Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Q3 2018 Earnings Presentation
33 slides from Banco De Credito E Inversiones's earnings presentation, November 2018
Slide 1: Corporate Presentation Third Quarter 2018
Corporate Presentation Third Quarter 2018 Investor Relations Department | Email: Investor_Relations_Bci@Bci.cl November 2018
Slide 2: Contents
Contents. Main macroeconomic indicators Chilean financial system Banco de Crédito e Inversiones City National Bank of Florida Bci Investor Relations November 2018
Slide 3: Main macroeconomic indicators
Bci Investor Relations Main macroeconomic indicators
Slide 4: GDP Growth Projections (2018-2019)
GDP Growth Projections (2018-2019) 4.5 4.0 3.5 3.0 2.5 2.0 May.17 May.18 Jan.18 Nov.17 Apr.17 Feb.18 Apr.18 Mar.17 Jun.17 Mar.18 Jun.18 Aug.17 Aug.18 Jul.17 Jul.18 Sep.17 Sep.18 Oct.17 Oct.18 Dec.17 PIB year 2019 PIB year 2018 Source: Chilean Central Bank, BCI Research. 4
Slide 5: Macroeconomic Indicators
Macroeconomic Indicators Monthly Economic Growth 7 (% yoy) 6 5 4 3 2 1 0 -1 -2 -3 Jan.15 Jun.15 Nov.15 Apr.16 Sep.16 Feb.17 Jul.17 Dec.17 May.18 Mining Non Mining Imacec Economic Sentiment Index 70 (pts) 60 50 40 30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Economic Expectations, Next 12M Economi
Slide 6: Chilean financial system
Bci Investor Relations Chilean financial system
Slide 7: Financial System
Financial System Strong growth over the years (US$ Million) Total Loans (*) Commercial & Interbank Loans (*) 2.6% 4.9% 149,031 259,012 136,527 138,477 135,840 131,622 239,119 236,140 229,289 9.7% 217,251 9.7% 2015 2016 2017 3Q2017 3Q2018 2015 2016 2017 3Q2017 3Q2018 Consumer Loans (*) Mortgage Loans
Slide 8: Banco de Crédito e Inversiones
Bci Investor Relations Banco de Crédito e Inversiones
Slide 9: Shareholders and corporate governance
Shareholders and corporate governance Shareholder structure as of Sep 2018 Since Luis Enrique Yarur Rey (President) 1991 Shareholder José Pablo Arellano Marín 2011 Float Mario Gómez Dubravcic 2011 Agreement 27.23% Board of 63.28% Juan Ignacio Lagos Contardo 2013 Directors Lionel Olavarría Leyton (Vi
Slide 10: Bci Highlights - Profitable and financially sound
Bci Highlights - Profitable and financially sound Sep’18 in US$ Million (*) Market Share Total Assets $ 59,902 Total Loans $ 44,006 16.99% Net Income $ 459 16.76% Market Capitalization $ 8,451 Tier I BIS ratio Capital Ratios 9.08% 11.91% Moody's S&P Fitch International Credit Ranking A2 A A ROAE***
Slide 11: Corporate Strategy
Corporate Strategy Strategic Priorities 11 22 3 3 Leverage digital customer Drive sustainable Enhance leadership and experience to achieve growth, while maintaining collaboration throughout the competitive advantage prudent risk organization 11
Slide 12: Strategy Execution
Strategy Execution ▪ Leverage digital customer experience and superior analytics to achieve deeper relationships and Best-in-Class Customer higher revenues per client, with focus on Retail and SMEs Experience through Digital Transformation ▪ Strategy-driven IT transformation to reduce cost-to serve,
Slide 13: Market shares
Market shares 3rd largest privately owned bank in Chile Total Assets Total Loans 16.84% 16.99% Bci Bci 14.93% Bank 1 16.06% Bank 1 Others Others 63.80% 64.63% 36.20% Bank 2 35.37% Bank 2 16.19% 17.52% Bank 3 Bank 3 15.84% 14.05% Non Interest Bearing Deposits (NIBD) Net Income 23.52% 16.76% Bci Bci O
Slide 14: Loan portfolio
Loan portfolio Bci has outperformed the financial system in Total Loans during 2015-2018 (US$ Million) CNB BCI Total Loans Commercial & Interbank Loans 10.3% 21.3% 9.1% 44,006 22.2% 28,815 4.9% 2.6% 37,417 36,286 10,192 24,171 34,141 22,566 23,571 7,999 30,745 6,714 6,285 20,300 5,469 4,388 5,638 5,
Slide 15: Loan portfolio: well diversified and balanced
Loan portfolio Bci Well diversified and balanced loan portfolio Retail CIB Finance SMEs Wholesale Banking Division Individuals Revenues < UF 80,000 Revenues > UF 80,000 (up to US$3.1 M*) (up to US$ 58.6 million*) 50.74% 46.46% 42.19% 29.80% 13.91% 9.59% 5.55% 1.74% Loans by Segment Operating Income
Slide 16: Risk indicators
Risk indicators Conservative risk management policies Risk Index Total Loans Risk Index Commercial Loans Allowances/ Total Loans (Bci) Commercial Allowances/ Commercial Loans (Bci) Allowances/ Total Loans (Financial System) Commercial Allowances/ Commercial Loans (Financial System) 3.01% 2.98% 2.98%
Slide 17: Conservative risk management policies
Conservative risk management policies NPL Ratio (NPLs/Total Loans) NPL Ratio (Commercial Loans) Bci Financial System Bci Financial System 1.93% 1.94% 1.86% 1.85% 1.87% 1.70% 1.62% 1.71% 1.47% 1.46% 1.58% 1.61% 1.47% 1.42% 1.49% 1.48% 1.42% 1.40% 1.48% 1.48% 2015 2016 2017 3Q2017 3Q2018 2015 2016 201
Slide 18: Strong time deposit growth with retail customer base
Strong time deposit growth with retail customer base Non interest bearing deposits & time deposits (US$ million) 8.8% 7.2% 8.8% 16,780 14,436 13,630 12,185 12,408 Non Interest Bearing Deposits 7.2% 16,432 19,188 14,085 15,078 16,190 Time Deposits 2015 2016 2017 3Q2017 3Q2018 Breakdown by type Fundin
Slide 19: Profitability
Profitability NIM (*) (Net Interest Margin/ Average Interest Earning Assets) 4.00% 3.61% 3.62% 3.60% 3.56% 3.93% 3.59% 3.36% 3.37% 3.29% 2015 2016 2017 3Q2017 3Q2018 Bci Banking Sector Efficiency ratio (**) Fee income ratio (Net Fees/ Net Fees + Net Interest Margin) 23.08% 24. 00% 22.64% 50.7% 50.7%
Slide 20: Profitability
Profitability Sustained and profitable growth Net Income and Market Share (US$ Million) 6.0% 562 20.00% 600 501 515 17.9% 16.8% 500 17.3% 15.00% Net Income 400 16.6% 15.0% 300 Market 10.00%Share YTD 13.9% 200 126 144 100 5.00% 0 .00% 2015 2016 2017 3Q2017 3Q2018 ROAA (*) ROAE (*) 1.32% 1.27% 1.14% 1
Slide 21: Capitalization
Capitalization Bci capitalization well above regulatory requirements 13.41% 13.20% 13.57% 11.98% 11.91% Regulatory Capital / Consolidated Risk weighted assets Basic Capital / Total Assets 7.55% 7.55% 7.78% Required by Sbif (8%) 6.32% 6.92% Required by Sbif (3%) 2015 2016 2017 3Q2017 3Q2018 Bis Ratio
Slide 22: City National Bank of Florida
Bci Investor Relations City National Bank of Florida
Slide 23: Financial Highlights
Financial Highlights • Total Assets decreased by $149 MM in the quarter & increased by $4.1 BN YoY to $13.95 BN with quarterly reduction due to excess cash held in Q2 that was reduced in Q3 • Total Net Loans & Leases increased by $56 MM in the quarter & $3.7 BN YoY to $10.0 BN, Balance with the Bank
Slide 24: CNB at a Glance
CNB at a Glance Revenue Breakdown as of September 30, 2018 (YTD) Balance Sheet as of September 30, 2018 Assets Liabilities & Equity In US$ M $13,952 $13,952 2.00% 2.00% 1.00% Gross Credit Portfolio Composition as of September 30, 2018 Funding Structure and Deposits as of September 30, 2018 Source: C
Slide 25: Financial Highlights: Sustained and Stable Growth
Financial Highlights: Sustained and Stable Growth Net Loans (US$BN) as of September 30, 2018 Deposits (US$BN) as of September 30, 2018 TotalBank ($1.9) TotalBank ($1.9) ‘15-’17 ‘15-’17 CAGR: 32% CAGR: 32% Tier 1 Capital (US$MM) as of September 30, 2018 *Net Income (US$MM) as of September 30, 2018 20
Slide 26: Profitability ratios remain ahead of budget despite non-recurring expenses
Profitability ratios remain ahead of budget despite non-recurring expenses ROAA NIM ROA & ROE display an increasing trend on a normalized basis NIM is relatively flat year-over-year despite ROE Efficiency Ratio flattening yield curve environment Source: City National Bank Note: 2017 Core ROA and ROE
Slide 27: TB's client deposits have increased since transaction announcement
TB’s client deposits have increased since transaction announcement Transaction closed on June 15th TotalBank Client Deposits System integration successfully executed in $2.00 July $1.80 $1.60 $1.40 Twelve banking centers scheduled to be $1.20 closed in 4th quarter $1.00 $0.80 Consistent & steady gro
Slide 28: Key Metrics
Key Metrics 2013 2014 2015 2016 2017 Q3 2018 YTD 2018 Loans & Leases/ Assets 57.00% 61.90% 62.40% 64.50% 69.44% 71.90% 71.90% Loans / Deposits 74.70% 79.60% 90.10% 95.00% 90.28% 94.13% 94.13% DDA / Deposits 43.50% 44.00% 43.30% 37.70% 32.16% 30.86% 30.86% ROAA 0.79% 0.85% 0.80% 0.96% 1.01% 0.74% 0.8
Slide 29: Thank you
This presentation contains forward-looking statements in various places throughout therein, related to, without limitation, our future business development. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend
Slide 30: Balance sheet (US$ million)
Balance sheet US$ million (*) 2015 2016 2017 CAGR 3Q 2017 3Q 2018 %D 2015-2017 Cash 1,927 2,389 2,265 8.41% 2,185 2,791 27.78% Securities 5,613 5,744 7,162 12.97% 6,589 7,897 19.86% Loans 30,193 33,581 36,809 10.41% 35,679 43,313 21.40% Other Financial Instruments 399 461 336 -8.22% 407 76 -81.32% F
Slide 31: Balance sheet (CLP$ million)
Balance sheet CLP$ million (*) 2015 2016 2017 CAGR 3Q 2017 3Q 2018 %D 2015-2017 Cash 1,272,552 1,577,565 1,495,732 8.41% 1,442,732 1,843,524 27.78% Securities 3,706,721 3,793,351 4,730,198 12.97% 4,351,347 5,215,404 19.86% Loans 19,939,945 22,177,574 24,309,484 10.41% 23,563,026 28,604,666 21.40% Ot
Slide 32: Financial results (US$ million)
Financial results CAGR US$ million (*) 2015 2016 2017 3Q 2017 3Q 2018 %D 2015-2017 Net Interest Income 1,212 1,370 1,416 10.33% 337 418 24.05% Net Service Fee Income 355 411 407 12.53% 104 122 17.78% Operating Income 1,567 1,782 1,822 10.81% 441 540 22.57% Other Operating Income 207 165 268 11.62% 6
Slide 33: Financial results (CLP$ million)
Financial results CAGR CLP$ million (*) 2015 2016 2017 3Q 2017 3Q 2018 %D 2015-2017 Net Interest Income 800,505 905,053 934,828 10.33% 222,512 276,016 24.05% Net Service Fee Income 234,270 271,629 268,706 12.53% 68,628 80,832 17.78% Operating Income 1,034,775 1,176,682 1,203,534 10.81% 291,140 356,8
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