpetual AT1 bond for USD 500 million under Basel III standards. We obtained a demand of 3.5x the amount to be issued and an order book composed of investors from 26 different countries, which showed the trust of international markets in Colombia and our organization.

FOR OUR STAKEHOLDERS

We highlight the efforts made by our people, who are essential to achieving our goals, and we will continue to strive for the well-being of each member of our community and their families. We will also continue attracting, training and retaining talent, strengthening the impact of our innovative, sustainable, and inclusive lifestyle.

We will continue shaping strategic partnerships with top players and directing our attention and actions towards the digital world that we envision for the future, strengthening our commitment to the countries where we operate and to all those who have decided to place their trust in us.

Javier Suarez